Meg O’Neill named BP’s new CEO, first outsider and first woman to lead the oil major

BP named Meg O’Neill as its new chief executive, making history as the first outsider to run the British oil major in its 116-year history and the first woman to hold the top job. The appointment signals a potential shift back toward upstream oil and gas as BP seeks to revive a company that has struggled to translate its strategy into sustained shareholder returns.

O’Neill, 55, is an Australian who has spent most of her career at ExxonMobil before moving to Woodside Energy, where she rose to chief operating officer in 2018 and became chief executive in 2021. During her tenure at Woodside, she led the £20 billion acquisition of BHP’s petroleum assets and oversaw a rise in oil and gas output, helping Woodside become a top-ten global energy player and a major LNG supplier. Woodside also shelved or deprioritized several green projects that did not pass muster under her leadership.

At industry events last year, O’Neill argued for a pragmatic energy mix, saying that nations pursuing renewables would still need gas to back up intermittent sources. Speaking at the Melbourne Mining Club in February, she urged executives to prioritize measures that deliver the biggest impact for the cost. The following month, she told Bloomberg TV that while renewables ambitions are real, gas would play a supporting role in their expansion.

Analysts welcomed the external appointment as a signal that BP intends to refocus on the upstream and on capital allocation, areas where the company has underperformed peers in recent years. Maurizio Carulli, global energy analyst at Quilter Cheviot, said the choice points to a sharper emphasis on LNG and international growth, with O’Neill’s track record suggesting a more execution-driven approach. Paul Gooden, a natural resources portfolio manager at Ninety One, noted that an external chief executive could help remove internal resistance to change and accelerate decision-making, while cautioning that fixing BP’s balance sheet would not be easy.

Environmental groups, however, criticized the choice. Brynn O’Brien, executive director of the Australasian Centre for Corporate Responsibility, told Bloomberg that Woodside under O’Neill had pursued high-cost, marginal fossil-fuel projects without delivering strong shareholder returns, and questioned whether the same approach would serve BP well. The counterpoint in the market is that BP’s stock has rallied in recent years, unlike Woodside, which has seen more muted progress. In the past five years, Woodside’s shares have largely flatlined, while BP has risen by more than 50 percent, underscoring divergent trajectories in the sector.

Industry observers say the appointment reflects BP’s need to rebalance its strategy after a period of pivot toward renewables under former CEO Bernard Looney and former chairman Helge Lund. With O’Neill’s background at ExxonMobil and her emphasis on cost discipline and project execution, BP aims to push forward on megaprojects in gas, LNG, and international markets while managing leverage and returns for investors.

O’Neill’s leadership at Woodside included orchestrating major asset deals and expanding global gas exposure, a playbook some analysts expect BP to emulate as it pursues a steadier, cash-generative growth path. Yet critics warn that the energy transition remains a balancing act between maintaining reliable energy supplies and meeting climate and financial objectives. BP’s board has stressed the need for accountability and disciplined capital allocation as it seeks to improve performance and shareholder value.

As BP moves to implement its refreshed strategy, observers will be watching not only the pace of asset development and returns but also how the company communicates its long-term plan to the market, employees, and broader stakeholders. The new CEO inherits a portfolio that includes ongoing investments in gas projects and LNG facilities, as well as the regulatory and geopolitical challenges that come with large-scale energy development in a shifting global climate landscape.