The company separately outlined plans to sharply reduce its oil and gas output by 2030 and boost its renewable power generation under CEO Bernard Looney’s strategy to “reinvent” BP in line with a global transition to low-carbon energy.
The net loss, which was in line with analysts’ expectations, was largely a result of BP’s decision to wipe US$6.5 billion off the value of oil and gas exploration assets after it revised sharply lower its oil and gas price forecasts.
“These headline results have been driven by another very challenging quarter, but also by the deliberate steps we have taken as we continue to re-imagine energy and reinvent BP,” Looney said in a statement.
“In particular, our reset of long-term price assumptions and the related impairment and exploration write-off charges had a major impact.”
BP said it would increase its low-carbon spending by 2030 to US$5 billion a year and boost its renewable power generation to 50 GW, while shrinking its oil and gas production by 40% compared with 2019.
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