BP’s Search for New Chairman

BP, the oil and gas exploration giant, is currently in the process of finding a new chairman to succeed Helge Lund, who announced his resignation in April. The search is being carried out with the oil major in a state of crisis, as the industry faces significant challenges and the company is under pressure from shareholders to transform its strategy.

Background

The company’s current situation is marked by a decline in its shares, which have lost almost a fifth of their value over the past year. This slump has led to a new interest in a possible takeover offer, with rivals such as Shell and Exxonmobil reportedly considering a potential deal. However, any such interest is still conceptual and has not led to a formal response from BP.

Candidates for the Chairman Position

Several prominent candidates are said to be in discussions with headhunters as part of BP’s search for a new chairman. One of the potential candidates is Sam Laidlaw, the former head of Centrica, who is seen as a logical choice for the role given his experience in transforming the owner of British Gas during his tenure. Laidlaw has also founded Neptune Energy, an oil company that was acquired by Italy for almost £4 billion in 2023.

Laidlaw’s Connection to BP

Laidlaw has strong family connections to BP, with his father Christopher Laidlaw serving as deputy chairman during a long business career. He was also previously considered for the role of chairman during a previous recruitment process but was excluded due to his role at Neptune Energy. The current status of his candidacy is unclear.

Other Potential Candidates

Another potential candidate for the chairman position is Ken Mackenzie, who recently retired as chairman of the mining giant BHP. Mackenzie has a good working relationship with Elliott Management, the activist investor that has been pushing for changes at BP. His experience in leading BHP during a time when Elliott had a stake in the company could make him an attractive candidate for the role.

Next Steps

The Senior Independent Director of BP, Amanda Blanc, is expected to move quickly to complete the recruitment process. The company is under pressure to find a new chairman who can lead the company through its current challenges and transform its strategy to meet the changing needs of the industry. With several potential candidates in the running, the next few weeks will be crucial in determining the future direction of BP.