O’Neill, who will take over in April following the abrupt departure of Murray Auchincloss, will become BP’s first CEO appointed from outside the company in its more than century-long history and the first woman to head any of the world’s top five oil majors.
The second CEO change in just over two years is a sign that the British oil major is seeking a renewed push to improve its business after its shares and earnings for years lagged behind competitors like Exxon Mobil and Shell. 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. BP has pledged to divest $20 billion in assets by 2027 and reduce debt and costs.
“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,” new BP Chairperson, Albert Manifold said in a statement. When Manifold took up his post in October, he emphasised the need for a deeper reshaping of BP’s portfolio to increase profitability.
Manifold faced pressure from activist investor Elliott Investment Management, one of BP’s largest shareholders, which called for him to urgently address the company’s shortcomings and put in place “decisive and effective leadership”. BP has vowed to increase profitability.
–Reuters–
