UK: New BP chief makes amends


by Oliver Morgan and Ruth Sunderland


New BP chief executive Tony Hayward is expected to express regret about the fatal accident at its Texas City refinery when he meets President George Bush this week.

Hayward will stop short of a formal apology since there are a number of outstanding US lawsuits relating to the blast. But the new boss is keen to make a fresh start and to build bridges in the US after the departure last week of former supremo Lord Browne, who resigned following revelations that he lied about how he met former his lover, Jeff Chevalier.

Under Browne, the company was heavily criticised for failures in its safety culture and for cost cutting that could have led to the 2005 Texas explosion, which killed 15 people and injured 180.

Browne who was revered earlier in his career at BP, now fears the oil giant may ditch the slogan, 'Beyond Petroleum', because of it is associated with him.


He is expected to make a graceful exit from his role as a non-executive director of investment bank Goldman Sachs. His hope of becoming chairman of private equity group Apax Partners is also likely to come to nothing, although the firm is backing him to remain in a lesser position as chairman of its advisory board.

On Wednesday, he is expected to give evidence to US lawyer Brent Coon, which represents BP workers involved in the Texas blast.


BP's safety record is back in the spotlight


by Russell Hotten and David Litterick
The problems facing BP over its safety record in America resurfaced last night after a congressional committee accused the oil company of withholding key documents, and a lawyer representing victims of the Texas City refinery explosion said Lord Browne's resignation as chief executive would make it easier to force him to testify.

The news came as new boss Tony Hayward, who admitted yesterday that BP had possibly outsourced too many operations, draws up changes to his management team and prepares for the likely departure of John Manzoni, head of refining and the man in charge of Texas City.

BP found itself in trouble with the House committee on commerce and energy, which is investigating a massive oil spill at the company's Prudhoe Bay field in Alaska.

The committee was due to sit yesterday but it emerged that Robert Malone, BP's chairman in the US, had asked for a delay.

He wrote to the committee on April 30 saying that all the documents requested at a previous hearing - thought to be sensitive emails about BP's cost-cutting - were not sent. He apologised, saying he had only just been told. Some issues raised "about previous spending decisions... cause me concern".

Committee chairman John Dingell, who postponed the hearing, said: "These documents appear to show a severe cost-cutting environment with respect to corrosion mitigation in the Prudhoe Bay field.

"We now know that BPproceeded with cost cutting measures that may have compromised pipeline safety while earning $22bn (£11bn) in profits, but what we don't know is why."

The issue raises again the claim by victims of Texas City, where 15 died in the blast, that BP put profit before safety.

Houston lawyer Brent Coon is attempting to force Lord Browne to submit written testimony about how much he knew about safety concerns and cut-backs at the refinery.

Mr Coon said that this week's disclosure that Lord Browne lied in the High Court over a gay relationship would be presented to the Texas Supreme Court as evidence that the executive's sworn affidavit that he had no personal knowledge of the explosion should be ignored.

The lawyer added that, having resigned as chief executive, Lord Browne would no longer be able to avoid the court on the grounds that giving evidence would be a distraction to running his company.

Although that is a legitimate reason not to be deposed under Texas law, his resignation means it no longer applies, Mr Coon said.

"He is no longer in charge of day-to-day affairs at BP so he now has the time to discuss with us relevant matters in this case," Mr Coon said. "He can no longer claim he is too busy."

Mr Coon said he had filed a motion with the supreme court for Lord Browne to be interviewed, probably in London, next Wednesday.

He was speaking as a fresh report on the Texas City disaster recommended that four of BP's executives in the US should be fired for failing to prevent it. The study, completed in February but released yesterday under court order, alleged that a fifth executive, John Manzoni, failed to heed "serious warning signals'' at the refinery.

Wilhelm Bonse-Geuking, BP's European refining group vice-president who conducted the probe, claimed there was a safety culture that "seemed to ignore risk, tolerated non-compliance and accepted incompetence".

There is a growing expectation at BP that Mr Manzoni will leave soon. However, one source said yesterday: "Tony Hayward and the board will give him time to find a new job, rather than dismiss him."

Mr Manzoni was considered a candidate to replace Lord Browne, and despite the Texas City criticism may find himself in great demand from other companies.

On Tuesday, Mr Hayward will present the first stage of a management reshuffle to a board meeting in Washington, though it is said that he is not planning anything "too radical" at this stage. It is possible that finance director, Byron Grote, could be asked to stay beyond his retirement date next year to help maintain continuity after the recent boardroom crisis.

Mr Hayward was in Germany yesterday to meet BP staff, where he acknowledged that the company had perhaps relied too heavily on outside contractors, technicians, and engineers during its rapid growth, which may not have helped reliability and safety.

He says that under him, BP will not grow as fast.

Telegraph