BP unveils plans to simplify organisational structure

(Sharecast News) - Oil major BP on Tuesday set out plans to reorganise the business into the two units, Upstream and Downstream, as it attempts to streamline and become more efficient. From 1 July, the company will move from its current three-segment structure: production and operations (P&O), gas and low carbon energy (G&LCE), and customers and products (C&P).

Going forward, one side of the business will be focused on resource development and production, and the other on customers and markets.

Gordon Birrell has been appointed as executive vice president of Upstream, while Richard Harding has been named as interim EVP of Downstream, with a recruitment process underway find a permanent replacement.

Chief executive Meg O'Neill said the changes will cut down on complexity and strengthen execution, and are "an important step in accelerating delivery".

"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," O'Neill said.

Upstream will focus around oil and gas operations, including exploration, development and production activities, and streamline how the company finds, develops and produces energy. It will also include upstream joint ventures and the company's renewable natural gas and CCS businesses.

Downstream will include refining, terminals, pipelines, mobility and convenience, biofuels, aviation, hydrogen and Castrol, bringing together how BP makes, moves and sells its products.

Meanwhile, supply, trading and shipping operations will continue across both segments, while renewables business will sit within the technology function.

BP shares were down 1.9% at 535p by 1446 BST.