BP to boost oil and gas investment to $10 billion, slashes green spending

At the same time, the oil major has significantly cut its planned yearly investment in transition businesses by over $5 billion, reducing it to $1.5 billion–$2 billion—far lower than its previous commitments, according to the report.

"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," Auchincloss was quoted as saying by Reuters.

BP initially committed in 2020—under former CEO Bernard Looney—to reduce oil and gas production by 40% and scale up renewables by 2030.

However, in 2023, the company revised the target to a 25% reduction.

BP now plans to increase output to 2.3 million–2.5 million barrels of oil equivalent per day by 2030.

The shift reflects a broader trend in the energy sector, where companies that previously pivoted towards low-carbon alternatives are refocusing on oil and gas due to rebounding fossil fuel prices, the reports said.

"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," Auchincloss added.

BP's revised strategy comes amid pressure from investors, particularly Elliott Investment Management, which has built a stake in the company, urging major changes, said the report.

As part of its financial restructuring, BP is also reviewing its Castrol lubricants business and aims to divest $20 billion in assets by 2027, it added.