Reset. In action

In February, we reset bp. Our latest quarterly results show we’re in delivery mode. Here’s our CEO, Murray Auchincloss, with a progress report

Two months on from the reset and one quarter into the year, how is bp performing?

Our reset was pivotal and we’re already making significant progress. Our operations had a great quarter; the best Q1 refining availability in 24 years and the highest upstream operating efficiency in our history. 

We’ve started up three major projects. We’ve made six oil and gas discoveries, and we’ve kicked off a $20 billion divestment programme.

We’re moving at pace and I’m confident that the plan will grow our long-term value for shareholders.  

Expanding oil and gas production was a big part of the reset – what are you doing to grow your upstream?  

We said we’d start up 10 major oil and gas projects by the end of 2027. Three of these are now online. At peak production, they’ll add 100,000 barrels of oil equivalent a day net to bp.

They are our Raven Infills project in Egypt – accessing a new reservoir from an existing field. Cypre, off the Trinidad coast – a gas tieback where we’ve connected new wells to an existing platform.

And Phase 1 of our GTA project in Mauritania and Senegal, where we’ve just shipped our first LNG cargo. We’re developing this as a regional LNG hub; once fully commissioned, we expect it to produce 2.4 million tonnes of LNG per year. 

bp’s primary performance targets for end-2027

*At $70/bbl Brent, $4/mmBtu Henry Hub, and $17/bbl refining marker margin, all 2024 real.

You’ve also said you plan to strengthen bp’s oil and gas portfolio. What does this look like? 

Exploration is key. We’re expecting to drill 40 exploration wells over the next three years. So far, we’ve had a 100% success rate, with six discoveries from six wells in 2025 – in Egypt, Trinidad and Tobago, the Gulf of America, and a significant find in Namibia.

Our Trinidad and Tobago discovery has gas stacked up in multiple reservoirs at different depths, meaning, potentially, we can produce from layer after layer using the same wellbore. That’s great for project efficiency and shows the value of our advanced seismic imaging tech. 

We’re also using our partnership network to tap into existing resources. A few weeks ago, I was in Baghdad finalizing a deal with the Iraqi Prime Minister to redevelop Kirkuk’s giant fields. The initial phase of production includes three billion barrels of oil equivalent, and we think there could be a resource opportunity of up to 20 billion. 

India is another great example. We recently agreed a 10-year deal as technical services provider to India’s largest oilfield, Mumbai High. We’ve stood up a team; they’re in action within 60 days of signing the contract, and we’ve already identified early opportunities to mitigate decline and increase production, where we’ll share in the incremental value. 

Meanwhile, we’re continuing to sanction new projects. In March, we gave the green light to our Ginger gas development in Trinidad and Tobago. It’s four subsea wells that we expect to produce 62,000 barrels of oil equivalent at peak.   

Outside upstream oil and gas, you’ve talked about refocusing your portfolio on bp’s core markets and businesses. How are you progressing?

In February, we announced a $20 billion divestment programme to release cash and strengthen our balance sheet.

The first billion comes from agreeing to sell a stake in TANAP – the Trans-Anatolian natural gas pipeline – which runs from Azerbaijan across Türkiye. It allows us to realize value while remaining the controlling shareholder.

We’ve also put our Austrian retail network up for sale. It’s a great business, but non-core for bp.

Castrol is under strategic review as we look at ways to accelerate its next phase of value delivery. We’ve had a lot of interest in it.   

On the low carbon side, we’ve announced the leadership team for our 50/50 offshore wind joint venture with JERA Co. Once established, the JV will be a top-five global developer. This gives us the option to grow value in a capital-light way for bp. 

How are you measuring success? 

We’ve fundamentally reset bp with an unwavering focus on sustainably growing long-term shareholder value. That requires disciplined, returns-led investment, but also high and consistent performance – safe operations, high plant reliability, projects starting up on schedule, and using the right technology to get better at what we do.  

We’ll know the plan is working if we’re performing against four primary targets to lower our costs, lower net debt, grow free cash flow, and increase returns. You should expect to see measurable progress on these over the next 12 months or so.   

The market outlook has changed and is more uncertain following the announcement of global tariffs and related government responses. How is bp responding? 

Volatility and lower price cycles are not new to the sector or to bp and we are continuing to monitor developments closely. We have managed through the price cycles many times over and our integrated business model is diversified across energies, geographies and value chains.

We also have flexibility, which we are using to trim our capital expenditure this year by $500 million, adding further resilience. In short, we are focused on things within our control, we have strong conviction in our plan, and we are delivering it at pace.

And finally, why are you confident that a reset bp can win?  

First quarter after our reset and we’ve made the start we wanted. Now, we need to keep building on it quarter by quarter. 

Global demand for energy has never been higher, and we’re one of only a few that can grow across all energy types to deliver energy at scale today and tomorrow.

We have distinct strengths: top-tier assets, advanced tech and world-class traders. We’re a trusted partner to companies and countries around the world. Our integrated model – production assets, distribution networks, plus customer demand centres – means we’re resilient through the business cycle. Our reset strategy plays to those strengths.

The focus now is on delivery: safe and reliable operations, projects starting up on schedule, consistent performance, enacting our divestment programme and going after costs. 

We have a brilliant team at bp and an ambitious growth plan. Make no mistake, we are focused on delivery and doing so at pace.