BP has announced plans to sell stakes in two flagship carbon capture and storage projects in the north-east of England, as the oil company continues to retreat from its green agenda. The projects, Net Zero Teesside (NZT) and the Northern Endurance Partnership (NEP), aim to develop the UK's first gas power plant with carbon capture and a network of offshore pipelines for CO2 storage under the North Sea.
The decision marks a shift from the vision of former chief executive Bernard Looney, who championed the projects as both an environmental imperative and a business opportunity. However, Looney's departure nearly three years ago led to a leadership overhaul and a steady dismantling of his green initiatives, which failed to win over shareholders.
BP stated that the “time is right” to sell a portion of its equity in the projects, which have recently started construction, to bring in additional partners. The company did not disclose the size of the stakes it intends to sell or potential buyers. Other partners in the projects include Norway's Equinor and France's TotalEnergies.
The move comes amid reports that BP's new chief executive, Meg O'Neill, is reviewing the company's global portfolio and may consider reducing its exposure to the UK, partly due to government energy policies. The government has banned new North Sea exploration licences and resisted calls to amend the windfall tax regime for oil and gas producers.
Energy Secretary Ed Miliband recently criticised BP's windfall profits as “morally and economically wrong” in a now-deleted social media post. O'Neill, who took over in April, has already begun dismantling the 'gas and low-carbon' division set up under Looney, signalling a return to BP's traditional focus on upstream oil and gas production and downstream refining and retail operations.
