Australia's Woodside Energy on Wednesday appointed interim chief Liz Westcott as CEO and MD, succeeding Meg O'Neill who departed Australia's largest oil and gas producer in December to take the helm at rival BP.

O'Neill's surprise exit came after more than four years in the top job at Woodside. Under her charge, Woodside merged with BHP Group's BHP.AX petroleum arm to create a top 10 global oil and gas producer valued at over $40-billion and doubled Woodside's oil and gas production

Her departure came in the middle of Woodside's expansion strategy into North America, betting on a pro-fossil fuel US administration and growing global demand for gas, especially through its Louisiana liquefied natural gas plant.

Shares of Woodside rose as much as 1.2% in early trade and were 0.7% higher as of 0123 GMT.

"Sticking with an insider is a signal that Woodside values operational continuity, doesn't want to trigger a raft of internal politics that usually comes with appointing an outsider as CEO," said David Tuckwell, CIO at ETF Shares.

"Westcott is not an empire builder or visionary... She is a safe pair of hands that won't rock the boat... She must navigate a 7% to 14% production dip caused by aging assets and heavy maintenance, while simultaneously pushing the $18-billion Scarborough project to the finish line and dealing with the debt pile," Tuckwell said.

Westcott joined Woodside in June 2023 and has led the firm's Australian operations, including the Scarborough Energy Project and Bass Strait operator transition, as executive vice president and chief operating officer, Australia.

She held top roles during 25 years at ExxonMobil, working in Australia, Britain and Italy, and was chief operating officer at EnergyAustralia.

Predecessors O'Neill and Peter Coleman are also ExxonMobil alumna.

Westcott steps into the top job as Woodside navigates a softer production outlook, with the company flagging lower output guidance for 2026 amid operational challenges and project timing uncertainties.

"My focus as CEO is on sustainable value creation for Woodside shareholders, operational excellence and disciplined execution of our growth projects," Westcott said in a statement.