BP has announced a major strategic reset, focusing on cost reduction, capital reallocation, and performance improvements to enhance cash flow and long-term shareholder value.

Key highlights:

• Increased Upstream Investment: Oil and gas investment to rise to ~$10 billion annually, with production expected to grow to 2.3–2.5 million barrels of oil equivalent per day (mmboed) by 2030.
• Refocused Downstream Operations: Portfolio reshaping, strategic review of Castrol, and improved efficiency to generate an additional $3.5–4 billion in cash flow by 2027.
• Disciplined Transition Investments: Selective spending in biogas, biofuels, and EV charging, with annual investments reduced by over $5 billion from previous guidance.
• Financial Targets: Capex reduced to $13–15 billion annually through 2027, with cost savings of $4–5 billion. Divestments of $20 billion planned, alongside targeted net debt reduction to $14–18 billion.

BP aims for over 20% annual growth in free cash flow and a return on capital employed exceeding 16% by 2027. CEO Murray Auchincloss emphasized BP’s commitment to high-margin energy and disciplined investments, ensuring sustainable growth and value for shareholders.