Details of BP PLC’s (LON:BP) pivot to become an integrated energy company are continuing to emerge following Tuesday’s unveiling, with reports indicating that 'stranded' oil and gas projects - those not already attached to infrastructure - will be among those potentially set for the exit door.
Citing three sources familiar with the plan, a Reuters report said BP executives want to sell such assets to enable more investment into renewable energy.
With its latest quarterly results on Tuesday, BP said it will transition from being an international oil company and would cut oil and gas volumes by more than 40% over the next ten years. There will no new exploration in new countries and, operationally, the company plans to reduce its emissions by 30 to 35%.
The famous oiler told investors it will aim to increase renewable energy capacity some 20-fold from its current level of around 2.5 gigawatts (GW) to 50GW. At the same time, it wants to take a 10% share of the hydrogen market and to increase its bioenergy output to 100,000 barrels a day from 22,000.
BP said it intends to build ‘energy partnerships’ with between ten to fifteen cities where it targets the installation of 70,000 electric vehicle charging points, from around 7,500 presently.
The company said its investment strategy, which will comprise US$5bn per year, will create sustainable value via low carbon and non-oil and gas opportunities.