- BP admits it overestimated the value of its proven oil and gas reserves by $5.73bn over the three months up to the end of June.
- In a filing, BP says the error resulted from “misinterpretation” of data used for accounting purposes; the new CEO, Meg O’Neill, said the company would change.
- BP’s auditors noted that, in the filings, the company had drawn up plans to sell Archaea at a time when UK North Sea production had already been in decline.
British oil and gas company BP said it overestimated the value of its proven oil and gas reserves by more than $5.73bn (£4.27bn) — a figure that was higher than the $2.5bn threshold. It also said the overestimation of reserves was linked to “misinterpretation” of data by BP’s former CFO, a claim it said was made through the company’s internal audit process.
BP’s new general director, Meg O’Neill, said the company would need to change its approach, as it had failed to properly assess the risks of its business. The material also said that O’Neill’s predecessor, who had been in charge for 117 years, had been responsible for the decision to misstate the reserves.
According to Independent, BP’s reported underlying replacement cost profit, which was attributed to the year 2026, had dropped by 78% to $5.7bn (£4.2bn) compared with the previous quarter. The material also said that the company’s “misinterpretation” of the data had been linked to the company’s decision to change its reserve accounting in the UK.
The report also states that BP said it planned to sell its business involving Archaea, and that it also planned to reduce its UK North Sea production by 60 years. BP’s auditors said the company’s plans to sell its non-core assets were “not consistent” with the company’s strategy.
The material notes that Friends of the Earth co-founder Dale Duns, said it was “not surprising” that the company had misled investors, adding that the company’s “misinterpretation” of the data could have been avoided. The material also notes that Simon Francis, of the End Fuel Poverty Coalition, said the company’s decision to change its reserve accounting would “lead to higher energy prices”.
Guardian also reported that BP’s results were worse than those of Shell, and that Saudi oil company Aramco’s profit was $32.69bn over the three months to 30 April. The report also said that Donald Trump said, for his part, that Chevron and ExxonMobil were “selling more oil than they should”.