Print

Email story

Comment

Email editor

Report: BP fell short on safety

The oil giant didn't emphasize safety at U.S. plants before a fatal blast.

By ASSOCIATED PRESS
Published January 17, 2007

HOUSTON - British oil company BP failed to emphasize safety at its U.S. refineries before the 2005 Texas City explosion that killed 15, according to a report released Tuesday by an independent panel led by former U.S. Secretary of State James A. Baker III.

The panel, in a statement summarizing its 300-plus page report on BP PLC's operations, said the company had made strides in personal accident prevention but came up short on the bigger picture.

"The panel maintains a central theme that prior to the Texas City tragedy, BP emphasized personal safety and had achieved significant improvements in personal injury rates, but the company did not emphasize process safety," the statement said. "BP mistakenly interpreted improving personal injury rates as an indication of acceptable process safety performance at its U.S. refineries."

The 11-member panel made 10 recommendations, including that an independent monitor report to the company's board of directors for five years.

"BP gets it, and I get it, too," BP CEO John Browne said by video link from London. "I recognize the need for improvement."

Browne, who got the report from Baker on Sunday, called the report a "hard-hitting and critical analysis that focused on deficiencies and negatives."

The release of the report comes less than a week after London-based BP said Browne would step down by the end of July, more than a year ahead of schedule.

The chief executive said the company would implement the panel's recommendations, including the independent monitor.

Baker has led the panel investigating corporate management at Houston-based BP Products North America following the March 2005 blast that killed 15 people and injured more than 170.

The U.S. Chemical Safety and Hazard Investigation Board, urged BP in August 2005 to hire outside experts to look at the company's oversight of safety management systems and make its findings public.

The panel, announced in October 2005, has traveled to BP's five U.S. refineries and interviewed hundreds of employees.

"BP tended to have a short-term focus in its U.S. refining operations, and its decentralized management system and entrepreneurial culture delegated substantial discretion to U.S. refinery plant managers without clearly defining process safety expectations, responsibilities or accountabilities," the panel said.

BP said Friday that Browne, 58, will be succeeded by Tony Hayward, the head of exploration and production. Browne said Tuesday the report had "nothing to do" with his decision to retire earlier than expected, noting that he decided in December that when the company's board found a successor, he would step aside.

The 2005 explosion has so far cost the company around $2-billion in compensation payouts, repairs and lost profits. BP has settled hundreds of lawsuits related to the accident, putting aside $1.6-billion just to resolve legal disputes.

[Last modified January 17, 2007, 00:16:25]