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Old 07-25-10, 11:00 AM   #1
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Post Hayward expected to resign as BP looks to rebuild (AFP)



LONDON (AFP) – BP will sacrifice embattled chief executive Tony Hayward within days as it tries to rebuild its image in the aftermath of the Gulf of Mexico oil disaster, reports said Sunday.

The BBC said Hayward was negotiating his exit and an announcement was likely by Monday when the BP board meets ahead of second quarter results expected to reveal a 30-billion-dollar provision for paying for the disaster.

In the Gulf, US oil spill chief Thad Allen said BP's long-awaited operation to permanently plug the leaking Gulf of Mexico well had been delayed and will now probably begin the week after next.

Originally expected as early as Tuesday, Allen said nothing major had happened to force the delay, it was just a "refined and revised" timeline from BP as it redeploys vessels and personnel following a recent storm.

The leak was sealed 10 days ago with a giant cap, but up to four million barrels (170 million gallons) of crude had already spewed into the sea since a deadly rig explosion in April.

Toxic crude has washed up on the shores of all five US states on the Gulf Coast and vital tourism, fishing and oil industries in the region have been decimated by the disaster.

BP is facing a lengthy claims process and hundreds of lawsuits are pending against the British energy giant, not to mention hearings into the cause of the initial April 20 blast that should determine eventual liability.

The BBC report, which quotes a senior BP source, said there was a "strong likelihood" Bob Dudley, who took over the day-to-day management of the spill response from the Hayward last month, would be his replacement.

The Sunday Telegraph said there could be wrangling over Hayward's severance package, under which he is likely to be paid a minimum figure of just over one million pounds (1.5 million dollars, 1.2 million euros).

Asked about the BBC report, a BP spokesman told AFP he would not comment on speculation. He added: "Tony Hayward is our chief executive. He has the full support of the board and management."

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