BP: Mideast Moves To Center Stage In Cash-Constrained Times

BP saw its net Iraq output double last year boosting Mena’s share of BP’s total output to 26%. With the firm focusing spending on key expansion projects in Egypt and Oman this share is set to rise further.

BP posted a loss of $6.5bn last year as it cut capex by $18bn. But the Middle East and North Africa are providing a key ray of hope.

Iraq was the key bright spot on the firm’s 2015 production numbers, while CEO Bob Dudley flags up Egypt’s West Nile Delta project as the firm’s main 2015 final investment decision, with the firm’s two major 2015 “exploration successes” also in Egypt; even the firm’s chronic receivables in Egypt were down: by 23% from a year earlier at $1.739bn.

‘VALUE OVER VOLUME’

The collapse in oil prices since mid-2014 has led BP to prioritize “value over volume;” BP’s 2015 Annual Report, released 4 March, indicates that Mena projects are central to this strategy. (CONTINUED - 1733 WORDS)

DATA INSIDE THIS ARTICLE

chart BP's Net Mideast Oil Output ('000 B/D)
chart BP's Net Mideast Gas Output (Mn Cfd)
table BP Net Production
table Egypt'S Debts To Foreign Oil Companies ($Mn, End Period)