BP's New Major Capital Projects Progressing, Will Add 800,000 Boepd

New major capital projects that will add 800,000 barrels of oil equivalent per day to BP plc’s output are “progressing,” according to Jefferies, which hosted an investor meeting with BP management, including CEO Bob Dudley.

“The meetings reinforced our view of BP as a company with increasing confidence in its strategy and direction,” Jefferies said in a statement sent to Rigzone.

In addition to the progression of the new production projects, which are expected to provide 500,000 boepd by the end of next year, existing facilities are running at “very high rates,” said Jefferies, and cost reduction efforts are driving the corporate cash cycle towards balance in 2017. The company expects to maintain a scrip dividend as “a component of cash flow neutrality” next year but expects to pay the dividend fully in cash longer term.

“We expect that the longer term dividend will be further secured by the high-margin projects that start up by the end of 2017, and BP expects to be free cash flow generative at $45 oil by 2020,” said Jefferies.

“The priority uses of free cash are likely to be some debt reduction and share repurchases to offset the dilutive effects of the scrip dividend,” Jefferies added.

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist. Email Andreas at andreas.exarheas@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
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
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Andreas Exarheas
Assistant European Editor | Rigzone
 -  BP to Sell Stake in UKCS Magnus Field,... (Jan 24)
 -  ASCO: Health, Safety of Employees of P... (Jan 24)
 -  KRG Delivers Payments to Genel, DNO, G... (Jan 23)
 -  UK Industrial Strategy Paper Outlines ... (Jan 23)
 -  Oil, Gas Firms Make Global 100 Most Su... (Jan 19)


Most Popular Articles

From the Career Center
Jobs that may interest you
CDL Driver - Midland - Oil and Gas
Expertise: Fracturing
Location: Midland, TX
 
Senior Substation Engineer
Expertise: Engineering Manager
Location: Florida, FL
 
United States El Reno: Engineer - Frac/Acid
Expertise: Fracturing
Location: El Reno, OK
 
search for more jobs

Brent Crude Oil : $55.23/BBL 0.46%
Light Crude Oil : $52.75/BBL 0.62%
Natural Gas : $3.24/MMBtu 1.25%
Updated in last 24 hours