BP announces two-segment overhaul to simplify operations

BP has announced plans to reorganise its operations into two primary business segments, Upstream and Downstream, effective from 1 July 2026.

The company stated that the move aims to simplify its organisational structure, improve performance and focus on value growth for shareholders.

The announcement comes shortly after the dismissal of Albert Manifold as BP’s chair and director.

Last month, the company said Manifold was removed with immediate effect following “serious concerns” related to governance standards, oversight and conduct, a decision taken unanimously by the board. Manifold had served less than a year in the role.

Gordon Birrell will take over as executive vice-president for Upstream, while Richard Harding will serve as interim executive vice-president for Downstream.

A recruitment process is ongoing to select a permanent executive for the Downstream segment.

Both Birrell and Harding have extensive experience in operational leadership, according to bp.

The new two-segment structure will replace the current arrangement of three segments, namely production and operations, gas and low-carbon energy, and customers and products.

The Upstream segment will bring together bp’s oil and gas regions, overseeing exploration, development and production activities.

It will also manage the company’s upstream joint ventures and its renewable natural gas and carbon capture and storage businesses.

Downstream will include aviation, biofuels, the Castrol brand, hydrogen, mobility and convenience, pipelines, refining and terminals. This segment will align bp’s activities relating to the production, transportation and sale of its products.

BP’s Supply, Trading & Shipping function will continue to operate across both segments.

The company stated that this function connects the portfolio, optimises flows and supports value creation throughout the system.

BP CEO Meg O’Neill said: “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 capitalising 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.”

External financial reporting will continue under the existing three-segment model until 31 December 2026.

The new framework for external reporting will begin from 1 January 2027.

Gas and power trading will fall under the Upstream segment, while oil and products trading will be included in Downstream.

The Technology function will be reported under Other Businesses & Corporate.

"BP announces two-segment overhaul to simplify operations" was originally created and published by Offshore Technology, a GlobalData owned brand.

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