EDITOR's NOTE: information added about BP's activity in Azerbaijan
BP today announced that, by mutual agreement with the BP board, Tony Hayward is to step down as group chief executive with effect from October 1, 2010. He will be succeeded as of that date by fellow executive director Robert Dudley.
Hayward will remain on the BP board until November 30, 2010. BP also plans to nominate him as a non-executive director of TNK-BP.
Dudley currently runs the recently-established unit responsible for clean-up operations and compensation programmes in the Gulf of Mexico. He joined BP from Amoco after the merger of the two companies in 1998. He was president and CEO of BP's Russian joint venture, TNK-BP, until 2008.
"I will be working closely with Bob Dudley over the coming months to ensure a smooth transition. It has been a privilege to serve BP for nearly 30 years and to lead it for the last three. I am sad to leave so many fine colleagues and friends who have helped this great company to achieve so much over the years. I am sorry that achievement has been overshadowed by the tragedy in the Gulf of Mexico," Hayward said.
On his appointment, 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.
Currently, BP is working in Azerbaijan within projects such as the development of the block offshore fields Azeri-Chirag-Guneshli (operator) and gas condensate field Shah Deniz "(technical operator). In addition, the Company is a participant of the Baku-Tbilisi-Ceyhan oil pipeline (operator) and the South Caucasus gas pipeline.
The company also is the operator of the project of exploration and development of prospective structures "Araz-Alov-Sharq", suspended due to the Caspian Sea's unsettled status.
At present, BP and SOCAR (State Oil Company of Azerbaijan) are negotiating on possibility of concluding a contract for exploration and development of prospective structures "Asiman" and "Shafag". A memorandum on the basic commercial principles has been already signed on this project.
Hayward has worked for BP for 28 years and has held the post of director for the past three years, RIA Novosti reports.
Tony joined BP in 1982 and began his career as a rig geologist in the North Sea. Following a series of technical and commercial roles in Europe, Asia and South America, he returned to London in 1997 as member of the Upstream Executive Committee. He became Group Treasurer in 2000, Chief Executive for BP's upstream activities and member of the Main Board of BP in 2003. In May 2007, Tony was appointed Group Chief Executive of BP p.l.c. He is a Member of the Business Council of Britain, a Member of Tsinghua Advisory Board, a Member of MIT Energy Advisory Board, Chair of GLOBE CEO Forum for Climate Change and a Trustee of the Emirates Foundation. He is a Companion of the Chartered Management Institute and a Fellow of the Royal Society of Edinburgh.
Hayward became BP director general May 1, 2007. Then he won Robert Dudley in the competition for the post of head of the Russian-British TNK-BP.
Hayward's annual salary is 1 million pounds. The bonus amounted to 1.5 million pounds in 2008, in 2009 - 2.1 million pounds.
According to The Sunday Telegraph, the details of the compensation package were discussed on weekend. Hayward will receive a minimum of $1.6 million, equivalent to annual salary, the magazine reported. Moreover, a 53-year-old manager has accumulated substantial retirement - $16,6 million while working in BP. When Heyward will be 60, he can receive $900,000 a year. In this case, probably he will refuse from the option of 546,000 shares and 2 million securities worth $12.3 million within the long-term incentive plan.
American Robert Dudley headed the Russian-British oil company TNK-BP in 2003-2008.
The conflict between TNK-BP Russian and British shareholders continued throughout the summer of 2008. It ended September 4, 2008 by signing a memorandum of understanding between the consortium of Alfa / Access / Renova and BP. A major controversial issue - the resignation of current CEO Robert Dudley before the end of the year was reflected there.
Dudley formally resigned December 1, 2008, although he left Russia in July. This was one of the conditions of the September truce between TNK-BP shareholders. Russian shareholders demanded the resignation. They argued that Dudley manages the company only in the interests of British shareholder.
Dudley went to the board of BP directors as a Managing Director of BP Group in February 2009. He is responsible for the company's activity in North and South America and Asia.
Dudley was appointed head of a new unit to combat the effects of oil spills in the Gulf in June 2010 after the April crash on the platform Deepwater Horizon in the Gulf of Mexico.
Deepwater Horizon platform controlled by BP sank in the Gulf of Mexico near the coast of Louisiana April 22 after a 36-hour fire, which followed after a powerful explosion that claimed the lives of 11 people. Oil spill, which is still ongoing, has already caused damage to Louisiana, Alabama, Mississippi. It threatens with ecological disaster.
BP's expenditure to liquidate oil spill in the Gulf of Mexico hits $ 4 billion. This amount includes the cost of spill, construction of additional "handling" of wells, sealing wells, grants for oastal countries and payment of claims. The company has already got at least 116,000 claims from victims. About 67,500 of them made got payments worth $207 million.
The incident in the Gulf of Mexico became the largest oil spill in the U.S., the scale of which exceeded the consequences of the sinking tanker Exxon Valdez near Alaska in 1989. Then, about 260,000 barrels of oil spilled from the ship.