Impact of pandemic

BP reviews operations, takes £14bn hit on assets

BP

BP is making a strategic switch

BP is reviewing some of its exploration plans and revaluing its assets as it assesses the impact of the coronavirus on the oil price.

It will take a non-cash impairment charge of up to $17.5 billion (£13.9 billion) post-tax in the second quarter as it transitions towards a lower-carbon economy.

The write-down in the value of its assets follows a lowering in its long-term oil and gas price outlook.

The oil giant’s revised long-term price assumptions were now an average of around $55 per barrel for Brent.

Shares in the company fell 5.5% in early trade.

The company said in February that it would reorganise its business to achieve net zero emissions by 2050 or sooner. It announced last week that it would cut 10,000 jobs, nearly 15% of its workforce, to reduce costs.

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