Login

jft310 · 06-24-2016, 10:30 PM

The oil giant said "uncertainty is never helpful for a business", but added that it respects "the decision taken by the British electorate in the EU referendum".

A spokeswoman added: "It is far too early to understand the detailed implications of this decision and uncertainty is never helpful for a business such as ours."

"However, we do not currently expect it to have a significant impact on BP's business or investments in the UK and continental Europe, nor on the location of our headquarters or our staff," she said.

"As details of the process for negotiations around the UK's future relationship with the EU become clear, we expect to engage with both the UK government and the EU on areas of common interest."

Fellow supermajor Shell, which has a large presence in London, said earlier on Friday that it would work with the UK government and EU institutions following the decision by the electorate to quit the EU.

According to analysts, the most immediate concern now is that Brexit's potential economic impact may exacerbate the already challenging environment created by lower oil prices.

"This, combined with the possibility of a further Scottish independence referendum, has created even more uncertainty in an existing pool of uncertainty for the industry. However, it is important to remember that legal frameworks will not change immediately (if they are to change at all). What is needed now is clear leadership on the way forward - and quickly!" a partner a law farm Ashurst, Michael Burns said.

Energy sector workers also raised some concerns."This result could create uncertainty for North Sea operators, particularly around the need to source talent for projects in and around the EU," the chief executive of Airswift - aworkforce solutions provider to the global energy- Peter Searle said.

"However, leaving the EU could ultimately signal a more prosperous future for the UK North Sea. Norway, a key player in the energy industry, already exists successfully outside of the EU and now it's the UK's time to carve out its own future,"Searle said.

Meanwhile, global energy consultancy PricewaterhouseCoopers (PwC) said the industry "should be less impacted by the referendum results", as the oil and gas industry "is a global business".

Alison Baker, PwC’s UK and Europe, Middle East & Africa oil and gas leader, said: "We've seen the industry, both here in the UK and further afield, demonstrate its resilience in dealing with volatility and uncertainty through past and current oil price shocks - and we are convinced that they can do so again.

"Any further downturn in the economy or volatility in the oil price could cause further distress in the sector and in particular further project sanction deferrals might have significant consequence for the service sector who also rely on mobility of employees around the world.

"It will be vital for Government, OGA and industry to accelerate the level of collaboration over the coming weeks and months to ensure that together we can work through this additional layer of uncertainty,” Baker said.

Dan Jackson, chief executive of UK consulting company IO Oil & Gas Consulting, said: "Today’s results will no doubt have ramifications across the oil and gas community, and there is little doubt that the next few weeks will be a whirlwind of speculation.

"We at (IO) consulting remain dedicated to working within the global oil and gas communities to continue collaborative efforts to revive the sector."

Following the historic referendum, which saw 52% of the British people back the campaign to leave, while 48% voting to remain, Cameron announced his plans to step down by October.

The prime minister, who passionately supported the campaign to remain, made the announcement in a statement outside Downing Street after the results were made official. During the campaign,he urged the country to vote to remain, warning of economic and security consequences of an exit.

"I was absolutely clear about my belief that Britain is stronger, safer and better off inside the EU and I made clear the referendum was about this and this alone - not the future of any single politician including myself," he said.

"But the British people have made a very clear decision to take a different path and as such I think the country requires fresh leadership to take it in this direction.

"I will do everything I can as(prime minister)to steady the ship over the coming weeks and months but I do not think it would be right for me to try to be the captain that steers our country to its next destination.

"This is not a decision I've taken lightly but I do believe it's in the national interest to have a period of stability and then the new leadership required," Cameron said.

Login
Username:
Password:	Lost Password?
	Remember me

RELATED STORIES