2010-07-28 11:11

BP executives were asked in a conference call whether they had discussed the tax credit with US authorities. "We have followed the IRS regulations as they are currently written," Hayward said.

Dudley pledged that his company will remain committed to the Gulf region even after the busted well is sealed for good - something that may happen soon. A temporary cap has held back the oil for nearly two weeks, a "static kill" effort to plug the well from above is to begin Monday and the permanent fix - a relief well could begin sealing the well from the bottom for good with mud and cement days after that.

Dudley was brought in to oversee the spill response after Hayward was vilified for a series of gaffes, including minimizing the spill's impact, saying that he would like his life back and attending a yacht race off the coast of England as Gulf residents struggled to cope with the spill.

In a mark of faith in its outgoing leader, the company said it planned to recommend Hayward for a non-executive board position at its Russian joint venture, TNK-BP.

The British CEO remains well-regarded in Europe and his appointment would be a benefit for Dudley, who, as the former head of TNK-BP, was forced to flee Russia and run the company in absentia after a flap with shareholders in 2008.

Hayward has some sympathy in his native Britain, where many retirees rely on BP stock and some consider US outrage at the company to be over the top. A recurring theme in newspaper editorials and discussions among many Britons is that there simply wasn't much one man could do in the face of relentless American wrath.

"BP sends Tony Hayward to Siberia to appease US," read a headline in the Guardian.

Hayward, who will stay on BP's board until November 30, will receive a year's salary of 1.045 million pounds ($1.6 million) as part of his severance package. His pension benefits are valued at about 11 million pounds ($16.8 million), and he retains his rights to shares under a long-term performance program that could eventually be worth several million pounds if BP's share price recovers.

Hayward said it was right that BP embark on its next phase under new leadership, and expressed his condolences for the families of the workers killed in the explosion.

"The Gulf of Mexico explosion was a terrible tragedy for which _ as the man in charge of BP when it happened _ I will always feel a deep responsibility, regardless of where blame is ultimately found to lie," he said.

Some Gulf Coast residents didn't expect the change in leadership to affect BP's response. Bob Boudet, 68, of Myrtle Grove, Louisiana, said he expects the same "deceptive attitudes that BP has had from the beginning."

Asked about Hayward's new job in Russia, Boudet quipped: "Oh, I think that's a wonderful job for him."

Plaquemines Parish President Billy Nungesser said he has faith in Dudley, noting "he seemed to have passion" for the region. As for Hayward heading to Russia, Nungesser said, "Anywhere far away from here."

President Barack Obama, who once said he would fire Hayward if he could, discussed the change in BP's leadership with Svanberg on Monday, Gibbs said Tuesday. No details about the conversation were released.

"Our concern is not who heads BP," Gibbs said. "Mr. Hayward is leaving. The key is that BP can't leave and should not leave the Gulf. ... They have obligations and responsibilities as the responsible party in this instance that have to be met regardless of who the CEO is."

Dudley, who will be based in London, will hand over spill response coordination to Lamar McKay, the chairman and president of BP America.

Dudley spent some of his childhood in Mississippi and worked for 20 years at Amoco Corp., which merged with BP in 1998. He lost out to Hayward on the CEO slot three years ago.

"I think you will find I listen hard and carefully to people and have worked with restructuring organizations to achieve change," he said. "I did not seek out this job. I was asked to step into these shoes, and I firmly and deeply believe that BP is a company made up of great people and great businesses."

Plugging the oil well for good will be a major milestone in the oil-spill fight. BP and the federal government differ slightly on when the relief well needed to accomplish that will be completed.

The government's oil spill response chief, retired Coast Guard Adm. Thad Allen, said Monday that the well could be completed as early as August 7, but Kent Wells, a BP senior vice president, said Tuesday he expected it would take until August 10. Both agree that it would take several days to several weeks to permanently seal the well after that.

Meanwhile, a barge slammed into an abandoned well near a Louisiana bay already fouled by the Gulf spill, sending natural gas and oil spewing into the air. Officials said the breach created a mile (1.6 kilometer)-long slick but that it was minimal compared with the gusher in the Gulf.