2Q 2024 results: Delivering growth, driving focus
It’s been a busy six months at bp, focusing in on our best opportunities, reducing costs and delivering progress on our plans as we transform from an international oil company to an integrated energy company, IOC to IEC.
Our full performance results at mid-year set out in detail how we are growing the value of bp while providing energy today – which is mainly oil and gas – and helping to build tomorrow’s energy system.
Take a look below at some of the highlights from the first half of this year.
“We are in action focusing, simplifying and growing the value of bp and have accomplished a lot in the past six months. We are high-grading our biofuels portfolio, including an agreement to take full ownership of bp Bunge. We are concentrating our strategy in hydrogen, including taking investment decisions on green hydrogen projects at our Castellón and Lingen refineries.
“We have also given the go-ahead to Kaskida, which will be our sixth production hub in the Gulf of Mexico, as we progress the development of new oil and gas resources. And, we are in action, keeping safety first while driving greater efficiency across the business and in taking costs out of the system.”
Murray Auchincloss
Chief executive officer, bp
July 2024
Gulf of Mexico, US
We have taken a final investment decision at Kaskida, which will be our sixth operated hub in the Gulf of Mexico, with planned capacity of 80,000 barrels of oil per day. Production is expected to start in 2029 and the field has discovered recoverable resources currently estimated at around 275 million barrels of oil equivalent from the initial phase. We plan to deliver it with a simple, standardized, cost-efficient design, using proven technology that can be replicated for future projects. It could unlock the potential future development of 10 billion barrels of discovered resources in place across the Kaskida and Tiber catchment areas.
Trinidad & Tobago
Our major projects, Cypre and Mento, are making good progress and are expected to start up in 2025. We’ve also sanctioned the Coconut gas project, and we have been awarded rights, together with the National Gas Company of Trinidad and Tobago, to develop the Cocuina gas field, allowing us to progress the development of the cross-border Manakin-Cocuina field.
Abu Dhabi and Egypt
We’re growing our LNG portfolio and have announced our intention to take a 10% interest in ADNOC’s planned LNG project in Al Ruwais Industrial City, Abu Dhabi, subject to obtaining any necessary regulatory approvals. The project has a proposed total LNG production capacity of 9.6mmtpa. It will further deepen bp’s longstanding partnership with ADNOC, which announced in June that it had taken final investment decision for the project’s development. This plan is consistent with bp’s strategy to develop competitive gas positions as we grow our LNG portfolio.
Earlier this year, bp and ADNOC agreed to form a new joint venture in Egypt to focus on development of gas assets in the country.
US
This year, our biogas business, Archaea, has started up four plants, including our largest to date just outside Kansas City. The plant, which is operated by Archaea, is the latest example of bp putting into use the Archaea Modular Design (AMD) platform, which streamlines and accelerates the time it takes to construct renewable natural gas (RNG) plants. bp is the largest producer of RNG in the US.
Brazil
bp agreed to take full ownership of its Brazilian biofuels joint venture, acquiring Bunge’s 50% interest of bp Bunge Bioenergia. Following completion, which is subject to regulatory approvals, bp will have the capacity to produce around 50,000 barrels a day of ethanol equivalent from sugarcane. The integrated business covers the entire production chain through to sales of ethanol and sugar. The agreement came as we high-grade our biofuels portfolio, announcing scaling back of plans for development of new projects – pausing two and continuing to assess three others.
Europe
We have narrowed the many potential opportunities in our hydrogen business to between five and 10 potential investments out to 2030. These include planned projects at Castellón, where, together with our joint venture partner, we are taking our first financial investment decision for industrial-scale production of green hydrogen at our refinery, and another next to our refinery in Lingen, Germany, which was recently awarded funding by the German federal and local governments to help support the future development of the project.
“We are driving focus into the business and our portfolio, and remain committed to growing value and returns for bp.”
Kate Thomson
Chief financial officer, bp
July 2024
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The world's transition to a more secure, more affordable, lower carbon energy system needs massive investment in lower carbon energies AND continued investment in oil and gas as the alternatives grow. We're transforming bp to play our part – discover more below
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