BP will sell its US onshore wind business for an undisclosed amount to LS Power

BP announced on Friday that it had agreed to divest its U.S. Onshore Wind business to U.S. based power grid operator LS Power as part of its ongoing strategy to divest. The energy giant did not disclose the deal's value.

Investors have criticized BP for its poor performance in recent months. This has led to a new strategy that promises to reduce debt, increase cashflow and a pivot to oil and natural gas following a disastrous foray into alternative energy.

The company aims to dispose of $3 billion to $4 million in assets by the end this year. Murray Auchincloss, the CEO of the company, has committed to selling $20 billion in assets by 2027.

Kim Fustier, an analyst at HSBC, said that the absence of any consideration in the press statement is unusual considering the size of the transaction.

Fustier stated that a second disposal would likely be required to meet the disposal target for this year.

A deal was made with Apollo Global Management to sell its share in a company that invested in the TANAP pipeline connecting Azerbaijan and Turkey in March for $1 billion.

BP announced that the business, bp Wind Energy will be operated and owned by Clearlight Energy's portfolio company LS Power.

BP stated that the deal includes 10 wind assets in operation with a gross generating power of 1.7 gigawatts.

The shares of the London listed company rose 1.9%. Other energy companies were also tracking an increase in oil prices. (Reporting and editing by Rashmi aich and Frances Kerry. Raechel Thankam Job, Bengaluru)

(source: Reuters)