The new CEO of BP, Murray Auchincloss, has paused new offshore wind projects and imposed a hiring freeze as he places a renewed emphasis on oil and gas.

The plans are expected to save at least $2bn in costs by the end of 2026.

No bids will be submitted for new offshore wind licences, while - with the exception of frontline roles, well-site leaders and other safety-critical roles - the company has frozen hiring.

Sources at the company told Reuters the move will slow down investments in big budget, low-carbon projects that are not expected to generate cash for some time.

The sources added that greater emphasis is being placed on acquiring new oil and gas assets, particularly in the Gulf of Mexico and US onshore shale basins, where the firm already has a large presence.

The move is a reversal from the company's direction when it was headed up by Bernard Looney, who looked to rapidly move away from fossil fuels.

BP's current aim is to reduce emissions by 25% of 2019 levels by 2030. That in itself has already been lowered from the 40% reduction target announced by Mr Looney in 2020.

Mr Auchincloss said last month that turning the "aims" into formal targets would be "pragmatic and returns driven".

“As we make those decisions, which will be very returns driven, we will start to formalise what the 2030 targets are. Could production be higher than two million a day? Yes. Could it be lower? Yes. It could go in either direction," he added.

In a statement to Reuters, the firm said the CEO has introduced sic priorities to "deliver as a simpler, more focused and higher value company".

A spokesperson added: “We set out six priorities that underpin this including driving greater focus into the business onto activities that create the most value, as well as delivering both the next wave of efficiencies and BP’s growth projects."

More like this…

View all