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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
How we are delivering
Summary of our investor proposition
Investor handout October 2024 pdf / 3.2 MB
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.

How we are delivering

Our strategy is underpinned by a disciplined financial frame with five clear priorities

bp financial frame

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 online - capacity of >10m mmbtu of RNG p.a 
  • Start-up of 5 dairy digestion facilities (JV with Clean Energy) 
  • Two bio-refinery projects paused and assessing three other projects 

Major projects start-ups 

  • Tangguh Train 3 start-up with ~40mboed peak production (net) 
  • Seagull start-up with ~15mboed peak production (net) 
  • ACE start-up with ~10mboed peak production (net) 

Advancing projects – key milestones 

  • Argos southwest extension project development approved 
  • Great White three well expansion campaign approved 
  • Atlantis Drill Centre Expansion – two well tie-back approved  
  • Coconut project offshore Trinidad approved 
  • Completion of the pipeline replacement project in Trinidad 
  • GTA LNG project FLNG vessel and FPSO have arrived 
  • Kaskida deepwater project approved 

New exploration and access success  

  • 7 blocks across Trinidad, North Sea, Brazil, Egypt plus a further 23 in GoM 
  • Manakin/Cocuina cross-border license awarded 
  • Azule 42.5% farm-in exploration block in the Orange basin offshore Namibia3 
  • ACG PSA addendum signed to enable progress of non-associated natural gas 

High-grading our refining portfolio 

  • Announced plans to transform the Gelsenkirchen refinery  
  • Agreement reached to sell share of assets in SAPREF 

LNG strategic update 

  • Long-term SPA with Kogas – in total supply of 2.5mtpa of LNG until ~2035 
  • 9-year Oman LNG SPA 1mpta starting in 2026 
  • 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 

  • Acquired bp Bunge Bioenergia – production capacity ~50kbd 
  • Launched new Bioenergy HVO brand in UK and Netherlands 
  • Supplied the first 100% SAF-powered transatlantic flight 

Expanding in retail fuels and convenience 

  • Agreement to acquire Convenience X, an Australian fuel and convenience retailer3 
  • 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 

Growing our EV charging business 

 

Growing network and energy sold 

  • EV CPs +20% vs LY; energy sold 2x growth vs LY (1 TWh YTD) 
  • Launched the UK’s largest public EV charging hub at the NEC campus with simultaneous charging for up to 180 EVs 
  • Acquired freehold for Ashford International Truckstop in Kent, one of Europe’s largest  truck stops 

Partnering to drive utilisation 

  • Uber sessions in UK more than doubled YoY 
  • Exclusive EV charging partnership with ADAC, leading automobile association in Germany with over 20m members 

Advancing future network growth 

  • Deal signed with Simon Property Group in the US – adding 900 high-speed charging  bays at up to 75 sites 
    Signed deal with LAZ Parking in US – UFC hubs roll-out in 20 cities  
    Formed strategic joint venture with Iberdrola to accelerate EV charging in Spain and Portugal by 2030 

Castrol in action 

  • Market leading position in EV-fluids – 75% of the world’s major vehicle manufacturers  use Castrol ON products as part of their factory fill4 
  • 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 
Low carbon energy

Low carbon energy 

Renewables pipeline

  • 3Q 2024 pipeline 46.8GW2 

Completed acquisition of Lightsource bp 

  • 62GW development pipeline, operations in 19 global markets 

Full ownership of Beacon Wind US offshore projects  

  • Potential generative capacity of ~2.5GW  
  • Ownership of Astoria Gateway site 

bp to sell its US onshore wind business 

Hydrogen pipeline 

  • 3Q 2024 pipeline 1.8mtpa2

NZT Power and Northern Endurance Partnership 

  • UK government awarded development consent 
  • Contractors selected for combined value of – $5bn across Net Zero Teesside Power and NEP 

MachH2 selected to develop a Regional Hydrogen Hub in US Midwest 

 

Lingen 100MW green hydrogen project awarded funding as part of European IPCEI Hy2Infra wave 

  • Paves way for progress with decision expected 2H 2024 

bp to acquire 49% in Hyport green hydrogen project in Duqm, Oman 

 

Castellon green H2 project FID 

 

Completion of GETEC ENERGIE GmbH

  • Supplier of energy to commercial and industrial (C&I) customers in Germany 
(1)        Includes customer-facing, midstream biofuels activities and bp Bunge which form part of the Bioenergy transition growth engine 
(2)       As at 30 September 2024         
(3)       Subject to customary approvals       
(4)       Based on GlobalData report for 2023 for top 20 selling global OEMs (total new vehicles sales)     

Find out more

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Trading conditions update

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