Energy firm bp has unveiled a major corporate overhaul designed to streamline its internal management structure, increase stock market value and improve financial performance. Under the new strategy, which comes into effect on 1 July 2026, the company will condense its existing three-tier division system down into two primary business units consisting of Upstream and Downstream segments.
Corporate leaders have confirmed a series of executive appointments to spearhead the structural transition. Gordon Birrell will take on the role of executive vice president for Upstream, while Richard Harding has been chosen as the interim executive vice president for Downstream. The firm noted that both individuals possess extensive industry background and managerial experience. A formal recruitment campaign has already started to find a permanent candidate for the Downstream executive vice president vacancy.
The newly formed dual-division setup intends to clarify corporate responsibilities and quicken executive decision processes. The first division, Upstream, will merge all global oil and gas regions, encompassing traditional exploration, field development and asset production. This segment will also manage upstream joint ventures, alongside the company’s carbon capture and storage developments and renewable natural gas projects.
The second division, Downstream, will bring together refining plants, logistics terminals, fuel pipelines, consumer mobility, retail convenience sites, aviation supply, biofuels, hydrogen developments and the Castrol lubricants brand. Meanwhile, the firm’s Supply, Trading & Shipping division will remain operational across both primary segments to maintain commercial connections and optimise fuel supply lines. The company’s solar power and offshore wind divisions will now be placed within the core Technology department as part of a low-capital spending initiative.
Commenting on the strategic decision, Meg O’Neill, chief executive officer, said:
“Focusing bp around two distinct segments is an important step in accelerating delivery. It will reduce complexity and strengthen execution.”
O’Neill further explained the context of the operational shift:
“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. Focusing bp around two distinct segments is an important step in accelerating delivery. It will reduce complexity and strengthen execution.
“bp has an incredibly capable team, with deep expertise across the oil and gas value chain. We are capitalizing on opportunities across our portfolio, strengthening the balance sheet and unlocking sustainable growth. We are moving firmly towards a simpler, stronger and more valuable bp.”
The internal shake-up expands on previous cost-reduction measures and capital discipline programs aimed at strengthening the overall corporate balance sheet.
