Browne

BP chief executive John Browne resigned Tuesday, hours after a judge lifted a legal injunction preventing a newspaper from publishing details of his private life and allegations that he misused company resources.

The oil company's board named Tony Hayward, the head of exploration and production, as the new CEO effective immediately, BP said.

Hayward, who had already been set to take over on August 1, will have to repair BP's reputation after several high-profile operational and regulatory mishaps tarnished its image. Browne, 59, had been fighting since January to keep the Mail on Sunday newspaper from publishing details from an interview with a man with whom he had a relationship. BP said the newspaper had also sought to report allegations that Browne misused company resources - claims it said an internal investigation determined were unfounded.

In a statement, Brownesaid he was stepping down voluntarily "to avoid unnecessary embarrassment and distraction to the company."

"For the past 41 years of my career at BP, I have kept my private life separate from my business life," he said.

BP said Browne's decision meant he would lose a bonus of up to 1.3 times his annual salary, worth in total over 3.5 million (US$6.9 million).

- AP