BP Chief Executive Bernard Looney speaks during a session at Egypt’s 5th petroleum trade fair “EGYPS 2022” in the capital Cairo, Egypt, February 14, 2022. Portal/Amr Abdallah Dalsh/File Photo ACKNOWLEDGE RIGHTS
LONDON, Sept 12 (Portal) – BP Chief Executive Bernard Looney has resigned after less than four years in the job over failing to disclose details of past personal relationships with colleagues, the company said on Tuesday.
BP Chief Financial Officer Murray Auchincloss will serve as interim CEO after Looney resigned with immediate effect on Tuesday, the company said.
Looney, 53, took office in February 2020 with a promise to reinvent the 114-year-old company. He outlined ambitious plans for the British energy giant to achieve net zero emissions by 2050 and invest billions in renewable and low-carbon energy.
Looney’s surprise resignation came after allegations recently surfaced about personal relationships with company colleagues, prompting the company to launch an investigation.
This followed allegations the board investigated in May 2022 relating to personal relationships with employees of the company.
During that review, Looney disclosed “a small number of historical relationships with colleagues prior to his appointment as CEO.”
At this stage, no breach of the company’s code of conduct has been identified and the board has been given assurances by Looney “regarding the disclosure of past personal relationships as well as his future conduct”.
Looney told the BP board on Tuesday that he had not disclosed full details of all relationships, leading to his resignation.
BP shares rose 1% before the FT announced his resignation after the close of trading in London. Its American Depositary Receipt (ADR) shares turned negative, falling 0.4% by late afternoon in New York.
REINVENT BP
Auchincloss became CFO in July 2020 and has helped Looney steer the company through some of the most turbulent years in modern history, from COVID-19 to Russia’s rapid withdrawal after last year’s invasion of Ukraine, an energy price shock and a global one Cost of living crisis.
Looney has led the group through some of the most tumultuous years in modern history, from COVID-19 to Russia’s rapid withdrawal after last year’s invasion of Ukraine, an energy price shock and a global cost of living crisis.
Earlier this year, BP scaled back its plans to cut hydrocarbon production by 2030 to 25% from 2019 levels from 40% previously – still the most radical reduction in oil and gas production this decade among major oil companies.
BP has struggled to convince investors that it can generate competitive returns from its non-hydrocarbon businesses.
Over the past three years, BP’s shares have underperformed those of European rival Shell (SHEL.L) and U.S. rivals Chevron (CVX.N) and Exxon Mobil (XOM.N).
After posting record profits of $28 billion in 2022, BP’s second-quarter profit plunged 70% year-on-year to $2.6 billion, but still allowed the oil giant to increase its dividend by 10% .
It remained unclear whether Looney’s departure would lead to a change in strategy.
“Depending on the new CEO, BP could theoretically scale back its transition plans even further,” Morningstar analysts said in a note.
“But if the board likes the current direction, regardless of the declining share price, they are likely to hire someone to keep BP on the same path.”
Looney’s 2022 pay package more than doubled to around $12 million due to record profits and rising energy prices, while BP’s emissions remained largely flat compared to last year.
BP told Looney that “no decisions have yet been made regarding any compensation payments.”
Looney replaced Bob Dudley, who had led BP through the aftermath of the Deepwater Horizon disaster in 2010.
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Reporting by Anirudh Saligrama in Bengaluru and Shadia Nasralla in London; Edited by Krishna Chandra Eluri and Marguerita Choy
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