Anger as BP halts new wind projects to boost oil and gas
BP boss Murray Auchincloss has imposed a hiring freeze and halted new off-shore wind farm projects.
He is also doubling down on oil and gas investments despite pressure from environmental campaigners.
It is reported that BP is also expected to make job cuts in its renewables arm.
The shake-up comes after Auchincloss, 53, became chief executive in January, having done the job on an interim basis after the sudden departure of Bernard Looney.
The block on external hirings across most of the group comes amid a $2billion (£1.58billion) cost-cutting drive by the end of 2026, with only a few exceptions including frontline and safety roles.
Auchincloss is said to be planning to slow investments in big budget, low-carbon projects, particularly in off-shore wind, which are not expected to generate cash for years.
It marks a reversal from Mr Looney who pledged to move away rapidly from fossil fuels, but that weighed on BP’s share price.
At the same time, profits from oil and gas soared in the wake of Covid and Russia’s invasion of
Ukraine. BP is believed to have decided against bidding for any new off-shore wind projects.
Alice Harrison, head of fossil fuels campaigning at the group GlobalWitness, slammed the move.
She said: “It’s shocking but not surprising to see BP doubling down on new oil and gas projects.
“Since the energy crisis began earning the oil major record-breaking profits it has shown its true colours, slashing its climate targets and renewables investments in favour of earning a quick buck from increased fossil fuel production.This affects all of us.”
BP insisted its plans were unchanged from those set out by Mr Auchincloss in February 2024, “but we are going to deliver as a simpler, more focused and higher value company”.
The company added: “Earlier this year we introduced changes to simplify BP’s organisation and a target to save at least $2billion in cash costs by end 2026.
“The actions we are taking are part of delivering this – and of course, are all in service of our aim of growing the value of BP.”