By Vallari Srivastava and Shariq Khan
May 1 (Reuters) – Occidental Petroleum CEO Vicki Hollub will retire next month after over a decade as one of the only female bosses of a top U.S. oil company, handing the reins to drilling-focused veteran Richard Jackson, the company said on Friday.
Hollub hands over a company more sharply focused on drilling than the one she took over in 2016. Jackson could further sharpen that focus as the conflict in the Middle East raises demand for North American oil.
Hollub’s tenure as Occidental boss, which began in 2016 and ends on June 1, was defined by a debt-fueled acquisition of Anadarko Petroleum in 2019, a deal that reshaped Occidental’s business and drew investor scrutiny. The move set off a multi-year focus on cutting debt and selling assets, while the company doubled down on U.S. oil and gas production by buying shale producer CrownRock in 2024.
Reuters first reported in March that Hollub was preparing to retire and that Jackson, who became chief operating officer last year, was likely to replace her.
Similar to Hollub, who led Occidental’s Permian Basin operations, Jackson has held roles leading Occidental’s U.S. onshore oil and gas operations. His promotion to COO was finalized with a potential transition to CEO in mind, a source close to the Occidental board said.
Hollub will remain on Occidental’s board of directors after her retirement, the company said.
INVESTORS SEEK CLARITY ON DIRECTION
Jackson joined Occidental in 2003 as part of the company’s Middle East operations before leading its U.S. onshore operations and low-carbon technologies such as enhanced oil recovery, experience that could be vital as production from U.S. shale basins plateaus.
Will Su, a managing director at BlackRock, one of Occidental’s largest investors, called Jackson a “proven communicator” and said he was well-suited to lead the company through the volatility in energy markets caused by the U.S.-Israeli war with Iran.
Jackson’s immediate tasks at the helm will include further debt reduction and clarifying for investors the company’s plans, said Leo Mariani, a Roth Capital research analyst.
Jackson will likely continue Occidental’s focus on exploration and production, and investors will await his plans for its low-carbon ventures business, Mariani said.
Occidental shares dipped 3% in afternoon trade, mirroring a drop in U.S. crude oil futures.
The company may now focus more on existing assets and maximizing returns instead of acquisitions, said James West, an analyst at Melius Research.
“There were lots of moving parts as Vicki embarked on portfolio realignment. I think the realignment has now positioned the company for success in the future, which is not yet reflected in the shares,” he said.
Occidental reports first-quarter earnings on Tuesday, with a conference call scheduled for Wednesday.
(Reporting by Katha Kalia, and Vallari Srivastava in Bengaluru, Georgina McCartney and Sheila Dang in Houston, and Shariq Khan in New York; Editing by Leroy Leo, Shilpi Majumdar, Nathan Crooks, Rod Nickel)
