bp has announced a sweeping overhaul of its organisational structure, moving to a streamlined two-segment model designed to reduce corporate complexity, accelerate decision-making, and drive shareholder value.
Effective from July 1, the company will dissolve its current three-segment system, reorganising its global operations into two distinct divisions: Upstream and Downstream.
The structural shake-up comes under the leadership of CEO Meg O’Neill, who stated the changes following extensive consultations with global teams, partners, and investors.
“Focusing bp around two distinct segments is an important step in accelerating delivery. It will reduce complexity and strengthen execution,” O’Neill said.
“bp has an incredibly capable team, with deep expertise across the oil and gas value chain. We are capitalising on opportunities across our portfolio, strengthening the balance sheet and unlocking sustainable growth.
“We are moving firmly towards a simpler, stronger, and more valuable bp.”
The newly created Upstream segment will unite bp’s oil and gas regions, encompassing exploration, development, and production alongside upstream joint ventures, renewable natural gas, and carbon capture and storage (CCS) businesses.
Industry veteran Gordon Birrell has been appointed as executive vice president to lead the division.
The Downstream segment will consolidate refining, terminals, pipelines, aviation, biofuels, hydrogen, the Castrol brand, and mobility and convenience networks, alignment-focused on how bp manufactures, moves, and markets its products.
Richard Harding will step in as interim executive vice president while a global recruitment process for a permanent leader is finalised.
Meanwhile, bp’s supply, trading, and shipping arm will span both divisions, while its solar and offshore wind businesses will sit within the technology function as the company shifts towards a capital-light model for renewables.
While the operational change takes effect mid-year, bp noted that external financial reporting will retain the old three-segment format until December 31 to allow for implementation.
The new financial reporting structure will officially commence on January 1, 2027, capping off a broader effort by the company to rein in costs and maintain strict capital discipline.
