Statoil CEO resigns to join BG

Statoil's CEO has resigned in order to take over UK-based BG Group as CEO on a US$2.4 million (£1.5 million) annual basic salary, plus benefits. 

Image: Helge Lund. From BG Group.

Helge Lund has been Statoil's CEO since 2004, during which time Statoil's market capitalization has increased from $28.7 billion to above $76.1 billion and production has increased from 1 billion boe/d to 1.9 billion boe/d. Lund led the company through the merger with Norsk Hydro’s oil and gas division. 

When Lund takes up his role at BG Group, on 2 March 2015, it will have been nearly a year since the firm's last CEO, Chris Finlayson, resigned, just a year after he took over the post and following profit warnings. Finlayson's resignation sparked shareholder calls for BG Group to be broken up and talk that the firm could be a takeover target. 

Announcing its Q1 results, BG Group said: "The Group is reviewing its operational, investment and portfolio management plans and will not provide 2015 guidance until its full year results in February 2015." The firm later told analysts that the decision to not provide 2015 guidance was not a profit warning.

Analysts Investec said: "In terms of global industry leaders, it is hard to imagine a more suitable candidate and the chairman should be congratulated for landing such a big fish. This is no hagiography; BG still faces challenges, but we believe it has a better chance of addressing them with Lund on board."

Lund said: “BG Group is a company with a strong set of assets and opportunities. I look forward to joining this organization and working with BG’s people to develop the company's full potential.”

Statoil has appointed Eldar Sætre as acting president and CEO with immediate effect. Sætre has been a member of Statoil’s corporate executive committee since 2003. He served as executive vice president and CFO until 2010, then as executive vice president of the Marketing, Processing and Renewable energy business area.

Prior to his 10 years as CEO of Statoil, Lund was CEO of Aker Kvaerner, an industrial conglomerate with operations in oil and gas and shipbuilding. He previously also served in the roles of Deputy CEO and Chief Financial Officer at the pharmaceutical division of Hafslund Nycomed, an industrial conglomerate.

Andrew Gould, BG Group's chairman said: "Helge’s track record speaks for itself. He has built a world-class exploration and production portfolio at Statoil, and the company is now widely admired for its technical expertise, financial performance and strong, values-based culture. Helge is ideally suited to lead BG Group in the next phase of its growth, and to accelerate the creation and delivery of value for our shareholders, while delivering the group's business plans."

Lund's renumeration package includes a conditional allocation of shares, along with salary, bonus, pension and long-term incentive awards.

Gould added: “BG Group has excellent prospects. We will have strong production growth and cash generation over the coming years from our projects in Brazil and Australia. To make the most of this potential, we need to build on our strengths in exploration and LNG and also become a world-class operator. The company needs a proven leader from the oil and gas industry to deliver the exceptional opportunities available to it. We will be consulting with our shareholders and we are confident that they will be supportive.” 

In August, InterOil Corp. appointed Finlayson as chairman-designate.