The BP group wrote off US$750 million in its second quarter results as a result of poor oil drilling results in Angola, the group said in a statement released on Thursday.
The group said it had relinquished its 50% stake in Block 24/11 in southern Angola and added that it remains to be determined whether the Katambi well, a natural gas discovery made in 2014, has commercial viability.
The value of US$750 million announced by the BP group was also due to poor results from operations elsewhere, but BP did not provide further details.
The group also reported that this non-monetary write off is not tax deductible but added that it will not affect cash flow in any way, an important indicator for shareholders concerned about the value of dividends at a time when oil prices are below US$50 a barrel.
The decision to write that amount is part of a broader analysis of the asset portfolio, which is intended to focus the group’s activities more on natural gas and on oil projects close to sites with infrastructure. (macauhub)