BP has unveiled a sweeping leadership and organisational overhaul as new chief executive Meg O’Neill moves to simplify how the FTSE 100 energy giant operates.
The company announced it will reorganise into two core business divisions, upstream and downstream, with the changes taking effect from the start of July.
BP currently operates across three divisions, with its trading operation set to be split between the two new units as part of the restructuring.
O’Neill, who took over as chief executive in April, said the changes will “reduce complexity and strengthen execution” across the business.
Gordon Birrell will lead the upstream business, which will cover oil and gas locations including exploration and production activities.
Richard Harding will head the downstream business on an interim basis, overseeing refining, terminals and pipelines.
The FTSE 100 firm said the overhaul will also support efforts to reduce costs and simplify its portfolio more broadly.
O’Neill said: “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.”
She added: “Focusing BP around two distinct segments is an important step in accelerating delivery. It will reduce complexity and strengthen execution.”
O’Neill is under considerable pressure to drive a turnaround at BP following her appointment to replace former chief executive Murray Auchincloss.
The restructuring announcement comes after a turbulent period for the company, which also saw the removal of former chairman Albert Manifold over “serious concerns” related to his conduct, oversight and governance.
Manifold rejected “lies” about his conduct and said his views on cost-cutting and calling out “excessive expenditure” on things like a limousine or private flight were not shared by others at the firm.
Shares in BP were trading around 2.5% lower on Tuesday afternoon, reflecting broader investor caution around the company during its period of transition.