BP is planning to expand its board by adding two more directors as part of its strategy to increase oil and gas production and improve shareholder returns, the Financial Times reported on Tuesday, citing sources familiar with the company’s plans.
Last week, BP revealed its decision to ramp up investments in oil and gas, committing $10 billion per year. At the same time, the company will cut its spending on clean energy by over $5 billion annually, marking a significant shift in its strategic focus.
BP’s chairman, Helge Lund, is responding to pressure from investors, particularly activist investor Elliott Management, to strengthen the board.
The company is considering expanding its board from 11 members to 13. One of the new directors would oversee oil and gas operations, while the other would lead the remuneration committee, according to sources close to the discussions.
It’s unclear whether BP has consulted with Elliott Management about these potential hires, which has pushed for changes in the company’s strategy and even a board reshuffle. Details on how far BP has advanced in the recruitment process for these new directors are also not immediately available, the Financial Times reports.
The strategy reset announced last week will see BP reallocate its capital spending towards higher-growth sectors. This includes a boost to oil and gas investments, which will now total about $10 billion annually. Meanwhile, BP will slash its transition investments to around $1.5 billion to $2 billion per year, a cut of more than $5 billion compared to previous forecasts.
In the oil and gas sector, BP plans to launch 10 new major projects by the end of 2027, with an additional 8-10 projects expected by the end of 2030. Production is set to increase, with BP targeting 2.3–2.5 million barrels of oil equivalent per day by 2030, with the capacity to grow through 2035.
This marks a significant shift from BP’s previous strategy, which focused on reducing oil and gas output by 2030.
Related Topics:
- WTI Crude Oil Weekly Outlook: Upward Resistance Triggers Reactive Selling
- Today’s Oil Price Index Chart (March 3)
- Iraq’s Oil Derivative Exports Exceed 4.4 Million Tons in 3 Months