SEATTLE (Oil Monster): In a major change of focus, BP has said that it will put more money into the conventional oil and gas industry. Murray Auchincloss, CEO of BP, announced the decision to increase yearly investment in fossil fuels to $10 billion through 2027 with an eye toward financial performance and immediate results.
The corporation intends to reduce its yearly capital expenditure to $13 billion to $15 billion by 2027. Prior estimates of over $5 billion in annual investment in transition enterprises have been reduced to between $1.5 billion and $2 billion. By the end of 2027, the corporation also hopes to have divested almost $20 billion.
ALSO READ:
bp-Azerbaijan's New Project to Boost Shah Deniz Gas Field Efficiency
BP Faces Pivotal Moment as Activist Investor Enters Fray
The decision to turn focus to oil and gas projects comes amidst investors raising concerns about the company’s financial performance and strategic priorities over the past several years. It must be noted that BP has been struggling to keep pace with its rivals in terms of profitability. The fundamental shift in focus to fossil fuels is aimed at addressing some of these concerns by guaranteeing immediate returns.
The company announced that it continues to remain committed to energy transition plans, though it intends to shift emphasis to boosting shareholder returns by optimizing existing operations. BP aims to streamline its assets and focus more on core assets.
