Lesar will have to bridge low oil prices with demands for increased profitability.
Halliburton Co has disclosed that Jeff Miller will be replacing Dave Lesar, its current CEO who is set to retire on June 1.
Lesar has been a longtime deputy in the company and is a member of the board.
Lesar will continue to remain as Halliburton’s executive until December 2018, when upon reaching the age of 65 he will retire from the post as mandated by the company.
The transition in the world’s second-largest oilfield service provider comes in the wake of recovering oil prices from its two-year low. Low oil prices have eroded profit margins and has forced the company to lay off thousands of workers.
As per current and former employees, Miller, 53, has a reputation of working well with the company’s workforce and customers and for leading successful projects.
Once he assumes the position, one of his first tasks will be to renegotiate contracts with oil producers and push them towards shelling out more for its pressure pumping and other services.
Last year Haliburton’s revenues have slumped by 33% to $15.9 billion. Its peers in the industry have warned that only in the event of higher oil prices will the oil industry be able to recoup labour and material costs.
Headquartered in Dubai and Houston, Halliburton signaled last month that oil’s nascent recovery is on the rise with an increase in demand. The company has however yet to raise its costs.
“I look forward to leading our organization as we continue to collaborate and engineer solutions to maximize asset value for our customers,” said Miller in a statement.
Lesar, who became CEO after predecessor Dick Cheney was nominated to be U.S. vice president in 2000, will step back from the company’s day-to-day management but will still be involved in talks with customers and shareholders.
He has signed a new employment contract with Haliburton which prohibits him from working with its peers for a period of 4 years.
“I have known and worked with Jeff for almost 30 years and have great confidence that he is the best choice to be the next Halliburton CEO,” said Lesar in a statement.
Lesar will be assuming the top role in the company after it lost its long-time chief financial officer, Mark McCollum, who left in March to become the CEO at rival Weatherford International Plc.
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