BP will abandon its pledge to reduce oil and gas output and announce at least one major divestment at its investor day on Wednesday, said people familiar with the plan, as chief executive Murray Auchincloss battles to convince activist Elliott Management that he can turn around the energy major.

CEO Murray Auchincloss has promised a “fundamental reset” to boost performance after it emerged US hedge fund Elliot had built a near 5 per cent stake in the firm.