Damage to BP Thunder Horse platform risks growth plans: analysts
London (Platts)--12Jul2005
Damage to BP's $1-bil Thunder Horse oil platform in the deepwater US Gulf of Mexico may hamper the company's plans to boost oil and gas output, oil analysts said Tuesday. BP said Monday that the semi-submersible platform is listing by 20 to 30 degrees after suffering possible damage as Hurricane Dennis swept across the Gulf. London-based is aiming to boost oil and gas production by some 5% a year, more than rivals such as Shell. Investors watch output growth as an indicator of an oil company's ability to increase earnings without relying on higher oil and gas prices. "This incident is a significant concern for BP's growth outlook," Jon Wright, an analyst at Citigroup, said in a research note. "In the event of catastrophic loss, rebuild costs are likely to be significantly higher due to higher steel and service costs," he said, adding that loss of the platform was "unlikely." BP shares, after a 2% decline Monday, were down 1.1% at 627 pence at 1215 GMT, similar to a 1.4% decline at Shell, as BP said it continued to assess the cause of the listing. More details on this story were published in Platts Global Alert. Find out more at http://globalalert.platts.com
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