(Reuters) bp's interim CEO Murray Auchincloss says the company won't be derailed from its energy transition strategy by former leader Bernard Looney's abrupt resignation amid misconduct allegations.
bp scaled back its energy transition strategy earlier this year but still stands out among rivals as the only oil major with plans to cut oil and gas output by 2030 by 25%.
Auchincloss told staff in a brief town hall meeting that the company's aims were unchanged.
"Our strategy hasn't changed. And our focus remains on performance – quarter by quarter," Auchincloss, who was previously chief financial officer, told staff, according to a company spokesperson.
bp's top leadership team is also unchanged and "we have the full support of the Board to continue to deliver the plan we have laid out," he added.
bp's board has started searching both internally and externally for a new permanent chief executive, Chairman Helge Lund told staff, according to sources in the meeting, which lasted around 10 minutes.
A company spokesperson declined to comment.
Looney, 53, became CEO in February 2020 with a vow to reinvent the 114-year-old company, laying out ambitious plans for the British energy giant to achieve zero net emissions by 2050, and to invest billions in renewable and low-carbon power.
BP LOONEY
Bernard Looney, Former BP Chief Executive, speaks during a session at Egypt's 5th Petroleum Show "EGYPS 2022"
Looney's surprise resignation came after allegations of personal relationships with company colleagues surfaced recently, prompting the company to launch an investigation.
That followed similar allegations the board investigated in May 2022. During that review, Looney disclosed "a small number of historical relationships with colleagues prior to becoming CEO."
No breach of the company's code of conduct was found at the time and the board was given assurances by Looney "regarding disclosure of past personal relationships, as well as his future behaviour."
Looney informed bp's board that he did not fully disclose details of all relationships, prompting his resignation.
Auchincloss worked closely with Looney in devising bp's strategy in recent years.
The Canadian national who joined bp in 1998 has advocated a focus on high-return assets partly by leaning more heavily on bp's legacy oil and gas assets that boosted profits to a record $28 billion last year, according to two company sources.
"Murray is already the power behind the throne, he has been key in all the major decisions. The strategy is owned by the board and it is unlikely to change," one company source told Reuters.
"Delivering our 2025 targets remains our prime focus."
bp shares closed 2.7% lower, compared with a 0.25% decline for the broader European energy index.
bp plans to invest $55-$65 billion in solar and wind power, biofuels, hydrogen and other low-carbon businesses by 2030, when they will account for half of capital expenditure.
bp's strategy came under renewed scrutiny after rival Shell slowed down its energy transition strategy in June.
The bp board could yet opt to make some small changes without changing the overall plan, a source close to the company said.
"(The bp board) have enough flexibility within the current strategy to focus more on cash flow," a second source close to the company said.
"No-one wants to go out again and say that they will do less on climate change."
