BP’s upstream projects pipeline
BP (BP), which launched seven major upstream projects last year, expects six more to start production this year. With the ramp-up of its 2017 projects and the initiation of new projects, BP’s production is set to grow this year.
Of its six projects scheduled for this year, Atoll Phase 1, a vast offshore project in Egypt, has already begun production. The project’s main reservoir is estimated to hold around 1.5 trillion cubic feet in gas and 31 million barrels in condensates. Last month, the Azerbaijani mega project, Shah Deniz Stage 2, started production. The largest of BP’s projects this year, it is expected to see gross peak production of 310 Mboepd (thousand barrels of oil equivalent per day), which could boost BP’s overall production. Additionally, the Taas-Yuryakh expansion in Russia is now complete.
BP also expects ten other projects to begin production between 2019 and 2021. Of those ten projects, the largest project is Raven, in Egypt. BP expects net new production of 900 Mboepd from its major upstream projects by 2021.
Upstream production in Q2 2018
In Q2 2018, BP produced 2.47 MMboepd (million barrels of oil equivalent per day), which represented a 1.4% rise year-over-year. Meanwhile, Chevron’s (CVX) production grew 1.7% to 2.83 MMboepd, and ExxonMobil’s (XOM) and Royal Dutch Shell’s (RDS.A) fell 7.0% and 1.5%, respectively, to 3.65 MMboepd and 3.44 MMboepd.
This year, BP’s hydrocarbon production is expected to rise. Coupled with high oil prices, this production growth could boost its earnings.