LONDON, April 3 (Reuters) - BP has put its U.S. windfarm operation, one of the largest in the country, up for sale,marking the continued retreat of big oil companies fromrenewable energy investments while oil and gas projects offerthem better returns.
The British oil company has already sold or earmarked forsale some $38 billion worth of assets, partly to raise funds topay for its 2010 U.S. oil spill liabilities, but also toreposition itself as a smaller, leaner company with an emphasison high-margin oil production and exploration. Reports said thesale could raise a further $1.5 billion.
BP would not put a value on any sale, but said in astatement it expected "attractive offers" for the assets. They include interests in 16 operating wind farms in nine states witha combined generating capacity of around 2,600 megawatts ofrenewable power, as well as a portfolio of projects in variousstages of development.
Over a decade ago, big oil companies including BP and Shellbegan to ramp up investment in renewable energy. But theuncertain outlook for government subsidies and prices in solar,wind and other clean energy areas, along with the re-emergenceof strong prices for oil and opportunities to develop large gasfields, have since distracted their attention.
BP, which under former chief executive John Browne oncenamed itself "Beyond Petroleum", still has a substantialinterest in Brazilian biofuels, but has invested only about $1billion a year in renewables since 2005 from a total capitalspending budget of well over $20 billion annually. It has nospecific investment plans for the sector in the years ahead.