BP is set to simplify its corporate structure under new CEO Meg O’Neill, signaling a return to a more traditional oil and gas operating model. According to reports, the company plans to consolidate its business into two core divisions: upstream and downstream, reversing the more complex structure introduced in 2020 during its push toward becoming a broader energy company.
The current five-unit model—covering production, low-carbon energy, customers, technology, and trading—will be streamlined to improve efficiency and accountability. BP’s trading division, which delivered strong results in the first quarter, will remain separate and continue reporting to senior leadership.
The move comes amid pressure from activist investor Elliott Management, which has advocated for a simpler structure focused on core operations. The shift suggests BP is prioritizing operational clarity, capital discipline, and stronger financial performance.
This restructuring aligns with a broader industry trend, as major oil and gas companies refocus on profitability and core hydrocarbon assets while taking a more measured approach to energy transition investments.
Author: phinds
