Meg O’Neill, the current chief executive of Woodside, will take over as the first female chief executive of BP on April 1, 2024. O’Neill’s appointment follows the resignation of Murray Auchincloss, who has led the company for over three decades. As BP embarks on a strategic transition focusing on robust investments in oil and gas, Auchincloss noted, “Now is the right time to hand the reins to a new leader.”
With O’Neill’s leadership, BP aims to address fluctuating shareholder returns while maintaining a disciplined approach during the energy transition. In a statement, Auchincloss expressed confidence in O’Neill’s capabilities, highlighting that BP is well-positioned for significant growth under her guidance.
Concerns Over Leadership Transition
Despite the optimism surrounding O’Neill’s appointment, some industry observers have raised concerns regarding her track record at Woodside. Brynn O’Brien, executive director of the Australasian Centre for Corporate Responsibility, criticized O’Neill’s leadership style, stating, “Under O’Neill’s leadership, Woodside has chased high-cost, marginal fossil fuel projects and not delivered satisfactory shareholder returns.”
O’Neill has faced scrutiny from climate activists, particularly after an incident in 2023 when protestors staged a demonstration at her home in Perth. The criticism extends to Woodside itself, particularly following the federal government’s approval of a 40-year extension for the North West Shelf project, which is near ancient rock art at Murujuga. Matt Roberts, executive director of the Conservation Council of WA, commented that companies like Woodside and BP risk being viewed as “moral aberrations” unless they commit to renewable initiatives.
Market Reactions and Future Implications
In the wake of O’Neill’s announcement, Woodside’s shares fell by 2.7 percent, closing at $22.80. Analyst Gordon Ramsay from RBC Capital Markets described her departure as negative for Woodside, yet acknowledged the presence of several qualified internal candidates to step into the role of chief executive. The company has appointed Liz Westcott, the current chief operating officer, as acting chief executive, recognizing her strong operational focus and experience in asset performance and project execution.
Westcott will receive an annual salary of $1.8 million, which includes superannuation and a higher duties allowance of $600,000. With O’Neill taking the helm at BP, her leadership style will be closely scrutinized, especially as the company aims to navigate the complexities of the energy sector.
O’Neill, who joined Woodside in 2018 after a 23-year tenure at ExxonMobil, expressed mixed emotions about her departure. In a LinkedIn post, she stated, “I am leaving a talented and dedicated team of people at Woodside, who have provided great support during my almost eight years at the company.”
As the energy landscape evolves, O’Neill’s leadership at BP will be pivotal in shaping the company’s direction and addressing broader environmental concerns, while Woodside faces its own critical juncture with new leadership.
