BP begins wide-ranging review
Oil giant BP is undertaking a root-and-branch review of its global operations following last year’s Texas refinery blast.
The review headed by John Mogford, vice-president of safety and operations, is likely to take five to ten years to implement.
A spokesman for the London-based firm today said the aim of the review is “to find problems if there are problems and to put in long-term cultural changes.”
“It’s about fundamental changes,” he added. “He’s looking at every safety aspect.”
Mr Mogford was appointed last year in the wake of the blast in which 15 people died and 170 were injured. He led the internal investigation into the explosion.
He has a team of 45 people attempting to standardise procedures worldwide, taking advice from operations staff at ground level, and a group of 45 auditors.
The review is similar in scale to the major overhaul introduced by US oil giant Exxon following its Alaskan oil tanker spill in 1989. The shake-up helped make Exxon one of the world’s safest and most financially successful energy group.
A series of incidents in the US in recent months have led to investors raising questions about BP’s safety record.
BP’s Prudhoe Bay oil field, the largest in the US, was partially closed last month after serious corrosion was found in pipelines.
The company is facing US legal charges relating to both Prudhoe and Texas. Last month, BP chief executive Lord Browne of Madingley was summoned to testify in a Texas court over the blast.
BP is also being investigated over the alleged manipulation of crude oil and petrol markets and is embroiled in an alleged plot to manipulate propane prices.
In June, former BP trader Dennis Abbott, of Houston, pleaded guilty to partaking in a conspiracy “to manipulate and corner the propane market” but BP has denied any wrongdoing.
