BP returns to traditional structure as new CEO moves to simplify business
Energy giant had operated under this same two-unit model before former CEO Bernard Looney overhauled the organization.
BP is reverting to a classic upstream-downstream operating model as new Chief Executive Meg O'Neill moves swiftly to overhaul the oil major just two weeks into her tenure, reported Bloomberg.
In her first all-staff call, O'Neill told employees the company is moving to a traditional upstream-downstream structure, with the two units expected to absorb existing divisions including technology, gas and low-carbon, legal, and human resources.
BP had operated under this same two-unit model before former CEO Bernard Looney overhauled the organization in 2020 as part of a major push into renewable energy, a strategy that was poorly received by investors.
The restructuring has direct implications for the downstream fuels and convenience retail sector. The departure of Emma Delaney, who led the customers and products division spanning fuels, convenience retail, aviation fuel, lubricants, and EV charging, signals a consolidation of those operations under the new downstream unit. Trading will remain separate, reporting to newly appointed deputy CEO Carol Howle.
O'Neill took over on April 1 with a mandate to make BP leaner, grow oil and gas production, and divest underperforming clean energy assets. The company has already cut over 6,000 staff and 4,000 contractors as it targets $2 billion in savings by end-2026.
A BP spokesperson confirmed the direction, stating the company intends to build "a clear upstream and downstream," though no timeline has been set for the new structure.
