BP plans sale of Archaea as it continues portfolio simplification
Energy major looks to divest the leading U.S. renewable natural gas producer as part of a broader strategy to refocus on core oil and gas operations.
BP plans to sell Archaea Energy, its U.S. biogas business, just four years after acquiring the company for $4.1 billion, as the energy giant continues to streamline its portfolio and prioritize its core oil and gas activities.
Archaea captures methane from landfills and dairy farms and converts it into renewable natural gas (RNG). According to BP, the company is currently the largest producer of renewable natural gas in the United States.
The proposed divestment was announced alongside BP’s second-quarter financial results and represents another step in the company’s ongoing strategic shift under CEO Meg O’Neill. The energy giant acquired Archaea in 2022 as part of its energy transition strategy, but has since recorded significant write-downs on the value of the business.
The move follows a series of portfolio reviews aimed at improving financial performance and sharpening investment focus.
BP reported second-quarter profit of $5.7 billion, an increase of $2.5 billion compared with the previous quarter, benefiting from stronger commodity prices. The company said it will continue simplifying its asset base and applying greater discipline to capital allocation as part of a broader effort to improve returns.
