Monday, December 23, 2024

BP freezes offshore wind projects to focus on fossil fuels

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Mr Auchincloss and chief financial officer Kate Thomson have prioritised investing in and even acquiring new oil and gas assets, particularly in the Gulf of Mexico and US onshore shale basins, where BP already has large operations, company sources briefed on the matter said.

BP will still consider investing in biofuels and some low-carbon businesses that can generate returns in the short term. 

This week, BP agreed to buy grain trader Bunge’s 50pc stake in Brazilian sugar and ethanol joint venture for $1.4bn (£1.1bn).

It is also expected to make some job cuts in renewables, although no specific targets have been given, sources told Reuters. They added that BP has imposed a company-wide hiring freeze, with only a few exceptions such as frontline and safety personnel.

Mr Auchincloss has promised a pragmatic approach since taking over in January, four months after Looney resigned.

He announced a $2bn cost-saving drive by the end of 2026 relative to 2023. The 53-year-old also cut his executive leadership team from 11 to 10 members.

BP said in a statement to Reuters that Mr Auchincloss introduced six priorities “to deliver as a simpler, more focused and higher value company”.

The priorities include delivering “the next wave of efficiencies and BP’s growth projects”.

It said: “The actions we are taking are part of delivering this – and of course are all in service of our aim of growing the value of BP.”

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