BP Plc (NYSE:BP), a global energy company, denied a report that its Chief Executive of oil and energy Tony Hayward would not stay in office, after the company faced the worst oil spill in the U.S history.
BP PLC said Tuesday it would sell assets in the U.S., Canada and Egypt to Apache Corp. for $ 7 billion to help pay the costs from the Gulf of Mexico oil spill.
According to BP spokesman, the chief executive who had been criticized for a series of gaffes and a failure to constraint the leak in the Gulf of Mexico, had the full support of the board and would not leave the office.
BP Plc’s Robert Dudley is the front-runner to replace Hayward.
BP was committed to spend $ 20 billion to meet the costs of the spill and now it is going to put up assets for sales all over the world to prop up its finances.
It reached a $ 7 billion agreement with oil and gas exploration and production Apache Corp. The deal would include concessions in Egypt, assets in New Mexico, and natural gas in western Canada.
BP's shares ended at $ 35.20 at New York, up 1.3 percent in after-hours trading. Three months witnessed 40% decline in the stock. BP’s share plummeted to a 13-year low in June.
BP took steps to stem the leak and compensate for damages. It agreed under intense U.S pressure from month ago to ready an independently administered $ 20 billion escrow fund for damage claims.
Al Troner, president of Asia Pacific Energy Consulting in Houston, said that Hayward was not entirely accounted for the oil spill.
Hayward was appointed to the Chief Executive position with immediate effect on 1 May 2007. He received an annual salary of £1,045,000, and his bonus was £1,496,000 and £2,090,000 in 2008 and 2009 respectively.
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