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 The British oil major said it was also considering deeper cuts to
its 2015 budget beyond the $1-$2 billion reduction already announced
in October, as a result of the oil slump.
"Given the recent position taken by OPEC and with oil prices where
they are today, we will continue to review this further," BP head of
upstream Lamar McKay said in a presentation during an investor day
in London.
The bulk of the restructuring costs will go towards staff
redundancies in all segments, including oil exploration and
production, refining and trading and administration, a company
spokesman said.
BP said a first charge will be taken in the fourth quarter of 2014
as it implements a plan drawn up over the past 18 months to increase
efficiency.
"We expect the group to incur about $1 billion of non-operating
restructuring charges over the next five quarters, including the
current quarter," the company said.
Thousands of BP's global work force of around 84,000 are expected to
lose their jobs, sources said.
BP is in the midst of a cost cutting drive that saw it sell over $43
billion worth of assets to cover the expense of the 2010 Gulf of
Mexico oil spill and the oil sector's rising costs.
The sharp drop in oil prices, which fell from around $115 a barrel
to around $65 a barrel since June, has piled further pressure on BP
and its peers as revenues tumble.
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By 1306 GMT, BP shares were down 0.32 percent at 404.65 pence per
share, compared to a 0.06 percent decline in the Stoxx 600 oil & gas
index <.SXEP>.
McKay did not give any details on possible project delays or
cancellations, saying new oil projects were sanctioned at $80 a
barrel, but were also tested at $60 a barrel.
Global oil and gas exploration projects worth more than $150 billion
are likely to be put on hold next year as plunging oil prices render
them uneconomic, data shows.
Deutsche Bank on Wednesday upgraded BP shares to buy, quoting
"positive change in perception" over the impact of Russian sanctions
and the Gulf of Mexico spill.
(Additional reporting by Paul Sandle; editing by Kate Holton and
Crispian Balmer)
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