BP Estimates 2002 Production will be up 5%

BP has estimated that second quarter total production will be up around 5% over the same period last year at or above 3.5 mmboe/d. The increase reflects continued build up from projects commissioned last year and from the King field in the Gulf of Mexico, which came on stream during the quarter. Output from these new projects more than offset the impact of OPEC related quota restrictions, which restricted production by around 20 mb/d compared to the second quarter of 2001.

Total production for the second quarter of 2002 is also expected to be around 1% higher than last quarter, overcoming normal seasonal decline factors. Output in the first quarter of 2002 was depressed by 100 mb/d due to unusually mild weather, OPEC quota restrictions and asset disposals. Despite this, full year production remains on track to grow at a target annual rate of 5.5% as many new projects, including King's Peak, Horn Mountain and Princess in the Gulf of Mexico and Trinidad train 2 are due on stream during the second half of the year.

While output is rising, so is spending on finding new supplies. BP said it expected exploration costs to rise by more than $100 million from the first quarter this year, reflecting an $85 million write-off of an oil deposit in the Gulf of Mexico.