BP restructures marketing in bid to improve profitability
International energy giant BP has outlined plans to boost efficiency and reduce costs with the aim of improving its annual underlying pre-tax profitability by more than $3bn over the next two to three years. The majority of savings will come from refining and marketing – the most troubled of BP’s divisions in the past five years.
Group chief executive, Tony Hayward, who cut layers of management after taking over the helm in 2007, said the company had made great progress in reducing costs but that there were more opportunities to improve operating and cost-efficiency right across the company, from marketing efficiency savings to project management and procurement.
The oil and gas group has committed to significant organisational restructuring in order to centralise project management, improve cost efficiency and inject greater consistency into operations. In particular, a ‘Centralised Developments Organisation’ is being established. Based in Houston, this new unit is designed to run large projects worldwide, with the aim of sharing and managing skills and experience more effectively.
BP’s head of refining and marketing Iain Conn explained that cost-efficiency will be achieved through “better planning and execution.” BP recently eclipsed Royal Dutch Shell as Europe’s largest oil company.
Tags: Global Brand
