LONDON (Reuters) - British oil major BP (L:BP) said it will be able to balance its books at an oil price as low as $35-40 a barrel by 2021 as the company has reined in spending.
BP also said its upstream and downstream segments, its main oil and gas business units, will generate pre-tax free cashflow of $13-14 billion and $9-10 billion a year by 2021.
Earlier this month, BP raised its break-even price to $60 a barrel for this year due to higher spending.
"Over the next five years we expect this to fall to around $35-40 a barrel for the group overall," CFO Brian Gilvary said in a statement on Tuesday ahead of a strategy presentation to investors.