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BP Says It Will Reinvent Company

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Energy giant BP announced on Tuesday that American Robert Dudley will replace British Chief Executive Officer Tony Hayward on October 1. The news came as BP reported a record $17 billion quarterly loss, according to The Associated Press. It announced it would also set aside $32.2 billion to cover the costs of the Gulf of Mexico oil spill.

Dudley, who is BP's managing director and worked at Amoco before it merged with BP, is the company's first CEO who is not British. He was born in New York and was raised in Mississippi. Since a brutal round of Congressional hearings in June, Dudley has been handling the daily oversight of the Gulf spill response efforts.

Hayward has had less of a presence as the public face of BP, following intense criticism over the way he led the company's response to the oil spill. The AP reports that Hayward will not be fired; instead, he'll take a job with BP in Russia, according to a source who spoke on condition of anonymity.

Meanwhile, the company is back to work trying to contain the spill in the Gulf. Although the newly-capped well remained shut over the weekend, ships collecting oil were evacuated due to a powerful storm system that blew through the area.

BP also temporarily suspended work on two relief wells. The New York Times reports that work has now resumed, and that the company plans to permanently seal the well within the next few weeks by pumping it with heavy mud and cement.

Updated 7/28