BP share price: Company secures extended lifetime for Norwegian oilfield facilities

on Jan 9, 2015
Updated: Oct 21, 2019

iNVEZZ.com, Friday, January 9: BP Plc (LON:BP) has received consent to use several platforms on the giant Valhall oilfield in the North Sea beyond their original lifetimes, Norwegian authorities have said. BP’s share price has been little changed in morning trading in London today, having added 0.14 percent to 405.55p as of 09:01 GMT.

Norway’s Petroleum Safety Authority (PSA) announced in a statement this week that it had granted consent to BP to use the QP, DP and PCP platforms on the Valhall oilfield beyond their originally scheduled lifetimes. The lifetimes have now been extended to December 31, 2023. The agency noted that the consent had been given on certain preconditions relating to load analyses and manning criteria. The PSA, however, rejected BP’s application to extend the use of the QP platform for accommodation beyond its original design life which expired in December last year.

Valhall is a giant oilfield in the southern Norwegian North Sea, located in 70 metres of water. BP estimates that the field, brought on stream in 1982, has the potential to continue producing until 2050 following the commissioning of a new platform in 2013. The company, however, has noted that continuous technological innovation and efficiency improvements will be required to unlock the future potential of the field.While originally developed with three facilities, Valhall now has eight platforms, as noted on the company website.
The Financial Times reports that as of January 3, the consensus forecast amongst 55 polled investment analysts covering the FTSE 100 oil major has it that the company will outperform the market. According to Analyst Ratings Network, BP currently has a consensus ‘hold’ rating and an average price target of 484.24p.
As of 09:59 GMT, Friday, 09 January, BP plc share price is 405.50p.

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