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  1. Home
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  3. Why invest in bp

Why invest in bp

Our investor proposition – one that will drive growing long-term shareholder value – and to do this, we are focused on transforming from an international oil company (IOC) to an integrated energy company (IEC) while remaining committed to performing as we transform. And we believe we can generate attractive returns in doing so.
 

Please also refer to our legal notice.

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Growing the value of bp
From integrated oil to integrated energy
Why we are confident
ESG investor pack pdf / 5.9 MB

Growing the value of bp

1. World-class assets

 

A portfolio leading market positions

2. A strong operator

 

High reliability, low cost, low carbon intensity1

3. Trading and integration

 

Distinctive global trading platform with multi-product solutions across energy value chains

4. High-quality growth options

 

A deep hopper of advantaged projects with attractive returns

5. Continued focus, efficiency & discipline

 

Driving portfolio focus and delivering the next wave of efficiency within a disciplined financial frame

6. Committed & compelling distributions

 

At least 80% surplus cash flow* to share buybacks, with at least $14bn through 20252
(1) Both operated and non-operated assets
(2) As announced in 4Q23 results, at current market conditions and subject to maintaining a strong investment grade rating
Why invest in bp surrounded by six points of value

Why invest in bp surrounded by six points of value

From integrated oil to integrated energy

A long history in the energy industry

 

  • First oil in the Middle East in 1908 and the first Middle East refinery (1912)
  • A global footprint throughout the oil and gas value chains
     

A track record of innovation & integration

 

  • Technical: e.g. thermal cracking in 1913, hydraulic fracturing in 1974, novel seismic imaging
  • Commercial: leader in development of Brent futures market, distinctive M&A (from Amoco to Aker bp to Lightsource)
     

Rooted in deep local relationships & partnerships

  • With governments – solving big energy problems for producing and consuming countries
  • With local partners – e.g. Jio bp, PAE and historically TNK-BP etc

Our 6 priorities

1. Improve safety and reduce emissions

Safety is our number one priority. And we are working towards our aim for net zero operations

2. Drive focus into the business

Actively manage our portfolio, continued high-grading

3. Deliver next wave of efficiency

Using technology and global capability hubs to increase margin while decreasing spend

4. Deliver growth projects

Progressing next set of projects to provide growth through to the end of this decade and into the next

5. Optimise returns

Targeting >18% return on average capital employed* in 2025

6. Grow shareholder returns

Committed to returning at least 80% of surplus cash flow through share buybacks 

Image showing bp's three pillars

Optimized through our integrated energy model

  • Binding together our three strategic focus areas is integration.
  • We believe we are one of a few companies who have the scale, global presence and expertise to navigate complex markets and who can help manage increasingly interconnected energy systems.
  • And we have our world-class trading organization to optimize the flow of energy, which has contributed an average uplift to group ROACE of 4% over 2020 to 2023.

Integration in action

 

  • We are moving into renewables, both solar and wind, generating electrons – a new upstream business.
  • We can transform these electrons into hydrogen – a new downstream business.
  • And we will sell the products – electrons and hydrogen – to customers – a new marketing business.
  • This creates an electron and hydrogen energy value chain with upstream, downstream and marketing businesses that complement our existing hydrocarbon value chain.
  • This is just one of many integration opportunities across our businesses.

Decarbonizing our company

Embedded across our strategic focus areas is our sustainability frame, which sets out our aim for getting to net zero in operations, production and sales by 2050 or sooner.

More on our sustainability frame
E m b e d d i n g i n t o o u r D N A E n g a g i n g s t a k e h o l d e r s I m p ro v e p e op l e ' s l i v e s G e t t o n e t z e ro C a r e f o r o u r p l a n e t Our beliefs and foundations

Why we are confident

The energy transition presents clear and compelling growth opportunities

Investing in five transition growth engines

Bioenergy
Farming machinery for bioenergy

Demand from our customers for bioenergy is growing. That’s why we are working to scale up our established bioenergy business. We are increasing our biogas supply, growing our biofuels production, helping our customers decarbonize and expanding our trading capabilities. And we are in action focusing our biofuels business, completed acquisition of bp Bunge and scaling back new projects, and bringing RNG plants online driving confidence in growing the value of our bioenergy TGE.

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Convenience
Happy customers in a shop

In this growing sector, our scale, premium locations, leading brands and strategic partnerships enable us to deliver differentiated offers for our customers. We have a proven track record of resilient gross margin growth against a challenging backdrop, which underpins confidence in delivery of our strategy. We will continue to expand our footprint, which the TravelCenters of America acquisition has accelerated. 

 

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Electric vehicle charging
An image of an electric vehicle being charged

This sector is moving at pace, and we see significant value through our focus on fast charging to on-the-go customers. We are focused on the largest EV car parcs across the US, UK, China and Germany, and our joint venture partnerships in India and Iberia. 

 

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Hydrogen
An image of a hydrogen plant

We are in action to high-grade and focus our portfolio - from 30 opportunities to 5-to-10 potential investments that we can progress this decade. We are progressing projects to develop and produce industrial scale hydrogen at our own refineries – decarbonizing our own operations – as well as sell to local third parties, before increasing production to turn these into regional hubs. As markets evolve, we plan to explore investment in building global export hubs for hydrogen and hydrogen derivatives such as ammonia. 

 

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Renewables & power
Solar panels in a field

We are focusing our investment in renewables on opportunities where we can create integration value and enhance returns. We are evaluating options to build a renewables portfolio in green hydrogen , e-fuels, EV charging and power trading. This includes building a global platform in offshore wind, enabled by our capabilities in large-scale, complex offshore projects, as well as our acquisition of Lightsource bp. By combining our power trading and marketing activities into this growth engine, we can integrate through the value chain from generation to customer, enhancing returns, building market position and supporting the decarbonization of electricity.

 

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Leveraging our advantaged high-quality oil and gas portfolio

Chirag Patform, Caspian Sea, Photo: Stuart Conway/ BP
  • Expect oil and gas to remain an integral part of the energy system for decades to come.
  • Strategy focused on value, not volume – maximizing returns and cashflow, reducing emissions.
  • Underpinned by deep and high-quality resource base of 18 billion boe in plan.
  • Plan to grow underlying production to 2025:
    • Adding ~200mboed of high-margin production from nine major project start-ups.
    • >30% increase in LNG supply to around 25mtpa.
    • Continuing to manage base decline between 3-5%.
    • Increasing bpx production by 30-40%.
    • And retaining some assets for longer than previously planned.
  • Potential to sustain underlying production broadly flat to 2030, relative to 2022.
  • Remain focused on high grading our portfolio and plan to divest around 200mboed of lower-margin assets by 2030.
  • To maximize value, we intend to:
    • Maintain investment discipline with hurdle rates of 15-20% at $60/bbl.
    • Maintain a balanced portfolio with a broadly equal mix across oil and gas.
    • Drive capital productivity.
    • Sustain cost efficiency and reliability improvements in our operations.

We are making good progress delivering on our strategy

Real strategic momentum in our transformation

Strengthening our balance sheet

Delivering long-term value for our shareholders

Strategic progress – last 12 months

Resilient hydrocarbons

Resilient hydrocarbons

Scaling-up our bioenergy business

  • Archaea - 9 AMD plants brought online in FY24 with capacity of >10m mmbtu of RNG p.a
  • Start-up of 4 dairy digestion facilities (JV with Clean Energy) in FY 2024
  •  Two bio-refinery projects paused and assessing three other projects

Major projects start-ups

  • ACE start-up with ~10mboed peak production (net)
  • GTA LNG project 1st gas flow to FPSO

Advancing projects – key milestones

  • Atlantis Drill Centre Expansion – two well tie-back approved
  •  Coconut project offshore Trinidad approved
  • Pipeline replacement project in Trinidad completed
  • UCC project in Indonesia sanctioned
  • Ruwais FID taken
  • Kaskida project approved
  • Majority of commercial terms agreed with Iraq for redevelopment of Kirkuk
  • Signed an agreement with ONGC TSP for the largest offshore O&G field in India

New exploration and access success

  • 4 blocks across North Sea, Brazil, Egypt, plus a further 23 in GoA
  • Manakin/Cocuina cross-border license awarded
  • Azule 42.5% farm-in exploration block in the Orange basin offshore Namibia2
  •  ACG PSA addendum signed to enable progress of non-associated natural gas
  • NCMA 2 block offshore Trinidad was awarded

High-grading our refining portfolio

  • Announced plans to transform the Gelsenkirchen refinery
  • Announced intention to market Gelsenkirchen operation for potential sale
  • Completed sale of bp’s share of assets in SAPREF

LNG strategic update

  • Long-term SPA with Kogas – in total supply of 2.5mtpa of LNG until ~2035
  • 10% interest in ADNOC-operated LNG facility in Abu Dhabi approved
  • Trinidad Atlantic LNG restructured

bpx energy growing production

  • Third Permian Basin central processing facility “Checkmate” brought online
  • 30-40% growth target achieved 1 year early

Met first goal aim 4 target

  • Deployed methane measurement across all existing major oil and gas assets
Convenience and mobility

Convenience and mobility1

Scaling-up our bioenergy business

  • Took full ownership of bp Bunge Bioenergia – production capacity ~50kbd
  • Launched new Bioenergy HVO brand in UK and Netherlands
  • Announced a 10-year agreement with MIGASA, for supply of 40k tonnes per year of vegetable oil waste, with plans to use waste to produce biofuels, and a strategic collaboration with Corteva on novel feedstocks

Expanding in retail fuels and convenience

  • Acquired X Convenience, an Australian fuel and convenience retailer2
  • Launched our own line of private label consumer-packaged products in the US – epic goods
  • Launched a new customer loyalty program in the US, providing exclusive discounts on convenience and fuels – earnify 
  • Strategic partnership with Audi to develop advanced sustainable fuel

High-grading our retail fuels and convenience portfolio

  • Completed sale of Türkiye ground fuels business to Petrol Ofisi, including the group's interest in three JV terminals in Türkiye
  • Announced plans to sell bp mobility and convenience and bp pulse businesses in Netherlands

Growing our EV charging business

Growing network and energy sold

  • Energy sold +75% vs FY23; CPs +35% vs FY23 
  • Roll out of new ultra-fast charging (UFC) hubs in the UK and Germany
  • Acquisition of one of Europe’s largest truck stops, Ashford International in Kent, UK

Partnering to drive utilisation

  • Exclusive EV charging partnership with ADAC, leading automobile association in Germany with over 20m members

Advancing future network growth

  • US deals signed with Simon Property Group (900 high-speed charging bays at up to 75 sites) and LAZ Parking (UFC hubs in 20 cities)

Castrol in action

  • Diversifying into battery-swapping ecosystems with investment in Gogoro Inc., a global technology leader 
  • Strategic partnership with Audi – development of lubricants and EV fluids for Audi's V6 turbo engine and electric motor and battery
  • Awarded lubricant supply contracts with leading OEMs
Low carbon energy

Low carbon energy 

bp and JERA agree to combine offshore wind businesses

  • 13GW potential net generating capacity

bp and consortium selected to develop OFW farm in Japan

Acquisition of Lightsource bp

  • 62GW development pipeline, operations in 19 global markets

Renewables pipeline

  • 4Q 2024 pipeline 60.6GW3

bp to sell its US onshore wind business

NZT Power and NEP FID

  • Financial close reached; external debt secured
  • UK government awarded development consent

Lingen green H2 project FID

  • Awarded funding as part of European IPCEI Hy2Infra wave

Castellon green H2 project FID

High-grading H2 portfolio

  • bp to acquire 49% in Hyport green hydrogen project in Duqm, Oman
  • MachH2 selected to develop a Regional Hydrogen Hub in US Midwest

Completion of GETEC ENERGIE GmbH 

  • Supplier of energy to commercial and industrial customers in Germany
(1) Includes customer-facing, midstream biofuels activities and bp Bunge which form part of the Bioenergy transition growth engine
(2) Subject to customary approvals
(3) As at 31 December 2024

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