LONDON, May 9, 2026, 15:08 BST
- BP’s incoming CEO has set June for the company’s return to a two-division model, splitting operations into upstream and downstream units.
- The company is offloading a slice of its holdings in two UK carbon capture projects, right as construction is kicking off.
- For BP, the narrative these days revolves around debt, sharper capital discipline, and the squeeze from investors—rather than any sweeping expansion into renewables.
BP chief executive Meg O’Neill told employees that a sweeping company reorganization kicks off in June, people familiar with the call said. The British oil giant is shifting back to a basic structure focused on upstream and downstream divisions.
Upstream refers to oil and gas exploration and extraction, while downstream includes refining, fuel sales, and customer-facing operations. This shift is significant: under O’Neill—BP’s fifth CEO since 2020, who stepped in on April 1—the company’s strategic overhaul is now moving directly into day-to-day execution.
BP is making its case to investors that its renewed emphasis on oil and gas goes beyond mere talk. Back in April, O’Neill and CFO Kate Thomson laid out the numbers: $3.2 billion in first-quarter underlying replacement cost profit—a key metric BP favors, which excludes certain inventory and accounting impacts. Net debt ticked up to $25.3 billion, so repairing the balance sheet remains a central focus.
The reshuffle comes just days after BP announced plans to offload stakes in Net Zero Teesside Power and the Northern Endurance Partnership—two major carbon capture and storage ventures in northern England. Carbon capture involves sequestering CO2 from power stations or industry and putting it underground instead of letting it escape into the atmosphere.
BP hasn’t specified the size of the stakes it’s looking to offload or identified any interested buyers. It pointed to key progress on the projects—financial close is done, construction underway—which, according to BP, marks the “right time” to reduce its equity and invite additional partners in. Reuters
These projects remain within an active peer network. Net Zero Teesside Power counts Equinor as BP’s partner, while Equinor and TotalEnergies are teamed up on the Northern Endurance Partnership. Shell exited the Northern Endurance project in 2023.
Net Zero Teesside Power has started construction, targeting a 2028 start-up. The plan: build the world’s first gas-fired power plant equipped with carbon capture and storage. Once running, it’s designed to cover the yearly electricity demand of over 1 million UK homes.
The Northern Endurance Partnership aims to transport and store captured CO2 from Teesside and the Humber beneath the North Sea. Infrastructure for the project is set to handle up to 4 million tonnes of CO2 annually in its initial phase, the East Coast Cluster project website shows.
O’Neill didn’t mince words, calling out the need to “capitalize on the opportunity that exists across our portfolio,” according to BP’s first-quarter results statement. The company, she said, has to focus on simplifying its work, unlocking growth, and boosting returns. bp global
Debt metrics are getting just as much scrutiny as BP’s strategy talk. After BP reported, Allen Good at Morningstar flagged that a quicker pace of debt paydown could take some pressure off the shares. Still, he pointed out, BP’s higher leverage continues to weigh on the company, despite management moving its strategy closer to other oil-and-gas majors.
Other factors are in play. BP confirmed Thursday that the U.S. has renewed its license for operations in Azerbaijan’s Shah Deniz gas field, where it works alongside Russian and Iranian partners. “Shah Deniz remains compliant with sanctions,” BP said. Reuters
BP’s turnaround hinges on how well it can deliver. There’s uncertainty around asset sales fetching good prices, and carbon capture plans are exposed to both build-out snags and shifting policies. Oil prices, which recently boosted trading income, aren’t guaranteed to hold up. For now, BP has paused share buybacks to focus on debt, leaving investors who want quicker payouts waiting.
