Occidental Petroleum’s CEO transition puts a spotlight on the foreign post advantage

Occidental Petroleum’s next chief executive began his career far from the Houston headquarters.

On May 1, Occidental announced that COO Richard Jackson will succeed Vicki Hollub as CEO upon her retirement in June. Hollub, who became CEO in 2016, was the first woman to lead a major U.S. oil company, a landmark appointment in an industry long dominated by men. She will remain on Occidental’s board after stepping down.

Jackson’s path to the top job adds another layer to the succession story. He joined Occidental in 2003 in its Middle East operations, an early assignment that points to a career lesson for executives with CEO ambitions: global postings can be powerful proving grounds that help leaders develop the judgment and range that boards look for in a chief executive, especially in industries where capital, resources, regulation, and politics cross borders.

That is especially true in oil and gas, where companies depend on global supply chains, international partners, access to resources, and relationships with host governments. A leader who has worked in a region such as the Middle East may bring a deeper understanding of how politics, production, and partnerships intersect.

International assignments can also give executives a broader leadership test than many HQ roles. In a foreign market, executives are often pushed beyond a single specialty and asked to manage the business across functions. Leaders may need to manage operations, talent issues, legal questions, safety concerns, community relationships, and commercial performance simultaneously. That kind of role can look to a board like a smaller-scale version of the CEO job.

The value of an overseas role often depends on timing. Early and mid-career assignments can help rising managers build credibility, autonomy, and resilience. A three-year post abroad can show that an executive can deliver results without constant oversight. Later in a career, international assignments can serve as finishing school for a senior leader who needs more experience running complex markets before being considered for the top job.

Of course, there are caveats, and not all global posts are built the same. An overseas assignment can, on the one hand, increase an executive’s visibility if the role is high-profile, connects to the future of the business, and is closely watched by top leaders. But it can also create distance from headquarters if the company lacks a clear plan for bringing that person back into the leadership pipeline. The strongest moves usually come with sponsorship from senior executives, clear performance goals, and a path to a meaningful role after the assignment ends.

Jackson’s rise at Occidental is only one example, not a universal template. Still, it shows how international experience can become one part of a CEO’s story when paired with a broader record of relevant leadership. Since his Middle East post, Jackson has held roles across U.S. onshore oil and gas, low carbon technologies, the Permian Delaware Basin, enhanced oil recovery, investor relations, and drilling.

Ruth Umoh
ruth.umoh@fortune.com

This story was originally featured on Fortune.com