Oil supermajor BP PLC (NYSE: BP) is reorganizing its oil and gas production operations for the second time since the explosion at its Macondo well in the Gulf of Mexico killed 11 workers and resulted in the sinking of the Deepwater Horizon platform, dumping more than 5 million barrels of oil into the Gulf. In an exclusive report at Reuters, the news agency cites unnamed sources as saying the company is pulling back from the more centralized strategy the company adopted when Bob Dudley took over as CEO after the disaster.
When Dudley was appointed, he brought more of BP's operations under his personal purview, but now the company plans a return to a more decentralized structure in order to give Dudley more time to focus creating and promoting BP's strategy for returning to growth.
The report notes that the company's board of directors agreed some months ago on the reorganization plan, but waited to adopt the plan until BP had made more progress in settling claims. The $4.5 billion settlement BP arrived at with the federal government last week presents the company with an opportunity to go ahead with the reorganization.
Reuters reports that Lamar McKay will head a new Exploration & Production unit, replacing a current division of the role into three separate functional units. A new safety division created at the same time will remain separate and intact.
BP's shares are trading up fractionally in the premarket this morning, at $41.61 in a 52-week range of $36.25 to $48.34.
Filed under: 24/7 Wall St. Wire, Commodities, Corporate Governance, Management Change, Oil & Gas Tagged: BP