By Sarah Kent
LONDON--BP PLC is continuing to position itself for a world in
which oil prices remain lower for longer, CEO Bob Dudley said
Tuesday after the company reported a loss of $6.3 billion in the
second quarter.
"$100 a barrel was an aberration," Mr. Dudley told reporters at
the company's London office, warning that he did not expect prices
to rebound in the medium term.
"It's a really tough time for the industry. It does feel like
1986," Mr. Dudley added, referring to the oil price slump that hit
the industry in the late 1980s.
The company has already taken steps to cut costs and slash
spending in response to the lower oil price, but maintains that it
intends to do so without sacrificing growth.
It is still considering when to sanction a major project in the
Gulf of Mexico after retooling it to significantly bring down
costs.
Mr. Dudley said he was much more confident about moving forward
with the project after reaching an agreement earlier this month to
settle federal and state claims relating to the company's 2010
blowout in the Gulf of Mexico. However, he added that BP was sill
considering when to approve a Mad Dog Phase 2 to best take
advantage of deflation in rig costs.
Meanwhile, Mr. Dudley emphasised the company's commitment to
Russia, where it holds a near-20% stake in state-controlled OAO
Rosneft. The CEO highlighted that BP was deepening its engagement
in the country where onshore projects look economically
attractive.
Write to Sarah Kent at sarah.kent@wsj.com
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