BP has hired Meg O’Neill as its new chief executive in a surprise change at the top marking the first time a woman has been appointed at the helm of one of the world’s top five oil firms.
The FTSE 100 oil giant said current boss Murray Auchincloss had stepped down after less than two years in the role and will be replaced by Woodside Energy chief executive Ms O’Neill on April 1.
Mr Auchincloss will remain with the group in an advisory role until December next year to help with a smooth handover, while Carol Howle, current executive vice president of supply, trading and shipping at BP, will act as chief executive on an interim basis until Ms O’Neill joins.
The abrupt departure of Mr Auchincloss follows the appointment of Albert Manifold as BP’s new chairman in July.
Mr Auchincloss took over at the top when former boss Bernard Looney quit in September 2023 after failing to disclose his past relationships with company colleagues.
“When Albert became chair, I expressed my openness to step down were an appropriate leader identified who could accelerate delivery of BP’s strategy,” Mr Auchincloss said.
Ms O’Neill’s appointment makes history as she becomes the first woman to run BP and the first ever outsider to take on the post, and also the first woman to head up a top five global oil company.
The American oil executive has headed up Australian oil and gas firm Woodside Energy since April 2021, having been promoted after taking on a number of senior roles at the firm since joining in 2018.
Before that, she worked at ExxonMobil for 23 years in a raft of executive roles, having started her career with the firm in Houston, Texas.
At Woodside, she oversaw the takeover of BHP Petroleum International in 2022 and has grown the firm into the largest energy company listed on the Australian Securities Exchange, according to BP.
Mr Manifold said her appointment will help ramp up plans to become “more profitable”.
Shareholders in the firm have become increasingly frustrated over the pace of its turnaround as its shares and earnings have lagged behind rivals.
Mr Manifold said: “Following a comprehensive succession planning process, the board believes this transition creates an opportunity to accelerate our strategic vision to become a simpler, leaner, and more profitable company.
“Progress has been made in recent years, but increased rigor and diligence are required to make the necessary transformative changes to maximise value for our shareholders.”
He added that Ms O’Neill’s “proven track record of driving transformation, growth, and disciplined capital allocation makes her the right leader for BP”.
“Her relentless focus on business improvement and financial discipline gives us high confidence in her ability to shape this great company for its next phase of growth and pursue significant strategic and financial opportunities,” he added.
Ms O’Neill said: “With an extraordinary portfolio of assets, BP has significant potential to re-establish market leadership and grow shareholder value.”
BP shares remained largely flat after initially edging higher after market opening on Thursday.
Analyst Ashley Kelty, at Panmure Liberum, said: “This is a really positive update, as Murray Auchincloss was one of the chief architects of the disastrous pivot towards low margin renewables that BP undertook under disgraced former chief executive Bernard Looney.
“His uninspired leadership has seen BP underperform peers for a number of years.
“Ms O’Neill does have a job on her hands as the balance sheet is in poor shape and the bloated cost base needs to be addressed.”
