BP to Sell its US Onshore Wind Business

The logo of British multinational oil and gas company BP is displayed at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo
The logo of British multinational oil and gas company BP is displayed at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo
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BP to Sell its US Onshore Wind Business

The logo of British multinational oil and gas company BP is displayed at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo
The logo of British multinational oil and gas company BP is displayed at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada, July 12, 2023. REUTERS/Chris Helgren/File Photo

British Petroleum (BP) plans to sell its US onshore wind energy business, it announced on Monday, saying the assets were not aligned with its growth plans.

BP said it will launch the sale process shortly for the wind assets, bp Wind Energy, which has interests in 10 operating onshore wind energy assets across seven US states, according to Reuters.

“We believe the business is likely to be of greater value for another owner,” William Lin, BP's executive vice president for gas and low carbon energy said in a statement.

Several offshore wind companies have cancelled or sought to renegotiate power contracts for planned US projects in the past year, citing soaring materials costs, high interest rates, and supply chain disruptions.

bp Wind Energy's assets, which have net total generating capacity of 1.3 gigawatts, are not aligned with BP's plans for growth in Lightsource bp, the London-listed company said.

BP announced in November it would take full ownership of Lightsource bp, Europe's largest solar energy developer.

The deal to build up its renewable energy capacity is expected to be complete by the end of the year.

It said on Monday it would integrate its onshore renewable power development into Lightsource bp.

The move also comes as BP's new CEO Murray Auchincloss has imposed a hiring freeze and paused new offshore wind projects as he places a renewed emphasis on oil and gas amid investor discontent over its energy transition strategy, sources at the company told Reuters in June.

It marks a stark reversal from the direction the CEO's predecessor Bernard Looney took to rapidly move away from fossil fuels.

This has weighed on BP's shares as returns from renewables shrank, while profits from oil and gas soared in the wake of the COVID-19 pandemic and Russia's invasion of Ukraine.

Last month, Danish renewable energy group Orsted reported 3.9 billion Danish crowns ($581.59 million) in impairment losses for the second quarter, partly due to delays in a major US offshore wind project.



Saudi Arabia, Oman Sign MoU on Cooperation in Economic Planning

Saudi Arabia, Oman Sign MoU on Cooperation in Economic Planning
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Saudi Arabia, Oman Sign MoU on Cooperation in Economic Planning

Saudi Arabia, Oman Sign MoU on Cooperation in Economic Planning

The Saudi Ministry of Economy and Planning and Oman's Ministry of Economy signed on Thursday a memorandum of understanding (MoU) focusing on cooperation in medium- and long-term economic planning, economic studies and modeling, economic policies and plans, and green and circular economies.
The MoU aims to implement cooperation through the exchange of information, expertise, studies, and visits between experts and specialists, as well as the organization of conferences, seminars, and workshops. The agreement will remain in effect for five years.
Saudi Minister of Economy and Planning Faisal Alibrahim and Omani Minister of Economy Dr. Saeed bin Mohammed Al-Saqri signed the MoU, which stipulates enhancing cooperation in economy and planning based on mutual interests and in accordance with the regulations and laws in both countries.
Signing the MoU is part of efforts to enhance cooperation among Gulf Cooperation Council (GCC) countries and boost bilateral relations between Saudi Arabia and Oman.