BP is preparing to divest its US biogas business in a deal valued at approximately $4 billion, according to reports from the Financial Times.
The move comes as the company navigates a period of robust profitability driven by higher fossil fuel prices, with second-quarter underlying replacement cost profit reaching $5.73 billion.
The decision to sell the biogas unit marks a notable shift in strategy for BP, which has previously emphasized its transition toward renewable energy sources.
This figure more than doubled the year-earlier result and exceeded analyst expectations, underscoring the continued strength of BP’s traditional upstream and downstream operations.
The decision to sell the biogas unit marks a notable shift in strategy for BP, which has previously emphasized its transition toward renewable energy sources.
By offloading this asset, the company appears to be prioritizing capital return and core business efficiency over expansion in the lower-margin renewable sector.
The sale aligns with a broader trend among major oil majors to reassess their energy transition portfolios in light of sustained demand for oil and gas.