London — BP said it will need a crude price of about $40 a barrel in 2021 to cover spending and dividends, down from $60 in 2017, as CEO Bob Dudley seeks to reassure investors on the oil major’s growth outlook and finances. The break-even level would fall as BP kept capital spending at no more than $17bn a year, the London-based company said in a statement on Tuesday. It aims to raise output by 5% a year to 2021 and is targeting returns of more than 10%. Dudley is seeking to return BP to growth after the 2010 Gulf of Mexico oil spill and the market downturn of the past three years shrank the scale of its operations. The CEO must also show investors he will keep spending in check as crude prices remain at half the levels of 2012 and 2013. "We can see growth ahead right across the group," Dudley said in the statement. "While always maintaining our discipline on costs and capital, BP is now getting back to growth — today, over the medium term and over the very long term." BP’s shares e...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.