BP is to increase its investment in non-oil and gas businesses, understood to include renewables, as part a new ambition to reach net zero carbon emissions by 2050 or sooner.
New chief executive Bernard Looney (pictured) will deliver a major strategy speech on Wednesday setting out his vision to ensure “performing while transforming” along ten major aims.
In a statement ahead of the speech, he said: “We expect to invest more in low carbon businesses – and less in oil and gas – over time.
“The goal is to invest wisely, into businesses where we can add value, develop at scale, and deliver competitive returns.”
The technologies involved were not specified although BP is understood to be interested in offshore wind in particular.
BP will dismantle its existing business structure and set up four new business units, including a gas and low carbon energy division.
Dev Sanyal “will unite energy teams currently dispersed around BP to create focused low carbon solutions”, said BP.
The unit “will also pursue opportunities in decarbonisation and new value chains such as hydrogen and CCUS”.
A separate innovation and engineering unit will be headed by David Eyton and will “bring added momentum to BP’s venturing and Launchpad investments and act as a catalyst for creating value from disruptive opportunities”.
Looney has set out ten aims to deliver a new company, largely related to the reduction of carbon emissions from its oil and gas operations.
“BP needs to continue to perform as we transform. As committed as I am to making transformation happen, I am equally committed to some fundamental principles that have served us well,” he said.
“Safe and reliable operations will always underpin all we do, and we remain committed to meeting the promises we have made to our shareholders.
“We can only reimagine energy if we are financially strong, able to pay the dividend our owners depend on and to generate the cash to invest in new low and no-carbon businesses.”
The company will host a capital markets day in September to set out its strategy and near-term plans.
Looney added: “The world’s carbon budget is finite and running out fast; we need a rapid transition to net zero. We all want energy that is reliable and affordable, but that is no longer enough. It must also be cleaner.
“To deliver that, trillions of dollars will need to be invested in replumbing and rewiring the world’s energy system. It will require nothing short of reimagining energy as we know it.”