BP CEO Meg O’Neill informed staff on Thursday that a significant reorganisation into two main business units, upstream and downstream, will commence in June. This strategic shift marks one of the first major initiatives under O’Neill, who assumed leadership of the global energy major on April 1. BP is a global energy company involved in the exploration, production, refining, and marketing of oil, natural gas, and various energy products, including biofuels and lubricants. The company confirmed in April its intent to restructure along these lines, though a specific timeline was not provided until now.
TheThe reorganisation will see BP’s gas business and its carbon capture and storage initiatives integrated into the upstream unit. Concurrently, low carbon and biofuels operations will transition to the downstream unit. This move aligns with O’Neill and Chair Albert Manifold’s stated emphasis on fostering a “simpler, stronger, more valuable BP” with a renewed focus on investment in oil and gas. This approach signals a departure from the 2020 reorganisation under then-CEO Bernard Looney, which aimed for a greater push into renewables and had drawn criticism from investors.
Regarding the company’s future listing, O’Neill also indicated that changing BP’s listing to the United States is not currently a priority. Additionally, she highlighted opportunities within the UK North Sea, despite acknowledging the challenging fiscal regime present in the region. These comments come amidst recent reports by Bloomberg News suggesting that BP is considering the potential sale of some or all of its UK North Sea operations, citing sources familiar with the matter.
