Top investment bankers are looking to engineer a merger between BP and Shell to create one national champion, The Mail on Sunday understands.
Analysts say that BP may announce plans to offload assets including its US shale oil and gas division and its lubricants business Castrol, which it bought for £4 billion in 2000.
BP's problems mounted last week when it posted a slump in profits, while aggressive New York investor Elliott Investment Management confirmed it had built up a near 5 per cent stake.
Under pressure: BP's chief executive Murray Auchincloss is expected to lay out a credible strategy that can put the company back on track.
The Canadian, who was BP's finance chief until his promotion, promised investors he knew 'exactly what we need to do to grow the value of BP'.
