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BP announced it will drill a new oilfield in the Gulf of Mexico as the energy major’s second-quarter profits surpassed forecasts.
The London-listed company said on Tuesday that it would build a sixth platform in the Gulf of Mexico to tap 80,000 barrels of oil a day from the Kaskida field, which it first discovered in 2006.
BP chief executive Murray Auchincloss, who was appointed to succeed Bernard Looney last year, has promised to shift the group’s focus to expanding its core oil and gas business and returning more cash to shareholders.
“Our recent go-ahead of the Kaskida development in the Gulf of Mexico business [ . . . ] demonstrates our commitment to delivering as a simpler, more focused and higher value company,” Auchincloss said on Tuesday, as the company reported results.
Its underlying profit for the second quarter hit $2.76bn, beating analysts’ forecasts of $2.54bn, and helped by a lower tax bill.
As was expected, BP lifted its dividend by 10 per cent to 8 cents a share and said it would continue buying back $1.75bn of shares a quarter for the remainder of the year.
BP shares rose 3 per cent in early trading.
BP is expanding in the Gulf of Mexico even though its own projections show the world’s oil demand will have peaked by the time the field starts production in 2029.