BP names new chief after Bernard Looney scandal

Mr Auchincloss will receive a salary of £1.45 million and will be entitled to bonuses and cash in lieu of a pension. Photo: Ryan Lim/AFP

Murray Auchincloss has been appointed as the new chief executive of BP as the oil giant tries to move on from the scandal surrounding the departure of former boss Bernard Looney.

The Canadian has been acting as BP's interim chief since September after a shock departure Mr. Looney. BP's board confirmed Mr Auchincloss's permanent appointment on Wednesday.

As chief executive, he will receive a salary of £1.45 million and will also be entitled to bonuses and cash in lieu of a pension.< /p>< p>His predecessor was forced to resign after admitting he had not been “fully transparent” about personal relationships with company colleagues.

Mr Looney's shock departure has cast doubt on BP's strategy and sparked speculation that the company could be a takeover target amid a raft of mega-mergers in the oil industry.

The scandal also saw Looney lose £32 million sterling after the council concluded there had been “serious misconduct”. Irishman Mr Looney has since said he was «proud» to work for BP.

Mr. Auchincloss was previously the company's chief financial officer. His appointment to the top job comes at a time of crisis for BP. Mr. Auchincloss's close working relationship with Mr. Looney has fueled speculation that the board may seek to appoint an outside observer to steady the ship.

His permanent appointment reinforces the view that the board wants to double down on its existing strategy . After Mr. Looney's departure, Mr. Auchincloss told employees: «Our strategy has not changed.»

Mr Looney's resignation has thrown BP's strategy into question and sparked speculation that the company could be a takeover target. Photo: Holly Adams/Bloomberg

Mr. Looney has pledged to cut oil and gas production by the end of the decade and invest billions in cleaner energy projects such as electric vehicle charging stations, clean jet fuel and hydrogen. BP is the only major energy company to commit to a firm cut in oil and gas production.

Mr Auchincloss said on Wednesday: “Our strategy… is not changing. I am convinced of the significant value we can create.

“Now more than ever, we must focus on delivery — operating safely and efficiently, with discipline and always with a profit focus.”< /p>

BP Chairman Helge Lund said: “Since September, the BP Board of Directors has undertaken a rigorous and highly competitive process to identify BP's next CEO, considering in detail a number of high-quality candidates. The Board fully agrees that Murray was an outstanding candidate and the right leader for BP.

“Many people already know Murray well, and few know BP better than he does. His strong leadership, focus on performance and results, and deep understanding of the opportunities and challenges of the energy transition will serve BP well as we continue our disciplined transformation into an integrated energy company.»

Mr Auchincloss, CFA Analyst from Canada, joined American oil company Amoco in 1992. Six years later, Amoco merged with BP.

The 53-year-old is romantically involved with a colleague in BP's crude oil trading business. . However, BP said the relationship was “fully and appropriately disclosed within BP, including through his hiring as chief financial officer,” a position he took up in 2020.