BP has announced a significant leadership change as chief executive Murray Auchincloss will step down after a tenure of less than two years. The oil and gas giant has appointed Meg O’Neill, currently the CEO of Woodside Energy, as his successor. Auchincloss will vacate his position immediately, but he will remain with BP in an advisory capacity until the end of 2026.
O’Neill, who has extensive experience in the energy sector, is set to begin her role on April 1. Carol Howle, currently the head of trading at BP, will serve as interim chief executive during the transition. Auchincloss’s exit follows the appointment of Albert Manifold as BP’s chairman in July. Upon Manifold’s appointment, Auchincloss indicated he would consider stepping down if a suitable leader could be found to enhance the execution of BP’s strategy.
Under Auchincloss’s leadership, BP reverted to its traditional focus on oil and gas operations after a previous push towards becoming a green energy leader, a strategy that was heavily criticized and viewed as damaging by investors. His departure marks O’Neill as BP’s third chief executive in five years, a period characterized by significant turbulence and a failed attempt to pivot to renewable energies.
Despite the challenges, BP’s share price has shown resilience, increasing by 5.6% this year, even amid a 20% decline in oil prices, positioning BP as the second-best performing oil major after ExxonMobil. Following the change in leadership, Manifold has engaged with key investors and initiated a strategic review of the company, with initial findings set to be revealed in February.
Elliott Management, an influential activist investor, appears to support O’Neill’s appointment, viewing it as a crucial step in BP’s turnaround plan under Manifold. O’Neill’s selection as the first outsider to lead BP in its 116-year history represents a bold move towards streamlining operations and improving financial health, with expectations for substantial changes in the company’s structure over the coming years.
O’Neill has proven her capabilities as the chief executive of Woodside, where she has led strategic expansions, including a notable $1.2 billion acquisition of liquefied natural gas developer Tellurian and a major $17.5 billion investment in the Louisiana LNG terminal. However, during her tenure at Woodside, the company’s share price has remained stagnant, contrasting with BP’s performance during the same timeframe.
Raised in Boulder, Colorado, O’Neill began her career at ExxonMobil, where she held various positions globally, including in Norway and Indonesia. In 2018, she transitioned to Woodside, initially serving as chief operations officer before rising to the CEO position.
To fill O’Neill’s vacancy at Woodside, Liz Westcott has been named acting chief executive, effective December 18, signaling a new chapter for both energy companies as they navigate the complex landscape of the oil and gas industry.
