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Home / Business / Economy / Employment

Texas report to maul BP management

By Michael Harrison
15 Jan, 2007 04:00 PM2 mins to read

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Lord Browne

Lord Browne

KEY POINTS:

LONDON - BP management will be sharply criticised in a report to be published today by the former US Secretary of State James Baker into the fire at its Texas City refinery two years ago which killed 15 workers and injured hundreds more.

The damning report, which was
commissioned by BP itself after the disaster, will point to serious safety failures in the running of the company's US refinery operations, and make a long list of recommendations for action.

However, the 250-page report is not thought to criticise individual directors by name, and suggestions that it could lead directly to casualties at board level have been played down.

John Manzoni, head of BP's refining and marketing division, is the board director with responsibility for the Texas facility.

Publication of the report comes just four days after BP announced that its chief executive, Lord Browne, is to step down early in July - some 18 months sooner than he had intended. The Texas City fire, in March 2005, was one of several incidents over the past two years that have undermined his position at the company and contributed to BP's poor share price performance.

A preliminary report published last October by the US Chemical Safety Board found that BP management had been aware of significant safety problems in its worldwide refining operations for three years before the Texas fire and yet had cut maintenance spending on the facility without regard to the potential for a "catastrophic accident". The board's final report is still being completed.

The fire was America's worst industrial accident in more than a decade, and although BP has settled nearly all the civil actions arising from the disaster, at a cost of more than US$1 billion ($1.44 billion), the company and individual managers still face the threat of criminal prosecution.

The Baker report is not expected to lead directly to any sackings or apportion blame. Rather, it was set up to assist BP in learning lessons from the incident.

- INDEPENDENT

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