BREAKING NEWS

BP to fire CEO Tony Hayward over Gulf oil spill

By ASSOCIATED PRESS

JULY 27, 2010 07:30

BP CEO Tony Hayward will step down from his post in October after the disastrous Gulf oil spill which occurred during his tenure, according to an anonymous source who reported on the British company's board meeting Monday.

Tony Hayward, who became the face of BP's flailing efforts to contain the massive Gulf oil spill, will be offered a job with the company's joint venture in Russia, a person familiar with the matter said Monday.

The person spoke on condition of anonymity because an official announcement had not been made by the British company's board, which was meeting Monday in London to decide Hayward's fate.

It's not yet clear what Hayward's role will be with TNK-BP. He left the board meeting Monday without speaking to reporters, climbing into a silver Lexus that sped off.

BP owns half of the oil firm, which is Russia's third-largest.

It was once run by American Bob Dudley, now the favorite to replace Hayward as BP CEO. After Hayward made a series of missteps, including telling reporters he wanted his life back as Gulf residents struggled to deal with the spill, Dudley took over as BP's point man in dealing with it. He was in London Monday with other board members.

Hayward was called back to London a month ago after a bruising encounter with a Congressional committee and has since kept a low profile.

"We're getting to the end of the situation," said David Battersby at Redmayne Bentley Stockbrokers. "To draw a line under it, they need a new chief executive."

In New York, BP shares rose almost 5 percent Monday as the stock market anticipated a formal announcement about Hayward. Shares of BP PLC rose $1.82, or 4.9 percent, to $38.68 in midday trading in New York. BP shares closed up 4.6 percent Monday at 416.95 pence in London.

The BP board would have to approve a change in company leadership, and there is persistent speculation that chairman Karl-Henric Svanberg, who moved into the post on Jan. 1, is also likely to lose his job later this year.

The one-day board meeting comes a day before BP announces earnings for the second quarter. That report is expected to include preliminary provisions for the cost of the Gulf disaster, with analysts saying that could be as high as $30 billion.

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