… shifts focus to oil, gas, increases annual spendings to $10 billion

Oredola Adeola with agency reports

British Petroleum (BP), one of the world’s largest integrated energy companies, is finalizing plans to sell a 50 percent stake in its solar unit, Lightsource BP, to a strategic partner.

This move aligns with BP’s broader strategy to scale back renewable energy investments while increasing its annual oil and gas spending to $10 billion.

The decision was revealed in a sales document titled Project Scala, released recently by the company, where it seeks partnerships with experienced players in the renewables sector.

BP aims to secure both cash and future investment commitments as it prioritizes traditional energy assets, adapts to market dynamics and responds to investor concerns about its financial performance compared to rivals like Shell and ExxonMobil.

Recall that the company reported a revenue of $189.18 billion in 2024.

It has consequently faced mounting pressure from investors, particularly activist groups like Elliott Management, which holds a 5% stake in the company.

Critics argued that BP’s returns have lagged behind industry peers due to its heavy focus on renewables.

In response, the company announced in February 2025 a major strategic shift—confirmed its intention to find a strategic partner for a 50% stake in Lightsource BP by 2025, with non-binding offers due in June and shortlisted bidders expected in July.

The management of the company when contacted declined to comment further on the sales document but has assured its commitment a joint control over the assets post-sale.

Advisors Reports gathered that the BP acquired full ownership of Lightsource BP in October 2024, purchasing the remaining 50.03% stake for £400 million ($517.80 million) and assuming £2.1 billion in debt.

The partnership between BP and Lightsource BP dates back to 2017, with the solar unit currently operating 5.7GW of assets across 19 markets.

In 2024 alone, the company constructed over 2GW of new assets and is expanding into battery storage and onshore wind, targeting an annual capacity growth of 3GW to 5GW.

BP is also reportedly considering the sale of its Castrol lubricants business as part of a $20 billion asset divestment plan by 2027.

These efforts reflect the company’s attempt to streamline operations, cut costs, and enhance shareholder value.

While BP’s renewed focus on oil and gas aligns with global energy security demands, it raises concerns about the future of clean energy and net-zero emissions targets by 2050.

Available data showed that the company’s decision was due to the ongoing tension between short-term profitability and long-term sustainability goals.

Experts have revealed that the key challenge before the company is to strike a balance that meets investor expectations while addressing environmental commitments.