BP BP Plc

By Christian Moess Laursen

BP appointed Murray Auchincloss as chief executive, turning to a company veteran to continue the group's pivot from oil company to energy giant following Bernard Looney's abrupt exit last year.

The British oil-and-gas major announced the appointment on Wednesday after what it called a robust and competitive search process that looked at candidates both within and outside of BP.

BP Chairman Helge Lund said the board was in complete agreement that Murray is the right pick to lead the group. "Many already know Murray well, and few know BP better than he does."

The appointment ends a period of uncertainty for the company. Auchincloss took over as interim CEO on Sept. 12 when Looney's 32-year career at BP came to an end after the company said he had failed to disclose details about past personal relationships with colleagues. Looney lost up to 32.4 million pounds ($40.9 million) in compensation as a result, BP said.

"Our strategy--from international oil company to integrated energy company, or IOC to IEC--does not change. I'm convinced about the significant value we can create," Auchincloss said Wednesday.

During Looney's almost four years at the helm, the fossil-fuel giant set out a strategy to pivot away from oil and gas and position itself at the front of the global transition to renewable energy.

However, BP has struggled to match U.S. peers that have been rewarded for sticking with traditional fossil-fuel businesses. That had spurred speculation on a possible change in strategy following Looney's departure, which Auchincloss addressed in a webcast to BP staff a day after the leadership change.

Since Looney's exit, shares in the London-based company have underperformed, dropping 14% amid investor uncertainty over BP's future strategy.

Auchincloss is a longtime BP executive. The Canadian joined Amoco in 1992, and BP when the two companies merged in 1998. He went on to serve as chief of staff to the CEO from 2010 to 2013, and had been finance chief since July 2020 before becoming interim CEO after Looney's departure. His remuneration will include an annual salary of GBP1.45 million.

"Now, more than ever, our focus must remain on delivery --operating safely and efficiently, executing with discipline, and always focusing on returns," Auchincloss said. "This is how we will deliver real benefits for our customers and other stakeholders and continue to grow long-term value for BP's shareholders."

Write to Christian Moess Laursen at christian.moess@wsj.com

(END) Dow Jones Newswires

January 17, 2024 04:30 ET (09:30 GMT)

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