BP announced on Wednesday that it will raise its annual oil and gas investment to $10 billion, reaffirming its focus on fossil fuels as part of CEO Murray Auchincloss’ strategy to enhance returns and strengthen financial performance, Reuters reported.
“We will grow upstream investment and production to allow us to produce high-margin energy for years to come. We will focus our downstream on markets where we have leading integrated positions,” Auchincloss was quoted as saying by Reuters
The shift reflects a broader trend in the energy sector, where companies that previously pivoted towards low-carbon alternatives are refocusing on oil and gas due to rebounding fossil fuel prices, the reports said.
BP’s revised strategy comes amid pressure from investors, particularly Elliott Investment Management, which has built a stake in the company, urging major changes, said the report.
As part of its financial restructuring, BP is also reviewing its Castrol lubricants business and aims to divest $20 billion in assets by 2027, it added.
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