Wedoany.com Report-Oct 18, BP (BP.L), is considering selling a minority stake in its offshore wind business, according to four sources with knowledge of the matter, the latest effort by CEO Murray Auchincloss to scale back the energy company's focus on renewables.
The company has faced pressure from shareholders over its energy transition strategy, first launched in 2020, as renewables profit thinned while margins from oil and gas rose.
The London-listed oil company has lined up Bank of America (BAC.N), to find partners for the business, the sources said, speaking on condition of anonymity because the process is private. BP wants to reduce its share of the hefty investments required to develop these projects, two of the sources said.
BP remains committed to developing its major offshore wind projects, one source said. The company has also invested in solar, biofuels and low-carbon hydrogen in recent months.
Auchincloss, who took up the job in January, has vowed to revamp the company's plans to focus on the high-margin businesses, distancing himself from predecessor Bernard Looney's strategy to rapidly expand renewables and reduce oil and gas output.
Reuters reported in June, citing sources, that the company paused investments in new offshore wind projects. Last month, BP said it plans to sell its U.S. onshore wind business.
The CEO has also said BP would sell a stake in its solar joint venture Lightsource BP once it completes its full acquisition in the coming months.
Sources told Reuters earlier this month that BP has abandoned its flagship target to reduce oil and gas production by 25% between 2019 and 2030, though it remains committed to its ambition to reduce carbon emissions to net zero by 2050.
"As Murray said at the start of year... the direction is the same – but we are going to deliver as a simpler, more focused, and higher value company," a BP spokesperson said at the time.
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