BP will perform a comprehensive review of its oil and gas assets to boost shareholder returns after second-quarter profit exceeded expectations. The London-based energy giant also plans further cost cuts and reaffirmed its goal to sell $20 billion in assets by 2027.
CEO Murray Auchincloss stated that the review will identify the most suitable way to use BP’s $13–$15 billion annual investment budget while considering asset sales in the Gulf of Mexico region. The company made its biggest oil and gas discovery in 25 years when it announced its findings in Brazil’s Santos basin.
The company increased its quarterly dividend payment by 4% to 8.32 cents while announcing a $750 million share repurchase program before releasing third-quarter results. The company has already reached $1.7 billion of its $4–$5 billion cost reduction target for the period from 2023–2027.
Auchincloss stated that new Chairman Albert Manifold will assist with the review process because BP needs to address investor dissatisfaction stemming from its poor performance and doubts about its energy transition approach.
