December 10, 2014 by Bill Johnson
Oil giant BP has said it expects to incur restructuring charges of about $1bn over the coming year.
The charges will be taken as part of BP efforts to simplify its upstream and downstream activities and corporate functions.
BP said it would also review its capital expenditure plans for 2015 in light of the oil price outlook.
The firm said it aimed to make its business “stronger and more competitive”.
BP announced the charges as it laid out its long-term plans for its upstream oil and gas business.
BP Group chief executive Bob Dudley said: “We have already been working very hard over these past 18 months or so to right-size our organisation as a result of completing more than $43bn of divestments.
“We are clearly a more focused business now and, without diverting our attention from safety and reliability, our goal is to make BP even stronger and more competitive.
“The simplification work we have already done is serving us well as we face the tougher external environment.
“We continue to seek opportunities to eliminate duplication and stop unnecessary activity that is not fully aligned with the group’s strategy.”