As Robert Dudley Takes Over, Outgoing BP CEO Defends Company’s Response

Robert Dudley, incoming BP CEO (R, backgound), with outgoing BP CEO Tony Hayward at the White House on June 16. Hayward defended BP's response to the Gulf oil spill this week. (Win McNamee/Getty Images)

With Robert Dudley slated to take over from BP’s embattled CEO Tony Hayward in October, Hayward defended his company’s role in cleaning up the Gulf oil spill—in an effort to appease US lawmakers and the general public.

“From day one I decided that I would personally lead BP’s efforts to stem the leak and contain the damage, a logistical operation unprecedented in scale and cost,” Hayward said in a company statement. “We have now capped the oil flow and we are doing everything within our power to clean up the spill and to make restitution to everyone with legitimate claims.”

BP announce this week that Hayward and the company’s board agreed mutually to move on, and that he would be replaced in October by Robert Dudley, a company executive who is currently overseeing the cleanup efforts in the United States. BP has said that it will nominate him as a non-executive board member of its TNK-BP joint venture in Russia.

Hayward had been criticized by the U.S. media and lawmakers for his lackluster response to the oil spill, which was caused by an explosion on April 20 aboard the Deepwater Horizon oil rig, a rig leased by BP.

At one point during the aftermath, Hayward told the media that he wanted to “get his life back,” which prompted backlash from the U.S. general public.

“It may not have been a great PR success,” Hayward told the Guardian regarding his statement. “You can argue about whether it could ever have been a great PR success, operationally we capped the well and cleaned up a hell of a lot of the oil.”

Massive Loss

As expected, the company swung to a second-quarter loss of $17.2 billion, due to costs to clean up the Gulf of Mexico oil spill and expected liabilities arising from the disaster.

BP announced a $32.2 billion total charge, which includes $20 billion it would contribute to a fund set up in agreement with the U.S. government to cover future damages. The company said that it would look to sell an additional $30 billion in assets to help cover future clean up costs.

“The costs and charges involved in meeting our commitments in responding to the Gulf of Mexico oil spill are very significant and this $17 billion reported loss reflects that,” Hayward said. “However outside the Gulf it is very encouraging that BP’s global business has delivered another strong underlying performance.”

BP suspended its dividend since the disaster, but hinted that it may reinstate paying dividends to shareholders by February 2011.

In the same period last year, BP recorded a $4.4 billion net income.