BP’s upstream portfolio
BP (BP) has a strong upstream portfolio. The company has a series of projects expected to begin production in the next few years until 2021. Let’s review BP’s upstream projects pipeline.
Upstream projects pipeline
In 2018, BP started six key upstream projects. The company had seven major project startups in 2017 and six significant project startups in 2016. BP expects 16 major projects to start production from 2019 to 2021.
In 2019, BP expects five key projects to start production. Two projects, Constellation and West Nile Delta – Giza/Fayoum, have already started production. The other projects that are supposed to start production in 2019 are West Nile Delta – Raven, Angelin, and Culzean. Culzean and Raven are mega projects with gross peak production levels of 100 Mboepd (thousand barrels of oil equivalent per day) and 160 Mboepd, respectively.
In 2020 and 2021, BP expects to start 11 new projects. Tangguh Expansion, Mad Dog Phase 2, and Khazzan Phase 2 are larger projects with gross peak production levels of 115 Mboepd, 120 Mboepd, and 115 Mboepd, respectively. Tangguh Expansion is expected to start in 2020. The two other projects are expected to start in 2021.
Together, the 35 projects that started in 2016, are expected to contribute ~900 Mboepd of BP’s new production by 2021. Starting new projects and ramping up existing projects are expected to boost the company’s upstream volumes in the coming years.
Upstream production in the fourth quarter
In the fourth quarter, BP produced 2.63 MMboepd (million barrel of oil equivalent per day)—1.8% higher than the fourth quarter of 2017. ExxonMobil (XOM) and Royal Dutch Shell’s (RDS.A) production rose 0.5% and 0.9%, respectively, to 4.01 MMboepd and 3.79 MMboepd, in the fourth quarter. Chevron’s (CVX) production rose 12.5% to record levels of 3.08 MMboepd in the fourth quarter.