Shock resignation of unwell Oil Search boss Keiran Wulff after complaints about ‘unacceptable’ behaviour

An oil and gas giant has been grilled over the shock departure of its boss, asked why it ‘shred’ his reputation if he quit due to ill health.

The boss of Oil Search has quit after less than 18 months in the top job, with the board citing his long-term medical condition but also saying he had behaved in an “unacceptable” manner.

The PNG-focused oil and gas producer held a conference call about Keiran Wulff’s sudden departure as chief executive and managing director on Monday, saying complaints had been received about his behaviour, which had been “inconsistent with the standards expected ... in relation to his management style”.

Chairman Rick Lee said the details of Dr Wulff’s recently deteriorating illness and conduct could not be divulged due to confidentiality reasons.

Mr Lee said the board became aware of the behaviour problem through a “whistleblower statement” about mid-June. He later clarified that employees had raised concerns.

Dr Wulff took the helm in February last year, which Mr Lee noted had been a difficult time of low oil prices at the height of the first wave of the coronavirus pandemic.

“We have certainly supported him in what was a challenging role from day one, and our priority was to protect the company, make the changes that were made and pursue the strategy that was articulated last November,” he told the call.

“And I think through that period we had absolutely no concerns whatsoever.”

Keiran Wulff quit after less than 18 months in the top job at Oil Search. Picture: Jane Dempster/The Australian.

An analyst asked Mr Lee to confirm whether Dr Wulff’s resignation was due to his illness or if he was going to be asked to leave regardless for an “overbearing” management style.

Mr Lee only replied that the executive had resigned on medical grounds but had been told about the complaints, which had led to discussions, resulting in his departure.

“So if he resigned for health reasons, why shred his reputation on the way out?” the analyst further asked.

Mr Lee would not be drawn, responding the complaints had been “the catalyst” for a board investigation.

“We have to understand the circumstances and address them in a very committed way,” he added.

Mr Lee was repeatedly pressed on the same question, insisting Dr Wulff quit due to his medical condition, which “was not being managed in the way that he knew it needed to be to fulfil his responsibilities”.

In a statement released to the ASX, Dr Wulff said it had become apparent that due to his health problems, it was becoming increasingly difficult to perform at the level required of the position.

“After considerable reflection and consultation with my family and others, including my medical advisers, it is an appropriate time to leave to focus on my health,” he said.

Dr Wulff had big shoes to fill at Oil Search, replacing long-serving boss Peter Botten.

Chief financial officer Peter Fredricson, who only joined Oil Search 3½ months ago, has been appointed acting chief executive officer while the search for a permanent replacement is conducted.

“This is an unfortunate set of circumstances, but it’s business as usual,” Mr Lee said.

After taking part in the conference call, RBC Capital Markets analyst Gordon Ramsay said there were limited internal candidates that had the right qualifications and experience in PNG and Alaska, where the company seeks to develop an oil project.

“We see the company as having little choice but to immediately search outside to fill the role,” Mr Ramsay said.

“We think this outside selection process could take more than six months.”