BP Unveils Strategic Reset to Boost Shareholder Value

BP has announced a strategic overhaul aimed at enhancing shareholder value through capital reallocation and cost reduction. The company plans to strengthen its upstream operations by increasing annual oil and gas investments to $10 billion and boosting production to 2.3-2.5 mmboed by 2030.

In the downstream sector, BP will refocus its portfolio and improve performance, expecting an additional $3.5-4 billion in operating cash flow by 2027. The strategy also involves disciplined investment in biogas, biofuels, and EV charging while minimizing capital expenditures in transition businesses.

BP aims to achieve greater financial stability by reducing annual capital expenditure to $13-15 billion by 2027 and pursuing $20 billion in divestments. This includes potential proceeds from a strategic review of Castrol. The company targets $14-18 billion in net debt by the end of 2027, alongside resilient shareholder distributions.