BP expects to take $17.5bn hit due to coronavirus writedown

(The Guardian, 15 Jun 2020) Oil company says it may be forced to leave some of its fossil fuel discoveries in the ground

BP will slash up to $17.5bn (£14bn) from the value of its oil and gas assets, and may be forced to leave new fossil fuel discoveries in the ground, after its own forecasts found the Covid-19 pandemic may affect the world’s oil demand for the next 30 years.

The British oil major told investors it would take the hit, its largest writedown in a decade, because its oil price forecasts for the next three decades have fallen by almost a third.

The cut to BP’s global oil price forecasts, to an average of $55 a barrel between 2020 and 2050, could mean the oil company is forced to leave some oil and gas discoveries in the ground if the projects prove uneconomic to develop.

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The Guardian, 15 Jun 2020: BP expects to take $17.5bn hit due to coronavirus writedown