BP Plc appointed Meg O\u2019Neill as its new chief executive officer, making her Big Oil\u2019s first female leader, as the company struggles to revive its fortunes after a botched pivot toward renewable energy.<\/p>\n
The management shakeup comes as BP lags its rivals due to a combination of corporate disasters, war, lackluster returns from its renewables efforts and some bad luck. That has led to pressure from activist investor Elliott Investment Management, and a turnaround effort focused on oil and gas.<\/p>\n
O\u2019Neill, an American, stepped down as head of Australia-based Woodside Energy Group after four years in the job and had previously spent more than two decades at Exxon Mobil Corp. Carol Howle will serve as BP\u2019s interim CEO, filling in for outgoing CEO Murray Auchincloss, until O\u2019Neill starts in April, the company said in a statement.<\/p>\n
\u201cShe\u2019s got a very hands-on track record in engineering and operations, which suggests a back-to-basics approach for BP,\u201d said Neil Beveridge, managing director of research at Bernstein. \u201cWith Meg coming on board, the direction will clearly be oil and gas and LNG.\u201d<\/p>\n
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Elliott built up a stake of just over 5% in BP and has engaged in a campaign to return the company to its core oil and gas focus \u2014 demanding changes including substantial cost cuts, asset sales and an exit from renewables.<\/p>\n
While Auchincloss reset the company\u2019s strategy in February \u2014 announcing portfolio divestments to reduce debt and improve the balance sheet \u2014 the London-listed firm has so far announced only minor asset sales.<\/p>\n
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The pivot marked the end of a switch away from fossil fuels by oil supermajors. BP then named Albert Manifold as chairman in July in response to the pressure from Elliott, following which Auchincloss said he was open to step down \u201cwere an appropriate leader identified who could accelerate delivery of BP\u2019s strategy.\u201d<\/p>\n
Woodside under O\u2019Neill focused on growing its core natural gas assets, brokering a takeover of a proposed US LNG plant in Louisiana and winning approval to keep Australia\u2019s oldest and biggest gas export facility operating through 2070.<\/p>\n
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Since becoming CEO of Woodside in 2021, O\u2019Neill also helped complete the multibillion-dollar acquisition of BHP Group Ltd.\u2019s petroleum unit and expand its liquefied natural gas business outside of Australia. She has been a big proponent of using gas as a transition fuel to reduce global coal demand and cut emissions.<\/p>\n
\u201cAlthough the announcement was surprising in terms of timing and immediacy, we expect that the change will ultimately be positive\u201d for BP\u2019s stock price, Piper Sandler analysts including Ryan Todd said in a note. \u201cThere has been pressure for a more aggressive, \u2018everything is on the table\u2019 approach, and a fresh look at everything from strategy to portfolio to culture, that would benefit from an outsider.\u201d<\/p>\n
Woodside shares fell as much as 2.8% in Sydney on Thursday, to the lowest level since October. Liz Westcott will take over as acting CEO of Woodside, the Australian producer said in a separate statement.<\/p>\n
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