In a historic move for the global energy sector, BP has announced the appointment of Meg O'Neill as its new chief executive, marking the first time a woman will lead one of the world's five largest oil companies.
The FTSE 100 giant confirmed the surprise departure of current boss Murray Auchincloss, who is stepping down after less than two years in the role. Ms O'Neill, currently the chief executive of Woodside Energy, is scheduled to assume her new position on 1 April.
The Transition and Interim Leadership
To ensure a smooth handover, Mr Auchincloss will remain with BP in an advisory capacity until December next year. In the interim period before Ms O'Neill's arrival, Carol Howle, BP's executive vice president of supply, trading, and shipping, will serve as acting chief executive.
The abrupt departure of Mr Auchincloss follows the recent appointment of Albert Manifold as BP's new chairman in July. Mr Auchincloss himself took the top job in September 2023 after former CEO Bernard Looney resigned over failures to disclose past relationships with colleagues.
A Landmark Appointment for BP and the Industry
Ms O'Neill's appointment is groundbreaking on multiple fronts. She becomes not only the first woman to run BP but also the first outsider ever to take the post. Her career trajectory is deeply rooted in the oil and gas industry.
The American executive has led Australian firm Woodside Energy since April 2021, having risen through senior roles since joining in 2018. Prior to that, she spent 23 years at ExxonMobil in various executive positions, beginning her career in Houston, Texas. At Woodside, she oversaw the major takeover of BHP Petroleum International in 2022.
Strategic Imperatives and Shareholder Pressure
The leadership change comes at a critical time for BP. Shareholders have grown increasingly frustrated as the company's shares and earnings have lagged behind its rivals. New chairman Albert Manifold stated that Ms O'Neill's appointment would help accelerate plans to make BP a "simpler, leaner, and more profitable company."
"Her proven track record of driving transformation, growth, and disciplined capital allocation makes her the right leader for BP," Mr Manifold said. He emphasised that increased rigour was needed to maximise value for shareholders.
Analysts have welcomed the change. Ashley Kelty of Panmure Liberum noted that Mr Auchincloss was associated with a pivot towards low-margin renewables that had seen BP underperform. "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," he said.
In her statement, Ms O'Neill highlighted BP's "extraordinary portfolio of assets" and its potential to re-establish market leadership. Following the announcement, BP's shares remained largely flat after a brief initial rise.
