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BP Azerbaijan has announced plans to build a new compression platform at the Shah Deniz gas field to optimize production, company spokesperson Tamam Bayatly confirmed in a press briefing.

The platform will capture low-pressure gas from specific reservoir layers within the offshore field and transport it to the Sangachal terminal for processing. “This will be a completely new facility dedicated to enhancing gas recovery from sections of Shah Deniz that require specialized extraction,” Bayatly stated.

Https://www.bp.com/en/global/bp-supply-trading-and-shipping/news/press-releases/more-competition-on-the-austrian-gas-marketgetec-energie-expands-its-offering-for-large-commercial-customers-in-austria-at-the-beginning-of-2025.html

BP has some big strategic questions to answer says Canadian bank RBC and it is hoping that a planned capital markets day on 26 February will clear up a lot of them.

“The event should stand as a significant line in the sand following the initial energy transition strategy presented in 2020, one that included macro assumptions that look out of tune with reality,” said the bank.

“The crux of BP's issues relate to poor capital allocation alongside these strategic shifts, which have deteriorated its earnings potential.

While there are no easy fixes, we see the event as much needed re-set to the investment case.”

BP’s shares have de-rated in recent years, adds the bank and it wants a change in tack from the oil giant, in particular moving from ‘leadership’ in energy transition, ie spending, to a more disciplined approach.

“Overall, we expect the capex framework to reduce from US$14-18 billion a year to $13-16bn, with near-term spending towards the low end.

“We expect cost-cutting to help support this but do not anticipate it being a main feature of the event.

RBC also has balance sheet concerns, noting that despite the ‘exceptional business environment over 2022-24’, BP’s debt levels have remained stubbornly high, due to buybacks and acquisitions.

“Net debt including leases and hybrids now sits around $50bn, and we expect the company to announce a US$10bn disposal programme over 2025-27E to support net debt reduction.”

BP’s high leverage vs peers leaves its shareholder returns framework less defensive in a potential down-cycle, adds the bank.

How BP squares reducing its debt and providing an attractive shareholder return for investors is another conundrum.

We expect a move to a simplified 30-40% payout ratio, and think that moving to the low end would make sense to help reduce debt, however, we think market buyback expectations are in the region of $1bn per quarter (down from $1.75bn, RBCe $750m). “

This might be flagged in the upcoming fourth quarter numbers rather than CMD, adds RBC, but either way it leaves BP offering a total return similar to Shell and Total but with inferior earnings growth prospects and less defensiveness.

There are better risk-reward options elsewhere in the sector, concludes RBC, which has a Sector Perform rating and a 480p target price.

You can please

Some of the people all of the time

And

All of the people some of the time.

But you can’t

Please all of the people all of the time.

Trying to be popular in business now never works.

Because no matter what you do these days.

It’s all so yesterday and no longer what we want

Fogthemogg

Harbour is slowly making traders of all of us.

Simple buy and hold.

Equals frustration ( but it’s not only Harbour you can say that about)

Https://www.chemanalyst.com/NewsAndDeals/NewsDetails/bp-gta-phase-1-set-to-revolutionize-lng-exports-in-africa-34045

Https://bgw.bonsucro.com/bonsucro-inspire-awards-winners/bp-bunge-bioenergia/

It strikes me the Donald Trump

Appears to be using Hendry VIII s Rough Wooing strategy ( used against Scotland),

In his dealing with Canada, Panama, and Greenland.

Treat them mean and they will come running.

Didn’t work for poor old Hendry.

Jury is out still on Donald.

Bearing in mind it’s looking from the non oil company side of things,

But I found it worth a read, ( and surprisingly BP did least worse)

Greenwashing and bothsidesism in AI chatbot answers about fossil fuels' role in climate change

https://www.globalwitness.org/en/campaigns/digital-threats/greenwashing-and-bothsidesism-ai-chatbot-answers-about-fossil-fuels-role-climate-change/

The projects will have a similar design as Kaskida as BP works to standardize its floating platforms so there are minimal variations across the needs of different projects.

“We look at that through a lens of a design that's fit for purpose, for the Kaskida project, but also the projects that have not been sanctioned yet that we have visibility of. Do we have a standardized design that can meet all of those fields?” Krieger said.

“How do we minimize that difference so you get the efficiencies around engineering, procurement and execution, and it really flows throughout the entire system.”

Ultimately, as BP explores deeper waters and new reservoirs, Krieger expects the company to reach 400,000 barrels of oil equivalent production per day by the end of the decade, up from its current 300,000 boepd.

Looking for regulatory certainty

The past several years in the industry have been confusing for the oil and gas industry when it comes to what production is available in the Gulf of Mexico.

Lease sale 261 was postponed, and when President Joe Biden released his five-year oil and gas leasing plan, it had the fewest planned Gulf of Mexico lease sales in history, with only three.

“We place a huge amount of value on regulatory certainty, and I think, the existing five-year plan, which effectively requires three different lease sales in the Gulf of Mexico, is significantly below what has historically been held,” Krieger said.

Krieger said BP likes to see at least one lease sale every year in the Gulf of Mexico in order to continue learning more about the region and start planning for new platforms at least five to six years in advance.

I won't speculate on what the new administration may or may not do, but at a bare minimum, we’ve really got to have regulatory certainty and understanding of what's going to happen when, and confidence when it will,” Krieger said.

BP currently operates five platforms in the Gulf of Mexico: Argos, which began production in 2023 and is the centerpiece of the $9 billion Mad Dog 2 platform; Atlantis; Mad Dog; Na Kika; and Thunder Horse.

BP's Kaskida is just the beginning of its new Gulf of Mexico plans

London-based BP PLC (NYSE: BP) sanctioned a milestone project in the Gulf of Mexico in 2024, but it’s just the beginning for the company’s new ambitions in the region.

BP reached a final investment decision for its Kaskida project in July. It is BP’s sixth operated hub in the U.S. Gulf of Mexico and is expected to have a production capacity of 80,000 barrels of oil per day. The project is 100% owned by BP and will develop 275 million barrels of oil equivalent of discovered recoverable resources in its initial phase.

Kaskida, located about 250 miles off the coast of New Orleans, was discovered in 2006 and is BP’s first project in the Gulf of Mexico to use equipment capable of operating in pressures of 20,000 pounds per square inch, which companies have been developing to recover oil in deeper waters and in the Paleogene reservoir, boasting 10 million barrels of discovered recoverable resources.

It may be the first project of BP’s to use 20k psi technology, but it is paving the way for future projects in the region, Andy Krieger, BP’s senior vice president of Gulf of Mexico and Canada, told the Houston Business Journal.

“While we talk about Kaskida and we talk about the existing business, it’s that exciting, holistic foundation that we have now, which is tremendous, and the future that we're able to build through the Paleogene, starting with Kaskida,” Krieger said.

BP expects its capital allocations for Kaskida to remain below $5 billion, with spending peaking in 2028 when heavy construction is taking place in shipyards. Production is expected to begin in 2029.

Only half of the project is currently sanctioned, Krieger said, with the second half, called West Bump, drilling an appraisal well this year to eventually tie into Kaskida. BP could end up sanctioning six more wells in the Kaskida-West Bump project.

Meanwhile, what BP is learning with Kaskida will be used for its upcoming Tiber and Guadalupe projects, which will be developed in a similar way as Kaskida and West Bump. Tiber is expected to reach FID in mid-2025, once BP has a clearer idea what the project’s cost profile will look like, Krieger said.

Https://theevreport.com/xpeng-and-bp-pulse-expand-ev-charging-network

Did make me wonder if the way for Murray to make his mark is to do an oil merger of his own.( doesn’t have to be a mega merger)

It would certainly show his support for oil and gas.

Https://oilprice.com/Energy/Energy-General/US-Oil-and-Gas-Mergers-Forecast-to-Slow-in-2025.html

Just over a month till the big update.

I think Murray s the type of guy to keep all the news till then.

Even though the market it telling him it doesn’t like the slow drifting without news.

AS long as it’s not Boris.

Putin may have some spare time soon.

WP

Agreed

They say you get your first 100 days to make your big changes.

We really didn’t do much different in that time.

Get it right this time and it’s okay,but it’s got to be good and wow the market.

The PR also needs to sell it as Murray’s bold new strategy

WP

This year is about saving BP, saving the planet will have to take its place in the queue.

I’m all for investing for returns.

It’s looking very like the market has judged Murray already.

He has one chance to change its mind

BAKU, Jan 19 (Reuters) - BP, operator of the Shah Deniz gas and condensate field development project in Azerbaijan, said on Sunday it had restarted production at the Shah Deniz Alpha gas platform in Azerbaijan as of late Saturday.

"Previously, a technical problem with the subsea condensate export pipeline connecting the Shah Deniz Alpha platform to the Sangachal terminal has been fully resolved," the company said.

Production and export operations were gradually being ramped up, and would take a few more days to complete, BP said.