NUR-SULTAN -- British oil company BP has changed its plans for Kazakh projects in the Caspian Sea in the wake of its new renewable energy strategy, KazMunayGas confirmed to Efe on Thursday.
"The company (BP) changed its plans in relation to the adoption of its new strategy, which will now focus on renewable energy sources," KazMunayGas spokesperson Baglan Aidashev told Efe.
He said that in connection with the coronavirus pandemic and falling oil prices, BP decided in October not to invest in oil projects in the Central Asian country
In a letter, BP said that it was giving up further evaluation of the Bolshoy Zhambyl, Zhemchuzhnaya and Kalamkas More sectors because they do not fit into the new renewable energy strategy.
BP informed KazMunayGas on 27 October of its change of plans in a letter signed by its head of business development upstream, Andrew McAuslan.
The Kazakh state-owned company only announced it now following reports of alleged differences in relations between the two stakeholders.
Aidashev said that KazmunayGas and BP signed a memorandum of understanding and cooperation on exploration, development and production on 17 May 2019.
"It was only a memorandum," he said, adding that such projects would only have gone ahead following a comprehensive analysis and study of the exploration fields, both in the Caspian and onshore, by BP specialists.
As no contract was signed, BP did not incur any costs.
Last year BP said it would cut its hydrocarbon business by 40% by 2030 compared to 2019, and increase annual investment in low-carbon strategies tenfold, among other elements of its next strategy.