British Petroleum (bp) is having late-stage talks to sell its Lightsource solar energy unit to a consortium backed by Kuwait’s sovereign wealth fund, as bp is focusing on oil and gas to boost returns, Reuters reported, citing the Financial Times.

Green energy-focused private equity firm Qualitas Energy has joined forces with Wren House, the infrastructure investment arm of Kuwait’s sovereign wealth fund, the Kuwait Investment Authority, to submit a joint bid, according to people familiar with the matter.

bp has intensified efforts to streamline its operations and pivot back toward core oil and gas activities, aiming to cut debt, strengthen profitability, and improve returns after a misstep in renewables under its former chief executive.

As part of those plans, BP last week signed a deal to divest its minority stakes in more than 10 companies within its venture portfolio, marking the start of a $20 billion asset sale program under new chief executive Meg O’Neill.

Lightsource, bp’s solar unit that was at the center of a major impairment charge flagged earlier in 2026, has already divested its offshore wind operations and scrapped plans to build a biofuels plant in Amsterdam as well as hydrogen projects in Australia and the UK.

Earlier this month, bp projected stronger second-quarter earnings, supported by elevated oil and gas prices, trading gains, and robust refining margins. However, the company also cautioned about a $1 billion impairment tied to its lower-carbon transition businesses, which analysts believe included Lightsource.