British oil giant BP PLC chief executive Tony Hayward hinted on Wednesday that the oil company may offload part or all of its green business unit, reversing a central part of its previous strategy as he seeks to turn the company around.
Hayward, giving his first annual presentation to analysts since taking over from former CEO John Browne last May, also said that BP could be producing some 4.3 million barrels of oil equivalent a day by 2012.
The green unit, much prized by Browne, is worth between US$5 billion and $7 billion, based on market valuations for similar companies, Hayward said.
Selling all or part of the business would drop a key plank of Browne’s strategy, the rebranding of the former British Petroleum under the “Beyond Petroleum” slogan.
BP’s advertising has focused heavily on the company’s green investments, but environmental campaigners have long argued that it was little more than a marketing gimmick.
Hayward said the company was making good progress with a restructuring plan that is aimed at improving BP’s dismal operational performance after a turbulent year in which it was fined millions of pounds for environmental crimes and fraud.
BP has already begun cost-cutting and restructuring, including shedding 5,000 jobs, as it seeks to close the gap with rivals like Royal Dutch Shell PLC and Exxon Mobil Inc. caused by poor performance in BP’s refining and marketing business.
