London, 26 July (Argus) — BP's board of directors will meet today to decide on the future of embattled chief executive Tony Hayward, so an announcement can be made ahead of, or simultaneous, with the company's second-quarter results tomorrow.
Criticism of Hayward's public relations since the Macondo well blowout and subsequent oil spill in the Gulf of Mexico means the board is under pressure to dispense with Hayward. The board meeting will be overseen by chairman Carl-Henric Svanberg who only took over the role in January, joining from telecommunications company Ericsson, and has himself been under intense scrutiny.
While the removal of Hayward may reduce pressure on BP in the US, it will not be universally welcomed. Analysts at stockbroker Panmure Gordon said today that Hayward's departure “would be bad news for BP given that Tony Hayward was doing a good job that was only marred by the tragedy in the Gulf of Mexico. If the rumours are true, it would be a sad day but the board is obviously looking to try to create a scapegoat and move forward”.
Hayward became chief executive in 2007, succeeding John Browne, who also had to depart in circumstances not of his own choosing. A geologist by background, Hayward rose to become head of upstream operations and a board member in 2003.
The most touted name to succeed Hayward is Robert Dudley. He joined BP through the merger with Amoco and is a US citizen. A chemical engineer by training, he headed up BP's alternative energy unit before leading the upstream effort in Russia, the Caspian, Angola, Algeria and Egypt. Russia, the Caspian and Angola have all been key development areas for the company. But Dudley's highest public profile position was as chief executive of the UK-Russian joint venture TNK-BP. He took on that role in 2003 but was forced out as Russian shareholders increasingly asserted control over the company until improved relations were established between the parties last year. He was then appointed to the board of BP.
Dudley was dispatched to the US last month to head up the environmental and political crisis management of the Gulf of Mexico disaster, and then was named as head of a standalone unit to handle the Macondo affair.
But Dudley is not seen as the only possible internal candidate for the post. Head of refining and marketing Iain Conn may also be in the running. A Scottish chemical engineer, he has experience of the US where he has worked in the upstream and downstream.
Tomorrow's results will be dominated by the scale of the provisions made for the Gulf of Mexico clean-up and compensation. BP has already suspended dividend payments. Upstream earnings are expected to gain from higher prices but be pressured by a seasonal dip in production. Downstream profits should benefit from much improved margins.
Send comments to feedback@argusmedia.com
ts/rjd 2.1
If you would like to review other ArgusMedia.com content options, request more information about Argus' energy news, data and analysis services.
Copyright © 2010 Argus Media Ltd - www.ArgusMedia.com - All rights reserved.