BP is not worried by rise of Chinese and Indian firms

Apr 26, 2005 02:00 AM

BP is not concerned about the competitive threat posed by the rise of Indian and Chinese oil firms, the company's CEO John Browne said.
China and India have charged their state-owned oil and gas companies to scour the globe for energy resources to feed the nations' booming economies. Some analysts predict their focus on security of energy supply, rather than return on cash, will inflate the cost of gaining access to energy resources to levels that are uneconomic for Western oil majors.

Browne said that so far, this was not a concern in the areas where BP was bidding for resources.
"At the moment they are not behaving as if they have a blank cheque. They have taken a limited number of positions in the E&P (exploration and production) business and I'm sure they'll continue to do that," Browne told. Browne added that no country could guarantee security of supply by buying access to resources and that this depended upon efficient oil markets.

BP had earlier reported a 29 % rise in first quarter profit to $ 5.49 bn, boosted by high oil prices.
"They are good and strong results and I think they are a function of the unchanged strategy we've had in place for many years," Browne said.

Browne played down investor concerns about BP's Russian operations. He said BP's Russian partners had indemnified BP against a $ 1 bn tax claim levied on their joint venture, TNK-BP.
"(We're) completely happy. It's something that is being discussed with our partners... Everything seems to be going just fine," Browne said.

Source: Muzi
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