The board of directors at Key Energy Services Inc. said that under an approved CEO succession plan, Robert Drummond will likely assume the role on Dec. 31, 2016. Drummond is currently the president and COO and would replace Dick Alario, who told the board he plans to retire as CEO next year, the company added Aug. 24.

Under the succession plan, the positions of chairman and CEO were split. Mark Rosenberg was elected by the board as the non-executive chairman. Rosenberg, currently a director, takes the role immediately, the company said. Alario will remain CEO and a member of the board.

The board also established a finance committee that will assist its oversight of short-term and long-term financial activities.

"The board and I agree that having an independent director serve as the non-executive chairman is in the best interests of our shareholders. Separating the positions of chairman and CEO allows me to focus on executing the company's strategic plan and managing the company. This is particularly critical in this very challenging environment. Our board has been an important resource for Key's management team and I look forward to continuing to work with Mark and the other members of the board,” Alario said.

Key Energy Services Inc. is a Houston-based oilfield services company.