Oil and gas major BP announced the appointment of Murray Auchincloss as its permanent CEO on Wednesday, marking the end of a leadership transition period that followed the resignation of his predecessor, Bernard Looney. Auchincloss had been serving as the interim CEO since Looney's abrupt departure four months ago. The decision was confirmed in a statement by BP, highlighting Auchincloss's long-standing history with the company and his suitability for the role.
Bernard Looney stepped down as CEO of BP less than four years into his tenure, citing undisclosed personal relationships with colleagues prior to taking the helm. His sudden departure prompted the company to appoint Murray Auchincloss, who was then the Chief Financial Officer, as the interim CEO to navigate through the transition period.
Murray Auchincloss has a strong connection to BP, having joined the company in 1992 and continued his journey through the 1998 merger with Amoco Canada. Notably, Auchincloss is currently in a relationship with a BP colleague, which was previously disclosed, in contrast to his predecessor's undisclosed relationships.
BP revealed that a thorough search process was carried out to select the new company CEO, a process that extended over the last several months. Helge Lund, the Chair of BP's board, expressed full support for Auchincloss, stating, "The board is in complete agreement that Murray was the outstanding candidate and is the right leader for BP."
In his response, Auchincloss expressed his enthusiasm for the role, saying, "It's an honor to lead BP — this is a great company with great people. 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." His statement reaffirms BP's commitment to the strategy initiated by Looney, which focuses on transitioning from fossil fuel production to renewable energy sources.
The decision to appoint Auchincloss was seen as a move that brings stability and continuity to BP. Questions had arisen regarding the company's future direction, with speculation that an external hire might signal a shift in strategy. However, BP executives, including Auchincloss, had consistently maintained their commitment to the existing direction.
Commenting on the appointment, RBC Associate Director of European Research, Biraj Borkhataria, stated, "In our view, this represents the best possible outcome for BP shareholders in the short term, as it represents continuity for the investment case." Borkhataria also noted that Auchincloss's familiarity and respect within the investor community make him a logical choice for the role.
BP, like many other energy companies, has been in the midst of a transition toward cleaner and more sustainable energy sources in response to global calls for decarbonization. The announcement of Auchincloss as the permanent CEO caused a slight dip in BP's shares, falling 0.8% at the opening of the market on Wednesday.
While Murray Auchincloss takes on his new role as CEO, Kate Thomson will continue as the interim Chief Financial Officer, with the process to select a permanent appointment for the position still underway, as confirmed by a BP spokesperson.
