*

BP appoints Meg O'Neill as its first female CEO effective

April

1

*

BP chair calls for transformative changes in statement

*

Carol Howle to serve as interim CEO until O'Neill's start

(Recasts, adds details and background in paragraphs 4, 7-9, 15)

By Sheila Dang and Stephanie Kelly

Dec 17 (Reuters) - Oil and gas major BP has

appointed Meg O'Neill, the head of Australia's Woodside Energy ( WDS )

, as its next CEO to lead its effort to boost profits

and refocus on oil and gas after a detour into renewables.

O'Neill, who will take over in April following the abrupt

departure of Murray Auchincloss, will become BP's first CEO

appointed from outside the company in its more than century-long

history and the first woman to head any of the world's top five

oil majors.

The second CEO change in just over two years is a sign that

the British oil major is seeking a renewed push to improve its

business after its shares and earnings for years lagged behind

competitors like Exxon Mobil ( XOM ) and Shell.

The company embarked on a major strategy shift earlier this

year, slashing billions in planned renewable energy initiatives

and shifting its focus back to traditional oil and gas. BP has

pledged to divest $20 billion in assets by 2027 and reduce debt

and costs.

"Progress has been made in recent years, but increased rigor and

diligence are required to make the necessary transformative

changes to maximise value for our shareholders," new BP Chair

Albert Manifold said in a statement.

When Manifold took up his post in October, he emphasised the

need for a deeper reshaping of BP's portfolio to increase

profitability.

Manifold faced pressure from activist investor Elliott

Investment Management, one of BP's largest shareholders, which

called for him to urgently address the company's shortcomings

and put in place "decisive and effective leadership".

'HIGH-PROFILE HIRE'

O'Neill, a 55-year-old American from Boulder, Colorado, has

headed Woodside since 2021 and previously spent 23 years at

Exxon Mobil ( XOM ).

"This is clearly a high-profile hire, and probably some of the

change that BP shareholders have been looking for," said Dan

Pickering, chief investment officer at Pickering Energy

Partners.

Under O'Neill's leadership, Woodside merged with BHP Group's ( BHP )

petroleum arm to create a top 10 global independent oil

and gas producer valued at $40 billion and doubled Woodside's

oil and gas production.

The acquisition took the company to the U.S., where it has

expanded into onshore Louisiana liquefied natural gas.

"What this to me signals is we (BP) don't want to sell, we

want to pursue a firm-wide push in natural gas," said Michael

Alfaro, chief investment officer at Gallo Partners. "O'Neill is

definitely respected, has a good track record of execution."

Woodside shares fell as much as 2.6% after her departure was

announced to the lowest level since October 21.

BP's executive vice president, Carol Howle, will serve as

interim CEO until O'Neill assumes the position. Auchincloss, 55,

will depart the company on Thursday.

BP said O'Neill's appointment was part of long-term succession

planning, but it had not publicly announced a search process

before it flagged his departure late on Wednesday evening.

Auchincloss became CEO in 2024, taking over from Bernard

Looney, who resigned for lying about personal relationships with

colleagues.

After an ill-fated foray into renewables under Looney, BP

has vowed to increase profitability and cut costs while

re-routing spending to focus on oil and gas.

BP in August launched a review of how best to develop and

monetise its oil and gas production assets.

During BP's third-quarter earnings call last month, the

company did not give an update on the closely-watched sale

process for its Castrol lubricants unit, the centrepiece of its

$20 billion asset-sale drive to slash its debt pile.

Woodside said in a separate statement that O'Neill was leaving

the Australian company immediately and it had appointed

executive Liz Westcott as acting CEO, while intending to

announce a permanent appointment in the first quarter of 2026.