BP chair, Helge Lund, has informed the board of his intention to step down from the role in due course.

The oil and gas giant has initiated a succession process to select a new chair, with the process being led by senior independent director, Dame Amanda Blanc, with support from the wider board.

BP said the successful candidate will join the board and work with Lund to ensure an "orderly transition" ahead of taking on the role of chair, when Lund will step down from the board. The company said that this change will most likely take place during 2026.

The announcement comes after BP stated it would "fundamentally reset" its strategy going forward, following a 35% annual drop in its revolving credit profit in its 2024 financial year.

It said this drop was a result of "weaker realised refining margins, higher impact from turnaround activity, seasonally lower customer volumes and fuel margins and higher other businesses and corporate underlying charge".

Lund said: "Having fundamentally reset our strategy, BP's focus now is on delivering the strategy at pace, improving performance and growing shareholder value. Now is the right time to start the process to find my successor and enable an orderly and seamless handover. The board and I are committed to supporting Murray and his team, and to overseeing BP's delivery of its strategic and financial objectives as we set out in our recent capital markets update."

Investment director at AJ Bell, Russ Mould, said that the role of chair is "often the first to carry the can for corporate failures", and that Lund was on "borrowed time" following recent results.

He added that the group may also have to take "more radical action" if it is to close the gap on its rival, Shell.

Mould concluded: "BP will hope Lund falling on his sword helps satisfy frustrated shareholders, in particular activist Elliott. Current chief executive, Murray Auchincloss, will still be under significant pressure as the market looks for meaningful improvements in the group’s operational and financial showing.

"So far investors, including Elliott, do not seem overly impressed with Auchincloss’ new vision for the business outlined at a strategy day in February. He will need to do more than just row back on the company’s green push to truly convince the doubters.

"BP could do with bringing in a chair with real heft and credibility with the industry and the market. It has some time to find the right person given Lund is sticking around until next year."

---