(S&P Global Platts) Shell has appointed Andrew Mackenzie, former CEO of mining giant BHP and a former senior leader at BP to take over as chairman starting May, as the Anglo-Dutch major pursues a new transition strategy, it said March 11.
Mackenzie takes over from Chad Holliday and will be the first British chair of Shell since a scandal over misstatement of reserves rocked the company in the early 2000s.
Holder of a doctorate in organic chemistry, Mackenzie worked in senior roles for BP for 22 years. He went on to become head of industrial minerals and diamonds at Anglo-Australian minor Rio Tinto from 2004-2007, before becoming CEO of rival BHP, from 2013-2019.
He joined Shell’s board in October 2020.
“In addition to proven experience of leading a large, complex international organization, the requirement was for someone with significant experience in capital discipline and with the ability to balance, and judge the timing, of the transformational changes that Shell needs to make,” Shell said in a statement.
Holliday, who is stepping down after six years, said Mackenzie “brings a wealth of leadership and sustainability experience, scientific curiosity and commercial acumen that ideally equip him to help Shell navigate the energy transition and deliver on the far-reaching Powering Progress strategy.”
The appointment comes after Shell unveiled a new strategy last month in the wake of last year’s price collapse, the coronavirus crisis, and rising pressures to transition away from fossil fuels.
Shell expects its oil production to decrease by 1%-2% annually as it holds upstream investment close to 2020 levels and prioritizes transition areas such as LNG, renewables and electricity provision.
Mackenzie said: “I believe Shell has an exceptional portfolio of future-facing assets and I look forward to working with [CEO] Ben van Beurden and the board to profitably accelerate Shell’s transition into a net-zero emissions energy business that continues to generate substantial value for shareholders, customers and communities alike.”
The change of roles is scheduled for the company’s AGM on May 18.
