UK Markets open in 4 hrs 38 mins
  • NIKKEI 225

    28,855.24
    -663.10 (-2.25%)
     
  • HANG SENG

    27,995.15
    -600.51 (-2.10%)
     
  • CRUDE OIL

    64.56
    -0.36 (-0.55%)
     
  • GOLD FUTURES

    1,837.50
    -0.10 (-0.01%)
     
  • DOW

    34,742.82
    -34.98 (-0.10%)
     
  • BTC-GBP

    39,551.57
    -2,208.13 (-5.29%)
     
  • CMC Crypto 200

    1,461.10
    -100.20 (-6.42%)
     
  • Nasdaq

    13,401.86
    -350.34 (-2.55%)
     
  • ^FTAS

    4,060.80
    -5.38 (-0.13%)
     

BP sells its London head office as it shifts to low-carbon energy

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Suban Abdulla
·2-min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
British gas and oil multinational company BP (British Petroleum) logo is seen on October 7, 2020 in Warsaw, Poland. (Photo by Aleksander Kalka/NurPhoto via Getty Images)
BP has agreed to lease its 1 St James’s Square property in central London back from Lifestyle International for two years. Photo: Aleksander Kalka/NurPhoto via Getty Images

BP (BP.L) has announced the sale of its London head office to Hong Kong investment firm Lifestyle International (1212.HK) for £250m ($332m).

The British oil giant also agreed to lease its 1 St James’s Square property in central London back from Lifestyle International for two years, saying the deal would give it the opportunity “to reimagine how and where a reinvented BP should be headquartered.”

BP moved into the premises in 2002 after acquiring it from Ericsson (ERIC) for a reported £110m.

It is the latest string of disposals for BP, which is aiming to sell $25bn of assets by 2025 amid a restructuring that pushes the business into low-carbon energy.

The company, led by chief executive Bernard Looney, has already divested or agreed a deal on half of its target, as it seeks to reduce its debt.

READ MORE: BP looks to net-zero goal with new green hydrogen project

In August, it was reported that BP was hunting for a buyer for its London office, as the pandemic changed work patterns.

At the time the property was expected to fetch up to £300m. The sale announcement is £50m short of the predicted value.

Earlier this year, Looney said that the FTSE 100 (^FTSE) company will move to a more “hybrid work style”, balancing home and office working.

BP employs 6,500 staff across its offices in London and in Sunbury-on-Thames in Surrey.

Last week, the oil giant announced it was teaming up with Danish wind power group Orsted (ORSTED.CO) on a green hydrogen project in Germany.

The project is planning to build a renewable energy plant, including a 50 megawatt (MW) electrolyser, at the Lingen refinery, harnessing power from the North Sea to split water into hydrogen and oxygen.

The move would replace 20% of natural gas-based hydrogen at the plant.

Watch: BP's green hydrogen project takes off