BP is shifting its agricultural business to partner with Japanese rival as it moves back to fossil fuels.

BP is outsourcing its wind farm business to a Japanese partner.

The deal comes as the giant’s boss Murray Auchincloss dials back its focus on renewable energy to its traditional focus on oil and gas.

BP has previously said it ‘aims to be a leader in offshore gas’ and is developing fields in the UK, US, Germany, South Korea and Japan.

But investors are concerned about tight margins in the sector amid supply chain issues and growing competition.

And Auchincloss has been under pressure as its share price falls to suitors. It is down 16.6 percent this year while Shell is down only 1.9 percent.

BP shares rose 4.3 per cent, or 16.1p, to 393.85p yesterday.

The joint venture with Jera, known as Jera Nex BP, will include assets and projects under development with a combined capacity to generate 13GW of power, a company spokesman said.

BP will contribute £2.5 billion and Jera – Japan’s biggest energy company – £2 billion in investments until the end of 2030, although the companies have indicated that the amounts will be lower.

Analysts at investment bank RBC said BP had previously planned to spend £7.8 billion on upgrades over the period 2022-2030 with offshore wind likely to be the largest component.

Despite an estimated £1.6 billion spent, the new announcement ‘predicts a significant reduction in spending for this region by 2030’.

Onshore gas is a key part of former CEO Bernard Looney’s strategy to reduce BP’s greenhouse gas emissions by rapidly ramping up renewable energy and slowing investment in oil.

But that has backfired since he quit on misogyny last year.

In October, BP abandoned plans to cut fossil fuel emissions by 2030.

Auchincloss said he would focus on the most profitable jobs.

He said yesterday that the partnership would create one of the world’s five largest gas producers.

He added: ‘This will be a very powerful vehicle to grow in the energy world, while maintaining a clear capital model for our shareholders.’

The offshore wind farm sector has been hit by rising development costs, supply chain issues and rising inflation in recent years.

Analysts at RBC said that yesterday’s announcement ‘provides further evidence of evolving strategies (for energy transition), particularly in the offshore wind sector due to recent industry strength. and the change in interest rates’.