bp will reorganize its operations into two core business segments from 1 July as part of a broader effort to simplify its structure, improve execution and strengthen shareholder returns.
The company will replace its current three-segment model with two divisions: Upstream and Downstream.
The Upstream segment will bring together bp’s global oil and gas exploration, development and production activities, along with upstream joint ventures, carbon capture and storage (CCS) operations, and renewable natural gas businesses. Gordon Birrell has been appointed Executive Vice President of Upstream.
The Downstream segment will include refining, terminals, pipelines, mobility and convenience, aviation fuels, biofuels, hydrogen and Castrol. Richard Harding has been appointed Interim Executive Vice President of Downstream while bp searches for a permanent leader.
The restructuring replaces the existing Production & Operations, Gas & Low Carbon Energy, and Customers & Products business segments with a model aimed at simplifying decision-making and improving accountability across the organization.
bp Chief Executive Officer Meg O’Neill said the move is intended to accelerate delivery, reduce complexity and improve execution.
According to the company, the revised structure aligns operations around two core areas: resource development and production, and customer- and market-focused activities. The model is designed to support faster operational and commercial decision-making.
Supply, Trading & Shipping will continue to operate across both divisions. Under the new reporting structure, gas and power trading activities will be aligned with Upstream, while oil and products trading activities will sit within Downstream.
bp’s renewable energy businesses, including solar and offshore wind, will move under the company’s Technology organization as part of its continued capital-light approach to those activities.
The reorganization forms part of bp’s broader effort to simplify its portfolio, reduce costs, maintain capital discipline and strengthen its balance sheet while focusing on long-term value creation.
While the new operating model will take effect on 1 July, external financial reporting will remain under the current segment structure through the end of 2026. A new reporting framework is expected to begin with the 2027 financial year.
