BP splits operations into two units to cut spending

BP is reorganising its business into separate upstream and downstream divisions to increase operational clarity and accountability. The £86.3 billion integrated energy group plans to concentrate its capital on a smaller group of projects with the highest expected returns rather than spreading spending across multiple initiatives.

The operational shift aligns with ongoing efforts to divest lower-quality assets. Potential sales under consideration include operations in the North Sea and parts of Egypt.

The group also adjusted its fuel deliveries and production in response to the recent conflict involving Iran, demonstrating its operational flexibility. At the same time, the company faces challenges that include recent impairments in hydrogen and biofuels alongside a heavy tilt toward upstream oil and gas.