BP and its associate Equinor are renegotiating the phrases of energy provide agreements linked to their big wind developments off the U.S. East Coast, BP CEO Bernard Looney mentioned on Tuesday.
“We are in the midst of renegotiating our PPA (power purchase agreement) contracts in the East Coast with our partner Equinor,” Looney advised analysts.
In 2020, BP paid Equinor $1.1 billion for a 50% stake within the enterprise to develop the Empire and Beacon offshore wind tasks with a complete capability of three,300 megawatts.
“We will not develop projects that don’t meet our returns thresholds” of 6% to eight%, Looney mentioned.
Reuters reported in March that BP was searching for to vary the phrases of the three way partnership with Equinor.
(Reuters – Reporting by Ron Bousso, Editing by Louise Heavens)
