BP chief executive Bob Dudley has said the North Sea remains a heartland for the oil and gas giant which is set to conduct a big exploration programme that could result in it creating jobs.

While BP has axed hundreds of North Sea jobs amid the downturn triggered by the crude price slump and sold off assets to help raise cash, Mr Dudley said the company remains committed to the area for the long term.

“Actually we’re very bullish on the North Sea right now,” said the US executive, who noted BP is engaged in a multi-billion pound investment programme that will involve developing giant new fields and hunting for more.

“We’ve put eight to ten billion pounds into the North Sea over the last number of years and we’re still going with that so there’s deep commitment there,” said Mr Dudley after BP revealed it doubled fourth quarter profits to $400 million (£320m)

In comments to reporters, he indicated the company is nearing the end of a programme intended to get the North Sea portfolio in shape to deal with a potentially long period of relatively low oil prices.

“I think you’ve seen nothing but commitment from us,” said Mr Dudley. ”We will always be looking for simplifying and making sure we are doing it efficiently but I think the majority of that is behind us.”

The recent deal to sell stakes in the giant Magnus oil field and the flagship Sullom Voe terminal on Shetland to EnQuest was agreed under a plan to reposition BP to focus on developing big new projects rather than running late life assets.

Mr Dudley noted work on developing the huge Clair Ridge and Schiehallion fields West of Shetland is advanced. BP recently doubled its holding in the giant Culzean field, which is operated by Maersk.

The company last year bought into the Jock Scott exploration prospect operated by Statoil.

Mr Dudley added: “We’re planning up to five exploration wells in 2017 and we’ve got 50 development wells over the next three or four years so this is a heartland for BP.”

The company appears to have increased the valuation of some North Sea assets significantly.

BP said it reversed $3billion impairment provisions in the fourth quarter, mainly in respect of assets in the North Sea and Angola.

Pressed on the outlook for jobs, Mr Dudley noted many people are working on the Shetland development projects. “With five exploration wells out there and … the potential of other appraisal wells if we’re successful on these we will be a job generator in the North Sea,” he said.

BP employs around 2,300 in its North Sea business, including staff based onshore in Aberdeen.

Mr Dudley’s comments may boost hopes the North Sea is set on the road to recovery following a long downturn in which firms have slashed investment in the area and shed thousands of jobs.

A study by EY underlined the scale of the challenges faced by oil services firms, which have been hit hard by cuts in spending on new developments and exploration.

The accountancy giant found the UK oilfield services sector suffered a 12 per cent fall in turnover in 2015, the first since the accountancy giant started compiling the figures in 2008. Total turnover fell to £35.7bn in 2015, from £40.6bn in 2014.

Derek Leith, EY partner and head of oil and gas tax, said it is essential oil services firms keep costs under control following the partial recovery in crude prices in the last quarter.

This followed the agreement by Opec countries to limit production to support the market.

BP’s chief financial officer Brian Gilvary said it expects oil to trade in the $50 per barrel to $55/bbl range this year.

Brent crude fetched around $55.40 yesterday. It fell from $115/bbl in June 2014 to $27/bbl in the first quarter of last year.

Mr Dudley said BP made significant strides in creating a stronger platform for growth in 2016 with major field start ups in Algeria and the Gulf of Mexico and strategic additions in places such as the Middle East.

He reckons the company has put the liabilities for the disastrous Gulf of Mexico oil spill in 2010 substantially behind it. The costs of the spill increased by $800m in the fourth quarter to $62.6bn.

BP maintained the fourth quarter dividend at 10 cents per share.

The annual profit fell to $2.6bn from $5.9bn on the replacement cost measure monitored by analysts.

Earnings in the downstream refining and marketing arm fell to $880m from $1.2bn in the fourth quarter last year. The oil price rise has impacted refining margins. The upstream business surprised on the upside, with a $400m profit compared with a $700m loss last time.

Analysts at Barclays said the results were somewhat disappointing, with fourth quarter earnings around 30 per cent below the consensus forecast.

Shares in BP closed down 4 per cent, 19.45p, at 457.1p.