LONDON, June 12 - British oil major BP has opened a process to divest minority interests in two Gulf of Mexico developments, according to four people with direct knowledge of the matter. The initiative is among the earliest strategic actions under Chief Executive Officer Meg O'Neill.
The projects targeted are Kaskida and Tiber, two of BP's key prospects in the Gulf. Each asset is expected to have production capacity of about 80,000 barrels of oil a day, with Kaskida due to commence output in 2029 and Tiber in 2030. The sources said BP has been considering the sale of minority stakes in these projects for more than a year.
The four individuals declined to specify the size of the interests BP is seeking to sell and spoke on condition of anonymity because the deliberations are private. BP did not respond to a request for comment.
Oil and gas companies commonly offer minority stakes in projects that are still in development to unlock capital tied up in those assets. Such sales can reallocate funds for other upstream activity or broader corporate priorities without relinquishing operatorship of the fields.
BP reset its strategy last year to re-concentrate on oil and gas investments, moving away from its earlier push into renewables after criticism from investors and a period of weak share performance. The company has signalled a pivot back to conventional energy as it looks to drive near-term growth.
Meg O'Neill, who is from Boulder, Colorado, became BP's CEO in April. She is the company's first external chief executive in more than a century. The reported divestment process of minority stakes at Kaskida and Tiber would rank among her first substantive actions since taking the helm.
The London-listed group is increasingly relying on the United States to deliver growth. BP has a stated objective to raise its U.S. upstream production to roughly 1 million barrels of oil equivalent per day by 2030, which would represent just under half of the company's global target of producing between 2.3 million and 2.5 million barrels of oil equivalent per day over the same period.
Global oil prices have risen strongly this year, gaining more than 40 percent so far, a jump the article links to disruptions in supply stemming from the U.S.-Israeli war on Iran. That market backdrop could influence investor appetite and valuation for minority stakes in large Gulf projects.
Data and developments stated in this report are based on information provided by sources close to the matter. No additional details about the prospective transaction terms, timelines, or potential buyers were available from those sources at the time of reporting.