BP chairman in firing line over green blunders as he prepares for make-or-break update

BP’s boss will today unveil his masterplan to revive the oil giant’s fortunes, in a make-or-break update that will determine his future – and that of his chairman.

Having promised to ‘fundamentally reset’ the struggling energy company, chief executive Murray Auchincloss will decisively water down its green agenda and announce plans to sell its lubricants business Castrol.

The presentation to investors is seen as crucial for Auchincloss as well as chairman Helge Lund, who has overseen a number of strategy U-turns since taking the helm in 2019.

BP is under intense pressure from investors – including activist Elliott Management who could push for boardroom changes if it is not satisfied with today’s update.

That could spell bad news for Lund, who appointed previous boss Bernard Looney only to see him forced out in disgrace. He was a key backer of Looney’s net zero plans that Auchincloss is now unravelling.

While BP shares are down 2 per cent since Auchincloss took the job full-time in January last year, they have fallen more than 10 per cent since Lund was appointed chairman – wiping close to £10billion off its value.

There are also concerns that Lund – a Norwegian who was chief executive of BG Group when it merged with Shell – may have too much on his plate given he is also chairman of Ozempic and Wegovy-maker Novo Nordisk.

Susannah Streeter, head of money and markets at broker Hargreaves Lansdown, said: ‘Given that Auchincloss was appointed as chief executive permanently a year ago, a change at the top at this time would be more unsettling than reassuring. But if the strategy underwhelms, there may be calls for a shake-up.

‘The tenure of Helge Lund as chairman may be more likely to come to an end sooner, given that he’s been in the seat since 2019, through a volatile and disappointing journey for BP.

It might be seen as the symbol of the change of direction for BP without the upheaval of losing another chief executive.’

Auchincloss is set to water down targets to increase renewable energy capacity and scrap plans to cut oil and gas output. Planned disposals are likely to include Castrol, which could fetch £8billion, as part of his blueprint.

BP shares fell 2.2 per cent, or 9.6p, to 436.9p yesterday.