London-based oil giant British Petroleum is serious about recovering from the April 20, 2010 Deepwater Horizon explosion that spewed tens of thousands of gallons of fuel into the Gulf of Mexico.
For instance, BP abandoned big projects in favor of smaller projects, often in more shallow waters; these are projects that have high margins but small risks. They carry a cash operating margin that is 35% higher than the company’s 2015 portfolio. Development costs are 20% less than the existing portfolio.
BP’s major projects, scheduled between now and 2020, are expected to bring in 800,000 barrels of oil equivalent (BOE) per day of new production. The company expects to be cash-flow neutral in 2017, as it has around $7 billion in operating cost savings. With $26 billion in earnings in 2016, it is also expected to be able to settle ongoing payments to victims of the Macondo incident.
If you file a claim appeal against BP because they have yet to respond to, reject, or ignore altogether, it is a good idea to hire our attorneys at Williams Kherkher. Call our offices today at 800-821-1544.