BP BP-N has 18 billion barrels of oil equivalent resources in its portfolio that would meet its expectations for returns on investment, equating to 20 years of output at 2022 levels, it said in an investor presentation released on Wednesday.
“We will of course remain disciplined evaluating these potential projects – applying our investment hurdle rate of 15-20 per cent, and payback periods of 10 years for oil and 15 years for gas,” BP said.
BP said on Tuesday it remained committed to its financial and carbon reduction ambitions, as interim Chief Executive Officer Murray Auchincloss hosted an investor day.
The company aims to achieve zero net carbon emissions by 2050 and to invest billions in renewable and low-carbon power. In February, BP scaled back plans to reduce oil and gas output by 2030 to 25 per cent from 40 per cent from 2019 levels.
In the presentation, BP also raised its forecast for earnings before interest, taxes, depreciation, and amortisation (EBITDA) from oil and gas businesses for 2030 by $2-billion to $41 to $44-billion at an average oil price of $70 a barrel.
Scientists say the world needs to cut greenhouse gas emissions by around 43 per cent by 2030 from 2019 levels to stand any chance of meeting the 2015 Paris Agreement goal of keeping warming well below 2 degrees Celsius (3.6 Fahrenheit) above pre-industrial levels.