BP’s profit swells. Output highest since 2010

British oil major BP reported a rise in both fourth quarter and full year profits of 2018.

The company said on Tuesday its underlying replacement cost profit for the full year 2018 was $12.7 billion, more than double that reported for 2017.

The fourth quarter underlying replacement cost profit result was $3.5 billion, compared to $2.1 billion in the fourth quarter of 2017. The quarterly result was driven by the strong operating performance across all business segments, BP said.

Reported oil and gas production averaged 3.7 million barrels of oil equivalent a day for 2018. Upstream underlying production, which excludes Rosneft, was 8.2% higher than in 2017.

Bob Dudley, group chief executive said: We now have a powerful track record of safe and reliable performance, efficient execution and capital discipline. And we’re doing this while growing the business – bringing more high-quality projects online, expanding marketing in the Downstream and doing transformative deals such as BHP. Our strategy is clearly working and will serve the company and our shareholders well through the energy transition.

Production highest since 2010

The oil major’s Upstream production for the year, excluding Rosneft in which it holds a share, was 3% higher than in 2017, the highest since 2010. Adjusted for portfolio changes and PSA impacts, underlying production was 8.2% higher than in 2017 due to major project ramp-ups and improved plant reliability. Upstream production for the fourth quarter was 2,627mboe/d, 1.8% higher than a year earlier.

Upstream unit production costs for 2018 were higher than in 2017 due to increased wellwork activity and the impact of higher prices on production entitlements.

The Clair Ridge project, west of Shetland in the North Sea, was the sixth Upstream major project to come on stream in 2018, following earlier start-ups in Egypt, Russia, Azerbaijan, the Gulf of Mexico and Australia.

BP has brought 19 new major projects online over 2016-2018. Sanction for the first phase of the Greater Tortue Ahmeyim LNG development offshore Mauritania and Senegal and the Cassia Compression and Matapal gas projects in Trinidad were announced in the quarter. In January, BP announced approval of the Atlantis Phase 3 development in the Gulf of Mexico.

Offshore Energy Today Staff