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BP chief ousted after Gulf of Mexico oil spill joins Petrofac

The former head of exploration and production at BP, who was ousted in the wake of the disastrous oil leak in the Gulf of Mexico last year, has found another big job which comes with a hefty signing-on bonus.

Andy Inglis has been appointed chief executive of the Energy Developments and Production Solutions arm of Petrofac, the services giant that also invests in oil and gas fields.

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Petrofac said the 51-year-old will join its board in March and relocate from Houston, Texas, to London in April.

Mr Inglis has been awarded 61,652 shares in Petrofac that will vest in three annual tranches if he stays with the group. At yesterday’s closing price of £16.40 for Petrofac shares these were worth £1,011,093.

News of the appointment comes three months after Inglis became a high-profile casualty of the reform drive that was initiated by BP’s new chief executive, Bob Dudley.

One of the first moves he made after replacing Tony Hayward in the top job was to split the exploration and production division run by Inglis into three units.

The reforms left no place for Mr Inglis, who departed with a £690,000 payoff and a pension pot worth a reputed £6 million.

The oil and gas giant said Mr Inglis would step down as a director and leave “by mutual agreement with the BP board”.

BP’s chairman Carl-Henric Svanberg said Mr Inglis had been a strong leader of the upstream segment for three years and a “huge contributor to the board of BP”.

But some sector-watchers said the Cambridge graduate had paid the price for the leak from the Macondo well, the worst offshore spill in US history.

BP was left facing a multi- billion-dollar bill for the costs associated with the leak and with its reputation in tatters. As head of the exploration and production division, Mr Inglis was ultimately responsible for the well.

Petrofac’s chief executive Ayman Asfari believes Mr Inglis has the credentials to lead the division that invests in oil and gas projects.

He said: “Andy is a proven business leader who has a strong technical background and 30 years of global industry experience, a number of which have been spent in Petrofac’s core geographies. He shares our vision as to how the provision of integrated services to resource holders can create significant growth for Petrofac.”

Fiona Maclean, an analyst at Bank of America Merrill Lynch, wrote to clients: “(Mr Inglis) has a very long track record and with his extensive knowledge of significant resource plays he should be strongly positioned to help Petrofac capitalise on international opportunities.”

Peter Hitchens, at Panmure Gordon, told Reuters: “This will move the company further down the hybrid route (oil services and exploration and production) rather than a pure oil services play and, as such, make the company less easy to value.”

Petrofac demerged its North Sea oil and gas assets last year. These are owned by Enquest.

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