BP chief outlines focus on cost cuts and financial discipline

Investing.com -- BP's chief executive Meg O'Neill said Thursday the British energy company must prioritize financial discipline through portfolio simplification, cost reductions and tighter capital spending as it refocuses on core oil and gas investments.

O'Neill said BP needs greater selectivity in investment decisions while working through its strategy reset following an unsuccessful expansion into renewables.

"We need to be deliberate about where we invest and where we don't," O'Neill said in a LinkedIn post marking her 100th day in the role. "We need to make fewer, better choices and hold ourselves to account."

She outlined three priorities to make BP simpler and more valuable: operational excellence, improved accountability and strong discipline in costs, cash and capital.

BP's reorganization into two business segments — upstream and downstream — from three took effect at the start of this month.

O'Neill said Thursday the move will help reduce complexity at the energy company, with trading connecting the upstream and downstream businesses.

Her tenure at BP began as the U.S.-Israeli war on Iran disrupted the global energy market with reduced shipping traffic through the Strait of Hormuz.

O'Neill said BP's trading and shipping teams worked with its refining unit to deliver an extra 50 million liters of diesel from Cherry Point refinery in Washington state to Sydney to help increase supplies in Australia. BP's Castellón refinery in Spain increased jet fuel output 30% ahead of Europe's summer travel season in response to the crisis.

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