...The ratings reflect BP PLC's extremely strong, geographically diverse business portfolio; solid financial profile; and relatively conservative financial policy. BP's key competitive strengths include: + A massive reserve base--13.6 billion barrels of oil equivalent (boe) at year-end 2000--especially in North America and the North Sea, with promising developments in the Gulf of Mexico. The reserve life is adequate, at 11.5 years; replacement rates are strong (160% in 2000 on an internal basis); and finding and production costs are competitive; + Robust medium-term production growth (5.5% annually, which is achievable for 2001 thanks to net acquisitions)--based on promising prospects in South America, West Africa, and the Caspian Sea--and an excellent position to serve the large, growing, and profitable U.S. gas market; and + Profitable, very large, and sophisticated refining and marketing assets across Europe (in Germany, BP will become market leader upon completion of the acquisition of...
