MW BP's going back to petroleum as it plans more oil spending and production

By Steve Goldstein

Embattled oil major BP on Wednesday unveiled what it billed as a strategic reset, planning to increase oil and gas investment while reducing outlays for greener fuels.

Unveiling a delayed strategy review that was held up by CEO Murray Auchincloss's medical procedure, BP said it plans for capital expenditure between $13 billion and $15 billion per year to 2027, which is up to $3 billion lower than in 2024.

It will use the savings to increase oil and gas investment to $10 billion per year as it drastically cut "transition" energy investment plans to between $1.5 billion to $2 billion per year, which is $5 billion per year lower than previous guidance.

BP said the aim is to grow oil and gas production to between 2.3 million and 2.5 million barrels of oil a day, which contrasts with the plan put forward by former CEO Bernard Looney to shrink production to 1.5 million barrels a day.

BP's 2024 production was 2.36 million barrels of oil a day.

It's targeting $20 billion in divestments as it plans to reduce debt. It says it will return 30% to 40% of operating cash flow to shareholders through share buybacks and a dividend it plans to grow by at least 4% per year.

BP shares (UK:BP) $(BP)$ slipped 1% in London trade. BP shares have gained 10% this year, helped by reports the activist investor Elliott Management has purchased a stake in the company.

-Steve Goldstein

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February 26, 2025 06:10 ET (11:10 GMT)

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