BP Names New Finance Chief Ahead of CEO's Retirement -- Update

By Sarah McFarlane 

Oil giant BP PLC has appointed Murray Auchincloss as its chief financial officer, expanding changes to the company's leadership ahead of Chief Executive Bob Dudley's planned retirement.

Mr. Auchincloss, currently CFO of BP's upstream business, replaces Brian Gilvary, who is retiring on June 30 after eight years in the role and 34 years at BP. The change follows Bernard Looney's appointment as CEO from Feb. 5. Mr. Looney is currently head of BP's upstream business.

"I have worked side-by-side with Murray for many years and have the utmost confidence in his ability to step into this critical role," said Mr. Looney.

The executive changes come as BP and its peers face increased pressure from investors to show how they are adapting to survive the global transition from fossil fuels to lower-carbon energy.

BP has lagged other European oil majors' investment in renewable energy such as solar and wind, allocating 3.2% of its budget last year, compared with an industry average of 7.4%, according to analysts at Bernstein.

The company is due to update its five-year strategy in the second half of this year and Mr. Looney is expected to accelerate BP's efforts to reduce carbon emissions.

Speaking on the company's results call in October, Mr. Gilvary said that with the emerging low-carbon agenda, "He [Mr. Looney] arrives at a time when we're seeing huge change in terms of society and what society expects."

"It's an opportunity to slightly move the ship in a slightly different direction in this case plotting perhaps a more pacey course."

Mr. Gilvary served as CFO during a difficult decade for BP as it sold tens of billions of dollars' worth of assets after the costly Gulf of Mexico oil spill in 2010 and a collapse in oil prices starting in 2014.

Before his appointment as CFO, Mr. Auchincloss held roles at BP including head of the group chief executive's office and CFO of the North Sea business.

Write to Sarah McFarlane at [e-mail]

(END) Dow Jones Newswires

January 21, 2020 08:12 ET (13:12 GMT)

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