Reuters – BG Group’s chief executive resigned on Monday as the British oil and gas major said production would be at the lower end of its target range this year due to problems in Egypt.
The board said it accepted the resignation for personal reasons of Chris Finlayson after just 16 months in the job.
Non-executive chairman Andrew Gould would take over at the FTSE 100 firm with immediate effect until a new chief executive was appointed, BG Group said.
“The board felt that it was in the best interests of the Group to accept Chris’ resignation and seek fresh leadership,” said Gould, who will revert to the position of non-executive chairman once a new CEO is appointed.
The firm, whose share price fell 5.4% in early deals, made no further comment on Finlayson’s resignation.
BG has been hit hard by production troubles in Egypt and has cut its production outlook several times in the last two years.
On Monday, it said 2014 production was expected at the lower end of its guidance of 590-630 thousand barrels of oil equivalent per day (kboed).
Egyptian volumes were down 35% in the first quarter compared with the final quarter of 2013.