BP has put its US biogas business, Archaea, valued at around £3billion, up for sale, less than a week after the energy giant also put its North Sea operations on the market.
The sale is the latest move by chief executive Meg O'Neill to slim down BP's sprawling global operations since she took charge of the company in April.
The energy giant also reported that profits for the first half of the year had more than doubled after global fuel prices surged due to disruption from the war in the Middle East.
What is Archaea?
Archaea, based in Texas, specialises in capturing methane gas emitted from landfill sites, which is then converted into renewable natural gas.
BP bought the business in 2022, when it was one of its largest investments made during its pivot towards renewable power under then-boss Bernard Looney. But Archaea failed to live up to expectations, and at the end of last year BP significantly wrote down its value.
O'Neill said the decision to sell Archaea formed part of her strategy to "focus on the assets with the strongest potential to deliver competitive returns and long-term value."
It is the latest move by the BP boss to slim down the business, after the sale of its Gelsenkirchen refinery in Germany on Monday.
Wider retreat from green energy
The sale also forms part of a wider retreat by oil and gas giants from the green energy space. Rival Shell announced earlier this week that it had sold a package of European solar and onshore wind farms to French group TotalEnergies.
Profits surge amid Middle East conflict
News of the Archaea sale came as BP reported a profit of £6.6billion for the six months to June, up from £2.8billion in the same period a year ago, while revenues jumped to £92billion from £71billion.
Shares in BP slipped 4.9 per cent, or 27.1p, to 525p.
The firm has cashed in on surging oil prices following the outbreak of conflict in the Middle East, which has disrupted supplies from the Persian Gulf after Iran blockaded the Strait of Hormuz, a key artery for global fuel exports.
BP's success was shared by Saudi Arabia's state-controlled oil group Aramco, which reported that profits in the first half had surged to £48.5billion from £36.2billion a year earlier.
O'Neill: 'We have to get fit to grow'
Despite the profits, O'Neill said BP was still "not making the most of our potential" and that its performance in recent years "has not met our own expectations, let alone those of our shareholders."
"We need to take a clear look at ourselves, assessing what needs to change, stopping what holds us back and building strength where it matters. We have to get fit to grow," she added.
