BP projects huge divestments in 2017

Anything that does not generate sufficient earnings must be weeded out from BP in 2017. The company is aiming to scrape together between USD 4.5 and USD 5.5 billion from the sale of assets.

Photo: Aker BP ASA, Pressefoto

Anyone on the hunt for a slightly used oil refinery or a building in an attractive location might want to check out the asset portfolio of British oil giant BP.  In today's accounts, the company has heralded a huge divestment of its secondary assets in the coming year, increasing the goal to raise capital from USD 3.2 billion last year to USD 4.5 - 5.5 billion in 2017.

"Everything we do in 2017 is with the aim to build an even stronger platform for growth and dividends to our shareholders. We strongly believe that 2017 will be driven by organic growth and we want to trim the company down further. Part of that will involve focusing on further divestments of assets which do not significantly contribute to our cash flow and which are not central to the business. We are guiding towards increased divestment by value in 2017, but this will likely not involve central assets within upstream [fields and exploration, ed.]. Instead, the focus will be on downstream and divestment of a more technical nature," says Bob Dudley, CEO in BP, on a conference call Tuesday morning.

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