BP resets strategy with significant capital reallocation

BP has introduced a fundamentally reset 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 leading integrated positions and brands across value chains, all underpinned by trading, technology, and partnerships.

Chief executive Murray Auchincloss said: “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.”

Helge Lund, BP’s chair, added: “The board believes that this is an important strategic reset for bp and is confident that it, together with rigorous performance management, will deliver improved performance and sustainable value for BP’s shareholders. Over the past 12 months, we have worked closely with Murray and his team as they have developed the new direction, ensuring it reflects the significant changes we have seen in energy markets and our purpose of delivering energy to the world today and tomorrow. This new direction places free cash flow growth, returns and value at its heart.”