BP's John Browne resigns after 'gay' revelations (Roundup)

May 1, 2007, 18:07 GMT

London - John Browne, the long-standing chief executive of oil giant British Petroleum (BP), resigned with immediate effect Tuesday, following revelations about his private life centring on a gay relationship.

Browne, 59, who headed BP for the last 12 years, tendered his resignation after British courts lifted a legal injunction preventing a newspaper from publishing details of his private life.

In a statement, Brown apologized for making 'untruthful' statements in legal documents relating to his four-year relationship with Jeff Chevalier, a Canadian.

Legal observers said Brown had been accused by the judge of 'misleading the court,' a factor that 'overshadowed the debate about his privacy or sexuality.'

But Browne, and the BP board, Tuesday 'categorically denied' allegations made by Chevalier that the former BP boss had 'misused BP resources.'

'These allegations are full of erroneous and misleading claims. In particular, I deny categorically any allegations of improper conduct relating to BP,' Browne said.

Reports said Browne had helped Chevalier to set up his own company.

BP chairman Peter Sutherland said that a review into allegations that company assets and resources had been abused were 'unfounded or unsubstantive.'

'It is a tragedy that he (Browne) should be compelled by his sense of honour to resign in these painful circumstances,' added Sutherland.

Browne, one of Britain's most colourful and respected industrial leaders, had already announced that he would take early retirement in July.

That decision was due partly to pressure on him after the publication of a damning report over safety lapses at a BP refinery in Texas, where 15 workers were killed and 180 injured in an explosion in 2005.

The BP board had already agreed for Tony Hayward to take over as chief executive.

'In my 41 years with BP I have kept my private life separate from my business life. I have always regarded my sexuality as a personal matter, to be kept private,' Browne said in his statement.

BP said it had accepted his resignation with 'deepest regret.'

Last month, Browne came under fire for his huge pay settlement, with some shareholders demanding that his pay-off be halted.

He had been due to leave BP with a pay-off of 5.3 million pounds (10.6 million dollars) in July and a pension of 21.7 million pounds.

But as a result of his decision to step down early, Browne would lose at least 3.5 million pounds of his retirement package and possibly a further 12 million pounds in shares, a statement said.

The BBC's economics editor, Robert Preston, said Browne's departure would be a 'one day wonder' for the company, as a successor was in already in place.