BP proposes to close venturing arm, sell stakes in portfolio

BP is proposing to close its venturing arm and has reached an agreement to sell minority interests in more than 10 companies in the portfolio to investment firm Verdane, it said on Wednesday.

CEO Meg O'Neill, who started in the top job in April, said earlier this month that BP needs to prioritise financial discipline by simplifying its portfolio, cutting costs and tightening capital spending, as the company refocuses on its core oil and gas investments.

"We are proposing to evolve how we manage our interest in the small number of investments we will retain, and to close the bp Ventures team, subject to consultation and in line with local legal and regulatory requirements," a BP spokesperson said in an email to Reuters.

As part of the agreement with Verdane, BP will retain interests in a small number of investments, the company said in a news release. It did not disclose the price of the sale.

The divestment is expected to complete by the second quarter of 2027.

The British major's venturing arm BP Ventures, which began in 2007, had 27 companies in its portfolio, its website showed ahead of the announcement. These included projects related to artificial intelligence, electric vehicles and hydrogen.

BP had an ill-fated foray into renewables before announcing a strategy reset last year.

The company is embarking on a $20 billion divestment plan aimed at cutting debt and boosting returns.