The BP logo is displayed outside a petrol station on January 30, 2025 in Warrington, United Kingdom.
Nathan Stirk | Getty Images News | Getty Images
British oil major BP on Wednesday announced plans to increase annual oil and gas investment to $10 billion through 2027 as part of a fundamental strategic reset.
The beleaguered energy giant also said it planned to lower its annual capital expenditure to sit within a range between $13 and $15 billion over the same time horizon, while targeting $20 billion in divestments by the end of 2027.
“Today we have fundamentally reset bp’s strategy,” BP CEO Murray Auchincloss said in a statement.
“We are reducing and reallocating capital expenditure to our highest-returning businesses to drive growth, and relentlessly pursuing performance improvements and cost efficiency. This is all in service of sustainably growing cash flow and returns,” he added.
BP is poised to outline further details of its new direction at its Capital Markets Update on Wednesday afternoon.
An investor day presentation, which will be hosted by Auchnicloss and other members of the firm’s leadership team, is scheduled to take place from 1 p.m. London time.
BP’s Auchnicloss, who took the helm on a permanent basis in January last year, is under significant pressure to reassure investors that the company is on the right track to improve in its financial performance.
The London-listed firm has lagged its industry rivals in recent years, as investors have continued to question the firm’s strategic direction.
Shares of BP fell 1.5% on Wednesday morning.
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