Incoming Chief Executive Meg O’Neill is steering BP away from its recent green energy pivot, informing staff of plans to simplify the UK oil major back into two primary business units. This organizational rollback mirrors the structure BP employed before its ambitious 2020 transformation strategy aimed at decarbonization. A simpler setup is intended to create a more valuable enterprise.

BP will divide operations into one unit dedicated strictly to oil and gas production, and a second covering downstream functions like refining, distribution, and retail operations. Though a concrete schedule for these structural shifts remains unannounced, the move signals a decisive return to core hydrocarbon strengths for the energy giant, likely appeasing investors focused on near-term cash flows.

The company’s powerful trading arm, which recently delivered an “exceptional” performance judging by first-quarter results, will remain independent of the main corporate reorganization. This unit will continue reporting directly to Deputy Chief Executive Carol Howle, distinguishing it from the four existing operational divisions and three enabler groups BP currently manages.

Existing complexity involved five operational units, including gas and low-carbon energy, alongside three internal support functions. O’Neill’s directive aims for a “simpler, stronger” organization built around a clear upstream and downstream focus, shedding layers introduced during the previous strategic push.