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

THE new chief executive of embattled oil giant BP has vowed to “change the culture” of how the company tackles safety issues after the Gulf of Mexico disaster and promised to “make sure this does not happen again.”

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

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

“I think sometimes events like this shake you to the core, the foundation, and you have two responses,” mr Dudley said on ABC’s morning program.

“One is to run away and hide, the other is to respond and really change the culture of the company and make sure all the checks and balances are there, just to make sure this does not happen again.”

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

“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,” Chairman Carl-Henric Svanberg said.

“The tragedy of the Macondo well explosion and subsequent environmental damage has been a watershed incident. BP remains a strong business with fine assets, excellent people and a vital role to play in meeting the world’s energy needs.

“But it will be a different company going forward, requiring fresh leadership supported by robust governance and a very engaged board.”

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

He 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.

“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.

“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.

“I would like to thank all of the BP people involved in the 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 amounting to £1.045 million (US$1.8 million) under the terms of his contract when he steps down.

His replacement said: “I am honoured to be given the job of rebuilding BP’s strengths and reputation but sad at the circumstances.

“I have the greatest admiration for Tony, both for the job he has done since he became CEO in 2007 and for his unremitting dedication to dealing with the Gulf of Mexico disaster.”

On his appointment, Mr Dudley will be based in London and will hand over his present duties in the US to Lamar McKay, Chairman and President of BP America.

The oil company said Tuesday that it will write off $US32.2 billion to cover the cost of the disastrous spill.

“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,” Mr Hayward said.

“However outside the Gulf it is very encouraging that BP’s global business has delivered another strong underlying performance, which means that the company is in robust shape to meet its responsibilities in dealing with the human tragedy and oil spill in the Gulf of Mexico.”

The announcement came as activists from environmental group Greenpeace blocked access to several dozen BP petrol stations in London in a protest against the energy giant’s “obsession with oil.”

The protesters put up signs saying: “Closed. Moving beyond petroleum.”

Some 35 stations were immobilised by small teams who used a shut-off switch to stop the flow of fuel at each location.

Greenpeace is urging Mr Dudley to take the company in a new direction after what it calls his predecessor’s “obsession with high risk, environmentally reckless sources of oil.”

One of the Greenpeace activists told Sky News: “This action is not targeted at motorists. It’s directed at the company – it needs to change its strategy.”

He said the groups were planning to stay in place all day and were directing motorists who need fuel to other outlets. BP said it expected to restore service at all stations later tonight.

“We’ve had an extremely positive reaction from motorists. I think people are angry at BP,” he said.

BP has come under heavy attack in recent months over its role in the Gulf of Mexico oil spill disaster.

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

The blast left 11 dead, sparked accusations over safety failings and left the company struggling to deal with America’s worst environmental disaster.

His reputation was further damaged by his poor performance before a congressional panel and an infamous gaffe on camera, in which he complained: “I want my life back.”

Following his appearance on Capitol Hill, he abruptly left the US and handed over the reins of dealing with the Gulf spill to Mr Dudley.

Mr Hayward’s removal is seen by BP as a way to begin repairing its shattered reputation in the US and some of the damage done to the company’s share value which dived more than 40 percent in the wake of the Gulf spill – from $194 billion to $116.4 billion.

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

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