BP Profit Soars; Resumes Gulf of Mexico Drilling.
Oil company BP reported a 3rd quarter profit of US$5.14 billion, triple what it made in the same quarter last year.
Their profits were boosted by high oil prices with Brent crude trading at $110 a barrel. Last year, trade prices were at $84 a barrel.
BP's reputation and profits suffered after the oil spill in their Deepwater Horizon rig in the Gulf of Mexico more than a year ago. BP has agreed to create a $20 billion spill response fund to address the disaster. To date, they have paid US$8.75 billion from the fund.
In order to pay for compensation to the victims and for the clean up operation in the Gulf, they sold US$10 Billion of their non-core assets. This year, they increased their asset selling program to US$45 Billion.
Last week, the US approved BP's plan to drill again in the Gulf of Mexico. The approval allows BP to drill up to 4 exploratory wells 200 miles from the Louisiana coast.
Chief executive Bob Dudley said that their operations are regaining momentum and that they have greater confidence in the company.
Dudley also says, "The past year has been unprecedented in its challenges, and BP has responded well... We have laid firm foundations for the future - in safety, in our organisation and in developing new growth opportunities... As our extended turnaround program moves towards completion we are seeing production return, particularly from Angola, the UK North Sea and the US Gulf of Mexico, where we produce our higher-value barrels."
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