March 12. Information Center - BP Plc abandoned three oil projects in Kazakhstan after it changed strategy to
concentrate on renewable energy and its existing ventures World Oil reports citing
The European major sent a letter to state-run KazMunayGas in
October last year, saying that after 18 months of work to evaluate such
offshore blocks as the Bolshoy Zhambyl, Zhemchuzhnaya and Kalamkas Sea it
decided not to pursue them with future investments, according to the letter
published on KazMunayGas website yesterday.
BP agreed to examine Kazakh oil projects in May2019, afew months before Royal Dutch
Shell Plc announced it had exited two crude projects in the Caspian Sea. The retreat from the fields -- both
in the area of the giant Kashagan field -- was made as high costs made them
uneconomic and reflected an industry-wide push to cut break-even costs. Oil
prices tumbled last year as demand was destroyed by Covid-19.
BP said it would restructure the company to focus on cleaner energy and shrink
its hydrocarbon business by 40% over the coming decade. Since announcing its
strategy shift, the major has sold a string of oil and gas assets while making
big investments in offshore wind. The company wasn’t immediately able to
comment on the matter.
in strategy meant capital will be directed on renewable energy and existing
hydrocarbon basins, where it currently operates, according to the letter datedOct.
27, 2020and signed by BP’s head of business development upstream Andrew McAuslan. As a
result of these changes, the firm will no longer pursue investment in theKazakhstanblocks, it said.