BP said today it expected Hurricanes Rita and Katrina would cost it in excess of $700 million and make its 2005 output goal unattainable.
The London-based firm said third-quarter oil and gas output averaged 3.8 million barrels per day, compared with 4.1 million bpd in the second quarter and 3.9 million bpd in the third quarter of 2004.
BP also lost output to planned maintenance, mainly in the North Sea, and higher prices hit its entitlement from production-sharing contracts with oil-producing nations.
The loss of Gulf of Mexico and North Sea output was especially costly because these are high-margin producing areas.
BP said the impact of the hurricanes, plus higher prices on production-sharing contracts, meant it was unlikely to meet its full-year production goal of 4.1-4.2 million barrels per day.
BP added that it would incur $100 million of additional costs to secure and repair its massive Thunder Horse platform in the Gulf of Mexico, which was left listing after the passage of Hurricane Dennis.
