REMINDER: Our user survey closes on Friday, please submit your responses 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: 499.85
Bid: 499.75
Ask: 499.85
Change: -3.85 (-0.76%)
Spread: 0.10 (0.02%)
Open: 498.00
High: 500.00
Low: 490.65
Prev. Close: 503.70
BP. Live PriceLast checked at -

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

UPDATE 1-A year after Elgin shutdown, Total restarts production

Mon, 11th Mar 2013 18:00

* Total restarted output at Elgin field on March 9

* Elgin to reach pre-leak output capacity in 2015

* To release accident's full details in few weeks time

* Total to "kill" at least 10 wells at Elgin

By Muriel Boselli and Michel Rose

PARIS, March 11 (Reuters) - Total restartedproduction at its huge Elgin gas field in the North Sea onSaturday, almost a year after a major gas leak which cost thecompany millions of euros in lost output and even knocked UKeconomic growth.

Total said on Monday full details of what went wrong at theG4 well would not be released for the next few weeks as it isstill awaiting results of technical and scientific analysis.

The company's G4 well in the Elgin field, which spewed gasfor more than seven weeks after the leak, will return toproduction of 60,000 barrels of oil equivalent per day (boepd)by the end of the month, half its pre-leak level, two Totalexecutives 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 east coast of Scotland andoperated by Total which has a 46.2 percent stake, is expected toreturn to its pre-accident production level in 2015 and reachbetween 130,000 and 140,000 boepd in 2016, a higher level thanforecast 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 said.

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,"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 that such an accidentcould not occur in the other Elgin Franklin wells, where bromidewas not used in the same way.

Patrice de Vivies, chairman of Total Holdings UK, said theaccident was a first in the history of the oil and gas industry,but declined to disclose the details of what made it such aspecial case.

He cited pipe corrosion due to a chemical reaction betweenbromide in the drilling fluid and grease in the pipework in ahighly pressurised 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.

De Vivies, chairman of Total Holdings UK, initially said thegroup needed the go-ahead of Britain's Health and SafetyExecutive (HSE) before it could give a full public explanationbut the regulator later on Monday said it was up to Total todisclose information.

The HSE continues to investigate the Elgin incident.

"We have nothing to hide," De Vivies said in an e-mailedstatement. "The causes of the accident have been identified.Research is still ongoing in several laboratories and we areawaiting their conclusions to communicate all the technical andscientific facts."

De Vivies said the accident had been a jolt for thefifth-largest western oil group, which had used the ElginFranklin field, one of Britain's largest, to showcase itstechnological 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."

More News
17 Jan 2024 08:33

TOP NEWS: BP buys Getec Energie; promotes Auchincloss to permanent CEO

(Alliance News) - BP PLC on Wednesday said that it will buy Getec Energie GmbH as it promoted Murray Auchincloss to the role of permanent chief executive officer.

Read more
17 Jan 2024 07:46

LONDON BRIEFING: UK inflation surprises as unexpectedly rises to 4.0%

(Alliance News) - Stocks in London are called to open lower on Wednesday, following some hotter-than-expected consumer price data from the UK.

Read more
17 Jan 2024 07:11

BP names acting CEO Murray Auchincloss as permanent leader

(Sharecast News) - BP has named its former chief financial officer Murray Auchincloss as its permanent chief executive, after having served in an interim capacity for the past four months.

Read more
16 Jan 2024 21:28

PRESS: BP close to naming acting CEO Auchincloss as permanent chief

(Alliance News) - Directors of BP PLC were meeting on Tuesday evening to finalise the appointment of Murray Auchincloss, the company's acting chief executive, as its permanent boss, according to a report.

Read more
16 Jan 2024 16:38

Shell halts Red Sea shipments over attack fears from Yemeni rebels

(Alliance News) -London-based oil major Shell PLC has paused transit through the key Red Sea shipping route indefinitely, over fears of escalating tensions involving Yemen's Houthi rebels, according to a media report on Tuesday.

Read more
16 Jan 2024 13:13

Shell in Nigeria

LONDON, Jan 16 (Reuters) - Shell pioneered Nigeria's oil and gas industry and remains a major investor in the West African country even after exiting its onshore operations. But over the decades the British company has come under fire over spills in the Delta region and struggles with oil theft, corruption and oil-fuelled violence.

Read more
12 Jan 2024 15:39

London close: Stocks rise on positive UK economic data

(Sharecast News) - London's financial markets closed on a positive note today, buoyed by fresh data indicating that the UK economy had returned to growth in November.

Read more
8 Jan 2024 19:48

Shell signs 20-year purchase deal with Canadian Ksi Lisims LNG project

Jan 8 (Reuters) - Global gas giant Shell has agreed to buy two million metric tons of liquefied natural gas (LNG) per year from Ksi Lisims LNG, partners in the proposed Canadian project said on Monday.

Read more
8 Jan 2024 16:59

LONDON MARKET CLOSE: Stocks mixed as eyes on US inflation data

(Alliance News) - Stock prices in London closed mixed Monday, with oil majors holding down higher gains in the FTSE 100 index.

Read more
8 Jan 2024 16:38

London close: Stocks manage positive finish after mixed session

(Sharecast News) - London's financial markets experienced a mixed trading day on Monday, with the FTSE 100 and FTSE 250 indices closing in positive territory after spending much of the session in the red.

Read more
8 Jan 2024 12:00

LONDON MARKET MIDDAY: FTSE 100 underperforms in muted start to week

(Alliance News) - Stock prices in London traded lower at the start of the week, with oil firms weighing on then FTSE 100, as investors look ahead to the week's key inflation prints.

Read more
8 Jan 2024 08:40

LONDON MARKET OPEN: Commodity-heavy FTSE 100 heads lower; Shell slips

(Alliance News) - The FTSE 100 kicked off the week on a downbeat note at Monday's market open, amid share price falls for commodity stocks.

Read more
6 Jan 2024 12:29

BP investors want oil firm to approach BAE chief as CEO- Sky News

Jan 6 (Reuters) - Some of BP's largest shareholders have urged the company to approach BAE Systems Chief Executive Charles Woodburn about becoming the British oil giant's next boss, Sky News reported on Saturday, citing unidentified sources.

Read more
6 Jan 2024 11:38

BP investors want oil behemoth to target BAE chief as CEO- Sky News

Jan 6 (Reuters) - Some of BP's largest shareholders have urged the company to approach Charles Woodburn, the BAE Systems chief executive, about becoming the company's next boss, Sky news reported on Saturday. (Reporting by Devika Nair in Bengaluru; Editing by Jan Harvey)

Read more
4 Jan 2024 16:54

LONDON MARKET CLOSE: Stocks up ahead of US nonfarm payrolls

(Alliance News) - Stock prices in London closed higher on Thursday, as investors eye the latest US non-farms data.

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.