BP sells 10% stake in Shafag solar project to Hungary's MVM

LONDON, Feb ​11 (Reuters) - BP has sold a 10% stake in its ​Shafag ‌solar project in Azerbaijan to Hungary's MVM Energetika Zrt, ⁠the oil major said Wednesday.

BP ⁠now owns 40.01% ​of the project, while SOCAR Green owns 39.99%, and Azerbaijan Business Development Fund and MVM each own ​10%, ‌BP said. The announcement comes a day after BP said it took about $4 billion in impairments on its renewables and biogas ​assets, including related to its solar unit ‌Lightsource bp.

Lightsource bp is building the Shafag project with the joint-venture partners. The ‌British oil major said in June it had made a final investment decision on the ​project.

A year ago, under then-CEO Murray Auchincloss, BP announced a ‌strategy reset back to hydrocarbons, saying the move would improve profitability after an ill-fated foray into ⁠renewables by ⁠predecessor Bernard Looney.

BP expects ‌construction for the Shafag project to be completed in 2027 and ​for ​the project to generate about ‌500 gigawatt hours per year of renewable energy. (Reporting by Stephanie Kelly and Prerna Bedi Editing by Bernadette Baum and Louise Heavens)

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