Here’s How BP Ended 2012

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After a months-long delay, BP (NYSE:BP) successfully began production from the Skarv field in the Norwegian Sea on the final day of 2012, bringing the company’s major project start-ups for the year up to five. However, the oil and gas producer missed its target for the year; BP expected to begin drilling at six new sites last year.

The field, in which BP has a 24 percent stake, will add approximately 1 percent to its yearly output of oil and gas. For the first six months of production Skarv is expected to produce 125,000 barrels of oil equivalent per day, after which the field’s output is expected to increase to 165,000 boe/d, according to the company. State-backed Norwegian group Statoil (NYSE:STO) owns 36 percent of the field, and other partners include Germany’s E.ON E&P Norge AS, with 28 percent, and Poland’s PGNiG, with 12 percent.

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In a Reuters report, BP described Skarv as a key operational milestone in one of its core high-margin areas in a December 3 strategy update. Boosting its success rate at exploring for and producing oil, one of the company’s fundamental businesses, is especially important as BP attempts to recover from the 2010 Gulf of Mexico oil spill and its investment problems in Russia.

BP’s sixth scheduled 2012 project, Angola LNG, is expected to begin this year, and an additional nine projects have been planned for the next two years.

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