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Report likely to show BP workers misread crucial pressure readings hours before explosion, but will accuse rig owners Transocean over integrity of blowout preventerBP is expected to admit today that it was partly to blame for the Deepwater Horizon disaster, but will also claim that other companies must accept some responsibility.The oil giant is due to publish its own report into the spill at noon today. This follows an internal investigation into the events leading up to the explosion on 20 April that killed 11 workers and began a devastating oil leak that spewed oil into the Gulf of Mexico for almost three months.The report, which will run to around 200 pages, was led by BP safety chief Mark Bly. It is likely to say that BP workers on the rig misread crucial pressure readings in the hours before the explosion, which meant they did not spot that oil and gas was starting to leak into the well bore.BP had hired the rig from Swiss-based Transocean, whose staff operated it, while US firm Halliburton was subcontracted to cement the wellhead into the sea floor. The three firms have already pointed the finger at each other |
at a hearing in the US Congress in May.Bly's report will also focus on the blowout preventer, the piece of equipment that failed to cut off the well when the leak began. It was seized by US authorities last weekend after being brought back to the surface, following reports that it had been modified in China.Shares in BP rose by around 1% this morning to 412p ahead of the report's publication."We believe the investigation could shift the focus of culpability back towards Transocean and in particular the integrity of the blowout preventer which should have acted as the ultimate fail safe. If our view is correct then BP's shares could rally this afternoon as expectations of gross negligence litigation is eroded," said City analysts Evolution Securities.BP also received good news from Fitch this morning, which raised its credit rating on BP to A, from BBB, with a stable outlook.Fitch said that it was now more confident that the well was capped permanently."The A-rating also reflects both the improved visibility of potential liability scenarios the company could still face and substantial payments that BP has made to date in building up liquidity to address potential financial |
payments," Fitch added.Costs hit £5bn and risingLaywers have warned that releasing this report could be a gamble. If BP shoulders most of the blame then its potential liability could increase, but if it is seen to be shirking responsibility then it could face yet more criticism.The Deepwater Horizon disaster has already cost BP more than £5bn in clean-up costs and compensation claims, as well as the expense of its various efforts to cap the well. It has set aside £20bn to meet these costs, and its potential liabilities could be even higher in the event that prosecutors could prove that the company was grossly negligent in the run-up to the explosion.BP has said previously that it did not accept it was guilty of gross negligence.Several house and congressional committees have already held hearings into the disaster. In June, outgoing chief executive Tony Hayward appeared and faced allegations that BP had cut corners on the design of the Macondo well, overrulling safety concerns raised by some subcontractors.BPOil and gas companiesEnergy industryOilBP oil spillOilOil spillsUnited StatesPollutionGraeme Weardenguardian.co.uk © Guardian News & Media Limited 2010 | Use of this content is subject to our Terms & Conditions | More Feeds |