SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act
of 1934
for the period ended 03 March
2009
BP p.l.c.
(Translation of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the
registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F
|X| Form 40-F
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Indicate by check mark whether the registrant by furnishing the
information
contained in this Form is also thereby furnishing
the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities
Exchange Act of
1934.
Yes
No |X|
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BP REPLACES 2008
PRODUCTION BY 1
AIMS TO GROW ANNUAL
OUTPUT THROUGH TO 2020
BP last year
added 1.7 billion barrels of new oil and gas to its reserves base, a
replacement ratio of 121 per cent, excluding acquisitions and
divestments - the 15th successive year in which it has reported the
replenishment of reserves by more than annual
output
The company
said today that it expected to be able to grow production through to
2013 from existing projects. With year-end 2008 reserves of 18.2
billion barrels and a resource base of 43.4 billion barrels, this
growth could be maintained until 2020 without any further
discoveries
6 billion
barrels of oil equivalent, BP's combined reserves and non-proved
resources
sufficient for
43 years of
at the
same rates as last year
Previewing
BP's annual strategy presentation by the executive management team to
the financial community in London today, chief executive Tony Hayward
said the turnaround the company had achieved in the last 18 months gave
it strong financial and operational momentum to face what will be a
tough year in 2009
"We intend to
meet the challenges of 2009 head on and, where possible, to turn them
to our advantage
. Our
strategy is an enduring one. We are delivering upstream growth and
making good progress turning around our downstream business. The
future has not been cancelled.
to
strike the right balance for our shareholders between investing for the
future, providing current returns via the dividend, and ensuring an
appropriate and prudent level of gearing.
"Our view is
that the right current ba
lance is both
to continue paying
the
dividend and to maintain investment
to grow
the firm - and to use the capacity of our balance sheet while the
industry cost structure adjusts."
We began our
drive in 2007 to counter the cost inflation that had developed
alongside rising oil prices. Our mantra is that every dollar counts and
every seat counts and we are applying it with
determination.
"As a result,
we managed to halt the inflationary trend and to hold costs flat in
2008, despite the continued rise in oil prices for
m
is to
begin rolling back the inflationary trend
deflation
into the business
We expect our
costs to fall by around $2 billion in 2009
Predicting
real opportunities for companies able and prepared to invest in
readiness for the eventual economic upturn, Hayward said BP planned to
keep
line with
2008, at between $2
billion,
with lower spending in
Marketing and
Alternative Energy
and
maintaining investment in
Exploration
& Production.
"The last few
years have been a poor time to put capital on the balance sheet, but
the next few may be a lot better," he said.
Highlighting
the main areas of ongoing performance improvement, he said the
downstream business
had boosted
its underlying profitability by some $2 billion in 2008, though this
strong progress had been masked by the biggest decline in US refining
margins
relative
to the rest of the world in more than 20
years.
refining
system including
has now
re-established full operation and we believe there is a good chance
that our refining business will return to profitability in
2009
after a
$700 million loss last year. We also see further benefits from
simplification, cost- efficiency and more competitive fuels value
chains.
"TNK-BP
reported a $700 million loss in the fourth quarter of 2008, mainly due
to adverse tax lag effects, but in the market conditions experienced so
far in this quarter we expect to see a return to
profitability.
is delivering
good growth
, making BP
the only supermajor to boost its production in 2008. Last year we said
we expected to grow production to 2012
and that
we could maintain it out to 2020 from existing projects. From existing
projects we now expect to grow production to 2013
we have
the potential for continued growth right out to
2020
at an
average annual rate of between one and two per
cent
eserves
replacement of 121 per cent, t
hat's a great
record to be able to cite in this, our centenary year, because it
suggests that BP has no
its
traditional skill with the drill-bit,"
"And
that's one of the many reasons why I believe
renewed
sense of purpose."
replacement
ratio and reserves and resources information contained in this press
release are
combined
basis of subsidiaries and equity-accounted
entities
This press
release contains forward-looking statements particularly those
regarding production growth; downstream turnaround; financial and
operational momentum; positioning to meet future challenge; strategy;
balance between investment, dividend and gearing; deflation; costs;
capital expenditure; refining profitability; benefits of
simplification, cost efficiency and competitive fuels value chains; and
TNK-BP profitability
By
their nature, forward-looking statements involve risk and uncertainty
and actual results may differ from those expressed in such statements
depending on a variety of factors including the following: the timing
of bringing new fields onstream; industry product supply; demand and
pricing; operational problems; general economic conditions (including
inflation); political stability and economic growth in relevant areas
of the world; changes in laws and governmental regulations and quotas;
exchange rate fluctuations; development and use of new technology; the
success or otherwise of partnering; the actions of competitors; natural
disasters and adverse weather conditions; changes in public
expectations and other changes to business conditions; wars and acts of
terrorism or sabotage
For
more information you should refer to our Annual Report and Accounts
2007 and our 2007 Annual Report on Form 20-F filed with
the
Securities
and Exchange Commission
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
BP p.l.c.
(Registrant)
Dated: 03 March 2009
/s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary