Oil and gas giant BP has revealed it intends to invest up to £18billion in the UK's energy system by the end of 2030 – with many of the projects being Scottish.
The group said this move demonstrates its firm commitment to the UK, and helping the country to deliver on its bold ambitions to boost energy security and reach net zero.
BP added that, as one of the largest oil and gas producers in the UK, it intends to continue investing in North Sea oil and gas, while driving down operational emissions.
The group is also in action on a range of lower-carbon energy investments in the UK, which are expected to bring jobs and develop new skills and capabilities.
News of the major fresh investment came after BP announced first-quarter losses totalling more than £16billion following its decision to exit its shareholding in Russia's Rosneft as a result of the country's invasion of Ukraine.
However, underlying profits for the quarter did race ahead to £5billion compared to £3.25billion in the last quarter of 2021 after the surge in oil and gas prices.
Rising profits have prompted calls for a one-off windfall tax on energy companies to help UK households grappling with rising household bills.
On the investment plans, BP chief executive Bernard Looney said: "We're backing Britain. It's been our home for over 110 years, and we've been investing in North Sea oil and gas for more than 50 years.
"We're fully committed to the UK's energy transition - providing reliable home-grown energy and, at the same time, focusing on the drive to net zero. And we have ambitious plans to do more and to go faster. Our plans go beyond just infrastructure - they see us supporting the economy, skills development and job opportunities in the communities where we operate. We are all in."
BP explained that the new investment is in addition to its significant operating spend in the UK.
In 2019, prior to the pandemic, an estimated 0.5% of UK GDP was supported by the group's activities.
BP also anticipates paying up to £1billion in taxes for its 2022 North Sea profits, on top of around £250million that it has paid annually in other taxes in the UK in recent years.
The projects in which BP is looking to invest include:
North Sea
- Developing lower-emission oil and gas projects to support near-term security of supply - for example, at the Murlach, Kate and Mungo fields around the BP-operated ETAP hub in the central North Sea and the Clair and Schiehallion fields west of Shetland.
- Investing in exploration around its existing North Sea hubs.
- Progressing asset-electrification projects in the central North Sea and west of Shetland to further reduce operational emissions and supporting the North Sea Transition Deal.
Offshore wind
- In partnership with EnBW - developer of two 60-year offshore wind leases in the Irish Sea with a combined potential generating capacity of 3GW; and developer of a lease option with a potential generating capacity of 2.9GW off the east coast of Scotland in the ScotWind round. BP said these three projects could generate enough energy to power over six million UK homes every year.
- Investing in infrastructure, ports, harbours and shipyards, including the construction of four ships to support the offshore wind projects across the UK, subject to technical and commercial due diligence. These new-builds are anticipated to involve an investment of more than £100million and would be expected to support 500 associated jobs.
- Committing more than £1million - as part of the successful ScotWind bid with EnBW - to X-Academy in Scotland in a five-year deal, supporting both reskilling experienced workers and the creation of entry-level energy transition roles.
- Making Aberdeen BP's global operations and maintenance centre of excellence for offshore wind and creating up to 120 new direct jobs.
Aberdeen
- Working with Aberdeen City Council in a joint venture to deliver a scalable green hydrogen production, storage and distribution facility powered by renewable energy.
- Partnering with the local authority to support their ambition for Aberdeen to become a climate positive city.
- Working with the Port of Aberdeen on decarbonisation projects.