UK's BP Considers Selling Brazil Biofuel Sector

Sources familiar with the matter said that British energy company BP is considering its options regarding the future of its Brazilian biofuels division, including a potential sale, as CEO Mougrian “Moug” O’Neill intensifies efforts to restructure the British firm’s portfolio and focus its investments on core operations.

Bloomberg noted that BP acquired its Brazilian biofuels business in 2024 by purchasing a 50% stake for $1.4 billion, including assumed debt.

The agency quoted the sources as saying that BP no longer considers the biofuels division part of its core activities, adding that details of the sale plan are still in their early stages and no final decision has been reached.

The deal could represent another step in BP’s broader efforts to streamline its portfolio, boost liquidity for investment in core oil and natural gas projects, and reduce its debt.

The company has pledged to sell assets worth approximately $20 billion by 2027, while seeking to lower its debt, cut costs, and improve returns, following the strategic shift announced last year by then-CEO Mary O’Shea, with a focus on investing in energy transition activities, as was the case under her predecessor Bernard Looney.

The transaction would also mark a significant shift for BP’s bioenergy activities in Brazil. In 2024, the company agreed to pay $1.4 billion to acquire Banijay Global’s 50% stake in the Brazilian sugar and ethanol company, which BP already partially owned, thereby gaining full ownership.