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BP leadership shifts focus away from some low carbon investments
BP said it is pulling out of the North Sea, citing unpredictable fiscal regime changes, and it is also exiting Archaea after earlier buying the US biogas business for $4 billion.
BP is overhauling its approach to energy while pursuing a net zero goal, according to OilPrice. In 2020, the company laid out a strategy described as “performing while transforming,” including significantly scaling up its low carbon energy business as part of an aim to become a net zero company by 2050 or sooner.
OilPrice reports that CEO Meg O’Neill acknowledged BP’s recent performance has not met the expectations of shareholders. In connection with that review, BP is making changes to its portfolio, including pulling out of the North Sea, which the company said reflects concerns about unpredictable fiscal regime changes that undermine confidence and stability.
The outlet also reports BP is ditching Archaea, four years after acquiring the US biogas business for $4 billion. OilPrice adds that O’Neill has said certain green energy investments had not delivered the returns the company expected, as BP moves away from parts of the clean energy pivot set under former CEO Bernard Looney.