BP reorganisation boosts Dudley

BP: reorganisation of oil and gas production
BP: reorganisation of oil and gas production
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BP HAS unveiled a reorganisation of its oil and gas production operations in a reversal of a change it brought in after the Gulf of Mexico oil spill.

The move is partly intended to free up chief executive Bob Dudley from close oversight of day-to-day operations so he can focus on BP’s recovery from the disaster.

The reorganisation sees former BP North Sea executive Lamar McKay appointed head of a new exploration and production (E&P) unit called Upstream, effectively recreating a role that was abolished in 2010.

Dudley had split BP’s old E&P division into three units when he was appointed in a move aimed at moving BP away from its traditional decentralised structure of independent business units.

A BP spokesman said there were no changes planned to the safety unit, which was also created in 2010.

McKay, who has been with the company for 32 years and is currently in charge of its US operations, takes up the post in January.

He had served as Aberdeen-based business unit leader for the central North Sea in 2000.

The group is yet to announce who will succeed McKay as chairman and president of BP America, a post he has held since 2009, which included overseeing its clean-up from the 2010 Gulf of Mexico disaster.

Dudley said in a statement that BP had successfully implemented a more centralised model, which analysts have likened to that adopted by rival ExxonMobil.

Shares in BP closed up 1.9p at 435.5p.