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BP to sell its US biogas business as it refocuses on oil and gas
BP said it acquired Archaea for $4.1 billion in 2022, but the unit faced financial underperformance and slower-than-expected growth.
BP plans to offload its US biogas business, selling the unit just days after confirming it is exiting the North Sea, as the London-listed company looks to narrow its focus back to core oil and gas products, according to OilPrice.
The sale comes as BP pursues a broader portfolio simplification overseen by new boss Meg O’Neill, who has said the firm must choose assets “based on value, not sentiment, nor history” and prioritize those that can deliver competitive returns and long-term value.
BP bought Archaea for $4.1 billion in 2022, but OilPrice reports the business has since shown financial underperformance and slower-than-expected growth, prompting BP to reassess its worth.
OilPrice adds that BP’s restructuring includes splitting its energy channels into upstream and downstream, and the North Sea exit leaves the company without petrochemical production in its home market for the first time in decades, after it also sold its Gelsenkirchen refinery and retail business in Austria.