BP has revealed its new chief executive Meg O’Neill will lay out a fresh strategy vision for the oil giant in December as it said a boost from soaring crude and gas prices would help slash its debt pile.
The FTSE 100 firm has seen net debt already reduce to its 2027 target after reporting it was set to drop to between 13.5 billion US dollars (£10.2 billion) and 14.5 billion dollars (£11 billion) by the end of September from 22.3 billion dollars (£16.8 billion) at the end of June.
BP had previously aimed to slash its debt to between 14 billion and 18 billion dollars (£10.6 billion to £13.6 billion) by the end of next year.
It comes as the oil major has continued to benefit from sky-high energy prices caused by the Iran war, with its latest update on trading showing an ongoing strong performance in oil and gas trading and its oil processing business.
New chief executive Meg O’Neill will lay out a fresh strategy vision for the oil giant (Jaimi Joy/PA)
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Oil prices have been sent surging past 100 dollars a barrel because of the conflict, which has effectively closed the vital Strait of Hormuz shipping route.
BP said it would outline a new strategy plan on December 15 in New York, proving Ms O’Neill with her first opportunity to spell out detailed plans for the firm as it comes under pressure from activist hedge fund Elliott Management to bolster its balance sheet and reduce costs.
Ms O’Neill has previously said she is taking “urgent action” to create more value for shareholders and revealed plans to sell off its US biogas business, Archaea.
BP has undergone a significant leadership shake-up, which saw Ms O’Neill take over in April to replace previous chief executive Murray Auchincloss, as well as controversy over a chair appointment.
Former chairman Albert Manifold was removed from the post earlier this year after having been hired in October 2025, with his departure coming after BP found “serious concerns” related to his conduct, oversight and governance at the firm.
He was replaced as chairman by former Balfour Beatty boss Ian Tyler, who was formally appointed last month after having acted in the post on an interim basis since May.
In August, BP reported its strongest quarterly profits for four years after being boosted by volatile energy prices during the Middle East conflict.
Its preferred profit measure – underlying replacement cost profit – surged by around 78% to 5.7 billion dollars (£4.2 billion) for the second quarter of 2026, compared with the previous three months.
Overall, it made nearly nine billion dollars (£6.8 billion) in underlying profits in the first half of this year, compared with 3.7 billion dollars (£2.8 billion) a year earlier.
But BP flagged in its update that it expects to write down the value of its clean energy businesses by another three billion dollars to 4.5 billion dollars (£2.3 billion to £3.4 billion) in the third quarter amid the ongoing shift back towards oil and gas.
This will be stripped out from its underlying earnings figure in third-quarter results, which are due to be released on October 30.