LONDON (Alliance News) - BP PLC's chief executive on Wednesday said the oil group backs a 'No' vote in the upcoming independence referendum in Scotland and gave his backing to the statements made by Ian Wood that the forecasts from the 'Yes' camp on future revenue from the North Sea have been inflated.
Bob Dudley, chief executive of the FTSE 100 oil company, said BP "believes that the future prospects for the North Sea are best served by maintaining the existing capacity and integrity of the United Kingdom".
Dudley also said he backs the assertion made earlier Tuesday by Ian Wood, the former chairman of FTSE 250 oil and gas services company John Wood Group PLC, who claimed Scottish voters have been mis-led and influenced by inaccurate forecasts from a 'Yes' campaign-sponsored report, which promised a new oil boom for an independent Scotland.
Wood claims a report published by the N-56 think tank, which claimed there could be another 21 billion barrels of oil equivalent from unconventional shale reserves in the North Sea, was "unrealistic". He said voting in favour of independence on the back of estimates like this was a "huge gamble", adding the "stakes are too high".
"Quite frankly, the N-56 report is an insult to the Scottish people," Wood said, adding Scottish people "owe it to themselves, their children and their grand-children" to ensure they have a full understanding of the economic consequences of leaving the UK.
Martyn Tulloch, co-author of the N-56 report, said he was "surprised" Wood was putting himself at odds with a range of industry experts who have backed the report and said he appears to be at odds with the UK Department of Energy and Climate Change too, which recently said offshore unconventional oil and gas was an "enormous new play" for the North Sea.
"BP has been in the UK North Sea for 50 years, and we hope to operate here for many years to come. However, the province is now mature, and I believe Sir Ian Wood correctly assesses its future potential," said BP's Dudley. "Our business invests for decades into the future. It is important our plans are based on a realistic view of the North Sea?s future potential and the challenges the industry faces in continuing to operate here."
He added: "The opportunities today are smaller and more challenging to develop than in the past. We also face the challenges of extending the productive life of existing assets and managing the future costs of decommissioning. Much of this activity requires fiscal support to be economic, and future long-term investments require fiscal stability and certainty."
Dudley had previously waded into the independence debate in February, when BP posted its full-year results for 2013. Speaking to the BBC, Dudley had said the uncertainty over which currency Scotland would adopt in the event of a vote in favour of independence was "a concern", though he reiterated that the company would continue to invest in Scotland.
BP owns interests in a number of projects in the North Sea, including the Clair Ridge field, the Kinnoul field and the Quad 204 project in the Schiehallion field.
BP shares were up 1.2% to 472.40 pence on Wednesday, putting it among the top five risers on the FTSE 100.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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