* Dudley to step down as CEO next February
* Looney, 49, is head of upstream operations
(Recasts, updates throughout)
By Ron Bousso
LONDON, Oct 4 (Reuters) - BP on Friday appointed head
of upstream Bernard Looney as chief executive to succeed Bob
Dudley when he retires next year after leading the oil and gas
company back to growth from near collapse in 2010.
Looney, 49, took charge of BP's oil and gas production, or
upstream operations, in 2016 as the sector grappled with the
aftermath of the 2014 collapse in oil prices.
The Irishman's energetic management style was quickly felt
as he spearheaded BP's drive to improve performance through cost
cutting and digitalisation.
He has led BP through one of its periods of fastest growth
in oil and gas production, with output rising up by around 20%
since 2016 with the launch of more than 20 new major projects
around the world and the acquisition of BHP's portfolio of U.S.
shale assets this year for $10.5 billion in BP's biggest deal in
three decades.
As CEO, he will be charged with continuing to adapt BP to
the transition to lower carbon energy as pressure from investors
to meet climate change targets grow.
"Bernard is a terrific choice to lead the company next,"
Dudley, who turned 64 last month, said in a statement.
"He knows BP and our industry as well as anyone but is
creative and not bound by traditional ways of working. I have no
doubt that he will thoughtfully lead BP through the transition
to a low carbon future."
NEAR BUST TO BOOM
Dudley will step down as CEO after the company's full-year
results on February 4 2020 and will retire on March 31, BP said.
He was appointed to the top job in 2010 following the
Deepwater Horizon disaster in the Gulf of Mexico.
Dudley led the company through near-bankruptcy after it
caused the largest oil spill in U.S. history and through an oil
price crash four years later.
Preparations for Dudley's departure were accelerated after
Helge Lund became BP chairman in January with a mandate to
oversee succession plans.
Dudley succeeded Tony Hayward who stepped down in the wake
of the April 2010 Deepwater Horizon disaster that left 11 rig
workers dead.
He has had to navigate a vast asset disposal to pay for more
than $60 billion in litigation and clean-up costs followed by a
landmark settlement with U.S. authorities.
He has also overseen BP's efforts to address growing
investor pressure to meet targets under the 2015 Paris Climate
Agreement to fight climate change by investing in renewable
energy and reducing BP's carbon emissions.
"As the company charts its course through the energy
transition this is a logical time for a change," Lund said in a
statement.
Dudley has enjoyed overwhelming support from investors at
BP's annual general meetings, however a majority of shareholders
opposed his 2016 pay package, forcing the company to slash it by
40%.
(Additional reporting by Muvija M in Bengaluru; editing by
Bernard Orr and Jason Neely)