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BP Expects 2Q Output to Rise 3.5%

BP plc on Tuesday estimated 2Q2005 oil and natural gas production will be about 4.101 MMboe/d, flat sequentially, but up about 3.5% from the 3.971 MMboe/d reported for the same period a year ago. The London-based major reiterated that its average full-year production is expected to range between 4.1 and 4.2 MMboe/d.

Final production numbers for the second quarter will be posted July 26.

Excluding volumes from a joint venture in Russia, BP expects second quarter production to be 3.135 MMboe/d. BP's net share of production from the TNK-BP joint venture is expected to be about 975,000 boe/d.

One area of weakness in the quarter is expected to be in BP's natural gas, power and renewable division, which is expected to report "significantly lower" earnings than the $404 million it generated in 1Q2005. BP blamed weaker gas marketing contributions as well as seasonally lower natural gas liquids volumes.

BP also warned that it will post a charge for the second quarter related to an explosion at its Texas City, TX refinery. The March 23 blast killed 15 workers. BP did not specify the amount of the charges, but said it "has finalized or is in the process of negotiating settlements" for compensation claims. In a filing with the Securities and Exchange Commission, BP said the settlements may materially affect a "particular quarter," but said they will not affect full-year 2005 earnings.

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