BP PLC — Regulatory Filings 2007

Jan 16, 2007

News Details

Ad-hoc | 16 January 2007 18:07

BP p.l.c.: Statement on Safety Report

BP p.l.c. / Miscellaneous

Ad hoc announcement according to § 15 WpHG transmitted by DGAP - a company
of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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January 16, 2007

                   BP WILL IMPLEMENT RECOMMENDATIONS
                   OF INDEPENDENT SAFETY REVIEW PANEL

HOUSTON -- BP p.l.c. will implement the recommendations made by an
independent
safety review panel as part of the company's continuing effort to improve
its safety culture and to strengthen and standardize process safety
management at BP's five U.S. refineries.

BP already has taken a number of actions which align with the
recommendations of the BP US Refineries Independent Safety Review Panel and
will, after a more thorough review, develop plans for additional action at
its U.S. refineries and for applying lessons learned elsewhere.

In a report made public today, the Panel identified material deficiencies
in process safety performance at BP's U.S. refineries and called on BP to
give process safety the same priority BP has historically given personal
safety and environmental performance. The Panel made recommendations for
improving BP's process safety leadership, systems, expertise and oversight
of process safety performance.

The Panel, led by former U.S. Secretary of State James A. Baker, III, was
appointed by BP Group Chief Executive John Browne in October 2005 on the
recommendation of the U.S. Chemical Safety and Hazard Investigation Board
(CSB). BP is cooperating with the CSB in its investigation of the March 23,
2005 explosion and fire at the Texas City refinery that claimed the lives
of 15 workers and injured many more.

John Browne said: 'I want to thank Secretary Baker and the other Panel
members for their effort, their insights and their recommendations,' Browne
said. 'We asked for a candid assessment from this diverse group of experts
and they delivered one. We will use this report to enhance and continue the
substantial effort already underway to improve safety culture and process
safety management at our facilities.'

The Panel acknowledged the company's efforts stating that 'since March of
2005 BP has expressed a major commitment to a far better process safety
regime, has committed significant resources and personnel to that end, and
has undertaken or announced many measures that could impact process safety
performance at BP's five U.S. refineries.' The Panel also said that making
dramatic change in large companies is difficult in short time frames and
that the ultimate effectiveness of the actions taken or planned by BP could
only be determined over time.

'Many of the Panel's recommendations are consistent with the findings of
our own internal reviews,' said Browne. 'As a result, we have been in
action on many of their recommendations for a year or more. Our progress
has been encouraging but there is much more to do. Members of our refining
leadership team will be meeting with the Panel within the week to address
how best to implement these recommendations.

'I share the Panel's confidence in BP's refining workforce,' Browne added.
'They are, as the Panel stated, ready, willing and able to participate in a
sustained effort to move BP towards process safety excellence. As I told
the Panel, I intend to ensure BP becomes an industry leader in process
safety management and performance. We will want to do everything possible
to prevent another tragedy like the one that occurred at Texas City.'

Notes to editors

The full text of the report prepared by the BP US Refineries Independent
Safety Review Panel is available at www.bp.com/bakerpanelreport

* The BP US Refineries Independent Safety Review Panel was established to
make a thorough, independent and credible assessment of corporate
oversight of safety management systems at the company's five U.S.
refineries and of the company's corporate safety culture. The Panel
did not investigate the Texas City incident or any other past event.

* The Panel makes clear in Section 1 that its findings 'should not be
construed as suggesting or determining that any particular individual,
whether a refinery employee or contractor, refinery manager,
corporate-level manager or BP board member failed to meet any
applicable legal standard, was negligent, otherwise committed a
wrongful or tortious conduct, or breached any duties owed to BP,
BP's shareholders or anyone else. Any such finding or determination is
outside the scope of the Panel's charter. The Panel simply
did not seek to develop the type of data and evidence that would be
necessary to make such a finding or determination. The Panel observes,
however, that during the course of its review, it saw no information
to suggest that anyone - from BP's board members to its hourly
workers - acted in anything other than good faith.'

* The Panel also says that it is under no illusion that the deficiencies
in process safety culture, management, or corporate oversight
identified in the report are limited to BP. All companies in the
industry should give serious consideration to its recommendations.

* BP has taken significant action to reduce risk and improve process
safety performance at its U.S. refineries and its other facilities
around the world. Those actions include:

* Formation of a senior executive team, which includes several managing
directors, to support and oversee process safety, integrity
management, and operational integrity initiatives within the company.

* Creation of a new Safety and Operations function responsible for
establishing Group operations and process safety standards and
auditing safety and operations performance. The Safety and Operations
function reports directly to the Group Chief Executive.

* The appointment of a new Group Vice President for Refining familiar
with the work of the Panel. Cynthia Warner will move into the
position effective April 1, 2007 after serving as the company's
liaison with the Panel.

* Significant expansion of the responsibilities and powers of the
Chairman and President of BP America to include monitoring BP's
U.S. operations to ensure compliance with regulatory requirements and
company standards, and to rectify problems when they are identified.
Robert A. Malone, a BP Executive Vice President with significant
operations experience, was appointed to the post effective
July 1, 2006. He reports directly to the Group Chief Executive.

* Creation of an advisory board to assist BP America management in
monitoring and assessing BP's US operations.

* Appointment of retired federal Judge Stanley Sporkin to act as a
channel for receiving, investigating and resolving concerns raised
by BP staff and contract workers in the U.S.

* An increase in spending from $1.2 billion in 2005 to an average
of $1.7 billion per year from 2007 to 2010 to improve the integrity
and reliability of our refining assets in the United States. This
represents an increase in, and an acceleration of, planned spending.

* Systems to manage process safety at the refineries are undergoing
a major upgrade, with some $200 million earmarked to pay for 300
external experts who are conducting comprehensive audits and
re-designs, where necessary, of all process safety systems. The new
systems are targeted to be installed and working by the end of
2007, a year ahead of the original schedule.

* Adoption of new corporate standards governing operations integrity
management and control of work and the adoption of a new engineering
technical practice governing the use of temporary occupied
structures in refineries and other facilities.

* Significant external recruitment across our US refining businesses to
increase underlying capability in operations and engineering.

* Providing focus through the creation of a six point plan, including
implementation of the Integrity Management and Control of Work Group
Standards.

* Changes in the way safety audits are conducted and results
communicated within the corporation. The company has appointed a
central 60-person operations and safety audit team led by an expert
recruited from outside the company.

* Development of metrics as leading indicators of process safety
performance.

* Installation of modern process control systems on major units, the
transition to a more powerful maintenance management system,
improvements in worker training, and the removal of blow down stacks
which vent heavier than air light hydrocarbons to atmosphere.

Other background

* BP has accepted responsibility for the March 23 explosion at the Texas
City refinery and for the management system failures and employee
mistakes which contributed to or caused the explosion.

* The company has set aside $1.6 billion to compensate victims of the
explosion and has worked to resolve claims arising from the incident.
Settlements have been achieved with the families of every worker who
died and with many of the workers who suffered injuries.

* BP has entered a settlement with the U.S. Occupational Safety and
Health Administration resolving more than 300 separate alleged
violations of OSHA safety regulations. BP paid a fine of just over
$21 million. The company agreed to a number of corrective actions,
including the hiring and placement of process safety and
organizational experts at the refinery. Under the agreement, BP does
not admit the alleged violations or agree with the way OSHA has
characterized them.

* BP continues to cooperate with the CSB, the U.S. Environmental
Protection Agency and the Texas Commission on Environmental Quality
regarding the Texas City explosion and related concerns.

* BP has endorsed a CSB recommendation urging the industry to revisit
existing standards for the use of temporary buildings inside
refineries and other processing plants. BP has established a new
standard for its refining operations and plans to share it with others
in industry.

For further information contact:

Ronnie Chappell, BP Press Office, Houston: 281-366-5174
BP Press Office, London +44 (0)207 496 4076

Web cast

http://events.ctn.co.uk/ec/bp/280/client.asp

DGAP 16.01.2007

Language: English
Issuer: BP p.l.c.
1 St James's Square
SW1Y 4PD London Großbritannien
Phone: +44 (0) 207-496-4000
Fax: +44 (0) 207-496-4570
E-mail: ir@bp.com
WWW: www.bp.com
ISIN: GB0007980591
WKN: 850517
Indices:
Listed: Amtlicher Markt in SWX; Freiverkehr in Berlin-Bremen,
Stuttgart, München, Hamburg, Düsseldorf; Open Market in
Frankfurt

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