BP will take full control of its Brazilian bioenergy joint venture, BP Bunge Bioenergia. To do so, the oil company will acquire its partner Bunge's 50 percent stake for 1.4 billion USD. This is part of BP's plan to focus on new biofuel projects.

At the same time, BP announced on Thursday that it would reduce the development of new biofuel projects and pause planning for two potential projects. However, three other projects will continue to be advanced.

These changes enable us to achieve the growth and returns we expect from biofuels in a simpler and more focused way," said Emma Delaney, Executive Vice President of BP for Customers and Products.

After the acquisition is completed, BP will produce 50,000 barrels of ethanol equivalent per day from sugarcane through the 11 agro-industrial units of BP Bunge Bioenergia in five Brazilian states.

The joint venture has net debt of 500 million USD and lease obligations of 700 million USD.

BP emphasized that the acquisition and the focus on key biofuel production projects support the continued growth of its strategic bioenergy sector, which includes both biofuels and biogas.

By 2025, BP expects to achieve an EBITDA of around 2 billion USD through bioenergy and 3 to 4 billion USD from all growth areas of the energy transition.

Separately, the US grain trader and oilseed processor Bunge Global explained that while the joint venture is operating well, it does not belong to the core long-term business.

The acquisition is expected to be completed by the end of this year, subject to regulatory approvals, according to BP.

The BP shares were trading at 467 pence, up 0.65 pence or 0.1%, as of 12:23 GMT. They have risen by 0.1% since the beginning of the year.