BP Resets Strategy: Shifts Focus To Oil & Gas, Plans To Sell Lightsource BP Stake

BP plc, a global fossil energy giant headquartered in the UK, has officially released its latest "reset" strategy, which will keep the company focused on its upstream oil and gas business to produce high profit energy, and announced the sale of shares in its solar photovoltaic subsidiary Lightsource BP.

In October 2024, BP became the sole shareholder of Lightsource BP. At that time, the company had a reserve of 62GW of solar photovoltaic projects in 19 markets worldwide, aimed at meeting the company's demand for low-carbon, cost competitive electricity. However, five months after the acquisition was completed, BP announced plans to help Lightsource BP grow by introducing partners and plan to earn $20 billion through a strategic review of its long-term lubricant business Castrol.

BP has pledged to continue investing $10 billion annually in its oil and gas business until 2027, and to reduce its investment in renewable energy to $1.5 billion to $2 billion, far below the previously planned $5 billion. BP CEO Murray Auchincloss stated that the company will focus on long-term shareholder value growth: "We will reduce and reallocate capital expenditures, focus on the highest return businesses to drive growth, and continuously pursue performance improvement and cost efficiency. All of this is aimed at sustaining growth in cash flow and returns

BP stated that it will adopt a more 'disciplined' investment approach. In the future, the company will make light capital investments in top offshore wind and solar platforms, and limit further investments in projects such as hydrogen and carbon capture. According to Reuters, BP's strategic adjustment is due to its lagging performance compared to competitors Shell and ExxonMobil. In addition, American activist investor Elliott Investment Management acquired a 5% stake in BP. It is reported that Elliott Investment Management is pushing BP to divest assets, especially in the low-carbon field, while implementing cost reduction and performance transformation.