BP’s shrinking renewable energy business will now count in “other businesses and corporate” while the London-based energy firm will be structured in two “upstream” and “downstream” businesses. Upstream oversees oil and gas production and trading, and downstream represents refining, pipelines, and all petroleum products.
BP has struggled in recent years as it arguably overinvested in less profitable energy transition businesses and sought to scale back traditional fossil fuels. That calculus has changed amid higher oil and gas prices and internal investor activism, especially from hedge fund Elliott Investment Management.
“Focusing BP around two distinct segments is an important step in accelerating delivery. It will reduce complexity and strengthen execution,” O’Neill said in a June 9 statement. “We are moving firmly towards a simpler, stronger and more valuable BP.”
But her warm welcome to London was quickly upended by the sudden and vague exit of Manifold. Known for having a big personality, BP announced May 26 Manifold was ousted for “unacceptable” conduct and governance oversight, having clashed with others internally at BP. Manifold has pushed back, accusing BP of lying about his conduct and pledging to defend himself.
Ian Tyler, who also chairs the Grafton Group building materials firm, is the interim BP chairman.
The restructuring announced June 9 helps O’Neill push the narrative that BP’s downsizing and simplifying efforts won’t slow down in the absence of Manifold, who was previously brought on to help enact internal changes.
