LONDON, U.K.: BP has turned to an industry outsider to lead its next phase, appointing Woodside Energy chief executive Meg O'Neill to steer the British oil major through a renewed push to boost profitability and sharpen its focus on oil and gas.

O'Neill, who will take over in April, succeeds Murray Auchincloss following his abrupt departure. Her appointment makes her the first CEO hired from outside BP in the company's more than 100-year history and the first woman to lead any of the world's five largest oil majors.

The leadership change, BP's second in just over two years, reflects pressure on the company to reverse years of underperformance, as its shares and earnings have lagged rivals such as Exxon Mobil and Shell.

Earlier this year, BP announced a significant strategic shift, cutting billions of dollars from planned renewable energy investments and re-emphasising its traditional oil and gas operations. The company has pledged to divest US$20 billion in assets by 2027 while reducing 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," BP Chair Albert Manifold said in a statement.

Since taking up the role in October, Manifold has stressed the need for deeper portfolio reshaping to lift profitability. He has also faced pressure from activist investor Elliott Investment Management, one of BP's largest shareholders, which urged him to address shortcomings and install "decisive and effective leadership". BP has vowed to increase profitability.

O'Neill, 55, is an American from Boulder, Colorado. She has led Woodside since 2021 and previously spent 23 years at Exxon Mobil.

"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.

At Woodside, O'Neill oversaw the merger with BHP Group's petroleum arm, creating a top-10 global independent oil and gas producer valued at about $40 billion and doubling Woodside's production. The deal expanded the company's footprint in the United States, including onshore liquefied natural gas operations in Louisiana.

James Beale, head of sustainability and community at Brentford F.C., said the menu change is taking a big bite out of the club's carbon footprint.

"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 2.9 percent following the announcement of O'Neill's departure.

BP executive vice president Carol Howle will serve as interim CEO until O'Neill assumes the role. Auchincloss, 55, stepped down on December 18 and remains in an advisory role until December 2026 to support the transition.

BP said the appointment was part of long-term succession planning, though it had not publicly announced a CEO search before flagging Auchincloss' departure late on December 17.

Auchincloss became CEO in 2024 after Bernard Looney was fired for lying about personal relationships with colleagues. Following BP's ill-fated push into renewables under Looney, the company has committed to cutting costs and refocusing investment on oil and gas.

BP launched a review in August to determine how best to develop and monetise its oil and gas assets, but did not update investors last month on the closely watched potential sale of its Castrol lubricants unit.

Woodside said O'Neill left the company immediately and that executive Liz Westcott had been appointed acting CEO, with a permanent successor expected in the first quarter of 2026.