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Production blown off course by Hurricane Barry, warns BP

Last updated: 12:31 11 Oct 2019 BST, First published: 12:11 11 Oct 2019 BST

BP PLC -

BP PLC (LON:BP) has warned that Hurricane Barry has “significantly disrupted” oil production in is most profitable regions.

The FTSE 100 producer said that production in the third quarter was impacted to the tune of 100,000 barrels of oil per day over the whole quarter, mostly because of a two-week shutdown at its facilities in the Gulf of Mexico.

READ: Climate protesters could become big investors in BP and Shell - Barclays

With BP’s low-cost facilities hampered in the Gulf of Mexico and separately in the North Sea, overall production leaned toward barrels from higher tax regions and bumped up its effective quarterly tax rate to 50%, with full-year tax still expected at around 40%.

BP also announced that it expects to deliver $10bn in divestment proceeds by the end of 2019, comprising most of its two-year divestment programme which includes the recently agreed sale of its Alaskan gas business to Hilcorp for $5.6bn.

Shares slumped 1.5% to 493.8 in trading on Friday morning.

--Edited to add clarification from BP

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