BP’s revised ‘energy addition’ strategy

London-listed IOC is pivoting back towards oil and gas and refocusing its clean energy business, with its Indonesia investment a perfect example of this new way forward

BP went bold on the energy transition in 2020 with a decarbonisation plan considered the most ambitious in the industry. It looked to establish a new target of cutting oil and gas production by 40% by 2030 while developing 50GW of renewable generating capacity over the same period. The major has been backtracking on these plans ever since, and it finally looks as if a new strategy is in place: energy addition. While further details of BP’s plans are still being awaited, the company’s recent announcements confirm the fact that it is committed to oil and gas, at least for the medium term. In late July, the major announced an FID on the Kaskida development, which will be its sixth operated hub