BP hope to return cash to shareholders through buybacks

BP plc said it is to buy back shares with free cash flow as long as the price of oil exceeds $20 (€16.51) per barrel, and said it expects to deliver "significant extra cash" to its shareholders over the next three years while growing production.

Chief executive of the group, Lord Browne, said that a $20 (€16.51) oil price would allow the company to meet its capital requirements and pay a progressive dividend.

He also said that all the free cash generated when the oil price is above that level would be returned to shareholders through buybacks.

Laying out the group's strategy to end-2006, Browne said BP was in transition from a period of acquisition and consolidation, to a phase of strong organic growth.