BP Ditches Biogas Business Amid Oil Price Surge
BP is accelerating its shift away from green energy and back to core oil and gas products. The London-listed oil giant has announced it will sell its US biogas business, Archaea, which it acquired for $4.1bn in 2022.
The decision comes days after BP confirmed its exit from the North Sea, marking a significant departure from its previous focus on renewable energy. New boss Meg O'Neill said the company must simplify its portfolio based on value, not sentiment or history.
O'Neill has been overseeing a major overhaul of the group's energy channels, splitting it into two divisions: upstream and downstream. The move is aimed at focusing solely on profitable assets that deliver competitive returns and long-term value.
BP reported a surge in profits to $5.7bn in the second quarter, surpassing analyst expectations of $5.1bn. The firm's gas and low-carbon energy arm saw profits climb to $1.6bn, while oil production and operations saw a profit increase to $3.4bn.
O'Neill emphasized the need for BP to get fit to grow, citing the company's underperformance in recent years. She stated that they have not delivered consistently, written off too much value, and have costs and liabilities that are not resilient enough in a low-price environment.