Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

BP Upstream Presentation Receives Mixed Response

change text size

BP's upstream investor day Monday received a mixed, but generally upbeat response from oil sector analysts who follow the company.

At the London presentation, BP told those present that it plans to raise capital spending to between $24 billion and $27 billion a year for the 2014-to-2020 period from $19.1 billion last year. The proportion allocated to its upstream activities will rise to around 80 percent of total capital spending in 2014 from around 70 percent in 2011.

According to a research note Tuesday from Canada's Canaccord Genuity, the investor day added little in the way of immediate news but the detail should help underpin confidence in the recovery of the company's exploration and production portfolio.

Canaccord noted that BP has "transformed its exploration opportunity set", and this looks like it could be much more of a meaningful driver of value accretion than in the past. Meanwhile, the investment bank said that it expects to hear more from Rosneft about the synergy upside from the TNK-BP deal in coming months, but also from BP about other alliances with Rosneft.

Meanwhile, analysts at New York-based investment bank Jefferies said that it expected production from BP to remain flat during 2013 but that it (like Canaccord) sees production growth returning from 2014 onwards – with the firm's focus clearly on its high-margin areas of Angola, Azerbaijan, the US Gulf of Mexico and the North Sea.

"Post-Macondo it is evident that BP is evolving into a simpler and more oil-focused entity," Jefferies said in a "flash note" on the company.
 

 



A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

More from this Author
Jon Mainwaring
European Editor | Rigzone.com
 -  Oilfield Discovered Onshore UK near Lo... (Oct 24)
 -  Inside BP's Upstream Learning Center (Oct 24)
 -  GDF, BP Make 'Significant' Discovery i... (Oct 23)
 -  What's Going on in Kurdistan? Q&A with... (Oct 20)
 -  North Sea Future: Innovation Needed (Oct 17)
Most Popular Articles
From the Career Center
Jobs that may interest you
Business Development Manager
Expertise: Business Development, Client Representative, Regulatory Compliance
Location: Arvada, CO
 
Regional Management Trainee
Expertise: Operations Manager
Location: Houston, TX
 
Manager, Environmental
Expertise: Engineering Manager, Environmental Engineer
Location: Los Angeles, CA
 
search for more jobs