BP sees Alaska repairs costing $100 million

BP expects the replacement of corroded pipelines at the Prudhoe Bay oil field in Alaska to cost around $100 million, a company source said, but the total cost to BP will likely be several times this figure. BP unexpectedly announced the phased shutdown of the U.S.'s largest oil field on Sunday to replace 16 miles of pipeline at the field after it discovered severe corrosion.

A spokesman said BP's average profit margin in the U.S. was $25 per barrel. This suggests a full outage would cost BP $2.6 million per day or $350 million if the field is fully shut down until the year-end. The U.S. government does not expect full production to resume before January 2007. Around $10 billion has been wiped off BP's market capitalization since the discovery of the corrosion was announced.

Post a Comment:

Comments are closed for this entry.

« Seagate Q4 profit... | Main | All signs point to... »

Most popular blog postings on lowem.log :

1. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
2. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
3. Live spot gold price quotes chart on COMEX
4. Fuel prices seen stoking Malaysia inflation in 2008
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Singapore SIBOR rate fell to 1.25% in Apr 2008, lowest since Aug 2004
7. Malaysia inflation rate jumps to 7.7% in Jun 2008, a 26-year record high
8. Singapore : electricity tariffs to increase April 2008 on rising oil prices

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Singapore : Bread price inflation continues
4. 2010 Honda Civic Hybrid preliminary specifications released
5. Peakoiler buys 2008 Honda Civic Hybrid FD3
6. How to insert currency exchange rates into Google Spreadsheets
7. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
8. Singapore : Inflation erodes away bank savings