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
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