BP (LON:BP) took an approximate $900 million (£700m) impairment charge against some of its North Sea assets in 2023, according to the firm’s annual report.
The company said it recognised the $900m impairment “in respect of certain assets in the North Sea as a result of changes to the group’s oil and gas price and discount rate assumptions and activity phasing”.
Overall, BP booked net impairment and losses on sale of businesses and fixed assets of $5.7 billion (£4.4bn) in 2023.
BP did not specify which of its assets accounted for the impairment.
In 2023, BP’s UK North Sea production came from two main areas; the Shetland area comprising the Clair and Schiehallion fields and the central area comprising the Andrew area, Culzean, Vorlich and ETAP fields.
Despite the impairment losses, BP posted an underlying RC profit of $13.8 billion in 2023.
BP chief financial officer Kate Thomson said the company delivered a strong underlying financial performance.
“We remain focused on strengthening the balance sheet,” Ms Thomson said.
“As we look forward, we are staying disciplined, tightening our capital expenditure frame and simplifying and enhancing our share buyback guidance through 2025.”
