BP Plc is planning to spin off its operations in Iraq into a standalone company, the Wall Street Journal reported on June 11, as the oil major looks to shift focus to low-carbon investments.
The new company would hold BP’s interest in Iraq’s giant Rumaila oil field and be jointly owned by China National Petroleum Corp., one of BP’s partners at the site, the report said, citing people familiar with the matter.
The new entity will hold its own debt, separate from BP and pay dividends.
BP declined to comment on the WSJ report.
Spinning off oil and gas assets is seen as a way for BP to shift towards renewable energy. BP and Eni SpA in May entered into talks to merge their oil and gas operations in Angola to form one of Africa’s largest energy companies.
In the short term, higher gas prices will encourage power generators to run gas-fired turbines for fewer hours over the next few months, running coal-fired units instead, to reduce gas combustion.
ERCOT is already warning its 26 million customers to conserve energy, and experts say Texas residents should brace for rolling blackouts amid drought and extreme heat.
Projected peaks in power usage over the next week would be the highest so far in 2021 and, if correct, next week’s forecast would top the Texas grid’s all-time high of 74,820 MW in August 2019.