Some BP board members favor breakup of $129 billion oil giant

Board members of oil giant BP have expressed support for breaking up the company, according to sources familiar with the situation, amid ongoing pressure from investors to improve returns. However, no final decision has been made, and CEO Meg O’Neill is reportedly against the idea, one source revealed. The multinational firm, valued at $129 billion, could still choose against pursuing a breakup, as stated by these sources.

The board has not had an official discussion about the possibility, according to the sources. BP's public relations department emphatically denied the rumor, stating, "This is categorically false." The company, set to release earnings on Friday, has already considered reducing its retail involvement and has divested or contemplated divesting from various assets, including US pipelines, onshore wind farms, North Sea oil and gas production, and startups in its venture capital holdings, in an effort to create a "simpler, stronger, more valuable BP."

This potential restructuring could significantly alter the industry landscape and trigger a scramble for assets among other oil majors, possibly triggering a backlash from the UK government if BP relists in the US after the breakup, intensifying the exodus of FTSE companies from Britain. The reactions of major shareholders, particularly activist group Elliott, remain unclear; while Elliott has advocated for relistings or relocations at other firms in the past, it has not made such a push for BP, instead urging the company to enhance free cash flow, offload its renewables division, and improve capital returns.