BP Restructures for Fossil Fuel Focus
Amidst declining profits, BP has announced a strategic reset that primarily focuses on investing in fossil fuels. The company will halt investments in renewable energy and sell off its US onshore wind farms.
Executive Shakeup and Performance Bonuses
The shift in strategy follows a drop in profits from $13.4bn in 2023 to $8.2bn in 2024. Senior executives' performance-related bonuses have been reduced to 45%.
Focus on Lucrative Projects
BP will prioritize investments in 10 highly profitable projects, including the Kaskida oil field in the Gulf of Mexico and the Tangguh project in Indonesia. Investments in low-carbon energy and biofuel projects will be scaled back.
Analysts Predict Hedge Fund Influence
Analysts anticipate that Elliott Management, a US hedge fund, could influence BP's strategy. Potential demands include a focus on core hydrocarbon businesses, asset spin-offs, or a listing relocation to the US.
Environmental Concerns
Environmental group Global Witness warns that BP's increased fossil fuel investments deviate from its net zero targets pledged five years ago.