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Monday, January 31, 2011

New CEO vows to 'change the culture' of BP after Hayward steps down

THE new chief executive of embattled oil giant BP has pledged to "change the culture" of how society deals with security issues after the disaster of the Gulf of Mexico and vowed to "make sure this never happens again."

Bob Dudley was selected by "mutual agreement" to replace Tony Hayward, who is headed to Russia to join the TNK-BP.

Mr. Dudley said his priority was to permanently seal the Gulf as well, contain the oil spill and to clean and restore the affected beaches.

"I think sometimes events like this will shake the foundation, the foundation, and has two answers," Dudley said in the ABC morning show.

"It is run and hide, the other is to respond and really change the culture of the company and ensure that all checks and balances are there, just to make sure this never happens again."

Mr. Dudley spoke shortly after BP announced a quarterly loss of $ 17 billion and confirmed the resignation of Mr. Hayward.

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"The board of BP is deeply saddened to lose a general director, whose success over three years in the conduct of the company's performance was so widely and justly admired," President, Carl-Henric Svanberg said.

"The tragedy of Macondo and explosion and subsequent damage to the environment has been a watershed event. BP remains a solid business with assets well, great people and a vital role to play in meeting energy needs the world.

"But it will be a different company in the future, which requires a new leadership with strong government support and a very committed board."

Mr. Hayward will remain on the board of BP on 30 November, with the company planning to nominate non-executive director of the Russian TNK-BP.

He said: "The Gulf of Mexico explosion was a terrible tragedy for those who - like the man in charge of BP when it happened - I will always feel a deep responsibility, regardless of where they are ultimately the fault of lie.

"From the first day I decided that I, personally, directing BP's efforts to stop the leak and contain the damage, a logistical operation unprecedented in scale and cost.

"We have now blocked the flow of oil and we are doing everything in our power to clean up the spill and the restoration of all people with legitimate claims.

"I would like to thank all the people involved in the BP response and the many thousands of others along the Gulf Coast who have joined us in our efforts."

Mr. Hayward will receive a year's salary of £ 1.045 million (U.S. $ 1.8 billion) in the terms of his contract when he retires.

His replacement, said: "I am honored to be given the task of rebuilding the strengths and reputation of BP, but sad circumstances.

"I have great admiration for Tony, both for the work he has done since he became CEO in 2007 and for their tireless dedication to deal with the Gulf of Mexico from disasters."

On his appointment, Mr. Dudley will be based in London and will deliver its current functions in the U.S. Lamar McKay, chairman and president of BP America.

The oil company said Tuesday it will pay $ US32.2 million to cover the cost of the disastrous spill.

"The costs and expenses involved in carrying out our commitments in response to oil spill in the Gulf of Mexico are very important and the loss of 17 billion U.S. dollars reflecting informed," said Hayward.

"However, outside the Gulf is very encouraging that the global business of BP has delivered another strong underlying performance, which means that the company is in solid form to meet their responsibilities to address the human tragedy and the oil spill in the Gulf of Mexico. "

The announcement came as the environmental group Greenpeace activists blocked access to several dozen stations BP service in London in a protest against the energy giant's "obsession with oil."

The protesters placed signs saying: "Beyond Petroleum closed .."

About 35 stations were immobilized by small teams that use a shutoff valve to stop fuel flow at each location.

Greenpeace urges Mr. Dudley take the company into a new direction after what he called his predecessor "obsession with high-risk, environmentally irresponsible sources of oil."

One of the Greenpeace activists told Sky News: "This action is not directed at motorists is directed to the company - that has to change its strategy.".

He said the group planned to stay in place all day and ran the fuel for motorists who need other outlets. BP said it expected to restore service in all seasons later tonight.

"We had a very positive reaction from motorists. I think people are angry at BP," he said.

BP has been under heavy attack in recent months over his role in the discharge of the Gulf of Mexico oil spill.

Much of that was addressed to Mr. Hayward, who became a lightning rod for criticism of the company's reaction to the explosion on an oil rig Deepwater Horizon on April 20, 2010.

The blast killed 11 people, prompted accusations of security flaws and left the company struggling to cope with the worst environmental disasters in the United States.

His reputation was further damaged by his poor performance before a congressional panel and an infamous gaffe in the chamber, in which he complained: ". I want my life"

After his appearance in Congress, suddenly left the U.S. and handed the reins to deal with the spill in the Gulf to Mr. Dudley.

withdrawal of Mr Hayward is seen by BP as a way to begin to repair its battered reputation in the U.S. and some of the damage caused to the value of the shares of the company that was launched more than 40 percent as a result of the spill in the Gulf - from $ 194 billion to $ 116 400 000 000.

Mr. Svanberg - who faced criticism for not doing enough to support Hayward - remains at the head of the company based in London, although its position is also considered under threat.

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