Chevron chief O'Reilly to retire at end of year

DUBLINER DAVID O’Reilly is set to retire from the helm of Chevron, the world’s second biggest oil company, at the end of the year.

US-based Chevron announced yesterday that David O’Reilly will retire as chairman and chief executive officer at the end of the year and be replaced by vice chairman John S Watson. Mr O’Reilly (62) has served in the top two roles in the company for the past decade and has worked for Chevron for 41 years.

Yesterday he said that he believed the company was well positioned to enter the next chapter of its history.

“I am enormously proud of what we have achieved in recent years,” he said.

Mr O’Reilly began his career with the oil major shortly after graduating from University College Dublin in 1968 with a degree in chemical engineering.

He originally worked as a process engineer with the group’s research division, but graduated to positions of greater responsibility.

In 1989, he became vice-president of its chemicals division. From there he moved to strategic planning at the overall corporation, and then took charge of refining and marketing in 1994. The board appointed him chief executive in 2000.

The following year, the San Ramon, California-based group bought and successfully integrated Texaco for $100 billion. The deal elevated Chevron to second place in the oil major’s league, leaving just Exxon Mobil above it.

Mr O’Reilly is a member of the World Economic Forum’s international business council and JP Morgan’s international council, as well as a range of influential industry bodies. As a result, he has earned a high reputation both within and without his industry.

His brother John is well known in Irish business circles and was chief executive of bookmaker Paddy Power, which he led to flotation earlier in the decade.

Mr O’Reilly’s successor at Chevron, Mr Watson (52), has worked there since 1980 and played a key role in integrating Texaco.

Mr O’Reilly yesterday described his successor as the right man to lead the company. Industry analysts agreed that it would mean a smooth transition at the top of the group.

Mr Watson will take the helm of Chevron at a time when oil majors are facing increasing competition from state-run oil companies for access to the world’s largest untapped reserves. – (Additional reporting: Reuters)