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New Articles

Friday, 05 December, 2008, 16:20 GMT | more >>

BP probe blames US execs for fatal blast

By Upstream staff

Four of BP's US executives should be fired for failing to prevent the fatal explosion at the supermajor's Texas City refinery in 2005, an internal company study has said.

Fifteen people died in the blast.

The study, released today by court order, also found that John Manzoni, BP's global chief executive officer of refining and marketing, failed to heed "serious warning signals'' of danger at the Texas City, Texas, refinery.

The board must decide if Manzoni, BP's second-in-command, should also be fired, the report said.

John Browne, the UK supermajor's former chief executive, was not blamed in the report, Bloomberg said.

"BP's management was ultimately responsible for assuring the appropriate priorities were in place, adequate resources were provided, and clear accountabilities were established for the safe operation of the Texas City refinery,'' said Wilhelm Bonse-Geuking, BP's refining group vice president, who carried out the probe.

BP fought the release of Bonse's study of management accountability for the fatal March 2005 explosion.

The supermajor has set aside more than $1.6 billion to settle more than 3000 blast-related claims. So far the company has avoided trial by settling 1350 claims, including all those over worker deaths, Bloomberg said.

"The team found no evidence that anyone acted in bad faith or violated BP's code of conduct," BP spokesman Neil Chapman said in a statement emailed after the report was published.

"BP has completed its review of the report, considered the recommendations and taken all the actions on them the company intends to take.''

BP has admitted safety lapses leading to the accident and said it never intentionally endangered workers.

"Neither poorly maintained assets nor muddled and confused lines of authority'' directly caused the operating unit to explode, Bonse said. Instead, a safety culture that "seemed to ignore risk, tolerated non-compliance and accepted incompetence" was the root cause of the accident, he said in the report.

The Bonse report is one of four major investigations into causes of the explosion and is the only report to assign responsibility for the blast to specific managers.

The four executives singled out for dismissal in Bonse's report are: Mike Hoffman, BP's North American refining and marketing group vice president; Pat Gower, regional vice president for US refining; Texas City plant manager Don Parus; and Texas City West plant supervisor Willie Willis.

BP policy forbids commenting on personnel matters and the company would not "comment on the specific contents of the report (findings or recommendations), individuals, or actions taken as a result of the report," Chapman said in his statement.

Hoffman announced his resignation in December. The company had previously said that the other three remain with BP in non-operating roles.

Bonse's report said Manzoni's failure to heed safety warnings or observe the plant's deterioration during site visits was partially mitigated by subordinates who did not clearly communicate "the brutal facts that fundamentally, the Texas City refinery was unsafe and it was a major risk to continue operating it as such".

A lawyer acting for a number of blast victims had pressed BP to publish the Bonse report, along with dozens of other internal BP documents being released as part of a 2006 settlement of claims by Eva Rowe, who lost both parents in the explosion. Texas State Judge Susan Criss declassified the Bonse report in April over BP's objections.

The company immediately appealed Criss' ruling to the Texas Circuit Court of Appeals in Houston, which denied the request on 23 April. BP allowed a deadline to appeal to the Texas Supreme Court to pass on 1 May.