16/06/2026 by Thomas Clark
UK-based oil and gas major BP has announced it will transition from a structure based around three segments to one that will focus more on its traditional upstream and downstream segments.
BP has been under pressure in recent years by activist investors to deliver greater value for shareholders. It has since divested a number of non-core assets to bolster its balance sheet. This included a deal announced in December to sell a 65% majority stake in the iconic Castrol lubricant, coolant and metalworking business. The press release is no longer available on BP’s website, however.
Meg O’Neill, who took over as the company’s first female chief executive this year, said:
“Over the past two months, I have spent time with our teams, partners and investors around the world, and I am encouraged by the strong support for our strategic direction. Focusing BP around two distinct segments is an important step in accelerating delivery. It will reduce complexity and strengthen execution.”
She added that the move will unlock sustainable growth while bolstering the company’s balance sheet. Upstream will focus on BP’s exploration, development and production of oil and gas, including join ventures. It will also cover carbon capture and renewable production of natural gas. The downstream segment, meanwhile, will cover hydrogen, biofuels, refining, aviation, convenience and mobility, pipelines and terminals.
The oil and gas major will continue to advance its renewable operations. BP says the move builds on its existing efforts to improve its fundamentals and deliver greater value for shareholders.
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