Meg O’Neill has moved quickly to reshape BP, simplifying the oil major’s management structure and putting assets up for sale as she seeks to restore financial discipline and establish a clearer direction for the energy giant.
People familiar with the former Woodside Energy CEO’s leadership, describe her as decisive, clear about responsibilities and intent on being present across the business, as she seeks to instil greater accountability at a company under pressure to improve performance and restore investor confidence.
Ms O’Neill took over as CEO of London-based BP in April, inheriting a company grappling with high debt, disappointing returns and questions over its strategy after years of shifting between ambitions to grow its oil and gas business and invest in the energy transition.
She has also had to navigate boardroom upheaval.
A month after she started, Albert Manfiold was removed after less than a year as BP’s chairman amid allegations of bullying behaviour, claims that he has called “lies”.
Her early moves have pointed to a more disciplined approach to capital allocation.
At an energy event in London this month, Ms O’Neill acknowledged the company had fallen short in its stewardship of investor funds.
“Decision-making is important. We have not been careful stewards of shareholder capital,” she said.
The remarks underscored the urgency of the task facing Ms O’Neill as she seeks to restore BP’s competitiveness against rivals that have benefited from a stronger focus on oil and gas production and more consistent financial performance.
The assets for sale include the UK North Sea oil and gas business and its US biogas business, Archaea Energy.
Ms O’Neill has also consolidated BP’s three main business units into two.
The changes are intended to reduce complexity and sharpen accountability across the company’s global operations.
US-born Ms O’Neill brings to BP more than two decades of experience at ExxonMobil and a five-year stint running WA-based LNG producer Woodside.
BP’s balance sheet has begun to improve. Net debt stood at $US22.3bn ($32bn) at the end of June, and is expected to reduce further by the end of September.
The improvement is helped by stronger commodity prices, trading performance and asset disposals.
The longer-term direction of the business will become clearer in December, when BP is due to unveil a new strategy and outlook in New York.
It will be Ms O’Neill’s first formal opportunity to explain how she intends to position BP for the next phase of the energy market.
Her early tenure has been marked by an effort to establish clearer responsibilities and a more disciplined approach to investment.
The next test will be whether the changes can translate into the stronger performance BP’s shareholders have been seeking.
Extracted in full from: https://www.theaustralian.com.au/business/mining-energy/meg-oneill-moves-to-impose-discipline-on-bp-reset-energy-giants-strategy/news-story/e52381ba24bb5a166e5207732d736f35
