BP Reports $17 Billion Loss in Second Quarter

BP named Robert Dudley as its next chief executive Tuesday and reported a record $17 billion loss in the second quarter as the company set aside billions of dollars to deal with the aftermath of the oil spill in the Gulf of Mexico.

BP set aside $32.2 billion for costs related to the spill, including $20 billion for an escrow fund announced earlier. To help cover the costs, the company plans to sell assets worth $30 billion over the next 18 months. The sales would leave BP with a smaller exploration and production operation, it said, New York Times informs.

According to BP, chief executive Tony Hayward will leave the group in October and will be replaced by Bob Dudley, who is currently in charge of the oil-spill clean-up operation.

"BP today announced that, by mutual agreement with the BP board, Tony Hayward is to step down as group chief executive with effect from October 1, 2010," it said in a statement, adding that Hayward would be nominated as a non-executive director of TNK-BP, AFP reports.

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