BP pays $1.75 billion to enter and produce unconventional gas fields in Oklahoma.
TNK BP shareholders go up in arms, claiming BP's TNK-BP CEO is acting only in the best interest of BP; however, BP refuses to remove the CEO of the $20 billion project, causing investors to worry that the company will be forced to sell its share in the group - or worse see its assets nationalized.
Stocks rose more than 2%, as BP announced it had discovered a large deposit of natural gas in the Shah Deniz field in the Caspian Sea; analysts predict the new deposit will create large future earnings potential through exports to Europe.
The company plans to merge its gas, power and renewable-energy business into its E&P and Refining & Marketing divisions reducing the number of divisions 3 to 2. The new structure is meant to reduce the complexity in BP's operations and thereby reduce accidents. The company is also planning a 25% reduction in its home office work force.
BP CEO Tony Hayward states that Q3 revenues will be "dreadful" due to falling U.S. natural gas prices, declining refining margins, a damaged pipe in the North Sea, and a bad reputation gained from a 2005 Texas refinery accident. Shares drop at the news.
The share price of BP dropped from USD 63.89 on February 26, 2007 to USD 61.87 on February 27, 2007. This share price dropped after BP’s CEO John Browne’s sworn testimony in the suit regarding an explosion in the Texas City refinery in 2005.
The share price of BP dropped from USD 68.44 on November 10, 2006 to USD 67.13 on November 13, 2006. This was due to expectations of a suit settlement on the Texas City refinery blast.
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