LONDON, May 8, 2026, 14:56 BST
BP is set to overhaul its structure in June, splitting operations into upstream and downstream units. Chief Executive Meg O’Neill is pushing for a clearer timeline on shifting the company back to its core oil and gas focus. According to three people who joined an internal staff call, the reorganisation plan came up on Thursday, Reuters reports.
The timing is key here: O’Neill started on April 1 and now faces pressure to prove BP’s latest overhaul isn’t just a rebrand. Last month, BP posted first-quarter underlying replacement cost profit—an industry benchmark that excludes certain inventory moves and one-offs—at $3.2 billion. Net debt ticked up, reaching $25.3 billion.
Upstream involves oil and gas extraction. Downstream handles refining, fuel sales, and related products. According to Finimize, breaking BP apart this way should give investors a clearer read: upstream leans heavily on output and commodity prices, while downstream depends more on refinery margins and fuel demand.
Reuters is reporting that BP will transfer its gas segment along with its carbon capture and storage operations into the upstream division, while biofuels and other low-carbon businesses get folded into downstream. Carbon capture tech aims to catch CO2 emissions before they escape into the air.
BP plans to set up an organisation featuring “a clear upstream and downstream” split. In first-quarter materials, O’Neill pointed to the need to “simplify how we work” and keep “driving improved returns” as BP aims to become “simpler, stronger, more valuable.” Reuters
O’Neill made it clear to staff that shifting BP’s listing to the U.S. isn’t on the table right now, according to two sources who spoke with Reuters. One source added that she pointed to more possibilities in the UK North Sea, though acknowledged the region’s tough fiscal environment.
BP is swinging back toward its pre-2020 structure with the new model, stepping away from the overhaul engineered by former CEO Bernard Looney, who had ramped up the company’s renewables efforts. According to Supply Chain Digital, leadership roles for the two divisions remain unfilled, so that segment of the operating model hasn’t been finalized yet.
Still, BP’s portfolio questions persist. Last week, Reuters—citing Bloomberg News—said BP was considering selling part or even all of its UK North Sea business, though nothing’s set in stone. Shell and TotalEnergies, among others, have also trimmed holdings or shifted strategy in the area.
BP wants to trim its holdings in a pair of major UK carbon capture ventures—Net Zero Teesside and Northern Endurance Partnership—according to the Guardian. The company argued it’s the right moment to pull in more partners. Equinor and TotalEnergies are already on board.
The downstream business is set to play a key role in the reset. BP reported a $3.2 billion underlying result from its customers and products division for the first quarter, crediting better midstream operations, gains in refining, and what it called an “exceptional” contribution from oil trading. Working capital took a hit, however, as longer shipping routes and higher prices pushed up requirements. bp global
O’Neill steps in with a June kickoff and a well-defined opening deadline. From here, the tougher challenge looms: whether sharper charts will translate into quicker calls, improved returns, and less noise at a company where both leadership and game plan have shifted more than once since 2020.
