BP PLC (BP.US) has announced a major leadership change, appointing Meg O'Neill, the former head of Australian energy giant Woodside Energy, as its new CEO. She replaces Murray Auchincloss, who served for just two years. O'Neill becomes BP's first externally appointed CEO in its over 100-year history and the first female leader among the world's top five oil majors.
BP stated that Auchincloss will step down, with O'Neill assuming the role in April next year. Carol Howle will serve as interim CEO until then. Woodside confirmed O'Neill's immediate departure and appointed Liz Westcott as acting CEO, with plans to announce a permanent successor by Q1 2026. Following the news, Woodside's Sydney-listed shares fell 2.7% to their lowest level since October.
This sudden leadership transition comes as BP struggles with multiple challenges, lagging behind competitors like ExxonMobil and Shell in its renewable energy transition. Under pressure from activist investor Elliott Investment Management, BP has quietly adjusted its strategy this year—cutting billions in renewable investments to refocus on traditional oil and gas. However, these efforts have failed to impress investors.
This marks BP's second CEO change in just over two years. Auchincloss took over in January 2024 after Bernard Looney resigned abruptly for failing to disclose past relationships with colleagues.
O'Neill, who led Woodside since 2021 after a 23-year career at ExxonMobil (XOM.US), brings deep industry expertise. At Woodside, she focused on core gas assets, secured approval to operate Australia's largest LNG export facility until 2070, and completed a multibillion-dollar acquisition of BHP's petroleum division. A vocal advocate for gas as a transition fuel, she will now steer BP toward profitability and renewed oil-gas focus—signaling a strategic retreat from renewables.
Bernstein analyst Neil Beveridge noted, "Her hands-on engineering and operational background suggests BP will adopt a back-to-basics approach, clearly prioritizing oil, gas, and LNG."
Despite Auchincloss' February strategy reset—targeting debt reduction through asset sales—BP has announced few disposals, with tepid investor response. The company faced takeover speculation for months, including reported interest from Shell (SHEL.US), which denied merger talks in June.
BP's pivot back to hydrocarbons follows July's appointment of Albert Manifold as chairman under Elliott's pressure. Auchincloss had previously expressed willingness to step down if a leader could accelerate strategy execution. Piper Sandler analysts, including Ryan Todd, stated: "While surprising in timing, we expect this change to ultimately benefit BP's shares. An outsider's perspective will help reassess strategy, portfolio, and culture amid calls for more aggressive action."
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