BP names heads for two main businesses after revamp
BP's Leadership Changes and Business Restructuring
Executive Appointments
June 9 (Reuters) - BP said on Tuesday that company veteran Gordon Birrell will lead its upstream unit and Richard Harding will serve as interim head of downstream, as part of a previously announced shift to two main business segments.
Background on Recent Leadership Changes
BP, which last month fired its former chairman Albert Manifold over bullying allegations, is seeking to rebuild investor trust by cutting costs and debt while refocusing on its core oil and gas businesses. Manifold denies the allegations.
Overview of New Business Segments
Upstream Segment
Following a traditional integrated oil and gas company structure, upstream will combine oil and gas activities, including exploration, development and production along with upstream joint ventures, renewable natural gas and carbon capture.
Downstream Segment
Downstream will include refining, terminals, pipelines, mobility and convenience, biofuels, aviation, hydrogen and the Castrol lubricants brand.
Profit Reporting Structure
BP will report profits from its large trading desk with gas and power in upstream, and oil and products in downstream.
Renewables and Technology Segment
Renewables such as solar and offshore wind will move into a technology segment as BP scales back those investments.
Implementation Timeline and Operational Impact
For operational purposes, the new structure will take effect from July 1, and for external purposes such as financial reporting from January 1, 2027. Meg O'Neill, who started as CEO in April, said the changes will reduce complexity.
Leadership Backgrounds
Birrell previously led BP's production and operations business and has held several senior roles. Harding replaces Emma Delaney, the former customers and products chief, who left in April.
Reporting Credits
(Reporting by Shadia Nasralla and Stephanie Kelly in London, Raechel Thankam Job in Bengaluru. Editing by Shilpi Majumdar, Kirsten Donovan and Mark Potter)
