BP Sticks with Murray Auchincloss as CEO, Continues Shift from Oil

Four months after being named BP’s interim CEO, Murray Auchincloss has been formally appointed to the role, BP announced Jan. 17.

The company also announced the acquisition of a German electricity provider as the major continues to transition into an integrated energy company, or IEC.

Auchincloss will also continue as a member of the BP board. BP said the search process, supported by international search advisers, considered both internal and external candidates.

“Our strategy – from international oil company to integrated energy company, or IOC to IEC – does not change.” Murray Auchincloss, BP

Auchincloss, previously the company’s CFO, was named interim CEO after Bernard Looney resigned following allegations of personal relationships with colleagues.

Auchincloss was initially appointed CFO in July 2020, when he also joined BP’s board. He had previously served as deputy CFO and head of business development for BP’s upstream segment. From 2010-2013, he was head of BP’s group chief executive’s office.

Auchincloss started with Amoco Canada in 1992. Following financial and planning roles in Canada and the U.S., his career included periods as commercial director for BP’s Onshore North America business and CFO for BP’s North Sea business.

He has a degree in finance from the University of Calgary and is a chartered financial analyst. He is also a member of the Aker BP board.

His annual salary will be £1.45 million (US$1.84 million) plus bonuses. He will also receive a cash allowance in lieu of pension equal to 20% of his base salary.

Kate Thomson has served as BP’s interim CFO since Auchincloss was named interim CEO.

Looney’s large loss

Looney, who had been CEO since 2020, resigned over his failure to fully disclose details about previous personal relationships with colleagues.

An anonymous source made the allegations to the BP board in May 2022, and in a review, Looney disclosed “a small number” of past relationships with colleagues before taking on the CEO post, BP said on Sept. 12, 2023. Shortly before Looney’s decision to resign, the board received additional similar allegations, which the company investigated.

In December, BP announced it was pulling back £32.4 million (US$40.59 million) of Looney’s pay package after finding he had “knowingly misled” the board, which amounted to “serious misconduct” and resulted in the company dismissing him without notice, effective Dec. 13.

Auchincloss: Strategy unchanged

In a press release, BP Chair Helge Lund said Auchincloss is the right leader for BP as the company moves away from oil.

“His assured leadership, focus on performance and delivery and deep understanding of the opportunities and challenges in the energy transition will serve BP well as we continue our disciplined transformation to an integrated energy company,” Lund said.

Auchincloss said in a press release that he is convinced BP can create significant value moving forward.

“Our strategy—from international oil company to integrated energy company, or IOC to IEC—does not change,” he said.

The company must focus on safe and efficient operations, executing with discipline and on returns, he said.

“Now, more than ever, our focus must remain on delivery,” he said.

BP will release its fourth quarter and full year 2023 results on Feb. 6.

Integrated energy acquisition

BP also announced on Jan. 17 it would buy privately-owned German company GETEC ENERGIE GmbH for an undisclosed sum. The purchase will expand BP’s integrated energy offerings to commercial and industrial customers in Europe.

When completed, the acquisition will materially expand BP’s European power and gas commercial and industrial supply presence, enabling it to deliver integrated energy solutions directly to existing and new customers in Germany and elsewhere in Europe.

BP said the GETEC ENERGIE purchase will accelerate BP’s effort to become an IEC focused on bringing energy solutions to customers. The purchase of the Hanover, Germany-based company will increase BP’s interface with customers in both established markets like power and gas and developing markets like renewable power, biogas and hydrogen, BP said.

GETEC ENERGIE’s main activities are in Germany, with operations in The Netherlands, Austria, Belgium and Poland. It supplies more than 40 TWh of power and gas each year, making it one of Germany’s largest independent suppliers of energy to commercial and industrial customers.

BP will maintain GETEC ENERGIE’s existing Hanover headquarters, which will become a new regional trading office for BP’s European trading business alongside its existing London and Madrid locations.

BP anticipates completing the acquisition later this year, subject to regulatory approvals.