Mail Online reported:
BP will spin off its efforts to manage the fallout from the Gulf of Mexico oil spill into a separate division to be headed by renowned troubleshooter Bob Dudley.
Chief executive Tony Hayward told investors that US citizen Dudley would lead the long-term response once the spill is over, adding: 'I don't believe we could have a better person to lead this organisation.'
The spin off strategy raises legal liability questions. What advantages does a "spin off" provide? The selection of Robert Dudley is interesting, given what BP didn't say. Dudley was appointed to the BP board in February 2009.
Board members are selected for their business acumen and connections. CEO Tony Hayward's tapping a board member to manage the spill mobilizes serious horsepower. Dudley is not Big Oil's first board member involved in the Deepwater Horizon blowout.
President Obama selected a ConocoPhillips board member to co-chair his Oil Spew Commission. William Reilly has $250,000 in annual compensation and controls over $2 million in stock from ConocoPhillips. ConocoPhillips is a joint venture partner with BP in the massive Tiber field in the Gulf of Mexico.