BP to emerge 'smaller and wiser'

Bob Dudley, currently in charge of BP's clean-up operation, will replace Tony Hayward as chief executive in October.

Mr Dudley described the oil spill as a terrible tragedy from which the company and the industry would learn a lot.

Earlier, BP reported a record $17bn (£11bn) loss, having set aside $32bn to cover the costs of the spill.

The loss for the three months to June was the largest quarterly loss recorded by a British company.

Robert Peston reports.