BP's new chief executive is preparing to restructure the British oil company into two primary business units as part of efforts to simplify the corporate structure, according to reports from financial news outlets.

The reorganization would divide BP's operations into upstream and downstream units, streamlining what has been a more complex organizational framework. The upstream division would focus on oil and gas exploration and production activities, while the downstream unit would handle refining, marketing, and retail operations.

The restructuring comes as BP and other energy companies navigate a challenging operating environment. European oil refining margins have recently turned negative, bucking the global trend and creating additional pressure on companies' downstream operations.

The move represents one of the first major strategic decisions by BP's new leadership as the company seeks to optimize its operational efficiency. Energy companies have been reassessing their organizational structures amid volatile market conditions and evolving energy transition requirements.

The simplified two-unit structure is expected to provide clearer operational focus and potentially improve decision-making processes within the multinational energy corporation. BP has not yet announced specific timelines for implementing the organizational changes.