BP has fundamentally reset its strategy, with significant capital reallocation, and plans to drive improved performance, aimed at growing free cash flow, returns and long-term shareholder value. This strategy will see BP grow its upstream oil and gas business, focus its downstream business, and invest with increasing discipline into the transition. It builds on BP’s distinct strengths and competitive advantages as an integrated energy company – with a world-class portfolio with top tier oil and gas businesses in attractive basins and leading integrated positions and brands across value chains, all underpinned by trading, technology, and partnerships.
Chief executive Murray Auchincloss says: ‘Today we have fundamentally reset BP’s strategy. We are reducing and reallocating capital expenditure to our highest-returning businesses to drive growth, and relentlessly pursuing performance improvements and cost efficiency. This is all in service of sustainably growing cash flow and returns. 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. And we will be very selective in our investment in the transition, including through innovative capital-light platforms. This is a reset BP, with an unwavering focus on growing long-term shareholder value.’
Under the new strategy, BP will be investing around $10 billion (€9.5 billion) through to 2027, with 10 new projects expected to start up by then and a further 10 by 2030. BP’s production is expected to grow to 2.3 – 2.5 million barrels of oil equivalent per day (mmboed) (or 378 – 410 m3 per day) in 2030 with capacity to increase by 2035.
