BP denies human rights abuses

BP has urged authorities in Colombia to investigate allegations that the oil giant has collaborated with human rights abuses committed by the country's armed forces.

John Browne, the chief executive, insisted yesterday that complaints to the Colombian prosecutor's office were "absolutely groundless".

BP pays $8.6m in taxes and lodgings for the military guards, who are intended to prevent attacks on its oil installations from left-wing guerrilla groups.

However, in a sign that opportunities for BP in the country were deteriorating, Mr Browne said prospects for future investments "don't look very good".

The news emerged as BP strengthened its position at the top of the oil industry earnings league as it revealed record profits in the third quarter of the year and predicted that the high level of oil prices which have helped to boost revenues would continue well into next year.

Profits on a replacement cost basis before exceptional items surged by 22 per cent in the three months to the end of September to pounds 650m. Taking the first nine months of the year as a whole, BP's earnings also hit record levels, increasing by 28 per cent to pounds 1.931bn.

Like other oil giants, BP's earnings were boosted by the rise in oil prices, which averaged $20.20 a barrel, $2.30 higher than a year ago. Production volumes grew by 6 per cent while underlying profits from upstream activities jumped by a third to pounds 761m.

However, Mr Browne said the benefit from rising oil prices had been more than outweighed by sharply lower profit margins in chemicals operations.

BP increased its dividend by 25 per cent to 5p in the third quarter, the same level as the previous three-month period. Shares in the group edged up by 2p to close at 640.5p.