LONDON (AP) — Oil major BP Group PLC surprised the industry by revealing yesterday it has selected current L.M. Ericsson chief executive Carl-Henric Svanberg as its new chairman, ending a two-year hunt to fill the position.

Svanberg, who will be replaced at telecoms company Ericsson by his financial chief Hans Vestberg, will take over from outgoing BP chairman Peter Sutherland in January 2010 — marking his first oil industry role.

Europe's second-largest oil company is expected to tap 57-year-old Svanberg's experience in emerging markets and in dealing with governments as it continues to shift the focus of its downstream business — the refining, selling and distribution of oil products — to eastern Europe and other developing countries.

BP chief executive Tony Hayward said Svanberg "is a businessman of international stature who is recognised for his transformation of Ericsson."

"Our shared views on many aspects of global business give me great confidence that we will work very effectively together on the next phase of BP's progress," Hayward added.

Svanberg has led a restructuring of Ericsson since he took the top job there in 2003, cutting thousands of jobs while growing market share in telecoms equipment.

Similarly, BP has moved to boost efficiency since the appointment of Hayward in 2007, also shedding thousands of staff. Hayward has tried to bring new production and refining capacity on line to improve earnings, which have lagged behind rivals such as Exxon Mobil Corp. and Shell. The company is also looking to expand its presence in emerging markets such as China and India, where state-backed energy companies have been reluctant to allow global firms to build dominant positions.

The jury is still out on this strategy for many shareholders, with 40 percent voting against the company's remuneration report at this year's annual meeting.

Svanberg's appointment caught the financial district off guard, where analysts believed the front-runner to be former BHP Billiton chief executive Paul Anderson, reported last week to be on the short-list along with an unknown second candidate.