Hayward set for grilling

BP Chief Executive Tony Hayward was set to face the wrath of United States lawmakers on Thursday as investors welcomed a plan to set up a $20-billion fund to cope with Gulf of Mexico oil spill claims. 

Shares in BP, which nearly halved in value since the April 20 explosion on an offshore rig that led to the spill, rose 8 per cent. Analysts said some of the heat had been taken off the company by its move to set up the fund and suspend its dividend. 

President Barack Obama announced the agreement on Wednesday after White House officials held four hours of talks with BP executives. The British company’s bosses emerged from the discussions to offer an apology for the worst oil spill in US history. 

The entire industry needs to improve, and it is too early to understand the cause of the “complex accident,” Hayward said in prepared testimony, adding that “A number of companies are involved, including BP,” in the disaster.