bp overhauls corporate structure to streamline operations
(WO) — bp will reorganize its business around two core operating segments beginning July 1, simplifying its corporate structure as the company seeks to improve execution, reduce complexity and strengthen shareholder returns.
The new structure will consolidate bp's existing three business segments into two divisions: Upstream and Downstream.
The Upstream segment will combine the company's oil and gas exploration, development and production activities worldwide, along with its upstream joint ventures, carbon capture and storage (CCS) business and renewable natural gas operations. Gordon Birrell has been appointed executive vice president, Upstream.
The Downstream segment will encompass refining, terminals, pipelines, mobility and convenience, aviation fuels, biofuels, hydrogen and Castrol. Richard Harding has been named interim executive vice president, Downstream while the company conducts a search for a permanent leader.
The move eliminates bp's current Production & Operations, Gas & Low Carbon Energy, and Customers & Products structure in favor of a model designed to streamline decision-making and clarify accountability across the organization.
“Focusing bp around two distinct segments is an important step in accelerating delivery,” said bp CEO Meg O'Neill. “It will reduce complexity and strengthen execution.”
According to bp, the new structure aligns the company around two core business areas—resource development and production on one side, and customers and markets on the other—while enabling faster operational and commercial decisions.
Supply, Trading & Shipping will continue to operate across both segments, maintaining its role in connecting bp's integrated portfolio and optimizing commodity flows. Under the new reporting structure, gas and power trading activities will be aligned with Upstream, while oil and products trading will be aligned with Downstream.
Renewable energy businesses, including solar and offshore wind, will move under bp's Technology organization as the company continues pursuing a more capital-light approach to those activities.
The restructuring is part of bp's broader effort to simplify its portfolio, reduce costs, maintain capital discipline and strengthen its balance sheet while focusing on long-term value creation.
While the new operating model will take effect July 1, bp said external financial reporting will continue under its current segment structure through the end of 2026. A new reporting framework is expected to be implemented beginning with the 2027 financial year.
