BP appoints first female boss in second CEO change in two years

BP is parting ways with the chief executive who led its early drive for increased profits from oil and gas, after investor pressure for more progress.

It was announced after markets had closed in the US last night that Meg O'Neill, the head of Australia's Woodside Energy since 2021, would take over from Murray Auchincloss. He has spent less than two years in the role.

Money latest: Why a Bank of England rate cut is expected today Mr Auchincloss was appointed following the sudden departure of renewables-focused Bernard Looney, who left under a cloud in 2023 amid a row with the board over the disclosure of relationships with BP colleagues. Ms O'Neill will not only become BP's first female boss when she takes over in April but also the first woman to lead one of the world's top five oil firms.

Her appointment marks the first major move by BP's new chairman Albert Manifold, who took over in October amid continued shareholder frustration over the progress of BP's turnaround. He is seeking a renewed push to improve returns as BP's shares and earnings continue to lag those of rivals - a trend that has lasted for years.

The company embarked on a major strategy shift earlier this year, slashing billions in planned renewable energy initiatives and shifting its focus back to traditional oil and gas. "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," Mr Manifold said in a statement announcing the appointment.

Under Ms O'Neill's leadership, Woodside merged with BHP Group's petroleum arm to create a top 10 global independent oil and gas producer valued at $40bn and doubled Woodside's oil and gas production. Mr Manifold added: "Her 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." Mr Auchincloss said of his own exit: "After more than three decades with BP, now is the right time to hand the reins to a new leader. "When Albert became chair, I expressed my openness to step down were an appropriate leader identified who could accelerate delivery of BP's strategy.

I am confident that bp is now well positioned for significant growth and I look forward to watching the company's future progress and success under Meg's leadership." Woodside shares fell by almost 3% on news of her looming departure - a clear sign of disappointment over her loss from the business. Those for BP, however, were trading only 0.2% up in early trading on the FTSE 100.

Rival energy shares were seeing better gains on the back of rising oil prices. Michael Alfaro, chief investment officer at Gallo Partners, suggested the appointment signalled that BP wanted to "pursue a firm-wide push in natural gas".

"O'Neill is definitely respected, has a good track record of execution," he said. BP said that executive vice president Carol Howle would serve as its interim chief executive until Ms O'Neill assumes her role while Mr Auchincloss would stay on in an advisory role for up to a year..