BP appoints Woodside’s Meg O’Neill as CEO after Auchincloss’ abrupt exit

By Sheila Dang and Stephanie Kelly

Dec 17 (Reuters) – Oil and gas major BP has appointed Meg O’Neill, the head of Australia’s Woodside Energy, as its next CEO to lead its effort to boost profits and refocus on oil and gas after a detour into renewables.

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 Chair 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”.

‘HIGH-PROFILE HIRE’

O’Neill, a 55-year-old American from Boulder, Colorado, has headed Woodside since 2021 and previously spent 23 years at Exxon Mobil. 

“This is clearly a high-profile hire, and probably some of the change that BP shareholders have been looking for,” said Dan Pickering, chief investment officer at Pickering Energy Partners.

Under 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 $40 billion and doubled Woodside’s oil and gas production.

The acquisition took the company to the U.S., where it has expanded into onshore Louisiana liquefied natural gas. 

“What this to me signals is we (BP) don’t want to sell, we want to pursue a firm-wide push in natural gas,” said Michael Alfaro, chief investment officer at Gallo Partners. “O’Neill is definitely respected, has a good track record of execution.”

Woodside shares fell as much as 2.9% after her departure was announced.

BP’s executive vice president, Carol Howle, will serve as interim CEO until O’Neill assumes the position. Auchincloss, 55, will step down as CEO on Thursday and serve in an advisory role until December 2026 to ensure a smooth transition.

BP said O’Neill’s appointment was part of long-term succession planning, but it had not publicly announced a search process before it flagged his departure late on Wednesday evening.

Auchincloss became CEO in 2024, taking over from Bernard Looney, who was fired for lying about personal relationships with colleagues.

After an ill-fated foray into renewables under Looney, BP has vowed to increase profitability and cut costs while re-routing spending to focus on oil and gas.

BP in August launched a review of how best to develop and monetise its oil and gas production assets. 

During BP’s third-quarter earnings call last month, the company did not give an update on the closely-watched sale process for its Castrol lubricants unit, the centrepiece of its $20 billion asset-sale drive to slash its debt pile.

 Woodside said in a separate statement that O’Neill was leaving the Australian company immediately and it had appointed executive Liz Westcott as acting CEO, while intending to announce a permanent appointment in the first quarter of 2026.

(Reporting by Devika Nair in Bengaluru, Sheila Dang and Arathy Somasekhar in Houston, Helen Clark in Perth and Stephanie Kelly in Chicago; Editing by Simon Webb, Peter Henderson and Jamie Freed)