Downsizing

BP to Shrink After Firing Tony Hayward

Has BP grown too small for its britches? The company plans to sell off $30 billion in exploration and production assets—estimated to be about 10 percent of the company—in a move to shrink the oil giant as it focuses on repairing its image after the massive oil spill in the Gulf. Robert Dudley, who has been in charge of the spill response, will take over for CEO Tony Hayward in September, and the board of directors will be very engaged. The move is intended to show that BP’s main concern is restoring its reputation in the U.S., site of a quarter of its oil and gas production. Dudley is widely viewed as a turnaround specialist. The selloff will take 18 months, and will help pay for the $20 billion the oil giant will have to shell out to victims of the spill. Assets in Pakistan, Vietnam, plus some in Alaska, Argentina and Egypt will be sold.