Shell lines up next chairman for energy shift

Shell

Shell has begun a search for a new chairman, with Andrew Mackenzie, the former BHP Billiton boss, emerging as an early front-runner.

The Anglo-Dutch oil major is seeking a replacement for the incumbent Charles Holliday to help steer it through a tricky shift away from fossil fuels, following its first dividend cut since the Second World War earlier this year.

City sources expect Mr Mackenzie, who joined the Shell board as a non-executive director at the start of this month, to be promoted to chairman.

The 63-year-old Scot stood down as CEO of Anglo-Australian mining giant BHP at the turn of the year after a successful seven-year stint.

He began the company’s gradual exit from fossil fuel extraction with the 2015 spin-off of South32, which supplies coal for power stations in South Africa and steel plants in Australia. BHP has also been attempting to offload its Australian coal assets, a process complicated by diplomatic tensions with China, a major customer.

Shell faces even greater challenges to move away from fossil fuels. Ben van Beurden, its CEO, committed to making it a “net-zero” emitter of carbon. While it has begun investing in electricity, biofuels and hydrogen, Mr van Buerden has said “it is not enough though: it all needs to accelerate”.

Shell, which is due to report its third quarter results on Thursday, declined to comment.