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STORY: BP has abandoned a target to cut oil and gas output by 2030.

Three sources told Reuters of the new approach.

They said CEO Murray Auchincloss is scaling back the firm's energy transition strategy to regain confidence from investors.

Four years ago, BP pledged to cut output by 40% by 2030, while rapidly growing renewables.

It was the sector's most ambitious energy transition plan.

But the firm scaled back the target in February last year to a 25% reduction as investors focused on near-term returns rather than the energy transition.

The sources said BP now aims to do several new investments in the Middle East and the Gulf of Mexico to boost its oil and gas output.

Auchincloss took over in January but has struggled to stop the fall in BP's share price.

The energy giant has underperformed its rivals so far this year as investors have questioned its ability to generate profits under its current strategy.

Auchincloss has tried to distance himself from the approach of previous boss Bernard Looney.

He has vowed to focus on returns and investing in the most profitable businesses, primarily oil and gas.

Though the company continues to target net zero emissions by 2050.

The sources added Auchincloss will present his updated strategy at an investor day in February.

Rival Shell has also scaled back its energy transition strategy since Wael Sawan took over as CEO in January.

The shift at both companies has come with a renewed focus on European energy security.

It follows the price shock sparked by Russia's invasion of Ukraine in early 2022.