Oil production fall a blow to BP
Troubled oil giant BP was dealt a further blow today after problems in Alaska saw production levels fall in the third quarter.
The London-based company said it produced 3.8 million barrels of oil per day between July and September – down from more than four million barrels in the previous quarter.
It was also marginally below its output between July and September last year when production was hit by hurricanes in the Gulf of Mexico.
The decline came after BP was forced to shut down half its operations at the Prudhoe Bay oil field in Alaska following a serious spillage and corrosion of pipes.
The company's shares have fallen 20% since April following problems at Prudhoe Bay, investigations into its trading operations by regulators in the United States, and high-profile rumours of an internal battle over the retirement date of chief executive Lord Browne.
BP is also embroiled in an investigation into a fire at its Texas City refinery which killed 15 workers last year.
Last month it said that safety concerns would delay the start of production at its key Thunder Horse platform in the Gulf of Mexico, which was damaged by Hurricane Dennis in July 2004.
The string of incidents has led investors to raise questions about BP’s safety record, while falling oil prices have also depressed its share price.
The cost of crude hit a seven-month low below $59 a barrel today - threatening profits at BP.
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