View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
August 10, 2020

BP plans to divest several assets to boost renewable investment

BP has reportedly decided to sell several oil and gas assets to increase its investment in renewable energy.

By Aninda Chakraborty

BP has reportedly decided to sell several oil and gas assets and use the proceeds to increase its investment in renewable energy.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

According to a Reuters report, the company intends to advance with the divestment even if crude prices recover.

Sources told the news agency that the strategy was discussed in a BP executives meeting last month when the British oil and gas firm decreased the oil price forecast to $55 a barrel.

Then, the company also announced to book a series of non-cash write-downs and charges of up to $17.5bn (£14bn) due to the impact of Covid-19 crisis.

As part of the new strategy, BP seeks to reduce its oil and gas production by 1Mbpd, or 40%, by the end of 2030.

Last week, BP CEO Bernard Looney was quoted by the Reuters as saying: “As we look at the outlook for BP over the next few years and as we see production declining by 40% it is clear we no longer need exploration to fund new growth.

“We will not enter new countries to explore.”

In the same time period, it aims to increase investment in low carbon energy sources to nearly $5bn annually.

However, the company plan to continue exploration campaigns near existing infrastructure, a move that will require less investment.

Notably, BP has increased the target for returns from asset sales to $25bn in the next five years. Around $12bn of assets have already been identified and are in the divestment pipeline.

Several European oil and gas companies have increased their investments in renewable energy in the recent years after the governments ramped up sustainability efforts and asked the companies to reduce emissions.

Related Companies

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Offshore Technology