BP cuts its workforce and refocuses on hydrocarbons

BP formalizes 4,700 internal layoffs and 3,000 among subcontractors. Disappointing results and a renewed focus on hydrocarbons shape this move. The market observes these choices, influenced by economic and political imperatives.

Share:

BP is facing what it considers an unproductive year, according to financial sources. The group points to a strategy focused on its petroleum and gas activities. Layoffs affect 4,700 internal employees plus 3,000 subcontractor positions. This approach is part of a simplification program centered on cost reduction.

Cost reduction

BP’s financial results have dropped, particularly during the first three quarters of the last fiscal year. Refining margins have declined, while weak sales have impacted overall revenue. Asset impairments have also weighed on global profitability. Some analysts link this downturn to fluctuations in the price of a barrel.

Management insists on building a simpler organization aligned with its core business. Similar decisions are appearing among other competitors who pivot toward hydrocarbons to satisfy shareholders. The stock market responds favorably to these refocusing signals, as indicated by certain financial indices. Observers see a global trend guided by profitability.

Cost reduction

According to internal sources, BP’s repositioning includes a significant slowdown in renewable investment. Previously announced climate commitments face reevaluation, sparking speculation among certain investors. Promises to reduce oil production may be adjusted in the near term. The expected strategies will be clarified in upcoming official reports.

Job cuts represent over 5% of BP’s total workforce. The group operates in more than 60 countries, with approximately 87,800 employees. Each region abides by distinct regulatory frameworks, requiring formal consultations. Specific support is pledged to affected employees.

Cost reduction

The new orientation also aims to boost the company’s stock valuation, considered insufficient by some. Certain competitors, such as Shell, take a similar route, abandoning certain initial climate objectives. Other players, including TotalEnergies, even plan to expand oil and gas production. Experts foresee a lasting impact across the entire sector.

Serbia has secured a new 30-day reprieve from the application of US sanctions targeting NIS, operator of the country’s only refinery, which is majority owned by Gazprom.
OMS Energy Technologies Inc. reports solid financial results for 2025, driven by marked revenue growth, improved gross margin and a reinforced cash position in a shifting market.
Five employees injured in an explosion at the Pascagoula refinery are suing Chevron for negligence, seeking significant compensation and alleging major breaches of safety regulations.
South Korea and Japan are reinforcing coordination on strategic stocks and oil logistics as growing dependence on Gulf imports and geopolitical tensions affect the Asian market.
Sonatrach continues to assess underexploited oil and gas areas with the support of Sinopec, following a gradual strategy to strengthen its position on the regional energy market.
Venezuelan oil group PDVSA is mobilising to restart export operations under conditions similar to previous US licences, as Washington prepares to again authorise its main partners to operate.
Two separate strikes in the Vaca Muerta region threaten to disrupt oil and gas production after historic records, with unions protesting layoffs and unpaid wages in a rapidly expanding sector.
US refiner Phillips 66 posted quarterly earnings above expectations, driven by high utilisation rates and lower maintenance costs across its facilities.
The advisory opinion issued by the International Court of Justice increases legal exposure for states and companies involved in the licensing or expansion of oil and gas projects, according to several international law experts.
US oil company Chevron has received new approval from American authorities to relaunch its operations in Venezuela, halted since May following the revocation of its licence under the Trump administration.
Kazakhstan adopts an ambitious roadmap to develop its refining and petrochemical industry, targeting 30% exports and $5bn in investments by 2040.
Turkey has officially submitted to Iraq a draft agreement aimed at renewing and expanding their energy cooperation, now including oil, natural gas, petrochemicals and electricity in a context of intensified negotiations.
The Dangote refinery complex in Nigeria is planning a scheduled forty-day shutdown to replace the catalyst and repair the reactor of its gasoline production unit, starting in early December.
Indonesia Energy plans to drill two new wells on the Kruh block in Indonesia before the end of 2025, following a 60% increase in proven reserves thanks to recent seismic campaigns.
CanAsia Energy Corp. confirms it has submitted a bid for oil and gas exploration and production in Thailand, reinforcing its international strategy within a consortium and targeting a block in the 25th onshore round.
The decrease in US commercial crude oil stocks exceeds expectations, driven by a sharp increase in exports and higher refinery activity, while domestic production shows a slight decline.
Pacific Petroleum and VCP Operating finalise the $9.65mn acquisition of oil assets in Wyoming, backed by a consortium of Japanese institutional investors and a technology innovation programme focused on real-world asset tokenisation.
Repsol's net profit fell to €603mn in the first half, impacted by oil market volatility and a massive power outage that disrupted its activities in Spain and Portugal.
A USD 1.1 billion refinery project in Ndola, signed with Fujian Xiang Xin Corporation, aims to meet Zambia's domestic demand and potentially support regional exports.
The Organization of the Petroleum Exporting Countries (OIES) confirmed its Brent price forecast at 69 USD/b in 2025 and 67 USD/b in 2026, while adjusting its 2025 surplus forecast to 280,000 barrels per day.