BP has set out plans to reorganize its operations into two business segments from July 1, simplifying its organizational structure as part of efforts to improve performance and increase shareholder value.
The company said it will replace its existing three-segment structure with Upstream and Downstream divisions, bringing together businesses across the oil, gas, refining and marketing value chains under a simplified operating model.
Gordon Birrell has been appointed executive vice president of Upstream, while Richard Harding will serve as interim executive vice president of Downstream. A recruitment process is underway to appoint a permanent Downstream leader.
The Upstream segment will combine BP's oil and gas regions, including exploration, development and production activities, as well as upstream joint ventures, renewable natural gas and carbon capture and storage businesses.
The Downstream segment will include refining, terminals, pipelines, mobility and convenience, biofuels, aviation, hydrogen and Castrol operations.
Supply, Trading & Shipping will continue to operate across both segments, while renewable businesses including solar and offshore wind will be placed within the Technology function as bp pursues a capital-light approach in those areas.
“Over the past two months, I have spent time with our teams, partners and investors around the world, and I am encouraged by the strong support for our strategic direction. Focusing bp around two distinct segments is an important step in accelerating delivery. It will reduce complexity and strengthen execution,” said Chief Executive Meg O’Neill.
The company said the new structure is intended to clarify accountability and support faster decision-making while complementing ongoing efforts to simplify its portfolio, reduce costs, maintain capital discipline and strengthen its balance sheet.
For financial reporting purposes, BP will continue to report under its existing production and operations, gas and low carbon energy, and customers and products segments through the end of 2026. The new reporting structure is expected to take effect from January 1, 2027.