Two more BP projects begin production

Gas projects in Australia and Trinidad are fourth and fifth of seven major projects start-ups BP expects in 2017

BP today confirmed the start of production from another two of the seven Upstream major projects that it expects to come online in 2017. Five of these seven projects have now started up.

Juniper in Trinidad and Persephone in Australia follow the start-ups earlier this year of the first phase of the West Nile Delta development in Egypt, the Trinidad Onshore Compression project and the Quad 204 redevelopment in the UK. A further two projects – the first phase of the Khazzan tight gas development in Oman and development of the Zohr gas field offshore Egypt – are expected to begin production before the end of the year.

Bob Dudley, BP group chief executive said: “This is a significant year for BP and, with five of our seven planned major projects now onstream, delivery of our plan is firmly on track. This year’s projects will deliver a key part of the 800,000 barrels equivalent a day production from new projects that we expect by the end of the decade. Importantly, these new projects, with their lower development costs and higher margins, also further improve BP’s resilience to the price environment.”

Gas production from Juniper began on schedule and under budget. The largest new project to start up in Trinidad for several years and BP’s first subsea field development in Trinidad, Juniper is expected to boost BP Trinidad and Tobago’s (BPTT) gas production capacity by around 590 million standard cubic feet a day (mmscfd). The development produces gas from the Corallita and Lantana fields via the new Juniper platform, 80 kilometres off the south-east coast of Trinidad in water approximately 110 metres deep. Gas then flows to the Mahogany B hub via a new 10km flowline. Juniper is BPTT’s 14th offshore platform in Trinidad.

The Persephone project off the coast of Western Australia is operated by Woodside Energy and is part of the North West Shelf Project joint venture. The development comprises two subsea wells tied back to the existing North Rankin complex by a 7km flowline. Located about 140km north-west of Karratha, Western Australia in water depth of around 125 metres, at peak production the project is expected to produce around 48 mmscfd of gas net for BP. BP holds a 16.67% interest in Persephone.

• 2017 major projects: more information on BP’s programme of Upstream major projects planned for 2017 can be seen at: www.bp.com/7in2017.

• Juniper: further details on the Juniper project can be seen in another press release also issued today. See: www.bp.com/press.

• Quad 204: the major Quad 204 project – the redevelopment of the Schiehallion and Loyal fields west of the Shetland islands in the UK, which included construction of the world’s largest harsh-water FPSO vessel – began oil production in May. See press release: here.

• Trinidad Onshore Compression project: designed to increase gas production from low pressure wells in BPTT’s existing acreage, the Trinidad Onshore Compression project began operation, under budget, in April. See press release: here.

• Taurus/Libra, West Nile Delta: gas production began in March this year from the development of the Taurus/Libra fields as part of the West Nile Delta development in Egypt, eight months ahead of schedule and with production 20% above plan. See press release: here

In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’), BP is providing the following cautionary statement. This press release contains certain forward-looking statements concerning BP’s plans and expectations with respect to major Upstream project start-ups in 2017, including the Khazzan tight gas development and the Zohr gas field; plans and expectations to deliver 800,000 barrels equivalent a day of production from new projects by the end of the decade; expectations that the Juniper project will boost BPTT’s gas production capacity by 590 million standard cubic feet a day; and expectations that the Persephone project will produce around 48 million standard cubic feet a day of gas net for BP at peak production. Actual results may differ from those expressed in such statements, depending on a variety of factors including changes in public expectations and other changes to business conditions; the timing, quantum and nature of divestments; the receipt of relevant third-party and/or regulatory approvals; future levels of industry product supply; demand and pricing; OPEC quota restrictions; PSA effects; operational problems; regulatory or legal actions; economic and financial conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the actions of competitors, trading partners and others; natural disasters and adverse weather conditions; wars and acts of terrorism, cyber-attacks or sabotage; and other factors discussed under “Principal risks and uncertainties” in the results announcement for the period ended 30 June 2017 and “Risk factors” in our Annual Report and Form 20-F 2016.

This document contains references to non-proved resources and production outlooks based on non-proved resources that the SEC’s rules prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-06262. This form is available on our website at www.bp.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or by logging on to their website at www.sec.gov.