BP to restructure oil production unit, sources say

The latest changes will undo some of the measures Chief Executive Bob Dudley imposed in 2010.

 

LONDON - BP is planning to announce a reorganization of its oil and gas production operations, three sources familiar with the matter said, the second significant restructuring of its main cash generator since the Gulf of Mexico oil spill.

The latest changes will undo some of the measures Chief Executive Bob Dudley imposed in 2010 and are partly intended to free him up from close oversight of day-to-day operations so he can help chart BP's recovery from the disaster which killed 11 men and spilled 5 million barrels of crude into the sea.

BP's shares have failed to recover since the Macondo well was capped, as the company struggles to convince investors that it has a strategy for growth.

Lamar McKay, currently head of BP's U.S. operations, will become head of a new Exploration and Production (E&P) unit, the sources said, a reinstatement of a role that was abolished in 2010, in the wake of the oil spill. BP declined to comment.