BP looks to new projects as output declines at existing fields

The schemes, ranging from Russia to the North Sea, will contribute one million barrels of oil a day by 2015 or around a quarter of BP's total production – more than offsetting falling output from maturing fields.

BP – which will spend around 15 billion US dollars (10bn) on exploration and production this year – expects production to rise by between 1 per cent and 2 per cent a year to 2015 and is confident of further growth to 2020.

Deep-water sources, giant oilfields and gas – including unconventional gas sources – will drive medium-term growth, the company added.

BP is also aiming for a 3 billion dollar (2n) boost to underlying pre-tax profits over the next two to three years, through further cost savings across the business.

The oil major has shed around 7,500 staff over the past two years under a shake-up led by chief executive Tony Hayward, although no fresh job losses were announced yesterday.

The company wants to "inject greater consistency" in its exploration and production by centralising its project management of major schemes, as well as improve refining and marketing operations so they can turn a profit even in the depressed conditions seen last year.

Mr Hayward said: "The challenge and the opportunity for us is that

while our portfolio ranks amongst the best in the industry, our

financial performance has yet fully to reflect this."

He added: "Whichever way you look at it, there are significant opportunities for improvement and in every case firm plans are in place to close these gaps. We believe we have made a good start – but it's only a start."

Last month BP said annual profits had fallen by almost half amid lower oil prices.