BP To Delay Several Projects

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BP, the largest oil and natural gas producer in the U.S., said it will delay a pair of projects in the Gulf of Mexico and one in Alaska following the Gulf of Mexico oil spill. CEO Bob Dudley made the announcement in a presentation to investors and analysts today in London.

BP (BP), Europe's second-largest oil company, will delay the Galapagos project in the Gulf until 2012 while the third phase of Na Kika will be implemented after that year, according to Bloomberg News. The Liberty project in Alaska was pushed back past 2013 after being slated to start this year.

BP plans to start 32 projects, which will contribute about 1 million barrels a day of production, by the end of 2016, Bloomberg reported. The company's fourth-quarter production fell 9.4% due to asset sales. BP has sold $22 billion in assets to raise cash for spill-related expenses. The company expects to produce 3.4 million barrels of oil equivalent per day this year, down from over 3.8 million barrels per day in 2010.

Dudley said uncertainty surrounding projects in the Gulf following the spill will impact overall U.S. production this year. Analysts are speculating BP could miss out on 80,000 barrels per day in production this year in the Gulf as the company struggles to meet the more stringent safety regulations set forth by the U.S. government.

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