The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksBP Share News (BP.)

Share Price Information for BP (BP.)

London Stock Exchange
Share Price is delayed by 15 minutes
Get Live Data
Share Price: 502.30
Bid: 501.70
Ask: 501.80
Change: -2.70 (-0.53%)
Spread: 0.10 (0.02%)
Open: 507.60
High: 510.70
Low: 501.40
Prev. Close: 505.00
BP. Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

RPT-INTERVIEW-A year after Elgin shutdown, Total restarts production

Mon, 11th Mar 2013 08:08

(Repeats to additional subscribers)

* Total restarted output at Elgin field on March 9

* Elgin to reach pre-leak output capacity in 2015

* Total to "kill" at least 10 wells at Elgin on safety norms

* Total needs HSE green light to give full accident reasons

* Leak had shaved off 0.2 pct points of UK's 2012 GDP

By Muriel Boselli and Michel Rose

PARIS, March 11 (Reuters) - Total restartedproduction on Saturday at its huge Elgin gas field in the NorthSea, almost a year after a major gas leak which cost the companymillions of euros in lost output and even impacted UK economicgrowth.

Total will not release the full details of what went wrongwith the G4 well until it gets the go-ahead from Britain'sHealth and Safety Executive (HSE), which gave its clearance lastweek for the French group to restart the field.

Total's G4 well in the Elgin field, which spewed gas forover seven weeks after the leak, will return to production of60,000 barrels of oil equivalent per day (boepd) by the end ofthe month, half its pre-leak level, two Total executives said.

"We can expect that after 11 months of outage, the restartwill take place in a series of restarts and stoppages,"Yves-Louis Darricarrere, Total's head of exploration andproduction, told Reuters in a telephone interview.

The field, located 240 km off the eastern coast of Scotlandand operated by Total which has a 46.2 percent stake, wouldreturn to its pre-accident production level in 2015 and wouldreach between 130,000 and 140,000 boepd in 2016, a higher levelthan what was forecast before the accident, the executives said.

"The accident has not diminished the reserves, so what wedidn't produce during the time interval (2012-2015) will meanmore production for 2016, 2017 and 2018," Darricarrere added.

Elgin and the nearby Franklin field, which startedproduction in 2001, accounted for nearly 3 percent of Britain'soutput and the shutdown registered on Britain's ailing economy,as falling oil and gas production knocked 0.2 percentage pointsoff gross domestic product last year.

Total, which is one of Britain's biggest investors, alsosaid more stringent safety rules at the field meant it wouldkill a minimum of 10 wells, out of a total of 19, over athree-year period, by injecting some 800 metres of cement perwell.

The production increase will be achieved by the developmentof two big projects: phase two of West Franklin and a revamp ofElgin, expected to be finalised this summer, Darricarrere said.

"The Elgin Franklin field has produced 700 million barrelsof oil equivalent and there is still 500 million to produce, thesize of an elephant (industry jargon to describe a field of morethat 500 million boe)," the executive said.

"HUMILITY LESSON"

News of the gas leak in March last year revived memories ofBP's Deepwater Horizon disaster and had an initiallysevere impact on Total shares, which fell almost a fifth in thetwo months after the initial leak.

The stock has since recovered to trade just 2 euros belowthe 41 euros seen before the accident, but is still valued atonly 7.3 times 12-month forward earnings, a 20 percent discountto its peers globally and a 10 percent discount to BP and Shell.

Darricarrere said the cost of the closure for Total hadreached 1 million pounds ($1.5 million) a day in lost revenue -suggesting a total loss in revenue between March 25, 2012, andMarch 11, 2013 of $526 million.

The company said almost all of its repair bill had beenreimbursed by insurers.

Total insisted the accident, which forced the evacuation of238 workers, was unique to the G4 well and was a first in thehistory of the oil and gas industry, but declined to disclosethe details of what made it such a special case.

Patrice de Vivies, chairman of Total Holdings UK, cited pipecorrosion due to a chemical reaction between bromide in thedrilling fluid and grease in the pipework in a highlypressurised and heated environment.

But de Vivies acknowledged the equipment was commonly usedin the sector and those circumstances alone were not sufficientto fully explain the accident.

"I can tell you that I have the duty to communicate what wehave found when we'll have the green light of the HSE to ensurethis type of accident does not happen again," de Vivies said."For the moment the information in not public."

He added such an accident could not occur in the other ElginFranklin wells, where bromide was not used in the same way.

De Vivies said the accident had been a jolt for thefifth-largest western oil group, which describes itself as adeepwater pioneer and had used the Elgin Franklin field, one ofBritain's largest, as a display for its technological prowess.

"This is of course a humility lesson," De Vivies said. "Wewere using the best technology there and the best teamsworldwide so it was a shock that it happened to us." ($1 = 0.6645 British pounds) (Editing by David Holmes)

More News
6 Feb 2024 17:39

London close: Stocks manage gains as oil prices rise

(Sharecast News) - London's financial markets finished with a positive performance on Tuesday, driven by encouraging data from the UK construction sector and BP's share buyback expansion.

Read more
6 Feb 2024 17:04

LONDON MARKET CLOSE: BP and Prudential help snap FTSE losing streak

(Alliance News) - Stock prices in London pushed higher on Tuesday, with the FTSE 100 registering its first rise in four trading days, with oil major BP the star performer.

Read more
6 Feb 2024 12:10

LONDON MARKET MIDDAY: BP tops FTSE 100 index on buyback promise

(Alliance News) - The FTSE 100 was higher at midday Tuesday, despite lingering unease in equity markets on US interest rate worries, while BP led the way among London's large-caps as it announced a buyback plan.

Read more
6 Feb 2024 09:04

TOP NEWS: BP promises buybacks and hikes dividend despite profit fall

(Alliance News) - BP PLC on Tuesday reaffirmed it is sticking to its commitment to share buybacks despite reporting a profit decline amid a fall in oil prices.

Read more
6 Feb 2024 08:53

LONDON MARKET OPEN: BP jumps after unveiling share buyback

(Alliance News) - The FTSE 100 in London opened higher on Tuesday, with oil major BP at the top of the index, thanks to its new share buyback programme.

Read more
6 Feb 2024 07:47

LONDON BRIEFING: BP promises buyback despite drop in profit

(Alliance News) - Stocks in London are called to open higher, ahead of a slew of construction purchasing managers' index readings from the eurozone, the UK and Germany.

Read more
6 Feb 2024 07:02

BP unveils $1.75bn buyback as 2023 profits halve on weaker oil price

(Sharecast News) - Shares in BP surged on Tuesday as the energy giant announced a $1.75bn share buyback despite a slump in annual profits as oil prices fell during 2023 from the spike caused by Russia's invasion of Ukraine.

Read more
2 Feb 2024 17:12

LONDON MARKET CLOSE: Stocks mixed as US jobs data dashes rate cut hope

(Alliance News) - Stock prices in London closed mixed, after hotter-than-expected US jobs data hit already precarious investor sentiment and all but ensured the Federal Reserve will not be cutting interest rates next month.

Read more
2 Feb 2024 13:14

BP appoints Kate Thomson as its permanent finance chief

(Sharecast News) - BP announced the appointment of Kate Thomson as its new, permanent chief financial officer on Friday, effective immediately.

Read more
2 Feb 2024 12:27

TOP NEWS: BP promotes Kate Thomson as permanent finance chief

(Alliance News) - BP PLC on Friday named Kate Thomson as its permanent chief financial officer, after being in the interim role since September.

Read more
2 Feb 2024 12:09

LONDON MARKET MIDDAY: Airlines up but oil falls on Middle East talks

(Alliance News) - Stock prices in London were higher at midday Friday, ahead of the afternoon's US jobs data, as earnings from tech behemoths overnight lifted investor morale.

Read more
2 Feb 2024 08:54

LONDON MARKET OPEN: European stocks lifted on Wall Street's gains

(Alliance News) - Stock prices in London opened higher on Friday, closing of a busy week of monetary policy decisions.

Read more
1 Feb 2024 17:03

LONDON MARKET CLOSE: Stocks down on hawkish BoE interest rates hold

(Alliance News) - Stock prices in London closed down on Thursday after the Bank of England left interest rates on hold in a split decision that was hawkish on expectations of rate cuts.

Read more
1 Feb 2024 12:22

LONDON MARKET MIDDAY: BoE keeps bank rate on hold in split decision

(Alliance News) - London's FTSE 100 was on the up on Thursday afternoon after the Bank of England left interest rates on hold on Thursday, in a split decision.

Read more
1 Feb 2024 10:06

New UK oil and gas exploration licences approved in the North Sea

(Alliance News) - The UK's oil and gas regulator has awarded 24 new exploration licences to 17 separate companies in a move that has been welcomed by a trade body but condemned by climate campaigners.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.