New BP boss 'planning major shake-up'

Oil giant BP's new chief executive is planning a radical overhaul of the group as part of a plan to shore up the group's flagging results, it was reported today.

Tony Hayward, who took over from Lord Browne in May, is set to announce a widespread restructure next month as BP suffers its worst financial performance for more than a decade, according to the Financial Times.

BP is reportedly preparing to unveil dire third quarter results when it reports on October 23 after being hit by a series of production problems.

But Mr Hayward is understood to have told staff at a meeting in Houston that the group's current problems were also partly down to its unwieldy structure.

His turnaround plan is expected to see the number of management layers trimmed from 11 to around seven, with divisions simplified into larger operations, said the report.

BP was not immediately available for comment and it is unclear what impact the reported restructure will have on jobs.

The group has been beset by refinery stoppages and lower output since the start of year.

Second-quarter results posted in July revealed a slight fall in profits to £3bn (€4.3bn), with production down by 5%. Profits for the six-month period were down 8% after low oil prices at the start of the year.

However, rocketing oil prices in recent months are not expected to have helped lift profits.

BP has also this year faced the sudden departure of former boss Lord Browne, who was forced to resign in May ahead of his planned retirement after lying to a court over his relationship with former partner Jeff Chevalier.

And earlier this year the group was heavily criticised over safety process failings at its US oil refineries following a report commissioned in the wake of the 2005 explosion at its Texas City operation, which killed 15 workers.