Oil Search CEO Peter Botten joins AGL board

AGL Energy has announced the surprise appointment of Oil Search chief executive Peter Botten to its board.

Oil Search chief executive Peter Botten.

AGL Energy has announced the surprise appointment of Oil Search chief executive Peter Botten to its board, as it declared plans for chairman Jerry Maycock to step down at next year’s AGM.

The ASX-listed utility (AGL) said Mr Botten would join the company from October 21.

The personnel move came as AGL flagged a steady advance in earnings for the full year, a $596 million share buyback and a lift in dividends. The wide-ranging update saw its shares shoot up 6.9 per cent to $18.90 by 10.20am (AEST).

Mr Botten will not replace a current director, meaning the AGL board will expand to nine.

“We are delighted to announce that a leader of Peter’s calibre and experience will be joining the AGL board,” MrMaycock said.

“Although AGL is committed to exiting its own operations in the upstream gas sector, the oil and gas supply chain remains integral to our business.

“As such, Peter’s deep expertise in global energy markets, coupled with his broader corporate experience, will be extremely valuable.”

Mr Botten continues to hold the chief executive role at the ASX-listed Oil Search (OSH), a company he has led for 22 years.

Meanwhile, Mr Maycock said a succession plan was in the works to ensure he could be replaced next year.

“Having been a member of the AGL board for 10 years, and chair for six years, I have proposed to my colleagues that we should plan for my succession at the conclusion of my current term of office this time next year,” he said at the group’s AGM today.

“Whilst they consider it prudent to retain the option of nominating me for another term if circumstances mean that is in the best interests of the company at that time, our current plan is to work towards an orderly transition during the next twelve months.”