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BP pledges billions in UK investment

British-based energy major BP has said it will invest £18 billion in UK projects over the coming eight years, including oil and gas projects in the North Sea.

The announcement comes as the company reported that its net profit for the first quarter was the highest in over a decade, at £5 billion, being driven mostly by high oil and gas prices. This figure does not include the consequences of BP’s decision to exit Russia following its invasion of Ukraine. A non-cash write-down of £19.2 billion for its 19.75% stake in Rosneft, the Russian oil giant, and two joint ventures led to BP posting a bottom line loss of £16.2 billion. Bernard Looney, the CEO of BP, said:

“In a quarter dominated by the tragic events in Ukraine and volatility in energy markets, BP’s focus has been on supplying the reliable energy our customers need. Our decision in February to exit our shareholding in Rosneft resulted in the material non-cash charges and headline loss we reported today.”

Looney added, however, that this did not mean that the company’s strategy or expected shareholder distributions had changed as a result.

BP, which also makes industrial lubricant and metalworking products under the Castrol brand, said its investment would help ensure domestic energy security. It also reinforced its commitment to reduce emissions as part of its ambition to become a net-zero integrated energy company, with the new investment also going to installing more charging points for electric vehicles and building greater wind power capacity.

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