British Petroleum’s (BP) 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.
The moves, which have not previously been reported, are part of a decision by Auchincloss to slow down investments in big budget, low-carbon projects, particularly in offshore wind, that are not expected to generate cash for years, said several sources at BP who declined to be named.
Three sources affirmed that BP has reassigned dozens of people tasked with identifying new renewables opportunities to projects already underway such as offshore wind in Britain and Germany.
Company sources briefed on the matter said Auchincloss and Chief Financial Officer Kate Thomson have prioritized investing in and even acquiring new oil and gas assets, particularly in the Gulf of Mexico and in the US onshore shale basins, where BP already has large operations.
BP will also consider investing in biofuels and some low-carbon businesses that can generate returns in the short term.
It is also expected to make some job cuts in renewables, although no specific targets have been given, the sources said, adding that BP has imposed a company-wide hiring freeze, with only a few exceptions including frontline and safety personnel.
Auchincloss has promised a pragmatic approach since taking over in January, four months after predecessor Bernard Looney resigned for failing to disclose relationships with employees.
In May, Auchincloss announced a $2 billion cost saving drive by the end of 2026 relative to 2023. The 53-year-old also cut his executive leadership team from 11 to 10 members.
BP spent $2.5 billion on renewables, hydrogen, EV charging and biofuels in 2023, out of a total capex of $16 billion.
