2025 Annual General Meeting: chair's speech

Five years ago – in 2020 – bp set a new strategic direction for a changing energy market. 

The operating environment since then – I think it is fair to say – has been unpredictable.  

We have seen a pandemic. 

New wars and conflicts are ongoing. 

Interest rates and inflation have risen. 

And consumer behaviours have changed. 

So have countries’ concerns about energy cost and energy security.  

Geopolitics and trade tensions are more complex today than for a long time. 

This uncertainty has had an impact on bp. 

So have some of the strategic choices we made in 2020. 

The company pursued too much while looking to build new low carbon businesses. 

And some existing businesses did not operate with the expected reliability and efficiency.  

I can assure you lessons have been learned from this. 

Action has been taken to grow the value of bp while building the company’s strength and resilience to market uncertainty and volatility – such as we are seeing today.  

Murray will talk about what the leadership is doing in a moment. 

I will talk about the role of the Board.

About what we have done to lead the strategic reset made earlier this year. 

And what we are doing now to help management drive resilience, delivery and improvement in performance. 

Safety 

First, I want to say this on safety. 

On Sunday – 20th April – it will be 15 years since the Deepwater Horizon accident and oil spill. 

11 people working for bp lost their lives. 

17 were seriously injured. 

And this event continues to shape the safety culture at bp. 

Strong safety performance requires constant vigilance and robust processes. 

And it depends on people being confident to speak up and act when something does not look right. 

There is always more to do, but the safety culture is strong at bp. 

It is our first priority. 

A new direction 

As well as safety, the board has focused primarily on strategy over the past year.  

We have worked closely with Murray and his leadership team to set a new strategic direction for bp. 

Every board meeting over the past year has been used to examine issues and test assumptions and forecasts. 

We have considered: 

• Macro conditions and future trends 
• Energy demand and progress on the energy transition 
• Consistency with the Paris goals 
• bp’s competitive positions – its core strengths and its competitive advantages 

We have listened and responded to feedback from shareholders and other stakeholders. 

And we have examined the lessons learned from the past five years. 

The outcome – worked with Murray and the team – is the fundamental reset bp announced in February:  

• A reduction in capital expenditure and a significant reallocation of capital to oil and gas. 
• Targets to reduce costs and reduce debt. 
• And plans to drive improved performance.  

In short, a new direction that places growth in free cash flow, returns and value at its heart.  

Having discussed the strategy, monitored progress, challenged assumptions and agreed next steps.

The reset has the full support of the board.  
 

Delivery and performance 

The board’s primary focus moves now to overseeing delivery of the strategy through rigorous performance management. 

This is a core activity today. 

We hold the leadership to account for safe and successful strategic delivery as well as efficient and reliable operations.  

And as part of that, remuneration at every level of the company will now be linked to four primary financial targets – in addition to core targets for safety and emissions reductions. 

Board evolution 

A second area of focus for 2025 is the evolution of the board. 

I believe – to be most effective – board evolution is a dynamic and ongoing process. 

With this in mind, I made a decision on my role at the beginning of April. 

It is time to start the process of identifying the next chair of bp. 

It is the right time for several reasons. 

First, the strategy reset is agreed and bp is in action. 

Second, this is my seventh year as chair and therefore I am in the latter part of my tenure. 

Third, a rigorous search process is required to find the best possible candidate, and that is now underway.  

And fourth – by starting now – we ensure continuity of board leadership in an important period for the company – followed by an orderly handover.   

Meanwhile, we continue the wider process of the board’s evolution.  

Quite simply, it’s good governance practice. 

We are constantly looking to identify high-quality candidates to ensure we always have strength across safety, operations, capital allocation, sustainability, geopolitics, and all areas of the portfolio.  

Earlier this year we appointed Ian Tyler.   

Ian has a strong track record of executive and non-executive experience in many industries relevant to bp. 

This includes leading the remuneration committees of some of the UK’s largest companies.  

After the AGM, he will take over the chair of our remuneration committee.  Our board discussions will benefit from the focus he will bring on performance. 

My thanks go to Tushar Morzaria for his excellent leadership of this committee.  
 

Sustainable long-term value for shareholders 

So to conclude.

In a changing environment, action taken over the past year has positioned bp to become stronger and more resilient. 

We can and will respond pragmatically to grow value – and to protect value. 

bp has a new direction and clarity of what needs to be done. 

I want to recognize and thank bp’s people. 

Around the bp world, teams have worked hard for many years through many changes. 

Thank you also to Murray, Kate and their team for your leadership. 
 
And thank you, our shareholders, for your continued support and challenge.  

My commitment to you, as chair of the bp board, is continuing strong oversight of the board’s two priorities – namely performance management and board evolution, including an orderly transition to my successor. 

Now it’s time to effectively execute the strategy, for safe, efficient and reliable operations to deliver growth.

And provide you, our shareholders, with reliable, sustainable, long-term value from your continued investment in bp.  

Thank you, and over to you Murray.