British BP company intends to make oil extraction, but not gas, as well as exploration and extraction of hydrocarbons, but not development of their processing, its strategic priority, Reuters agency cited BP leaders as saying while presenting the strategy of the company's development from 2014 to 2020 to the analysts of the stock market on December 3, 2012.
BP President Robert Dudley said that after sale of its assets, including 50% bloc of shares to Russian TNK-BP company, British corporation did not lose its positions in this industry and simplified its structure, making it more manageable. "We sold 50% of our equipment in the extraction field, one third of our wells and half of the pipelines, but we lost only 9% of extraction and 10% of resources," Dudley said at the presentation of the BP strategy. "BP has become a simpler company."
After the accident on the BP platform in the Gulf of Mexico in April 2010 the company concluded agreements to sell its assets worth $65 billion, which is equal to almost half of volume of its market capitalization. BP has created the fund to pay compensations, total amount of which is $27.5 billion now. Dudley also said that despite negative consequences of the accident in the Gulf of Mexico, this region will play an important role in increase of its oil and gas extraction in the future.
In its strategy BP also promises to increase capital costs for exploration and extraction of hydrocarbons. From 2011 to 2020 these costs will total $24-27 billion a year against $19.1 billion in 2011 and $22 billion in 2012.
The company intends to ensure increase in investments at the expense of growth of the operation profit and sale of assets. According to the plan, the increase in flow of cash should total $2-3 billion.
The strategy for 2014 to 2010 envisages increase in investments in exploration and extraction of oil and gas from the current 70% up to 80% and share of capital investments into development of refining system and oil products sale should go down.-0--
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