BP scraps sale of U.S. wind farm business

LONDON, July 30 Tue Jul 30, 2013 4:52am EDT

Related Topics

LONDON, July 30 (Reuters) - British oil company BP has decided to keep its U.S. wind farm business, one of the largest in the country, after four months in which it failed to attract a bid the company could accept, a spokesman said on Tuesday.

"We didn't find an offer that we thought was the right value," said the spokesman, citing guidance circulated by management at the end of last week.

"Our feeling is that the business is more valuable to us than to others. We had a number of bids, but we decided now is not the right time to sell."

The sale was seen as a continuation of the retreat of big oil companies from renewable energy investments while oil and gas projects offer them better returns.

It would also have helped fund BP's oil spill costs along with the $38 billion worth of assets it has already sold since the 2010 spill.

Bp has not put a value on the business but reports have said the sale could have raised a further $1.5 billion.

The assets include interests in 16 operating wind farms in nine states with a combined generating capacity of around 2,600 megawatts, as well as a portfolio of projects in various stages of development.

BP reported second quarter results earlier on Tuesday.

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
Sonsumer35 wrote:
Note that this doesn’t indicate BP is anti-solar, nor that BO thinks they made a mistake, all it indicates is that worldwide economic recovery from the Bankster theft of 2007/2008 is pushing up demand for hydrocarbons so fast that oil has become more profitable than electricity. The opposite was true from 2007-2010. BP always has and always will deploy their cash flow where it makes the best returns, but that doesn’t mean they pick many losers, they just are smart enough to re-deploy when profits in one sector outperform another.

Jul 30, 2013 8:43am EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.