06:20 AM EDT, 06/27/2024 (MT Newswires) -- BP (BP) Chief Executive Murray Auchincloss has implemented a hiring freeze and halted new offshore wind projects, shifting focus back to oil and gas amid investor concerns about the company's energy transition strategy, Reuters reported Thursday, citing unnamed sources at the company.

The moves are part of Auchincloss' plans to slow investments in costly, long-term, low-carbon projects like offshore wind, reallocating resources to current projects in the UK and Germany, the report said.

According to the report, Auchincloss and Chief Financial Officer Kate Thomson are prioritizing investments and acquisitions in oil and gas assets, particularly in the Gulf of Mexico and US shale basins, where BP has significant operations.

The company will also invest in biofuels and other low-carbon ventures that offer short-term returns, the report said, adding that job cuts in the renewables sector are to be anticipated, though no specific targets have been set.

In a statement to MT Newswires, BP said its aim to transform into an integrated energy company remains unchanged, but "we are going to deliver as a simpler, more focused and higher-value company."

"The actions we are taking are part of delivering this - and of course are all in service of our aim of growing the value of BP," it added.

(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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