Jan 6 (Reuters) -
** Shares of British oil and gas company BP haverecovered to levels last seen before the collapse in oil pricesin June 2014, outperforming all of its rivals including RoyalDutch Shell and Exxon Mobil
** Benchmark Brent crude oil prices are nevertheless still50 percent below their June 19, 2014 level
** GRAPHIC: Oil majors share performance vs. oil prices (http://tmsnrt.rs/2jjfZvh)
** Oil companies have made sharp spending cuts and stringentcost savings in recent years in an effort to increase efficiencyand sustain dividend payments to shareholders
** BP is set to see its biggest ever number of projectstart-ups in 2017 that will add some 500,000 barrels per day ofcapacity
** BP and Shell shares have been boosted by investorappetite for companies that pay dividends in dollars after asharp drop in the British pound due to the country's decision toleave the European Union
** Barclays: "The (BP) portfolio is simpler and operationsmore efficient across both the upstream and downstreambusinesses than it was and the scene is set for a period ofmaterial production and cashflow growth in the coming fouryears"
(Reporting by Ron Bousso; editing by Karolin Schaps)