BP announces major organizational overhaul to enhance operational efficiency and focus on low carbon solutions
In a significant move aimed at enhancing operational efficiency and focusing on strategic priorities, BP has announced a major overhaul of its organizational structure. This reorganization is designed to simplify the company, reduce complexity, and support the delivery of BP’s strategic objectives outlined in February 2024.
Under the new structure, BP will maintain its three core business segments: Production & Operations, Gas & Low Carbon Energy, and Customers & Products. These segments will be supported by five key functions: Finance, Technology, Strategy, Sustainability & Ventures, People & Culture, and Legal. This restructuring will integrate the current Regions, Corporates & Solutions organization into these businesses and functions, effectively reducing duplication and simplifying reporting lines.
The executive leadership team at BP will see a reduction in size to ten members, signaling a leaner, more focused leadership approach. William Lin, previously head of Regions, Corporates & Solutions, will now lead the Gas & Low Carbon Energy business. This change follows the retirement of Anja-Isabel Dotzenrath. Emeka Emembolu will take over the Technology function from Leigh-Ann Russell, who is departing for an external opportunity.
Murray Auchincloss, BP’s Chief Executive Officer, emphasized the necessity of these changes to transition BP from an International Oil Company (IOC) to an Integrated Energy Company (IEC). “These changes will help us do just that, reducing complexity within BP, allowing our team to focus on delivering our priorities and growing the value of BP,” Auchincloss stated. He expressed gratitude towards the outgoing executives and welcomed the new leaders, praising their expertise and leadership capabilities.
The restructuring at BP reflects a broader trend in the energy sector towards streamlining operations and focusing on sustainability and low-carbon technologies. By reducing the number of leadership positions and integrating various departments, BP aims to enhance responsiveness and agility in its operations. These changes are expected to foster a stronger, more coherent strategy execution, especially in the rapidly evolving energy landscape.
The revised BP executive leadership team includes roles such as CEO Murray Auchincloss, CFO Kate Thomson, and others across key business and functional areas. The reassignment of regional teams under the new structure will align them more closely with their most relevant businesses, ensuring a more integrated approach across BP’s global operations.
The strategic reorganization of BP is designed to not affect its financial reporting structure, maintaining consistency for stakeholders and investors in how BP’s financial performance is reported.