BP has appointed Meg O’Neill as its new chief executive, replacing Murray Auchincloss who steps down after less than two years, making O’Neill the first woman to lead a major global oil firm.
In an unexpected move, BP’s board announced that Murray Auchincloss will step down immediately as chief executive, with Meg O’Neill set to take over the role. Auchincloss, who succeeded Bernard Looney in September 2024, will remain in an advisory capacity until December 2026. The leadership change comes as BP aims to address concerns over its financial performance and strategic direction, with shares and earnings trailing behind rivals like Shell and ExxonMobil.
The appointment of O’Neill, who currently leads Woodside Energy, marks a significant shift for BP, as it is the first time the company has hired an outsider for the top job. O’Neill brings a wealth of experience from her 23-year tenure at ExxonMobil and her successful leadership at Woodside, where she engineered the merger with BHP’s petroleum business, creating a top-tier global energy producer. Her selection is seen as a clear signal that BP is seeking fresh perspectives to reinvigorate its operations.
This leadership shake-up follows closely on the heels of BP’s appointment of a new chairman, Albert Manifold, just three months ago. Manifold replaced Helge Lund, who oversaw the company’s ambitious but troubled green energy agenda under Looney. The rapid turnover at the top highlights the persistent instability within BP’s executive ranks, driven by investor dissatisfaction and the challenges of navigating the energy transition.
Under Auchincloss, BP had begun to pivot away from renewables, slashing billions in planned investments and refocusing on its core oil and gas assets. However, this strategy shift was deemed insufficient by some shareholders, particularly after activist hedge fund Elliott Investment Management acquired a stake in the company. Elliott has reportedly welcomed O’Neill’s appointment, viewing it as a step towards more aggressive value creation.
Analysts have noted that O’Neill’s arrival could help BP fend off takeover speculation in an industry ripe for consolidation. Derren Nathan of Hargreaves Lansdown pointed out that BP is often seen as “prey rather than the hunter” in merger talks, and O’Neill may need to bolster the company’s profitability to maintain its independence. Market reaction was subdued, with BP shares edging up slightly in early trading before stabilizing.
O’Neill has stated that she looks forward to helping BP “do our part to meet the world’s energy needs” and prioritizes re-establishing market leadership, enhancing safety, and driving innovation. She is expected to continue the strategic emphasis on oil and gas, aligning with broader industry trends where firms are scaling back green energy commitments in favor of fossil fuels, partly influenced by political signals like those from the US.
Looking forward, Carol Howle, BP’s executive vice president, will serve as interim CEO until O’Neill assumes the role on April 1, 2025. The transition period will allow O’Neill to prepare for the challenges ahead, including navigating geopolitical tensions, fluctuating oil prices, and evolving environmental regulations. BP’s board expressed confidence that under O’Neill’s leadership, the company can unlock its potential and deliver greater value to shareholders.
