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BP has decided to merge all its offshore wind business into a new joint venture with Japan’s energy firm JERA, to which the companies will provide up to $5.8 billion for investments by 2030, the UK-based supermajor said on Monday as it shifts its focus back on oil and gas.
BP has been seeking for months to offload spending on project developments in the offshore wind sector, including by studying ideas to sell a small stake in the business.
Now BP and JERA have agreed to combine their offshore wind businesses to form a new standalone, equally-owned joint venture that will become one of the largest global offshore wind developers, owners, and operators.
The new company, JERA Nex bp, will have a mix of operating assets and development projects with total 13 gigawatts (GW) of potential net generating capacity, BP said.
To support developments, the partners have agreed to provide capital funding for investments committed to before end of 2030 of up to $5.8 billion.
JERA Nex bp, which will be based in London, will initially focus on advancing existing projects in northwest Europe, Australia, and Japan, and to continue to mature the development pipeline of significant longer-term opportunities.
The new company will be “a top five wind developer globally,” BP’s chief executive Murray Auchincloss said.
“This will be a very strong vehicle to grow into an electrifying world, while maintaining a capital-light model for our shareholders,” said the executive, who has embarked on a road to boost advantaged oil and gas resource development and production and limit losses in the renewables division.
Auchincloss, who succeeded Bernard Looney, is set to unveil the company’s new strategy in February 2025, which will reportedly include the official removal of a target to reduce its oil and gas production by the end of the decade.
