A LEADING London activist investor group is pressuring oil giant BP to ditch renewable energy and maintain its fossil fuel operations for shareholders, reports suggest.

The Financial Times this morning reported that Bluebell Capital Partners wrote to BP chair Helge

Lund in October after taking a small stake in the company.

The letter decried BP's commitment to reduce oil and gas production by 25 per cent by 2030 against 2019 levels as an "irrational strategy" that has depressed its share price.

The target is a legacy commitment from former chairman Bernard Looney. His successor, Murray Auchincloss, said upon his appointment two weeks ago that he would maintain the strategy moving forward.

Bluebell's letter continued that the oil major should cut $28bn of funding to bioenergy, hydrogen and renewable projects - equating to 60 per cent of the allocated budget. BP has been approached for comment.

(c) 2024 City A.M., source Newspaper