BP formalizes new Macondo spill group, with Dudley in charge

New York (Platts)--23Jun2010/1221 pm EDT/1621 GMT



BP Wednesday said that Bob Dudley has been named president and CEO of the company's newly formed Gulf Coast Restoration Organization, effective immediately.

The company said that Dudley, who is also a managing director, will report to BP's group CEO, Tony Hayward.

The formalization of the new organization was in response to the Macondo oil spill, and Dudley's appointment effectively removes the embattled Hayward from day-to-day management of the spill response effort.

Dudley, appearing on the NBC program Today, said the new organization "will be sustained for a long time" in order to "make sure we can deploy all the resources of BP and of the unified command structure with the Coast Guard, make sure we transition the claims over to Ken Feinberg as an independent claims leader. And this organization will report into Tony Hayward. He's fully, fully committed to BP meeting its obligations."

BP, in a press release announced the new organization, said Dudley "will manage all aspects of the response to the Deepwater Horizon incident and the oil and gas spill in the Gulf of Mexico, ensuring that BP fulfills its promises to the people of the Gulf Coast and continues its work to restore the region's environment."

It noted that its exploration and production group "will remain accountable for all activities relating to killing the MC252 exploratory well and containing the flow of oil and gas into the Gulf of Mexico."

In addition to working with federal, state and local officials on the cleanup and remediation efforts, the new organization will "keep the public informed" of the cleanup activities, implement the $20 billion escrow account the company committed to as part of the compensation program and "continue to evaluate the spill's impact on the environment."

In the the Today interview, Dudley was repeatedly asked whether the new organization was meant to get Hayward "out of the picture," related both to the spill and, ultimately, as head of the company.

He responded by saying there was a need to "bed this down," by making the temporary structure with its rotating staffers a more permanent operation.

Pressed by the interviewer again as to whether Hayward's days are numbered and whether BP is "committed to him," Dudley said: "that's right, ma'am."

--Robert DiNardo, robert_dinardo@platts.com