BP CEO Tony Hayward steps down

Hayward is leaving the company by mutual agreement with the BP board.

BP Chairman, Carl-Henric Svanberg, said: "The BP board is deeply saddened to lose a CEO whose success over some three years in driving the performance of the company was so widely and deservedly admired.”

The company’s second quarter results revealed a record $17 billion loss, following the fallout from the Gulf of Mexico oil spill. It has set aside $32.2 billion to pay for the clean-up operation.

Hayward has received widespread criticism for his handling of the disaster.

Under the terms of his contract, Hayward is to receive a year’s salary in lieu of notice, amounting to £1.045 million. His pension pot is said to be worth over £10 million.

In a statement, Hayward said: “The Gulf of Mexico explosion was a terrible tragedy for which - as the man in charge of BP when it happened - I will always feel a deep responsibility, regardless of where blame is ultimately found to lie.”

Hayward will remain on the BP board until November 30, 2010. There are also plans for BP to nominate him as a non-executive director of TNK-BP.

NEW CHIEF EXECUTIVE

Dudley is a main board director of BP and is currently running the recently-established unit responsible for clean-up operations and compensation programmes in the Gulf of Mexico. He was President and CEO of BP’s Russian joint venture, TNK-BP, until 2008.

Commenting on the oil spill crisis, Dudley said: “I do not underestimate the nature of the task ahead, but the company is financially robust with an enviable portfolio of assets and professional teams that are among the best in the industry. I believe this combination - allied to clear, strategic direction - will put BP on the road to recovery."

“The tragedy of the Macondo well explosion and subsequent environmental damage has been a watershed incident,” admitted Svanberg, adding that BP would be a “different company going forward”.

Edited by Ian Armitage

For the full statement, visit the BP website.