--BP lowers 2021-2050 Brent crude oil and Henry Hub gas prices by 27% and 31% respectively

--The company seeks to be carbon neutral by 2050 and is reviewing its exploration plans

--BP says the coronavirus will have an enduring effect on energy demand, and countries will accelerate energy transitions in the aftermath of the pandemic 



  By Jaime Llinares Taboada 


  BP PLC said Monday that it expects to book noncash impairment charges and write-offs of between $13 billion and $17.5 billion in the second quarter as it redirects its business strategy toward becoming a net zero emissions company. BP also lowered its long-term oil and gas price assumptions. 


  The U.K. oil-and-gas company said it is reviewing its portfolio as part of its new strategy to become a lower-carbon group. BP said it expects the coronavirus pandemic to have an enduring effect on the global economy and energy demand, and said it will accelerate the transition toward a lower carbon economy as countries seek to "build back better." 


  As a result, BP has reduced assumptions for Brent crude oil prices by 27% to $55 a barrel for the 2021-2050 period, in line with a range of transition paths consistent with the Paris climate goals. Henry Hub gas is forecast to average $2.90 per million British thermal units over the same period, down 31% from the previous projection included in the annual report released in March. 


  Chief Executive Bernard Looney said that BP has reset its price outlook to reflect the effect of the energy transition, and is also reviewing its plans to develop some of its exploration intangible assets. "All that will result in a significant charge in our upcoming results, but I am confident that these difficult decisions--rooted in our net zero ambition and reaffirmed by the pandemic--will better enable us to compete through the energy transition," Mr. Looney said. 


  The FTSE group expects to book pretax impairment charges against property, plant and equipment of $8 billion-$11 billion in the second quarter, and write-offs of exploration intangibles in the range of $8 billion to $10 billion. BP's exploration intangibles were valued at $14.2 billion in the first quarter results. 


  BP had said in February that it intends to reduce its net carbon emissions to zero by 2050. Carbon emissions from its oil and natural gas operations by that point would be completely offset by reductions from more-efficient production and carbon removal and sink efforts, it said. 


  Shares at 0758 GMT were down 14.55 pence, or 4.5%, at 308.50 pence. Brent prices for near-term delivery were up 0.5% at $38.73 a barrel. 


  Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT