BP chief executive Murray Auchincloss has stepped down after less than two years in charge of the oil giant, following pressure from activist investors. 

Auchincloss has been under pressure from US hedge fund Elliott Management to step up performance, slash costs, boost shareholder payouts and slim down BP's debt pile.

It follows a turbulent period for BP following the departure of Auchincloss's predecessor Bernard Looney and chairman Helge Lund, both of whom have spearheaded an intense green energy push the group is now working to reverse.

The FTSE 100 firm told shareholders on Thursday Auchincloss would step down from his role and the board with immediate effect, as it revealed his planned replacement. 

Woodside Energy boss Meg O'Neill will become BP's first female chief executive when she joins in April. 

Carol Howle, current executive vice president of supply, trading and shipping at BP, will serve as interim CEO to ensure a smooth transition. 

Auchincloss said in a statement: 'After more than three decades with BP, now is the right time to hand the reins to a new leader. 

'When Albert [Manifold] became chair, I expressed my openness to step down were an appropriate leader identified who could accelerate delivery of bp's strategy.'

Incoming CEO O'Neill has served as CEO of Woodside - the largest energy company listed on the Australian Securities Exchange - since 2021.

Prior to joining Woodside, she spent 23 years at ExxonMobil in technical, operational and leadership positions around the world.

Manifold, whose own appointment faced some pushback from shareholders, said O'Neill's 'proven track record of driving transformation, growth, and disciplined capital allocation makes her the right leader'. 

He added: 'Her relentless focus on business improvement and financial discipline gives us high confidence in her ability to shape this great company for its next phase of growth and pursue significant strategic and financial opportunities.

'Following a comprehensive succession planning process, the board believes this transition creates an opportunity to accelerate our strategic vision to become a simpler, leaner, and more profitable company.' 

O'Neill said: 'BP plays a critical role in delivering energy to customers around the world. 

'With an extraordinary portfolio of assets, bp has significant potential to reestablish market leadership and grow shareholder value.'

BP shares dipped 0.3 per cent to 424.25p in early trading. They have added 5.5 per cent since the start of the year.