popular articles

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.

Please 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.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Bharat Petroleum Corporation Limited (BPCL) has signed a major agreement with Petróleo Brasileiro S.A. (Petrobras) for the import of Brazilian crude oil, strengthening India's energy supply diversification and reinforcing trade relations between the two nations.
Petro-Victory Energy Corp. and Azevedo & Travassos Petroleo announce the joint acquisition of 13 onshore oil fields in Brazil. The USD 15 million deal aims to increase production and strengthen their presence in the Potiguar Basin.
Petro-Victory Energy Corp. and Azevedo & Travassos Petroleo announce the joint acquisition of 13 onshore oil fields in Brazil. The USD 15 million deal aims to increase production and strengthen their presence in the Potiguar Basin.
ONGC and bp have signed a memorandum of understanding to jointly explore opportunities in oil exploration, production, and trading. This three-year agreement aims to optimize mature fields and strengthen their presence in offshore bidding rounds in India.
ONGC and bp have signed a memorandum of understanding to jointly explore opportunities in oil exploration, production, and trading. This three-year agreement aims to optimize mature fields and strengthen their presence in offshore bidding rounds in India.
Norwegian group Equinor plans to increase its oil and gas production by more than 10% by 2027. Facing economic constraints, the company is halving its investments in renewable energy and strengthening its presence in Africa, particularly in Tanzania.
Norwegian group Equinor plans to increase its oil and gas production by more than 10% by 2027. Facing economic constraints, the company is halving its investments in renewable energy and strengthening its presence in Africa, particularly in Tanzania.
Facing a decline in oil production, Equatorial Guinea is preparing to launch a new cycle of oil and gas license allocations. This initiative aims to attract investors to boost exploration and stabilize the hydrocarbon industry in a challenging economic context.
Dangote Refinery, Africa’s largest, could reach its full potential of 650,000 barrels per day within 30 days. Currently operating at 85% capacity, it faces crude oil supply challenges despite pressure from Nigeria’s regulatory authorities.
Dangote Refinery, Africa’s largest, could reach its full potential of 650,000 barrels per day within 30 days. Currently operating at 85% capacity, it faces crude oil supply challenges despite pressure from Nigeria’s regulatory authorities.
The government of Guyana is questioning the validity of the Corentyne Block exploration license held by CGX Energy and Frontera Energy. Facing this situation, the consortium is assessing its legal options to defend its interests in this strategic offshore zone.
The government of Guyana is questioning the validity of the Corentyne Block exploration license held by CGX Energy and Frontera Energy. Facing this situation, the consortium is assessing its legal options to defend its interests in this strategic offshore zone.
The new US oil tariffs of 10% and 25% on Canadian and Mexican imports could lead to a redirection of North American crude flows to other markets. Wood Mackenzie analyzes the implications for the three affected countries.
The new US oil tariffs of 10% and 25% on Canadian and Mexican imports could lead to a redirection of North American crude flows to other markets. Wood Mackenzie analyzes the implications for the three affected countries.
Russia will continue supplying oil to India under advantageous conditions despite U.S. sanctions affecting its energy sector. New Delhi relies on stable Russian deliveries to meet growing demand, consolidating a strategic partnership in a tense global market.
Petrobras aims to exploit a 10-billion-barrel deposit off the Amazon coast. While Ibama assesses the environmental impact, the Brazilian government supports the project, which could strengthen the country’s position in the global oil market.
Petrobras aims to exploit a 10-billion-barrel deposit off the Amazon coast. While Ibama assesses the environmental impact, the Brazilian government supports the project, which could strengthen the country’s position in the global oil market.
A fire broke out aboard the Russian oil tanker *Koala* after an explosion in the engine room, forcing the crew to evacuate the vessel. The accident, which occurred in the port of Ust-Luga, caused no casualties or oil spills, according to authorities.
A fire broke out aboard the Russian oil tanker *Koala* after an explosion in the engine room, forcing the crew to evacuate the vessel. The accident, which occurred in the port of Ust-Luga, caused no casualties or oil spills, according to authorities.
CNOOC Limited has announced the start of production for Phase I of the Bozhong 26-6 oilfield development project, located in Bohai Bay. With an expected production capacity of 22,300 barrels of oil equivalent per day in 2025, this strategic project strengthens China's energy supply.
CNOOC Limited has announced the start of production for Phase I of the Bozhong 26-6 oilfield development project, located in Bohai Bay. With an expected production capacity of 22,300 barrels of oil equivalent per day in 2025, this strategic project strengthens China's energy supply.
The United States enacts new financial sanctions against an international network moving Iranian oil to China, with generated revenues funding military activities, according to Washington, sparking debate over the economic impact of such measures.
The proposed eight new oil wells near Arcachon have sparked internal government disagreements. Agnès Pannier-Runacher, Minister of Ecological Transition, has voiced her opposition to this initiative, contradicting the previous statements of Christophe Béchu.
The proposed eight new oil wells near Arcachon have sparked internal government disagreements. Agnès Pannier-Runacher, Minister of Ecological Transition, has voiced her opposition to this initiative, contradicting the previous statements of Christophe Béchu.
Africa Oil Corp. and its investee Impact Oil & Gas are accelerating their offshore operations in Namibia. Following the drilling of Tamboti-1X, work continues with Marula-1X, targeting Albian reservoirs. The Venus project, scheduled for 2026, could mark a key milestone.
Africa Oil Corp. and its investee Impact Oil & Gas are accelerating their offshore operations in Namibia. Following the drilling of Tamboti-1X, work continues with Marula-1X, targeting Albian reservoirs. The Venus project, scheduled for 2026, could mark a key milestone.
Ecopetrol has finalized the purchase of Repsol's remaining 45% stake in Block CPO-09 for $452 million. This strategic acquisition strengthens the Colombian company's presence in the Llanos Orientales basin and consolidates its role in hydrocarbon exploration and production.
Ecopetrol has finalized the purchase of Repsol's remaining 45% stake in Block CPO-09 for $452 million. This strategic acquisition strengthens the Colombian company's presence in the Llanos Orientales basin and consolidates its role in hydrocarbon exploration and production.
U.S. crude oil reserves saw an unexpected increase of 8.7 million barrels last week, far exceeding market forecasts. This rise is attributed to low refinery activity and higher imports, amid a context of downward pressure on prices.
OMV, the Austrian hydrocarbons group, has announced a slight decline in its net profit for the year 2024. The company's financial results reflect a decrease in its margins in an economic environment marked by energy price volatility.
OMV, the Austrian hydrocarbons group, has announced a slight decline in its net profit for the year 2024. The company's financial results reflect a decrease in its margins in an economic environment marked by energy price volatility.
OPEC+ continues to increase its oil production, responding to global demand while ignoring Donald Trump's calls to slow down the rise. This decision to maintain the production increase schedule has direct implications for global markets.
OPEC+ continues to increase its oil production, responding to global demand while ignoring Donald Trump's calls to slow down the rise. This decision to maintain the production increase schedule has direct implications for global markets.
After two record years of mergers and acquisitions in the oil and gas sector, upstream M&A activity is expected to slow down in 2025. Despite a deal pipeline valued at $150 billion, geopolitical tensions and restrictive fiscal policies are limiting new opportunities.
After two record years of mergers and acquisitions in the oil and gas sector, upstream M&A activity is expected to slow down in 2025. Despite a deal pipeline valued at $150 billion, geopolitical tensions and restrictive fiscal policies are limiting new opportunities.
The visit of a U.S. envoy to Nicolás Maduro paves the way for potential discussions on the future of oil sanctions. Between geopolitical stakes and commercial interests, the United States is looking to redefine its approach toward Venezuela.
Saudi Aramco plans to raise its official selling prices (OSP) in March, driven by China’s economic recovery and the redirection of Russian oil flows. Asian refiners are adapting to these new dynamics, influencing premiums on Middle Eastern crude.
Saudi Aramco plans to raise its official selling prices (OSP) in March, driven by China’s economic recovery and the redirection of Russian oil flows. Asian refiners are adapting to these new dynamics, influencing premiums on Middle Eastern crude.
Ukraine has claimed drone strikes on Russian energy infrastructure, affecting strategic facilities of Gazprom and other players. These attacks raise questions about supply and market stability in the region.
Ukraine has claimed drone strikes on Russian energy infrastructure, affecting strategic facilities of Gazprom and other players. These attacks raise questions about supply and market stability in the region.
Ecopetrol Permian LLC and Occidental Petroleum Corp (Oxy) extend their agreement on the development of the Permian Basin, planning to drill 34 additional wells between April 2025 and June 2026. This extension aligns with the investment and expansion strategy of both companies.
Ecopetrol Permian LLC and Occidental Petroleum Corp (Oxy) extend their agreement on the development of the Permian Basin, planning to drill 34 additional wells between April 2025 and June 2026. This extension aligns with the investment and expansion strategy of both companies.

Advertising