BP leadership to be replaced once oil well is capped

Published on 07-05-2010

The leadership of BP will reportedly be replaced as soon as the leaking oil well in the Gulf of Mexico is capped, according to the company’s top shareholders and officials close to the executive team at BP.

“When this is over there will be a full investigation, and we would expect some action to replace the top team,” one of the top ten shareholders in the UK said, according to CNN Money.

Under particular fire is Chairman Carl-Henric Svanberg, who has been criticized for allegedly failing to fully support CEO Tony Hayward in addition to careless “small people” comments that didn’t sit well with the American public.

Tony Hayward enjoys a measure of support from investors in the company, but as part of an entire revamping of the organization he will need to be replaced.

Once the Deepwater Horizon oil spill has been contained and the oil well capped, BP plans to take dramatic steps to restore its damaged image and reputation and in so doing protect its independence.

The second-quarter earnings announcement is key, the company is likely announce liabilities in the tens of billions due to the spill and will be vulnerable to a takeover from rival companies if decisive action is not taken in replacing the top management.

The main rivals likely to attempt a takeover bid are ExxonMobil, Royal Dutch Shell or PetroChina, a major Chinese oil company.

The most likely candidates to replace those at the top are predominantly American, such as Bob Dudley, the Managing Director for Asia and the Americas who has won favor with investors for his handling of a hostile American media.