American replaces Hayward at BP helm

BP boss Tony Hayward is to step down as chief executive and is to be replaced by American Bob Dudley, who is currently in charge of Gulf clean-up operations. It comes as the group announces costs reaching 32.2 billion dollars, helping push it to a loss of 16.9 billion dollars in the second quarter of 2010.

A BP fuel station in London Reuters

"BP today announced that, by mutual agreement with the BP board, Tony Hayward is to step down as group chief executive with effect from 1 October," the group said, adding he will be nominated as a non-executive director of the Russian joint venture TNK-BP, which is based in eastern Siberia.

"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," Hayward said in the statement.

Under the terms of his contract, Hayward will receive one year's salary, worth the equivalent of 1.045 million pounds (1.245 million euros).

Hayward will be succeeded by fellow executive director Bob Dudley, who is in charge of Gulf clean-up operations.

Dudley said that he would remain “committed to remediation and restitution” in the region.

"I gave a promise to make it right and I will keep that promise," he said, adding that he would aim to place BP back "on the road to recovery".