BP and Japanese power generator JERA have agreed to join forces to form one of the world's largest offshore wind operators, a major step in CEO Murray Auchincloss' efforts to reduce BP's focus on renewables.

BP has agreed to spin off its offshore-wind business into a newly formed joint venture with Japan’s top power producer JERA Co. in what will see a sharp reduction in the British oil company’s investments in renewable energy.

BP and JERA merge their offshore wind businesses to form JERA Nex BP, investing $5.8 billion by 2030 to become a major player in renewable energy.