British petroleum presented one New and “radical” reorganization strategy of his activities and the reallocation of the capital, which breaks with the most recent past and aims to improve financial performances, the cash flow, the returns and the equity value in the long run, providing for a significant reduction in costs.
“Today we have radically restored the BP strategy”, said the CEO Murray Auchinclossexplaining “We are reducing and re -enrolling the capital expenses towards our higher performance activities, to stimulate growth and pursue performance improvements and efficiency in costs. All in the service of sustainable growth in the cash flow and returns “.
Investment cut: focus on oil and gas
BP has announced a Cutting the annual expenditure capital account (investments) 13-15 billion dollars by 2027at the same time aiming at 20 billion dollars of divestments within the same period. In this context, the big oil has announced a clear change of pace in the investment mix: a Increase in upstream investments in oil and gas at about 10 billion dollars a year from here to 2027 and an increase in production between 2.3 and 2.5 millionI of Barili per day equivalent. For downstream investments are expected for about 3 billion to 2027 and a structural reduction in costs for about 2 billion.
“We will grow investments and upstream production to allow us to produce high margin energy for the years to come. We will focus our downstream on the markets in which we have integrated leading positions, “explained the CEO.
Investments in the transition “significantly” reduced
As part of a general rethinking (and optimization) of investments, the British major has announced one “Significant reduction” of investments in Energy transition to 1.5-2 billion dollars the year, that is to say 5 billion less Compared to the previous guidance. As part of a more selective investment plan, BP plans to reduce uses in biogasbiofuels and recharge of electric vehicles, but also partnership in the renewable energy and targeted investments in hydrogen and CCS (capture and emissions storage). “We will be very selective in our investments in the transition, also through innovative low intensity platforms,” explained the number one of the group.
Most targeted objectives in terms of sustainability
The new strategy implies Most targeted objectives of sustainability. BP reduced the emissions of 1 and 2 of approximately 38% compared to the 2019 reference, beyond the 20% objective which had proposed to 2025, and incorporated sustainability in different key areas and management processes. BP’s goal for 2030 It is now the reduction of operational emissions in a interval of 45-50% Compared to the 2019 reference level and therefore is now focusing their goals of sustainability on the most relevant ones for the long -term success of its activities and for its ambition to reach Net Zero.
