BP will look to divest its lubricants unit, which operates under the Castrol brand and could be worth about $10 billion, first reported last week by Bloomberg, and could help to strengthen the company’s balance sheet, which is weaker than its peers, and bolster investor returns.
The energy giant’s plan to cut oil and gas production will also be scrapped, while targets to increase renewable power generation will be scaled back, the people said. Under previous CEO Bernard Looney, BP made a failed bet that oil consumption had already peaked and pledged an output reduction of 25% by 2030, compared with 2019 levels.
If Elliott is unsatisfied with BP’s moves, the hedge fund may push for board and management changes, the people said. Chairman Helge Lund, who is known as one of the key backers of the company’s now-criticized net zero strategy, could come under particular pressure.
Representatives for BP and Elliott declined to comment.
Full story BP to Prepare Lubricants Sale, Ditch Plan to Cut Oil Output in Strategy Review | Financial Post
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