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Oil giant BP was shocked on Tuesday by the sudden resignation of CEO Bernard Looney, as the chief executive admitted misleading the company about his personal relationships with colleagues.
“Mr. “Looney informed the company today that he now accepts that he was not fully transparent in his previous disclosures,” said a statement posted by BP on its website after the resignation. “He does not have details of all relationships.” The nature of the “relationships” was not disclosed.
Looney, who spent his entire career at the company and was at the top for less than four years, was investigated by BP’s board in May 2022 over his “conduct in relation to personal relationships with company colleagues.” That investigation concluded that the relationships predated Looney’s appointment as CEO and found no violations of BP’s code of conduct, the company said. However, Tuesday’s statement said further allegations of undisclosed relationships had emerged recently and a further investigation had been launched.
The company said in its statement that Looney was not fully transparent and was “committed to greater disclosure.”
The company’s chief financial officer, Murray Auchincloss, will serve as interim CEO, the company said. The company’s shares closed down more than 1 percent following the news.
The shakeup comes as BP was already in an uncertain transition period after the company recently scaled back some of its ambitious goals to transition away from fossil fuels as oil profits soared.
BP withdraws its climate pledge in the face of rising oil profits
Looney, 53, became CEO in February 2020 with a plan to transform the century-old company into a clean energy pioneer. He set a goal for the company to achieve net-zero emissions by 2050, which included ambitious investments in renewable energy. But the British energy giant, with its green starburst logo and “Beyond Petroleum” slogan, has also curbed some of those ambitions under Looney’s tenure. In February, the company said it would significantly lower its oil production cut targets because it said it would make more money in 2022 than ever before.
The company generated $27.7 billion last year, doubling its profits in 2021. It was one of the oil industry’s windfalls that drew criticism all the way from the Oval Office.
The gains were largely the result of tight global supplies caused by sanctions against Russia following its invasion of Ukraine. They were made in a year when drivers experienced significant pain at the pump, paying an average of more than $5 a gallon at times last year.
Looney’s salary also doubled in this blockbuster year for the oil company, earning $12 million. The company said Tuesday that “no decisions have been made regarding any compensation payments to Mr. Looney” as he leaves the company.
BP’s profits have since fallen back to zero. The company’s profits in the most recent quarter were 70 percent lower than the same period in 2022.
Looney has spent his entire career at BP, joining the company in 1991 as an engineer and holding positions in North America, Asia and Europe.
Auchincloss, who takes over as interim CEO, had been BP’s chief financial officer since the summer of 2020.