BP names Meg O’Neill as first female CEO, signals pivot back to oil and gas

BP named Meg O’Neill, the former Woodside Energy chief executive, as its new chief executive, making her the first woman to lead the 116-year-old group and the first externally appointed boss in its history. She is set to take over in April, after Murray Auchincloss abruptly resigned yesterday amid pressure from activist investors.

O’Neill, a veteran of ExxonMobil who has led Woodside in Australia, oversaw a doubling of oil and gas output and the £20 billion acquisition of BHP’s petroleum assets. The company said she will bring a focus on the company’s core oil and gas business. She lives in Australia with her wife, Vicky Hayes, and their teenage daughter.

BP's board said Auchincloss is stepping down after more than three decades with BP. The shake-up follows pressure from Elliott Management to improve performance, slash costs, boost shareholder returns and reduce debt. The leadership overhaul is also tied to a broader turnover at BP after Bernard Looney’s resignation over a relationship with a colleague and a separate year-end departure of chairman Helge Lund. Albert Manifold, the former miner-turned-BP chairman, has pushed for a leaner balance sheet and a sharper strategic focus on oil and gas.

Analysts who follow the stock welcomed the decision to appoint an external chief executive, arguing it could help remove internal resistance to change. 'We would imagine investors will be thrilled to see the end of the woke management ethos that has prevailed, and that BP will return to focusing on its core oil and gas business and could see a return to growth,' said Ashley Kelty, oil and gas research analyst at Panmure Liberum.

Maurizio Carulli, director at Quilter Cheviot, said the appointment signals a clear pivot back to oil and gas. 'The appointment signals a clear pivot back to oil and gas,' he said.

Criticism came from environmental groups who argued O’Neill’s leadership at Woodside invites questions, given Woodside’s own track record and the broader debate over the pace of energy transition. 'O’Neill is a curious choice in that context,' Brynn O’Brien of the Australasian Centre for Corporate Responsibility said. 'Woodside underperformed relative to BP on several metrics, and BP’s own transition challenges remain.'

Carol Howle, executive vice-president of supply, trading and shipping at BP, will serve as interim chief.

The leadership changes come as BP, which has long sought to reposition itself after a costly foray into renewables, looks to reduce debt and improve returns for shareholders. The company has emphasized the need to maintain gas and oil output as the global energy market evolves, and O’Neill’s prior experience with large acquisitions and growth at Woodside is seen by some observers as a signal of BP’s intent to emphasize production and cash generation in the near term.

The broader corporate governance shifts at BP reflect a larger set of pressures facing energy majors that have faced investor calls for more disciplined capital allocation and clearer strategy around emissions reductions. The company’s path forward remains under close scrutiny as it seeks to balance energy security demands with climate commitments, with the new leadership likely to face questions about the pace and scope of its gas, LNG, and oil investments.