BP $BP announced a reorganization into two business segments on Tuesday, naming leaders for each as it moves to simplify operations and accelerate decision-making under new CEO Meg O'Neill.
Gordon Birrell will lead the upstream division and Richard Harding will serve as interim head of downstream starting July 1
John Keeble / Getty Images
BP $BP announced a reorganization into two business segments on Tuesday, naming leaders for each as it moves to simplify operations and accelerate decision-making under new CEO Meg O'Neill.
Starting July 1, BP will operate through an upstream division and a downstream division, replacing its current three-segment structure, the company said. Gordon Birrell has been appointed executive vice president of upstream, and Richard Harding will serve as interim executive vice president of downstream. A search for a permanent downstream head is underway.
Birrell's upstream division will encompass exploration, development, and production activities, and will also take in BP's upstream joint ventures, its renewable natural gas operations, and its carbon capture and storage business. Under Harding, the downstream division will bring together a range of customer-facing and industrial operations, including refining, terminals, pipelines, biofuels, aviation, hydrogen, mobility and convenience services, and the Castrol lubricants brand. BP's Supply, Trading and Shipping function will continue to operate across both segments. Renewable businesses including solar and offshore wind will sit within the company's Technology function, the company said.
For financial reporting purposes, the new structure will take effect from January 1, 2027, according to Reuters.
"Focusing bp around two distinct segments is an important step in accelerating delivery. It will reduce complexity and strengthen execution," O'Neill said in a statement.
Before this appointment, Birrell had held a number of senior positions at BP, most recently overseeing the company's production and operations business. The downstream interim role filled a vacancy created when Emma Delaney, who had run BP's customers and products business, departed the company in April.
The restructuring comes as BP works to rebuild its balance sheet and refocus on oil and gas after a years-long push into renewables that failed to deliver the returns investors expected. O'Neill, who took over as CEO earlier this year, has prioritized cost reduction and debt reduction, targeting net debt of between $14 billion and $18 billion by the end of 2027. The company has also set a total cost-savings target of as much as $7.5 billion by end of 2027.
The shake-up also comes in the wake of the ouster of BP chairman Albert Manifold, who was dismissed in May over bullying allegations, according to The Wall Street Journal. BP stock is up more than 30% this year.
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