Hayward set to resign as BP chief

Embattled BP chief executive Tony Hayward is expected to resign tomorrow as the oil giant attempts to rebound from the Gulf of Mexico oil disaster.

Weekend reports suggested Hayward was negotiating his exit and is likely to receive a £1bn payoff and £10m pension pot.

Bob Dudley, the industry veteran who took over the day-to-day management of the spill response from Hayward last month, is the likely successor.

BP hopes Hayward's exit will help the company rebuild its tarnished reputation, which is particularly strained in the US.

Dudley is seen as the best candidate as he is a US citizen with a very strong track record at BP and previously at Amoco.

BP this morning responded to the press speculation, saying "no final decision has been made" over potential changes to management and the charge for the costs of the Gulf of Mexico oil spill.

"A board meeting is being held on Monday evening ahead of the announcement of the second quarter results on 27th July. Any decisions will be announced as appropriate," it says.