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BP shrugs off scathing spill report

posted 6 Jan 2011, 09:44 by Mpelembe   [ updated 6 Jan 2011, 09:46 ]
A US presidential commission has blamed "systemic" industry failures for last April's rig explosion which killed 11 people and caused one of the worst oil spills in history.
WORLD-BP SPILL REPORT - Bad management and cost cutting by BP and its partners are to blame for last year's Gulf of Mexico oil spill - that's according to the final report into the disaster.

The White House committee's report criticises decisions made by BP, Halliburton and Transocean - the three key companies involved in the Macondo well.

It said a lack of communication, the failure to properly test equipment and follow procedures all contributed to

the explosion that killed 11 workers.

But ultimately it blamed the management for putting profits before safety.

Dr Richard Pike is the Chief Executive of the Royal Society of Chemistry.

Dr Richard Pike, Chief Executive, Royal Society of Chemistry, saying:

"There's a great time pressure, we're talking of a million dollars a day perhaps and therefore the pressure to complete the well, to finish things knowing that your bonus is reliant on meeting these deadlines is crucial and therefore I think the whole incentive structure probably needs to be looked at."

BP responded to the report saying it "supports the commission's efforts to determine the causes of the accident."

And it's "working with regulators and the industry to ensure that the lessons learned from Macondo lead to improvements in operations."

The commission said BP's "fundamental mistake" was not testing the cement used to seal the well properly.

It also said the failures were "systemic" and unless significant reforms are made it could happen again.

But shares in BP and Transocean rose as investors bet that by spreading the blame the report would make a gross negligence charge - and the massive costs associated with it - less likely.

David Cox is a senior advisor to Poyry Energy Consulting.

David Cox, senior advisor to Poyry Energy Consulting, saying:

"I think it's more-or-less what was expected, I don't think there's any particularly new bad news there and to soe extent the sharing of blame with the other two companies is good news for BP as well."

The commission will release its full review of the spill next week.

Hayley Platt, Reuters.