BP considering sale of minority stake in offshore wind business - report

18th Oct 2024 11:19

(Sharecast News) - BP is reportedly considering selling a minority stake in its offshore wind business, 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.

On Friday, Reuters cited four sources with knowledge of the matter as saying that BP has lined up Bank of America to find partners for the business. It was understood that BP wants to reduce its share of the hefty investments required to develop these projects.

A spokesperson for BP declined to comment to Reuters.

One source said BP remains committed to developing its major offshore wind projects. 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 that BP paused investments in new offshore wind projects. Last month, the oil giant said it planned to sell its US 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 had 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.

BP currently does not have any offshore wind farms in operation. The offshore business has stakes in projects in Britain, Germany, the United States and Asia, and had a pipeline of projects with a capacity of 9.6 gigawatt at the end of June.