US-based Elliott Investment Management has acquired a significant stake in BP, according to a Reuters report citing a source familiar with the matter.

The activist investor aims to drive transformative measures within the oil giant to enhance shareholder value, Bloomberg News reported.

Neither Elliott nor BP have released official statements regarding the investment.

The move comes as BP, with a market capitalisation of approximately £69 billion, is valued at less than half of its rival Shell, which boasts a valuation of around £161 billion, according to LSEG data.

This disparity has likely fuelled Elliott’s interest in unlocking further value within BP.

BP has been under pressure to improve its financial performance and investor confidence.

Earlier this week, the company announced its intention to sell a refining site in Germany, a move aligned with CEO Murray Auchincloss’s plan to cut company costs by at least US$2 billion by the end of 2026.

Auchincloss, who took the helm in September 2023 after Bernard Looney’s departure, is also focused on streamlining operations, including cutting more than 5 per cent of BP’s global workforce.

Auchincloss is set to unveil his new strategy at an investor day on February 26, 2025. He has already signalled a shift from his predecessor’s aggressive push away from oil and gas, a strategy that had drawn criticism from some investors.

BP recently cautioned investors about a potential US$300 million decrease in profit quarter-on-quarter, citing falling refining margins and the impact of maintenance activities.

This outlook mirrors the concerns voiced by other global refiners regarding near-term profit improvements.

The company is scheduled to report its fourth-quarter and full-year results on February 11, 2025.

Elliott Investment Management, with approximately US$70 billion in assets, has a track record of activist investing.

The firm recently advocated for a break-up at Honeywell and acquired a 3.2 per cent stake in Anglo American, which has since become a takeover target of BHP Group.

Elliott’s involvement in BP is likely to add pressure on the company to accelerate its efforts to improve profitability and shareholder returns.