Mikaila Adams
Associate Editor, OGFJ
While official statements from BP (NY: BP) note that Tony Hayward remains CEO of BP, it is anticipated that news of his departure will come at any time.
Various media outlets are reporting insights on what will happen based on word from reliable sources said to have first-hand knowledge on the subject.
The ultimate economic consequences of the catastrophic BP well blowout and spill in the Gulf of Mexico have yet to be calculated, but the damage done to the reputations of both BP and the offshore industry may be even worse than the financial impact.
One month prior to Gulf disaster, BP discusses role of oilfield technology.
Neil Atkinson, director of energy and utilities research and analysis at Datamonitor, said: “From very soon after the Deepwater Horizon rig exploded on April 20th it has seemed inevitable that BP’s CEO Tony Hayward would leave the company before the end of the year. His gaffe-prone performances in front of the cameras and a gruesome appearance before a Congressional committee led to an irreversible loss of credibility.”
The UK’s The Guardian reported today that the announcement of Hayward’s departure will come “alongside its half-year financial results on Tuesday.” It also reported his replacement as Mississippi-native Bob Dudley, who is currently overseeing the oil spill operation in the Gulf of Mexico.
“The widely anticipated appointment of Robert Dudley should go some way to appeasing BP’s critics particularly in view of the fact that’s since he became the face of the company following the removal of Tony Hayward from the media firing line media criticism of the company has become less personalized and virulent,” continued Atkinson.
As BP battled financial disaster and the ongoing oil spill, Hayward served as the public face of the disastrous oil spill. While he has been out of the media spotlight now for weeks, it is being reported that he will move even further away from media attention–to Russia.
Citing an unidentified official close to the matter, the Associated Press reported today that Hayward will be reassigned to an unspecified role in BP’s joint venture in Russia, TNK-BP.
Replacing Hayward will be, in no uncertain terms, daunting. “On arriving in the CEO’s office Mr. Dudley will inherit a daunting in-box.” His priorities, as noted by Datamonitor’s Atkinson, will be as follows:
• Permanently seal oil spill.
• Establish a boundary in terms of who can sue BP and for how much. This is essential to provide clarity to investors.
• Lobby the US government to ensure that BP’s role in future upstream activity is not affected by legislation that might be judged as vindictive.
• Fight to preserve BP’s independence from potential predators, most notably ExxonMobil.
“Mr. Dudley is entering the CEO’s office at the worst point in BP’s history and he has an unenviable task. He will need strong support from a board that has exhibited little backbone in public so far during this crisis.”
Shares of the company were up +1.790 (+4.856%) at US$38.65 from today's open of US$37.93.