BP Profits Take 45% Tumble

UK oil major BP has reported a 45% fall in third quarter replacement cost profit to US$3,867m compared with $6,975m in 2006, due to low oil and gas production.

A net non-operating loss of US$346m was recorded, compared with a net non-operating gain of US$1,225m in the third quarter of 2006.

Following entitlement changes in production-sharing agreements and the impact of the CATS pipeline incident in the North Sea, production in both the third quarter and the first nine months was broadly flat compared with 2006, BP says in a statement.

Full year production in 2007 is expected to be in the range of 3.8 to 3.9 million barrels of oil a day, in line with the guidance provided earlier in the year, the company says.

By staff writer