BP plc’s third quarter oil and natural gas production is up 11% from the same period a year ago, but lower sequentially from the second quarter because of annual facilities maintenance and shut-ins from Hurricane Ivan, the company said last week. The London-based major, which is scheduled to report 3Q earnings on Oct. 26, still expects average production for 2004 to meet a previous target of at least 4 MMboe/d.

The third quarter production was impacted by planned maintenance in North Sea and Alaska operations, Hurricane Ivan and the blow-out at a partner-operated venture in Egypt. However, the world’s second largest major still expects output to reach 3.88 MMboe in 3Q2004, up from 3.5 MMboe/d in 3Q2003, but lower than the 3.97 MMboe/d recorded in the previous quarter.

Through the rest of the year, gains are expected from new output in Algeria and Angola. Russian operations, through 50% held TNK-BP, also are coming on strong, with a reported 945 MMboe/d, up 36% from 654 MMboe/d in 3Q2003.

Strong commodity prices also will boost the quarterly earnings. Margins from the global crude oil refining operations also jumped, with the exception of its U.S. business, where they were down 22% to $5.01/bbl. BP also repeated an earlier warning that said “nonoperating charges” would amount to $500 million from “environmental remediations.” No other information was provided.

BP also said it would continue its share buyback program. So far this year, the company said it had repurchased 621 million shares at a cost of $5.5 billion.

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