BP has announced plans to offload its US biogas business, Archaea, just days after confirming its exit from the North Sea. This move is part of a broader strategy to refocus on core oil and gas products, according to the London-listed oil giant.
The company acquired Archaea for $4.1bn in 2022, but the business has since experienced financial underperformance and slower than expected growth. BP's new boss, Meg O’Neill, stated the firm must simplify its portfolio based on value and concentrate on assets that deliver competitive returns.
Last week, BP confirmed its departure from the North Sea, marking the first time in decades the British energy firm will not have petrochemical production in its home market. The company also sold its Gelsenkirchen refinery and retail business in Austria.
BP reported a significant increase in second-quarter profits, reaching $5.7bn (£4.2bn), a $2.5bn rise from the previous period. This figure surpassed analyst expectations of $5.1bn, with profits in the gas and low carbon energy arm at $1.6bn and oil production and operation at $3.4bn.
The firm anticipates third-quarter production to be between 2,100 and 2,250 thousand barrels of oil equivalent per day (mboe/d), down from 2,201 mboe/d in the second quarter. This has led to a reduction in upstream production expectations for the year to 2,180 to 2,270 mboe/d, compared to 2,312 mboe/d last year. BP attributes this outlook to ongoing disruption in the Middle East and potential weather events in the Gulf of America.