Energy major bp has announced plans to sell Archaea Energy, its US-based renewable natural gas (RNG) business, less than four years after acquiring the firm for over $4 billion. The planned divestment forms part of a broader corporate strategy to simplify operations and refocus the company’s asset portfolio.
bp acquired Houston, Texas-based Archaea Energy in late 2022 for approximately $4.1 billion. At the time of the transaction, Archaea operated 50 RNG and landfill gas-to-energy facilities across the United States, producing an estimated 6,000 barrels of oil equivalent per day (boe/d) of RNG, alongside a development pipeline of more than 80 additional RNG projects.
The decision to market Archaea Energy was disclosed by bp Chief Executive Officer Meg O’Neill during the group’s second-quarter earnings presentation. O’Neill, who assumed the CEO role in April, was appointed with a mandate from the bp board to accelerate strategic transformation and build a leaner, more profitable business structure.
Outlining five strategic priorities designed to drive operational performance and increase shareholder value, O’Neill emphasised portfolio simplification and capital discipline. She noted that asset retention would be evaluated strictly on value creation rather than legacy attachment, highlighting that bp has also initiated a process to market its North Sea assets alongside the US biogas business.
