Chevron on Thursday announced that the oil major's vice chairman, Michael Wirth, will take over as chief executive officer and chairman of the board in February.
Wirth, who also serves as executive vice president of midstream and development, has spent more than three decades at Chevron.
Current CEO John Watson will retire from the company and the board on Feb. 1, 2018.
"Mike is a proven leader who is ideally suited to lead Chevron into the next chapter of our history," Watson said in a press release. "He has the right values, knowledge and experience, and has established a strong record of accomplishment in his 35 years with the company."
Shares of Chevron rose nearly half a percent to about $118 following the announcement.
Wirth's promotion, widely expected since last month, puts a refining specialist at the helm of the San Ramon, California-headquartered integrated oil company.
The 56-year-old holds a bachelor's degree in chemical engineering and spent roughly 10 years as executive vice president of Chevron's downstream and chemicals business — a segment responsible for refining crude oil into gasoline and operating the massive facilities that produce petrochemicals like plastics.