The Safety & Operational Risk function will have authority to intervene in all aspects of BP’s technical activities. It will also conduct a fundamental review of how the Group incentivises business performance, including reward strategy, with the aim of encouraging excellence in safety and risk management.
The powerful new organisation is designed to strengthen safety and risk management across the BP group. It will be headed by Mark Bly and report directly to incoming chief executive Bob Dudley.
The company said the decision to establish the new function follows the Deepwater Horizon accident in the Gulf of Mexico and BP’s investigation into the disaster. It is one of a number of major changes announced by Dudley as he prepares to take over his new role on October 1.
I believe we most clearly need to act, with safety and risk management our most urgent priority."
In a message to BP staff worldwide, Dudley said: "This is a deeply challenging time for BP. The Macondo incident was a tragedy that claimed the lives of 11 people, caused injury to many others and had a widespread environmental impact.
"Our response to the incident needs to go beyond deepwater drilling. There are lessons for us relating to the way we operate, the way we organise our company and the way we manage risk."
As a result of today’s changes, Andy Inglis will relinquish his current role as head of the Upstream business. By mutual agreement with the BP board he will step down as a main board director on October 31 and will leave the company at the end of the year.
In his message to staff Dudley said: "As I take up my new role I am aware of two things. First, there is a pressing need to rebuild trust in BP around the world. Second, BP’s people have both the commitment and the capability to rebuild that trust.
"These announcements do not mean that everything in BP is going to change. We have great strengths that are important to maintain. We have a high quality portfolio of assets. We have a sound financial footing on which to build. We have good technology. We have very strong local relationships. We have started the journey with our strong Operating Management System. Most importantly, we have great people.
