BP chief Bernard Looney quits over personal relationships with colleagues

LONDON: BP's CEO, Bernard Looney , abruptly resigned on Tuesday due to the failure to fully disclose details of past personal relationships with colleagues, according to the company. "Bernard Looney has notified the company that he has resigned as chief executive officer with immediate effect," the company statement said. "Mr Looney has today informed the company that he now accepts that he was not fully transparent in his previous disclosures," the BP statement added. Looney, who took over as CEO in February 2020, had pledged to transform the 114-year-old company by striving for zero net emissions by 2050 and investing heavily in renewable and low-carbon energy. His unexpected resignation came after recent allegations of personal relationships with colleagues came to light, leading to an internal investigation. According to a Reuters report, similar allegations had been investigated by the board in May 2022, during which Looney admitted to "a small number of historical relationships with colleagues prior to becoming CEO." At that time, no breach of the company's code of conduct was found, and the board received assurances from Looney regarding the disclosure of past relationships and his future behavior. However, Looney later informed BP's board that he had not fully disclosed all the details of these relationships, leading to his resignation. Murray Auchincloss , 52, who became CFO in July 2020, will take on the role of interim CEO. He has played a crucial role in guiding BP through challenging times, including the COVID-19 pandemic, the exit from Russia after the Ukraine invasion, energy price fluctuations, and global cost of living crises. BP had recently adjusted its plans to reduce hydrocarbon production by 2030 from 40% to 25% compared to 2019 levels, which remains one of the most significant reductions in oil and gas output among major oil companies. However, the company has faced challenges in convincing investors of the competitive potential of its non-hydrocarbon businesses. In a trend similar to its competitors, BP had previously announced record-breaking annual profits for the year 2022, driven by the surge in oil and gas prices following Russia's invasion of Ukraine. Nevertheless, in the current year, earnings have experienced a decline from those peak levels, primarily due to the retreat in energy prices that characterized much of 2023. The future direction of BP's strategy remains uncertain following Looney's departure. Morningstar analysts suggest that the new CEO may determine whether the transition plans are rolled back or maintained, depending on their perspective. Bernard Looney's 2022 compensation exceeded $12 million due to record profits, but it remains unclear whether he will receive any remuneration payments from BP. Looney took over as CEO from Bob Dudley, who had led the company through the aftermath of the Deepwater Horizon oil spill in 2010.