BP adds more gas to global markets with five projects

BP announced that it has started five out of its seven planned upstream projects, that will produce natural gas in Australia and Trinidad. “This is a significant year for BP and, with five of our seven planned major projects now onstream, delivery of our plan is firmly on track,” said Bob Dudley, BP group chief executive.

Despite a lull in oil prices that has extended beyond three years, dropping to about US$50 a barrel from highs of $110, BP has remained committed to new offshore investments.

The UK oil and gas company had one of the highest “breakeven” prices in the industry, but is slowly recovering by reducing its operational spending.

Moreover, the share of natural gas in the global energy mix will grow to 23 per cent by 2030 from 22 per cent last year, driven mainly by growth in China, India and South East Asia, according to McKinsey.

BP announced in March it planned on bringing seven new upstream projects online this year. Mr Dudley said that this would make it “one of the most significant years for commissioning new projects in our history”.

“Together with the projects already brought online last year, these new projects will make a huge contribution to the 800,000 barrels of oil equivalent per day (boed) of new production by 2020,” he said.

The latest additions, Trinidad’s Juniper and Persephone in Australia, follow three earlier projects in Egypt and the UK, as well as an onshore project in Trinidad. Before the end of the year, the first phase of the Khazzan gas development in Oman is expected to begin production as well as Egypt’s mega-gas discovery, the Zohr field.