BP cuts production by 3.5% during 2005’s second quarter

Although the TNK-BP Russian-British joint venture has expanded its output, British Petroleum cut production by 3.5% in the second quarter of 2005 due to the higher taxes being levied on Russia’s oil sector and to oil-export restrictions, BP said in a report Tuesday, Gazeta.ru reported. However, market watchers disagree with this assessment. “Indeed, Russian taxes and duties have soared by some 20% of corporate earnings since early 2005. Still this factor cannot explain subsiding BP output. Corporate production may have plunged because of lower output from other BP-owned assets. Or BP simply sold off part of its units,” said Andrei Gromadin, an analyst with MDM-Bank.

RIA Novosti