BP nears deal to sell solar business to Kuwait-backed group, FT reports

July 24 (Reuters) - BP is in advanced talks to sell its solar business, Lightsource, to a consortium backed by Kuwait's sovereign wealth fund, the Financial Times reported on Friday, as the energy major sharpens its focus on oil and gas to bolster returns.

Green energy-focused private equity firm Qualitas Energy and Wren House, the infrastructure arm of Kuwait's sovereign wealth fund Kuwait Investment Authority, have teamed up for the bid, the report said, citing people familiar with the matter.

BP has been doubling down on efforts to simplify its operations and refocus on traditional oil and gas in a bid to reduce debt, boost profit and return on investment after an ill-fated foray into renewables under its previous CEO.

Under those plans, BP last week signed an agreement to sell its minority interests in more than 10 companies in its venture arm, as the company embarks on a $20 billion divestment plan under new chief executive Meg O'Neill.

BP's Lightsource, which was central to a hefty impairment charge flagged in early 2026, has already spun off its offshore wind business and abandoned plans to build a biofuels plant in Amsterdam and hydrogen plants in Australia and Britain.

BP declined to comment on the FT's report, while Lightsource, Qualitas Energy and Wren House did not immediately respond to Reuters' requests for comment.

Earlier this month, BP forecast stronger second-quarter earnings on the back of elevated oil and gas prices, oil trading and refining margins, but warned of a $1 billion impairment, related to its lower-carbon energy transition businesses, which analysts assume to have included Lightsource.  

(Reporting by Prerna Bedi and Anushka Chourasia in Bengaluru; Editing by Anil D'Silva and Louise Heavens)