Media reports BP (NYSE:BP) was going to sale its assets in S.Africa and Mozambique were debunked by the oil giant, where they said they had no intention of taking those actions, but are rather looking at investing more in them.
BP noted their intention is to spend close to $90 million on fuel terminals, safety, and to restore its damaged reputation.
BP's Chief Operating Officer for the eastern hemisphere, Tufan Erginbilgic, confirmed it saying, "South Africa is an important market for us. There's no intention to sell any more assets; in fact, next year we will spend about $90 million."
Most of the capital expenditure will be focused on the South African market.
In other African markets like Tanzania, Zambia, Botswana, Namibia and Malawi BP does has assets for sale.
Showing posts with label BP Safety. Show all posts
Showing posts with label BP Safety. Show all posts
Tuesday, October 26, 2010
Wednesday, October 20, 2010
Is BP's (NYSE:BP) Tying Bonuses to Safety a Good Idea?
The announcement that bonuses for one quarter at BP (NYSE:BP) will be tied to safety by CEO Bob Dudley, was an obvious media event to tie the two together in the minds of people.
What's important is whether or not it will do anything to actually improve the safety at the company.
Safety bonuses will be applied for one quarter while the company goes over an overall review to see how it wants to proceed. It's doubtful they'll keep it in place after that.
Of course he was probably under pressure from politicians to make the decision and announcement, as it makes them look good in having supposedly pressured them to focus on safety after the Gulf oil spill fiasco.
Another obvious question is why Dudley kept some people in place who probably should have been let go. Will this change their habits at all? Only time will tell.
As far as the actual reward system, it seems what should be ingrained in the culture of a company which has many risks associated with their work, isn't going to be changed by altering bonus money to it.
Any part of bonuses offered is going to be attempted to be gamed by some to reveal progress in order to obtain the bonus. So there's always that as a factor in the mix.
But safety is, or should be, a core value of BP, and as revealed in the Gulf oil spill, has more potential to destroy the company than any other factor.
Focusing on safety is a no-brainer, but using bonuses as a means to a safer company is more of a stunt that something that will change the culture of the safety-challenged company.
Because of the impact accidents like that in the Gulf had, using a stick is probably better than the carrot being offered.
What's important is whether or not it will do anything to actually improve the safety at the company.
Safety bonuses will be applied for one quarter while the company goes over an overall review to see how it wants to proceed. It's doubtful they'll keep it in place after that.
Of course he was probably under pressure from politicians to make the decision and announcement, as it makes them look good in having supposedly pressured them to focus on safety after the Gulf oil spill fiasco.
Another obvious question is why Dudley kept some people in place who probably should have been let go. Will this change their habits at all? Only time will tell.
As far as the actual reward system, it seems what should be ingrained in the culture of a company which has many risks associated with their work, isn't going to be changed by altering bonus money to it.
Any part of bonuses offered is going to be attempted to be gamed by some to reveal progress in order to obtain the bonus. So there's always that as a factor in the mix.
But safety is, or should be, a core value of BP, and as revealed in the Gulf oil spill, has more potential to destroy the company than any other factor.
Focusing on safety is a no-brainer, but using bonuses as a means to a safer company is more of a stunt that something that will change the culture of the safety-challenged company.
Because of the impact accidents like that in the Gulf had, using a stick is probably better than the carrot being offered.
Thursday, September 23, 2010
BP (NYSE:BP) Extends Planned Flaring at Carson Refinery
BP PLC (NYSE:BP) told California state environmental regulators that they were going to the original planned period of flaring at its Carson, California refinery will be extended from the three-day period ending Friday, to an additional three days ending on Monday.
Flaring has been done on a regular basis at the plant since the beginning of summer.
BP didn't identify the specific units in the communications with the South Coast Air Quality Management District.
Two employee suffering burns at the Texas City, Texas, refinery of BP remain hospitalized, and the company had safety reviews all day Wednesday in response to the accident.
Flaring has been done on a regular basis at the plant since the beginning of summer.
BP didn't identify the specific units in the communications with the South Coast Air Quality Management District.
Two employee suffering burns at the Texas City, Texas, refinery of BP remain hospitalized, and the company had safety reviews all day Wednesday in response to the accident.
Wednesday, September 15, 2010
BP's (NYSE:BP) Outgoing CEO Tony Hayward Denies Cutting Safety Corners
Giving testimony before a British parliamentary committee, the outgoing CEO at BP (NYSE:BP) said concerning safety at UK North Sea operations that the company hasn't cut corners.
Being pressed by committee chair Tim Yeo, who reminded Hayward that he said three years ago that he was going to focus "laser-like on safety,"
and that "On your watch as chief executive, in that three years, now we've had the biggest ever oil spill in U.S. waters," Hayward responded, saying that the record of BP was "better than the industry average."
Hayward added that the oil industry will be better concerning safety as a result of the Gulf of Mexico oil spill, especially in regard to the testing of blowout preventers.
He said they will "significantly enhance the testing protocols of blowout preventers."
Concerning the calls by some for deepwater drilling to be banned, Hayward implied that was an over-response to the situation.
He added that there were failures on the part of all parties involved, including Halliburton (NYSE:HAL) and Transocean (NYSE:RIG), who owned the rig.
The British committee is gathering information in order to make a decision on whether or not to add any more regulations for drilling off the coasts of the UK.
Being pressed by committee chair Tim Yeo, who reminded Hayward that he said three years ago that he was going to focus "laser-like on safety,"
and that "On your watch as chief executive, in that three years, now we've had the biggest ever oil spill in U.S. waters," Hayward responded, saying that the record of BP was "better than the industry average."
Hayward added that the oil industry will be better concerning safety as a result of the Gulf of Mexico oil spill, especially in regard to the testing of blowout preventers.
He said they will "significantly enhance the testing protocols of blowout preventers."
Concerning the calls by some for deepwater drilling to be banned, Hayward implied that was an over-response to the situation.
He added that there were failures on the part of all parties involved, including Halliburton (NYSE:HAL) and Transocean (NYSE:RIG), who owned the rig.
The British committee is gathering information in order to make a decision on whether or not to add any more regulations for drilling off the coasts of the UK.
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