Contrarian Corpus
activist letter follow up
2024-07-23 · 20 pages

BP Plc BP

BP's Board greenlit an unlawful solar-planning strategy and a value-destroying green pivot; replace the Chair, Senior Independent Director and CEO, or halt the renewables burn.

N 4 Narrative
V 2 Visual
C 2 Craft
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Thesis

Bluebell argues that BP's Board — under Chairman Helge Lund, CEO Murray Auchincloss and Senior Independent Director Dame Amanda Blanc — is failing shareholders and the UK public through an ideologically misguided renewables pivot that has produced sector-worst TSR (20% since Looney's 2020 appointment versus Exxon's 128%) and over $1bn of FY2023 wind losses, with a $30bn 2023-2030 Hydrogen and Renewables plan targeting only 6-8% unlevered IRR. More alarmingly, BP's subsidiary Lightsource bp unlawfully obtained Durham Council authorisation for a 76MW Burnhope solar farm by misrepresenting it as sub-50MW — a breach confirmed by the High Court in R (Galloway) v. Durham — and is now exploiting the January 2024 EN-3 amendment to overplant panels at Burnhope and Hett Moor by 50-100%. Bluebell has significantly reduced its position and demands Board replacement, a revised strategy, and regulatory investigation, invoking Dieselgate as precedent.

SCQA

Situation

BP is the UK's blue-chip energy champion whose Board directs a $30bn 2023-2030 Hydrogen and Renewables capital plan executed partly through majority-owned subsidiary Lightsource bp in the solar sector.

Complication

BP has delivered sector-worst TSR, targets only 6-8% unlevered IRR on renewables, lost over $1bn in wind in FY2023, and unlawfully bypassed the 50MW planning threshold — a High-Court-confirmed breach the Board refuses to answer for.

Resolution

Replace Chair Lund and Senior Independent Director Blanc, have CEO Auchincloss revise strategy within three months or resign, halt renewables investment, withdraw the Burnhope and Hett applications, and trigger UK government and FRC investigations.

Reward

Restoring governance and strategic discipline closes the TSR gap to peers (Exxon +128%, Total +87%, Chevron +74%, Shell +68% since Looney appointment) and removes escalating legal, regulatory and reputational risks Bluebell compares to Dieselgate.

The three reasons

  1. 1

    BP's TSR is worst in sector: 20% since Looney vs Exxon's 128%, and -8% under Auchincloss

  2. 2

    BP unlawfully sought to bypass 50MW planning threshold for Burnhope and Hett solar farms

  3. 3

    Board stonewalling shareholders on 36 AGM questions echoes pre-Dieselgate governance failure

Primary demands

  • Answer the thirty-six shareholder questions refused at the 2024 AGM
  • Disclose target IRR for the Burnhope and Hett Moor solar farms
  • Put on hold acquisition of remaining 50.03% of Lightsource BP and launch independent investigation into its commercial practices
  • Withdraw Burnhope and Hett planning applications and halt renewables investment until matters clarified
  • Replace Chair Helge Lund and Senior Independent Director Dame Amanda Blanc with external appointments to oversee full Board reshuffle
  • Have CEO Murray Auchincloss announce a revised strategic plan within three months or resign
  • Request UK Secretary of State for Energy open an investigation into BP's alleged circumvention of planning regulations
  • Urge Financial Reporting Council to impose a three-year ban on Dame Blanc serving as Senior Independent Director at any UK-listed company

KPIs cited

TSR since Looney CEO appointment (03/02/20), in EUR
BP 20% vs Shell 68%, Chevron 74%, Total Energies 87%, Exxon Mobil 128% — worst in peer group
TSR since Auchincloss CEO (12/09/23), in EUR
BP -8% vs Shell +16%, Total Energies +9%, Exxon -3%, Chevron -5% — worst in peer group
Target unlevered IRR in Renewables & Power
6-8% — described as 'a clear declaration of intent to burn shareholder capital'
FY2023 wind sector losses
Over $1 billion in losses, with more expected
2023-2030 capital plan in Hydrogen and Renewables & Power
$30 billion allocated to sectors where BP lacks experience and track record
Lightsource bp panel overplanting factor
1.25-1.8x (BP's claim) equating to 62-90MWp on a 49.9MW AC connection; Bluebell argues modern panel degradation of 0.3-0.5%/yr justifies only 10-15%
Burnhope solar farm installed capacity
76MW solar panels vs 49.9MW AC inverter (originally misrepresented as sub-50MW)
Hett Moor solar farm installed capacity
77MW per BP, recalculated at 94MW by Galloway's solicitors — vs 49.9MW AC inverter
Lightsource bp ownership
BP owns 49.97% with announced acquisition of remaining 50.03%

Pattern membership

Where this document fits across the library's 12 rhetorical / structural patterns.

Precedents cited

  • Dieselgate (Volkswagen, Germany, 2015)
  • Bluebell's own prior letter to BP of 4 October 2023
  • R (Galloway) v. Durham County Council (High Court ruling, 21 February 2024)

Notable slides (3)

Notes

Formal letter addressed to BP's Board with cc to eight UK officials (Ed Miliband MP, Jonathan Reynolds MP, FRC CEO, Durham MPs and Council leaders) — the CC list itself is part of the rhetorical apparatus, publicising the escalation. Signed jointly by partners Giuseppe Bivona and Marco Taricco (CIOs); Bluebell discloses they have 'significantly reduced' their BP position, an unusual admission mid-campaign that signals exit rather than continued engagement. Main evidentiary thrust is the R (Galloway) v. Durham County Council High Court judgement of 21 February 2024, which Bluebell weaves into a governance/fraud allegation invoking Dieselgate as the sole precedent. Twenty appendices supply documentary backing. Two peer-gap TSR bar charts on page 2 are the only graphics. No valuation, no sum-of-parts; classic text-heavy European activist letter format.