Dudley says BP can resume dividends in Q1 2011

As he takes over as chief executive of BP Bob Dudley has said he believes it is likely the company will be able to return to dividend payment in 2011.

Dudley said: 'The board will get together and talk before the end of the year about restoring the dividend in the first quarter. Its obviously for the board to decide but from what I see happening in the performance of the business. I believe we will get there.'

Dudley gave little indication of the extent of the dividend when it is reinstated. His announcement follows a recent buoyant bond issuance. 

Dudley will formally take over as chief executive tomorrow and faces an uphill challenge to re-build the group's business in the United States follow the Gulf of Mexico oil spill. However, he has the legacy of an efficiently-performing business across the world inherited from outgoing chief executive Tony Hayward which has been supported in recent months by a resilient oil price.

Shares in BP were trading up 3.6% after the news broke at 432p.