BP has sold around a third of its shareholding in Norwegian oil and gas firm Aker BP, delivering a substantial cash boost as it works to reduce its debt burden.
The FTSE 100 energy major announced on Thursday it had sold a five per cent stake in Aker for roughly NOK9.83bn (£785m). BP retains ownership of approximately 68.7m of the remaining shares, maintaining a holding just below 11 per cent. The transaction was executed at a price of 311 crowns, representing a 12 per cent discount to Aker's closing price on the Oslo exchange on Wednesday.
Strengthening the balance sheet
"In recent months, [Aker BP] has further increased its value through a combination of its strong performance and the favourable macro environment," BP boss Meg O'Neil said, as reported by City AM.
"We believe now is the right time for us to realize part of this value to further strengthen BP's balance sheet, our first priority as we build a simpler, stronger, more valuable BP."
The company increased its full-year asset disposal target by $1bn to approximately $9bn.
Strong earnings and debt reduction
Last month, the company posted earnings of $8.5bn (£6.3bn) for the third quarter, nearly quadrupling compared to the equivalent period last year. This follows the spike in oil prices stemming from the US-Iran conflict, which have seen energy majors enjoying enormous profit windfalls.
BP has reduced its debt by half over the past year to $13.9bn. It is expected to fall by a further $6bn following proceeds gathered from the disposal of lubricants business Castrol.
New strategy expected in December
BP is expected to unveil its fresh long-term strategy in December, following O'Neil's assumption of the top role this year, succeeding Murray Auchincloss who had held the position for just two years.
In September, the group also confirmed Ian Tyler as its new chair, having served in an interim capacity since 26 May. Tyler had initially joined BP as a non-executive director in April 2025.
