BP plc said Friday that CEO John Browne, who has faced increasing scrutiny from U.S. regulators, politicians and stakeholders following problems, accidents and scandals within some of the company’s business units, will retire at the end of June, more than a year earlier than planned. Tony Hayward, currently head of exploration and production (E&P) for the London-based major, will succeed the embattled CEO.

Browne said last year he planned to retire on Dec. 31, 2008. However, late last year, rumors began circulating that the BP board was considering naming a top lieutenant or successor to assuage uncertainty within the company. Browne, however, was expected in any case to preside through the turnover.

Last year, an explosion at BP’s Texas City, TX, plant killed 15 workers, which triggered an ongoing criminal investigation and hefty fines. U.S officials this year already have opened a separate criminal investigation into corrosion problems at the BP-operated Prudhoe Bay oilfield in Alaska (see NGI, Oct. 30, 2006). Investigators also are probing BP’s energy trading, specifically reviewing BP traders’ possible manipulation of propane markets in 2004 and trades in gasoline and crude-oil markets (see NGI, Sept. 11, 2006; July 3, 2006).

In addition to the investigations, BP reported last week that 4Q2006 oil and natural gas output fell for the sixth straight quarter on start-up delays in the Gulf of Mexico and reduced oil flow from its Prudhoe Bay field (see related story).

Hayward, who joined BP in 1982, was named CEO of BP’s E&P segment in 2003. In that role he has been responsible for the group’s assets and operational activities relating to the discovery and production of hydrocarbons worldwide. Hayward moved to the London office in 1997 as director of BP Exploration following BP’s merger with Amoco. In 1999, he became a group vice president and member of the upstream executive committee. Hayward was appointed group treasurer in 2000 with responsibility for global treasury operations, corporate finance, mergers and acquisitions. He became an executive vice president in 2002 and COO for E&P later that year.

Hayward also is a nonexecutive and senior independent director of Corus Group, and he was appointed Companion of the Chartered Management Institute in September 2005. He was a member of Citibank’s advisory board between 2000 and 2003.

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