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BP chief Tony Hayward to outline strategy that restores firm's fortunes

• Second quarter figures likely to show surge in profits to $5bn
• BP's Gulf oil spill liabilities expected to top $20bn

Tony Hayward
BP chief Tony Hayward will next week reassure investors that the firm is capable of recovering from the Gulf oil spill tragedy. Photograph: Chris Kleponis/AFP/Getty

BP boss Tony Hayward will next week launch a fight back against the wave of criticism that has engulfed him and BP following the Gulf of Mexico oil spill. Hayward is set to outline a new corporate growth strategy in a bid to reassure shareholders and, at the same time, cement his position as chief executive.

His move comes as pension funds in New York and Ohio unveiled plans to sue BP for "securities fraud" as a result of the oil company's allegedly misleading comments on its ability to handle safety issues and deal with a major clean-up.

The strategy briefing in London on Tuesday will come alongside the release of second quarter profit figures which will show a strong year-on-year increase to about $5bn (£3.2bn). The result, however, will be dwarfed by an expected $20bn-plus estimate of liabilities emanating from the Deepwater Horizon disaster.

Hayward will argue that a slimmer more focused BP is still capable of bouncing back from the Gulf tragedy in which 11 workers were killed and the coastline scarred by saying the brand continues to be strongly respected elsewhere in the world.

He will outline recent new drilling deals to proceed in Egypt, Libya and Azerbaijan as proof that BP is still in great demand as a partner, especially in deep water areas where it was regarded as a leader.

The chief executive, who has taken a hail of personal criticism from politicians in Washington, will also give further details on $10bn of planned divestments including an agreement to dispose of $7bn of assets in the US, Canada and Egypt to Apache Corporation of America. BP has also earmarked gas fields and pipeline in Vietnam plus exploration licenses in Pakistan, for sale.

Hayward believes the time is now right for BP to move onto the front foot in the battle to win back the full support of investors and others after this week's successful operation to stem the leaking well with a containment cap. He plans to give an outline of future strategy next week but a more detailed version in the autumn.

A report in The Times claimed Hayward would leave within the next 10 weeks as a way of drawing a line under an incident – which BP's initial investigations suggest it might have made mistakes.

But the company officially denied any departures were imminent with a spokesman saying "Tony is leading the company in a strong and robust way and has the support of the board."

The vast body of critics are based in America where pension funds from Ohio and New York states announced plans to sue BP for losses to their funds since 20 April when the accident in the Gulf occurred.

"Institutional investors, and the Ohio Funds in particular, have been greatly harmed by BP's alleged misconduct. By forming a partnership between New York and Ohio, we aim to compensate investors for what we believe was securities fraud and effect real change in the way BP and other companies do business," said Ohio attorney general, Richard Cordray. His suit alleges that BP made misleading statements regarding safety protocols, and its ability to handle a major oil spill.

But governments outside of America – especially ones which oversee important deep water oil provinces, such as Brazil, Angola and Libya – seem keen that BP should survive rather than be brought to its knees by the US government actions or legal claims.

Earlier this week Egypt announced it was going ahead with a $9bn deal whereby BP and RWE of Germany would develop a deep water gas field in the Mediterranean and pipe the energy to land for processing. Equally BP and the state-owned Libyan Investment Corporation will start drilling in the Sirte Basin under a wider $900m exploration programme.

David Cameron said on Tuesday that he would review the circumstances over the release of Abdelbaset al-Megrahi, the Libyan-born Lockerbie bomber amid allegations in the US that BP unfairly influenced the decision.


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  • TrojanHorace TrojanHorace

    21 Jul 2010, 10:08PM

    Does it begin with his resignation?.. it obviously should. How is it that a Board too dumb to recognise the need to replace their CEO, can make such obscene amounts of money?

  • HaggisMaker HaggisMaker

    21 Jul 2010, 10:25PM

    Ah, the bleating 'socialists' have started their whining already I see.

    I'm a BP shareholder (in profit, as it happens, as I bought when Obama was shooting his mouth off the most). And so are many others, who don't think they are.

    It's good to see that BP are starting to fight back.

    The ranting and raving of the US administration is disgusting. Slimy self serving politicians interested in nothing but their own vote getting.

    And as for that Captain Mainwaring that they've got 'in charge'. Thad Allen, sorry, ADMIRAL Thad Allen, what the hell is he all about. 'Ordering' and 'demanding' that BP do this that and the other. Obama with his 'We' have done x, y and z.. Neither of them know diddly squat about drilling for oil. Or how to fix the leak. But every success is a 'we' success, and every failure is British Petroleum's fault. Two faced, mendacious, manipulative idiots the lot of them. I see right through them, and by the end of this so will many others.

    I hope Tony Hayward stays. I hope BP sells it's American interests to which ever poor saps are willing to put up with the half wits in Washington. And I hope that BP continues to forge alliances with businesses and governments who recognize their expertise and experience.

    There was an accident. Sadly 11 men died. There has been some pollution (has it killed anybody yet?). BP is fixing the leak and paying for the damage. What else do you want?

    Life isn't perfect. It's tough all over. Grow up.

  • HawkSp HawkSp

    22 Jul 2010, 8:18AM

    HaggisMaker

    With people like you, biodiversity on earth has not too much years of future.

    Let's all kind of bussiness continue to pollute only for money, the planet isn't important. If we destroy it, we can go to the space for searching another planet to destroy.

    But who dares fore those thousand of other lives dead for the oil spill... It's their problem, isn't it? They have only go to other place!

    And for BP, the bigest oli spill in the history (not counting the Gulf one) will be "cheap" for their economy. Now they will continue to earn money, saving on security and spilling everyehere in the 3rd world where they can buy any president and "shut" anyone who claims sollutions to those spills.

    Poor humans, so inteligent and so stupids

  • HaggisMaker HaggisMaker

    22 Jul 2010, 9:59AM

    HawkSp:

    You actually don't know anything about my output of greenhouse gases, or whether my impact upon the natural environment is positive or negative.

    When was the last time you got on an aeroplane?

  • Rosie59 Rosie59

    22 Jul 2010, 5:26PM

    Haggismaker, Well commented.

    BP was in a downward tailspin when Hayward took over. The employees, contractors and countries across the world all believe in Hayward and his team. This spill was an accident due to many failings - mechanical and professional judgement from all companies involved. Tony Hayward does not deserve the vindictive, nasty treatment he has received. Yes, he made some verbal gaffs however, the Chairman's gaffs were far worse. The BP board has been completely invisible this disaster, they have offered no help and are a feckless bunch. They need to look at themselves before they start accepting or asking for resignations from the very people who have made this great company what it is. An accident is an accident, Tony and his team have worked tirelessly for 95 days to make things good. They deserve better treatment. I wish them all well.

  • HaggisMaker HaggisMaker

    22 Jul 2010, 8:04PM

    This whole episode has just about destroyed the last remnants of respect I had for politicians, as a class. There might be some good ones, but not in the White House.

    Just compare the two men.

    Barack Obama is a lawyer, whose skill is words and creating an impression. It's nothing more than that, talk and appearing a certain way. He's climbed the greasy pole of politics.

    Although I have to admire the skill he's developed in walking down the steps of Airforce One. He really got that down. Ace walker-down-aircraft-steps-while-looking-serious.

    Tony Hayward is a geologist. A first class for his Batchelors and then a PhD from Edinburgh. He's an expert in a physical science. I'm impressed by that a lot more than the gab that's involved in a law degree.

    Then Tony Hayward worked on rigs (assuming that's what a rig geologist does). So if anybody might be expected to have some understanding of the life of rig workers, it's him. Unlike Barack Obama with his crocodile tears for the families of the 11 workers who died on the Deepwater Horizon.

    Barack Obama has done nothing but attempt to exploit the whole disaster for his own political ends, and it makes me sick.

  • ffotoragg ffotoragg

    22 Jul 2010, 9:52PM

    some accident---have any of you read any of the documents that have been found that show safety inspections hadn't been done, or ever done in a timely manner? (from transocean and bp) amongst a lot of other safety violations---and of course, the 11 that died--i have sent my own condolences to them-----PICTURE THIS----YOU CANNOT USE THE ENGLISH CHANNEL FOR ANYTHING BECAUSE THERE IS SO MUCH OIL AND DISPERSANT, THE WATER AND THE AIR IS BECOMING POISONOUS---WHAT CAN YOU DO?????
    well that is what is happening over here---no one is to blame except all the companies involved in that drilling rig ---and our government for letting it happen---and then the rest of us for needing the oil---our president has not exploited this for anything----it's very sad to me that the epa --noaa and osha are all complicit in covering up the information about the dispersant--any one of you can look up the msds(material safety data sheet) for corexit 9500 or 9527--and it tells in black and white how toxic it is----WHAT WOULD ALL OF YOU DO IF YOU COULDN'T USE THE ENGLISH CHANNEL???? FOR SAY, 20 YEARS AT LEAST???? THAT'S WHAT YOU NEED TO REFLECT ON-----

  • ffotoragg ffotoragg

    22 Jul 2010, 9:53PM

    some accident---have any of you read any of the documents that have been found that show safety inspections hadn't been done, or ever done in a timely manner? (from transocean and bp) amongst a lot of other safety violations---and of course, the 11 that died--i have sent my own condolences to them-----PICTURE THIS----YOU CANNOT USE THE ENGLISH CHANNEL FOR ANYTHING BECAUSE THERE IS SO MUCH OIL AND DISPERSANT, THE WATER AND THE AIR IS BECOMING POISONOUS---WHAT CAN YOU DO?????
    well that is what is happening over here---no one is to blame except all the companies involved in that drilling rig ---and our government for letting it happen---and then the rest of us for needing the oil---our president has not exploited this for anything----it's very sad to me that the epa --noaa and osha are all complicit in covering up the information about the dispersant--any one of you can look up the msds(material safety data sheet) for corexit 9500 or 9527--and it tells in black and white how toxic it is----WHAT WOULD ALL OF YOU DO IF YOU COULDN'T USE THE ENGLISH CHANNEL???? FOR SAY, 20 YEARS AT LEAST???? THAT'S WHAT YOU NEED TO REFLECT ON-----

  • jollysailorboy jollysailorboy

    22 Jul 2010, 10:09PM

    @ffotoragg - what are you on, the spill just isn't THAT bad. You might like to think it's the end of the world as you know it and make all the usual sensationalist fuss, but the fact of the matter is, it's the worlds 9th largest body of water and the amount of oil in there just ain't that much, certainly nowhere the point where the GOM can't sort itself out. All this 20 years BS that you come up with is complete rubbish, already they are reopening parts of it for fishing, don't try and tell us they're not.

    HaggisMaker and Rosie59, keep up the positive words!!

    JSB

  • ffotoragg ffotoragg

    22 Jul 2010, 11:03PM

    hey there jolly sailorboy---you are possibly going to think twice about your remarks---you guys get to enjoy your warm weather because of the LOOP CURRENT that makes its way up to you via the atlantic---so, any of you can look up --find someone you trust---and see where the loop current is now 'broken'; rather, an eddy has formed in the central part of the gulf since about mid may---and hasn't reconnected to the loop current yet----do you remember last year's winter you had????? if the loop current doesn't connect again--you will experience that for a long time to come --that is a definite possibility---but don't take my word for it---check for yourself---positive words will not change scientific findings ----------

  • HaggisMaker HaggisMaker

    22 Jul 2010, 11:37PM

    ffotorag:

    Well, the last time I swam in the English Channel it seemed just fine. The last time I crossed the English Channel by ferry it seemed OK. But if you say it's poisoned and I can't use it 'for anything' then you must be right.

    I think nurse is here with your pills now.

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