BP Plc's finance chief Brian Gilvary is to step down in June after eight years in the role and will be replaced by a close ally of Bernard Looney who takes over as CEO next month.
Murray Auchincloss, currently finance head of BP's upstream division, will become BP's CFO on July 1, the company said Jan. 21.
Gilvary has been credited with overseeing BP's financial recovery following the 2010 deadly Gulf of Mexico oil spill which has cost the company more than $65 billion in fines, indemnities and clean up costs.
The London-based company saw its profits recover sharply in recent years, allowing it to remove the scrip dividend last year, an austerity measure on shareholder payouts. However, in October, Gilvary appeared to backtrack on a previous hint that the company would boost its dividend payouts, angering investors.
His departure comes earlier than anticipated and as Looney, who will replace Bob Dudley as CEO of BP after a decade, faces the tricky task of navigating the energy major through a rising tide of environmentalism and the move to a low-carbon economy.
"Gilvary's departure may be associated with a more significant change in the company's strategy including its financial strategy as the running of BP moves to a new top team," stockbroker Panmure Gordon said in a note.
It is also "likely to be associated with the problematic guidance over dividend", Panmure Gordon said.
Gilvary, an avid triathlete who joined BP in 1986, will step down from the board on June 30. He is a non-executive director at Air Liquide, the Royal Navy Board and the Francis Crick Institute.
In his current role Auchincloss worked with Looney, who until being appointed CEO was head of BP's oil and gas production division, known as upstream. Auchincloss oversaw a broad cost-cutting drive across the division in the wake of the 2014 oil price crash.
"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," Looney said in a statement.
Recommended Reading
Rhino Taps Halliburton for Namibia Well Work
2024-04-24 - Halliburton’s deepwater integrated multi-well construction contract for a block in the Orange Basin starts later this year.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Deepwater Roundup 2024: Americas
2024-04-23 - The final part of Hart Energy E&P’s Deepwater Roundup focuses on projects coming online in the Americas from 2023 until the end of the decade.
Ohio Utica’s Ascent Resources Credit Rep Rises on Production, Cash Flow
2024-04-23 - Ascent Resources received a positive outlook from Fitch Ratings as the company has grown into Ohio’s No. 1 gas and No. 2 Utica oil producer, according to state data.
E&P Highlights: April 22, 2024
2024-04-22 - Here’s a roundup of the latest E&P headlines, including a standardization MoU and new contract awards.