BP splits into two segments in CEO O’Neill’s overhaul

BP ↘2.59% CEO Meg O’Neill announced a reorganization into two core segments — Upstream and Downstream — replacing the company’s three-unit structure.bloomberg
Gordon Birrell will lead Upstream and Richard Harding serves as interim Downstream chief, with renewables folded into BP’s Technology department.streetinsider
The overhaul follows months of boardroom turmoil, including the ouster of Chair Albert Manifold in May over governance concerns.reuters

BP Restructures Into Two Segments Under CEO Meg O’Neill

BP announced on Tuesday that it will reorganize into two core business segments — Upstream and Downstream — effective July 1, marking the most substantial structural overhaul at the energy giant in years as new CEO Meg O’Neill moves to simplify the company and refocus on oil and gas.bloomberg

New Leadership Takes Shape

Gordon Birrell has been appointed executive vice president of the Upstream division, while Richard Harding will serve as interim executive vice president of Downstream, with BP actively recruiting for a permanent leader of that unit. The Upstream segment will encompass oil and gas exploration, development, production, joint ventures, renewable natural gas, and carbon capture and storage. The Downstream unit will cover refining, terminals, pipelines, mobility and convenience services, biofuels, aviation, hydrogen, and Castrol operations.streetinsider

BP’s Supply, Trading & Shipping division will continue operating across both segments, while renewable energy ventures including solar and offshore wind will be housed within the company’s Technology department.streetinsider

“Reorganizing BP into two clear segments is a crucial move to expedite our progress. This approach will simplify operations and enhance execution,” O’Neill said in the company’s announcement.streetinsider

A Return to Tradition

The restructuring collapses BP’s previous three-segment framework into a classic integrated oil and gas model that O’Neill first outlined in an internal all-staff call in April, shortly after she took over as CEO on April 1. In May, she told staff the reorganization would begin in June. The changes follow O’Neill’s consultations with teams, partners, and investors over her first two months in the role.reuters

O’Neill, formerly the head of Woodside Energy, was brought in to make BP “a simpler, leaner and more profitable company,” according to Reuters.energyconnects

Turmoil at the Top

The structural shift comes amid broader upheaval at BP’s leadership level. On May 26, the board unanimously ousted Chair Albert Manifold — appointed just eight months earlier — citing “serious concerns” about governance standards, oversight, and conduct. His departure triggered a sharp drop in BP’s share price, with trading briefly suspended before shares partially recovered. Ian Tyler, a former chief executive of Balfour Beatty, was named interim chair while a permanent successor is sought.reuters

Manifold had been backed by activist hedge fund Elliott, which holds approximately 5 percent of BP, and was originally tasked with steering the company back toward its oil and gas roots. O’Neill has told staff that relocating BP’s stock listing to the United States is not an immediate priority.aljazeera