BP has announced a major organizational restructuring aimed at simplifying operations, improving execution, and creating long-term shareholder value, while continuing to advance its renewable energy strategy through a more focused and capital-efficient business model.
Effective July 1, 2026, BP will reorganize its operations into two core business segments – Upstream and Downstream – replacing its existing three-segment structure. The move is designed to streamline decision-making, clarify accountability, and accelerate business performance across the company’s global energy portfolio.
Under the new structure, renewable energy businesses, including solar and offshore wind, will be placed within BP’s Technology function. This reflects the company’s strategy to pursue a capital-light approach in renewable energy, allowing it to continue developing low-carbon opportunities while maintaining financial discipline and improving returns.
BP Chief Executive Officer Meg O’Neill said the simplified structure will help reduce complexity, strengthen execution, and support sustainable growth across the business. She emphasized that BP is focused on capitalizing on opportunities across its portfolio, strengthening the balance sheet, and enhancing shareholder value.
The newly created Upstream segment will consolidate BP’s global oil and gas exploration, development, and production operations. Importantly, it will also include the company’s renewable natural gas (RNG) and carbon capture and storage (CCS) businesses, highlighting BP’s continued investment in lower-carbon energy solutions and emissions reduction technologies.
The Downstream segment will bring together refining, terminals, pipelines, mobility and convenience operations, biofuels, aviation fuels, hydrogen activities, and the Castrol lubricants business. The integration of biofuels and hydrogen within Downstream underscores BP’s strategy to expand alternative energy offerings alongside traditional fuel operations.
BP’s Supply, Trading & Shipping business will continue operating across both segments, supporting energy optimization, market access, and value creation throughout the company’s integrated energy system.
The restructuring also aligns with BP’s broader efforts to simplify its portfolio, reduce costs, maintain strict capital expenditure discipline, and strengthen its financial position. While the internal organizational changes take effect in July 2026, BP will continue reporting under its current financial reporting segments until December 31, 2026. The new external reporting framework is scheduled to begin from January 1, 2027.
Through the reorganization, BP aims to balance its traditional energy operations with emerging low-carbon businesses, including renewable natural gas, carbon capture, solar, offshore wind, biofuels, and hydrogen, while pursuing a more efficient and financially sustainable energy transition strategy.