Woodside’s Meg O’Neill Joins BP as First Female CEO

The chief executive of Australia’s largest oil and gas company, Woodside Energy, has stepped down to lead BP, marking a significant transition in the energy sector. Meg O’Neill will assume the role of chief executive officer at BP on April 1, 2024, becoming the first woman to hold this position in the company’s 116-year history. This move, speculated upon for months, comes as BP undergoes a strategic reset, emphasizing increased investment in oil and gas while navigating the energy transition amid variable shareholder returns.

Following O’Neill’s departure, Liz Westcott, currently the chief operating officer and executive vice president of Australian operations at Woodside, will take over as acting chief executive. This leadership change occurs as BP’s outgoing CEO, Murray Auchincloss, steps down after over three decades with the company. In a statement, Auchincloss expressed confidence in O’Neill’s ability to drive BP’s future growth: “I am confident that BP is now well-positioned for significant growth and I look forward to watching the company’s future progress and success under Meg’s leadership.”

Despite the positive outlook from Auchincloss, some analysts have raised concerns regarding O’Neill’s track record. Brynn O’Brien, executive director of the Australasian Centre for Corporate Responsibility, noted that Woodside has pursued high-cost fossil fuel projects under O’Neill’s leadership, which have not yielded satisfactory returns for shareholders. “Under O’Neill’s leadership, Woodside has chased high-cost, marginal fossil fuel projects and not delivered satisfactory shareholder returns,” O’Brien stated.

O’Neill has faced criticism from environmental groups as well. Notably, in 2023, members of the climate activist group Disrupt Burrup Hub were fined for planning to vandalize her home in Perth. The group accused O’Neill of leaving Woodside in a precarious position, stating that “Browse gas now an absolute write-off and no new gas to fill the North West Shelf.” They added, “We hope that Ms. O’Neill enjoys her gardening leave.”

Woodside has also attracted criticism over its North West Shelf project, which was recently approved for a 40-year extension near the ancient rock art at Murujuga. Matt Roberts, executive director of the Conservation Council of Western Australia, condemned the company, saying, “Woodside is a dirty fossil fuel producer that is destroying our planet.” He emphasized the need for a genuine commitment to renewable energy, asserting that future generations would view companies like Woodside and BP as moral aberrations unless they change course.

In light of the leadership shake-up, analysts see an opportunity for Woodside to reevaluate its strategies. Brett Morgan, head of Australian campaigns at Market Forces, commented that major investors must urge the company to halt its growth plans in fossil fuels. “Major Woodside investors must take this opportunity to demand the company end its oil and gas growth plans and stop gambling shareholder capital against global climate goals,” Morgan stated.

O’Neill joined Woodside in 2018 after a 23-year tenure with ExxonMobil, ascending to CEO in 2021. Woodside’s shares dipped by 2.7 percent to A$22.80 by 15:00 on Thursday following the announcement of her departure. Gordon Ramsay, an analyst at RBC Capital Markets, viewed O’Neill’s exit as a negative for Woodside but acknowledged that there are several qualified internal candidates to succeed her.

Westcott will receive a salary of A$1.8 million, which includes superannuation and a gross higher duties allowance of A$600,000 per year during her tenure as acting chief executive. With a market capitalization of £66.5 billion (approximately A$134.7 billion), BP is the world’s fifth-largest oil and gas producer, significantly larger than Woodside’s market cap of around A$47.3 billion.

In a LinkedIn post, O’Neill expressed her mixed emotions about leaving Woodside, stating, “I am leaving a talented and dedicated team of people at Woodside, who have provided great support during my almost eight years at the company.” As she prepares for this new chapter at BP, the energy sector will be closely watching how her leadership influences the company’s direction amidst ongoing debates about fossil fuels and climate impact.