BP has announced a major restructuring of its business segments, effective from 1 July 2026, consolidating operations into two primary units: Upstream and Downstream. The move aims to simplify the company's structure, improve performance, and focus on value growth for shareholders. This follows the recent dismissal of Albert Manifold as BP’s chair and director, citing "serious concerns" over governance standards, oversight, and conduct. Manifold disputes the allegations, claiming he was fired "without warning or explanation."
Gordon Birrell will lead the Upstream segment, overseeing oil and gas exploration, production, and renewable natural gas ventures. Richard Harding will serve as interim executive vice-president for Downstream, which includes refining, pipelines, and petroleum products. A permanent Downstream leader is still being recruited. The restructuring eliminates the current three-segment model, which included a dedicated low-carbon energy unit.
The changes come amid significant leadership turnover, with BP now on its third CEO and third chairman in under three years. Investors and activists have raised concerns about board oversight and strategy, particularly regarding increased upstream spending. Meg O’Neill, BP’s CEO since April, has emphasized the need for a simpler, more focused structure to drive execution and value.
O’Neill, a former Exxon Mobil and Woodside Energy executive, has faced immediate challenges, including the abrupt exit of Manifold. Activist shareholders, such as ACCR, have called for greater transparency in leadership selection and strategy. Meanwhile, BP’s interim chair, Ian Tyler, has defended the board’s direction, stating the company is "moving at pace" to deliver its strategic goals.
The restructuring reflects BP’s shift away from renewable energy investments, which have struggled financially. The company now plans to integrate its low-carbon initiatives into "other businesses and corporate" operations. Analysts suggest the move aligns with investor demands for higher returns amid rising oil and gas prices.