BP’s new chief executive, Meg O’Neill, is overhauling the company’s organisational structure, simplifying the oil giant’s operations by condensing its business into two divisions as part of a broader push to cut costs and improve performance.
The FTSE 100 group confirmed that from 1 July it will operate through an upstream division and a downstream division, replacing the three-segment model that had been in place. The company’s vast trading operation, previously a standalone unit, will be split across both new arms. Ms O’Neill said the restructuring was “an important step in accelerating delivery” and would “reduce complexity and strengthen execution”.
Streamlined structure
The move effectively unwinds the reorganisation pushed through by former chief executive Bernard Looney in 2020, which pivoted the company heavily towards low-carbon ventures. Under Ms O’Neill, BP is returning its focus to its core oil and gas operations. The new two-segment model is designed to clarify accountabilities and enable faster decision-making across the business, BP said, as it pursues a target of $4–5bn in structural cost reductions by the end of 2027 and aims to reduce net debt to between $14bn and $18bn over the same period.
Upstream and downstream defined
The upstream division will encompass the entire lifecycle of oil and gas extraction: exploration, development and production activities. It will also include upstream joint ventures, renewable natural gas and carbon capture and storage (CCS) businesses — areas that connect naturally to the company’s subsurface expertise.
The downstream division covers the later stages of the energy value chain. Its remit includes refining, terminals and pipelines, as well as mobility and convenience retail operations, biofuels, aviation fuel, hydrogen and the Castrol lubricants brand. The division will manage the infrastructure that moves and processes crude oil and natural gas into finished products for customers.
By merging trading into both divisions rather than keeping it separate, BP intends to align market activities more closely with operational assets, reducing internal complexity. Ms O’Neill, who took over as chief executive in April, said she had spent time with “teams, partners and investors around the world” and was “encouraged by the strong support for our strategic direction”.
Leadership appointments
Gordon Birrell has been appointed executive vice president of the upstream business, while Richard Harding will serve as interim executive vice president of the downstream business. BP said a recruitment process is under way to find a permanent leader for the downstream arm. Carol Howle, the company’s deputy chief executive, will continue to lead the trading operation, which will work across both new segments. Emma Delaney, formerly chief of customers and products, left the business in April.
The leadership shake-up follows the abrupt removal of former chairman Albert Manifold in May. BP said it had “serious concerns” related to his conduct, oversight and governance standards. Mr Manifold rejected what he called “lies” about his behaviour, claiming his views on cost-cutting and his willingness to call out “excessive expenditure” on items such as a limousine or private flight were not shared by others at the firm. His tenure lasted less than a year. At BP’s recent annual general meeting, close to a fifth of shareholders opposed his re-election. Ian Tyler has been appointed interim chair.
Ms O’Neill replaced Murray Auchincloss, who was ousted in 2025, and is under pressure to drive a turnaround. The restructuring forms part of a broader strategic shift that includes increasing planned investment in upstream oil and gas by around 20% to $10bn a year through 2027, while reducing capital expenditure on transition businesses such as solar and offshore wind by more than $5bn annually. BP is also pursuing a divestment programme targeting $20bn by 2027.
The company reported an underlying profit of $3.2bn for the first quarter of 2026, supported by strong oil trading and high refining availability, though net debt rose to $25.3bn at the end of the period.
Shares in BP fell 2.5% on Tuesday afternoon following the restructuring announcement, adding to a 10% drop that followed Mr Manifold’s dismissal. The stock has risen 49.2% over the 12 months to 9 June.
