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  "documentTitle": "BP plc (BP)",
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  "authorName": "Giuseppe Bivona and Marco Taricco",
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  "presentationDate": "2023-10-04 00:00:00",
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  "notes": "This is a page from a shareholder letter by Bluebell Capital Partners criticizing BP's capital allocation.",
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      "text": "This $1.1bn investment represents a potentially significant sunken costs for BP and once again demonstrates the lack of discipline around targeted returns in offshore wind.",
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      "kind": "paragraph",
      "text": "in the US, BP announced in September 2020 that it would acquire a 50% interest in both the Empire Wind and Beacon Wind assets, from Equinor. Despite the very high uncertainty surrounding the prospective returns of the projects, BP took the decision to invest $1.1bn to acquire a stake in these projects, which it now threatens to fail to develop. This $1.1bn investment represents a potentially significant sunken costs for BP and once again demonstrates the lack of discipline around targeted returns in offshore wind.",
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      "text": "for another 1.8 GW awarded in August 2023 for no fee. Whilst not explicitly mentioning BP (or any other organisation for that matter), in its Q2 conference call, RWE CEO Markus Krebber commented: \"what we have seen in the German an auction [sic] which is the equivalent of EUR 25 per megawatt hour for the full lifetime of the project being the lease payment alone, I think that is not sustainable\";",
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      "text": "\"what we have seen in the German an auction [sic] which is the equivalent of EUR 25 per megawatt hour for the full lifetime of the project being the lease payment alone, I think that is not sustainable\" — RWE CEO Markus Krebber",
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      "text": "24, 25, 26: Detailed citations and context regarding German auctions and US offshore wind project history.",
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