BP and its partner Equinor are renegotiating the terms of power supply agreements linked to their giant wind developments off the U.S. East Coast, BP CEO Bernard Looney said on Tuesday.
"We are in the midst of renegotiating our PPA (power purchase agreement) contracts in the East Coast with our partner Equinor," Looney told analysts.
In 2020, BP paid Equinor $1.1 billion for a 50% stake in the venture to develop the Empire and Beacon offshore wind projects with a total capacity of 3,300 megawatts.
"We will not develop projects that don't meet our returns thresholds" of 6% to 8%, Looney said.
Reuters reported in March that BP was seeking to change the terms of the joint venture with Equinor.
(Reuters - Reporting by Ron Bousso, Editing by Louise Heavens)