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BP Plc expects lower upstream production in the first quarter compared to the last quarter, the company said April 11.
Higher oil production will be offset by declines in natural gas and low carbon energy output, driven by divestments in Egypt and Trinidad, BP told investors in a first-quarter trading statement.
Gas and low carbon energy realizations are expected to be flat quarter over quarter. “The gas and trading result is expected to be weak,” the company said.
U.S. Henry Hub gas prices averaged $3.65/MMBtu in the first quarter, compared to $2.79/MMBtu in the fourth quarter, BP said.
Oil realizations were also broadly flat, “including the impact of price lags” on the company’s output in the Gulf of Mexico and the United Arab Emirates (UAE).
Brent crude prices averaged $75.73/bbl in the first quarter, over $74.73/bbl in the fourth.
BP has cut planned annual investment in its renewable energy businesses by more than $5 billion. The company has come under pressure by investors, including activist Elliott Investment Management, which has taken a 5% stake in the company.
BP plans to publish first-quarter results on April 29.
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