BP Leadership Restructures Amid Supply Chain Disruptions

Meg O'Neill has announced plans to reorganise bp into two core business divisions. The move comes as energy supply chains face pressure from geopolitical tensions in the Middle East.

The restructuring would return bp to a structure similar to its configuration before 2020. That year, the company attempted to transform into a renewable energy business focused on solar and wind power.

According to an internal company call on 14 April, Meg announced that bp would adopt a two-business model. This includes an upstream unit for oil and gas production and a downstream business handling refining, fuel distribution and retail operations.

Leadership appointments for both divisions have not been announced. Meg assumed the CEO position on 1 April with a mandate to refocus the company on oil and gas production growth while divesting lower-return clean energy assets.

Energy infrastructure under pressure

Strikes on Iranian facilities have created what bp describes as one of the largest energy supply disruptions in recent history. The company indicates it expects higher earnings from oil trading operations despite market volatility.

In a statement on 14 April, bp says its refining margins had improved. The company also noted that "the oil trading result is expected to be exceptional" in the first quarter of its financial year.

According to Citi, the US bank raised its bp profit estimate by 20% to US$2.6bn in adjusted net income for the January to March quarter. Analysts across the energy sector have been revising forecasts in response to supply chain disruptions.

The International Energy Agency cut its forecasts for global oil demand in 2026. According to the IEA's April 2026 oil market report, attacks on energy infrastructure in the Middle East resulted in global oil supply falling by more than 10m barrels per day in March.

Supply routes face disruption

The decline in output could mean supply chains for refined petroleum products face constraints. bp operates refining facilities that process crude oil into fuels for distribution networks across multiple regions.

According to the IEA, continued attacks on energy infrastructure have created challenges for supply chain planning. Companies operating refineries and distribution networks must navigate reduced crude oil availability.

bp's trading division handles movements of crude oil and refined products across global supply routes. The company indicates that volatility in energy markets created trading opportunities in the first quarter.

Refining margins improved during the period, according to bp's statement. This could indicate tighter supply conditions for petroleum products in distribution chains.

Organisational structure simplified

bp currently operates three main business units. These include a gas and low-carbon division, an oil production and operations unit, and a US onshore business with refinery operations.

Meg tells employees the restructuring into two units would create a "simpler, stronger, more valuable bp". The reorganisation would provide the company with a "clear upstream and downstream" structure.

Carol Howle was appointed Deputy CEO. According to Meg, Carol will assist in developing bp's strategy beyond its 2027 targets, though the specific goals were not disclosed.

On 1 April, the day after her appointment, Meg said she was "committed to providing clear direction and consistency" so the company can "move forward with confidence.

"I'm looking forward to working closely with [Howle] to deliver a simpler, stronger and more valuable bp to maximise value for our shareholders."