- bp has introduced a fundamentally reset strategy, with significant capital reallocation away from renewables and a refocus on core fossil fuel business.
This strategy will see bp grow its upstream oil and gas business, focus its downstream business, and invest with increasing discipline into the transition. It builds on bp’s distinct strengths and competitive advantages as an integrated energy company – with a world-class portfolio with top tier oil and gas businesses in attractive basins and leading integrated positions and brands across value chains, all underpinned by trading, technology, and partnerships.
Highlights of the reset includes:
- Growing upstream: increasing oil & gas investment to ~$10bn p.a.; strengthening portfolio; growing production to 2.3–2.5mmboed in 2030; additional ~$2bn operating cash flow in 2027.
- Focusing downstream: reshaping portfolio to drive growth; high-grading and focusing on advantaged and integrated positions; announced strategic review of Castrol; driving improved performance; additional $3.5–4bn operating cash flow in 2027.
- Disciplined investment in the transition: selective investment in biogas, biofuels and EV charging; capital-light partnerships in renewables; focused investment in hydrogen/CCS; investment in transition businesses of $1.5–2bn p.a., over $5bn p.a. lower than previous guidance.
“We will grow upstream investment and production to allow us to produce high margin energy for years to come. We will focus our downstream on markets where we have leading integrated positions. And we will be very selective in our investment in the transition, including through innovative capital-light platforms. This is a reset bp, with an unwavering focus on growing long-term shareholder value, ” said Murray Auchincloss, chief executive officer, bp.
The group is kicking off with a $20 billion stake sale in Lightsource bp. It became the sole stakeholder of Britain’s Lightsource bp in October 2024 which then had 62 GW of solar PV capacity in its development pipeline across 19 global markets.
Author: Bryan Groenendaal
