BP expects to reach its 35 billion net debt target in the first quarter of 2021, the energy group said on Tuesday, following earlierthanexpected proceeds from disposals and a very strong quarter.

The company, which had a debt pile of 39 billion at the end of 2020, had earlier expected to reduce its debt to 35 billion around the fourth quarter of 2021 or first quarter of 2022.

BP plans to start share buybacks once it reaches its debt target. The company said it would provide an update on share buybacks during its firstquarter results on April 27.

The Londonbased company said on Tuesday it expects sale proceeds in 2021 to be at the top end of its existing 4 billion to 6 billion range.

The oil major plunged to a 5.7 billion loss last year, its first in a decade, as the COVID19 pandemic took a heavy toll on oil demand and in February warned of a tough start to 2021 amid widespread travel restrictions.

Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak Dasgupta

Source Reuters