BP Plc may pursue acquisitions to expand its oil and gas portfolio as the company scales back promises to sharply cut fossil fuel output this decade amid soaring prices and limited supplies.

“You may see us doing some smart M&A, commercial deals, partnerships, things that make sense in that space,” Chief Executive Officer Bernard Looney said in a presentation.

The comments stand in contrast to BP’s closest peer, Shell Plc, which last week ruled out using its growing cash pile to do big deals.

As BP posted a record 2022 profit on Tuesday, it vowed to increase spending both on its traditional oil and gas business as well as low-carbon alternatives. 

BP’s strategy involves investing to increase oil and gas production as quickly as possible. That may mean adding drilling capacity in the Gulf of Mexico, the North Sea and the Permian shale formation in the US. But acquisitions could also help deliver that agenda.