06:50 AM EDT, 10/07/2024 (MT Newswires) -- BP (BP) has scrapped its goal to cut oil and gas output by 2030 as CEO Murray Auchincloss scales back its energy transition strategy to regain investor confidence, Reuters reported on Monday, citing three sources with knowledge of the matter.

In 2020, BP planned to reduce production by 40% by 2030, but last year, it lowered that target to 25%, planning to produce 2 million barrels per day by the end of the decade, the report said.

Sources said BP is shifting its strategy toward new investments in the Middle East and the Gulf of Mexico to increase oil and gas output.

"As Murray said at the start of year... the direction is the same - but we are going to deliver as a simpler, more focused, and higher value company," a BP spokesperson told Reuters.

Auchincloss will present the updated strategy, including removing the 2030 production target, at an investor day in February, though BP has already abandoned it in practice, according to the report.

The report said the company is exploring investments in three new projects in Iraq and considering re-development in Kuwait.

It added that the company is also considering acquiring assets in the Permian shale basin to boost its US operations.

The company did not immediately respond to MT Newswires' request for comment

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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