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BP will spend $ 10 billion a year on more oil and gas production, reduce renewable consumption and sell $ 20 billion in assets as it tries to revive the share price and respond to the pressure of activist investor Elliott Management.
Naphtni Major in the UK told investors on Wednesday that he would be deducted from a five -year plan to reduce oil and gas production and invest a large investment in renewable energy sources.
The shares increased more than 1 percent ahead of the announcement of the Strategy on Wednesday morning, but traded 1.8 percent lower after the update was published.
In a break from its previous strategy, the BP will increase its goal for oil and gas production to a maximum of 2.5 million barrels daily by 2030, with the ability to further raise it by 2035.
He had previously committed to reducing the exit to about 2 mn b/d by the end of the decade. The new goal would still see that BP produces less oil and gas in 2030. Of the 2.6 million barrels daily pumped in 2019.
In the meantime, BP will reduce renewable energy consumption by $ 5 billion a year, to between $ 1.5 billion and $ 2 billion. She also announced that in the next two years she would sell $ 20 billion in businesses, which could include Maziva Castrol, which was put under a “strategic inspection”.
BP also said he would reduce net debt from $ 23 billion to between $ 14 billion and $ 18 billion until the end of 2027.
The presentation of investors on Wednesday was the first time Murray Auchincloss, who formally became Executive Director in January 2024, made his vision for BPS.
The group was under increased pressure to increase its performance after appearing this month that the US HEDGE Fund Elliott Management had built nearly 5 percent of the share At FTSE 100 pounds £ £ 72 billion.
Auchincloss said on Wednesday: “We have a basic BP strategy today. We reduce and divert capital expenditures to our companies that return to growth and ruthlessly follow improvements of performance and cost effectiveness.”