Head of Chevron Corp. (NYSE: CVX) John Watson will resign before the end of September, and will be replaced by the current vice chairman of the board of directors, Mike Wirth, a source familiar with the situation told Reuters on Tuesday.
The announcement of unexpected changes in the leadership of one of the world's largest producers of oil and gas appeared amid increased pressure on the industry due to the need to continue reducing costs and controlling costs.
Wirth is viewed as a leader with experience in refining, where the costs are subjected to regular scrupulous analysis.
Earlier this year, Exxon Mobil Corp (NYSE: XOM) appointed Darren Woods, head of oil refining, as head. CEOs of competing Total (PA: TOTF) and Royal Dutch Shell can also boast with experience in this area.
Chevron spokesman Kent Robertson declined to comment. Watson and Wirth did not respond to requests for comment.
California-based Chevron is recovering from the global fall in commodity prices and is beginning to reap the benefits of a large-scale expansion that cost billions of dollars.
The source said that Watson is calm about stepping down.
"He may consider this a good time for retirement, which will allow Chevron's new leadership to advance," said Brendan Warne, an analyst at BMO Capital Markets.
Watson, who headed Chevron in January 2010, did not make major acquisitions, giving way to growth opportunities for competitors.
The prospect of a change in leadership of Chevron, which was first reported on Tuesday by the Wall Street Journal, did not have a strong impact on the market. Shares of Chevron finished trading on Tuesday at $ 106.36, adding less than 1%.
Wirth became vice chairman of Chevron's board of directors in February. He also manages the pipeline division. Previously, he headed the Chevron refinery, which in recent years has demonstrated high growth rates amid the company's investment in expansion and modernization.
Chevron reported in July that it exceeded its second-quarter earnings forecasts due to higher production and oil prices, and lower costs for large projects.