BP 2014 Annual Report Download - page 45

Completing the Bly Report recommendations
BP’s investigation into the Deepwater Horizon accident, the Bly Report,
made 26 recommendations aimed at further reducing risk across our
global drilling activities. A total of 25 recommendations had been
completed by the end of 2014.
We expect the final recommendation to be completed by the end of 2015,
as scheduled. This recommendation involves verifying the implementation
of revised well control and monitoring standards to BP-owned and
BP-contracted offshore rigs. It takes time to fully implement as it requires
training a large proportion of our global wells operating personnel on the
revised standards.
Our group audit team has verified closure of the recommendations.
See bp.com/26recommendations for the Bly Report recommendations.
The BP board appointed Carl Sandlin as independent expert in 2012 to
provide an objective assessment of BP’s global progress in implementing
the recommendations from the Bly Report. Mr Sandlin also provides his
views on the organizational effectiveness and culture of the global wells
organization, and process safety observations.
As part of his activities in 2014, Mr Sandlin conducted his third round of
visits to regional wells teams with active drilling operations. Mr Sandlin
visited 10 regions in total. During each visit he conducted reviews with
senior managers, and held discussions with key wells personnel and
drilling contractors on site.
Mr Sandlin is engaged through to June 2016.
Downstream safety
Safety performance
2014 2013 2012
Recordable injury frequency 0.34 0.25 0.33
Day away from work case frequency 0.121 0.063 0.089
Severe vehicle accident rate 0.09 0.10 0.16
Loss of primary containment
incidents – number 82 101 117
We take measures to prevent leaks and spills at our refineries and other
downstream facilities through well-designed, well-maintained and properly
operated equipment. We also seek to provide safe locations, emergency
procedures and other mitigation measures in the event of a release, fire or
explosion.
We focus on managing the highest priority risks associated with our
storage, handling and processing of hydrocarbons. We use technology,
such as automated systems, which are intended to prevent our gasoline
storage tanks from overfilling, to help manage our operations within safe
operating and design limits. In 2014 a total of 12 facilities participated in
our ‘exemplar’ programme, which aims to help sites apply our OMS using
continuous improvement processes.
Process safety expert
The board appointed Duane Wilson as process safety expert for our
downstream activities in 2012 for a three-year term and assigned him to
work in a global capacity with the business. Mr Wilson provided an
independent perspective on the progress that BP’s fuels, lubricants and
20112010 2012 2013 2014
Key safety metrics 2010-2014
80
60
40
20
100
120
140
Loss of primary containment
Tier 1 process safety events
Recordable injury frequency
Indexed (2010=100)
petrochemicals businesses were making toward becoming industry
leaders in process safety performance.
Working with contractors and partners
BP, like our industry peers, rarely works in isolation – we need to work
with contractors, suppliers and partners to carry out our operations. In
2014, 52% of the 357 million hours worked by BP were carried out by
contractors.
Our ability to be a safe and responsible operator depends in part on the
capability and performance of those who help us carry out our operations.
We therefore seek to identify and manage risks in the supply chain
relating to areas such as safety, corruption and money laundering, and aim
to have suitable provisions in our contracts with contractors, suppliers and
partners.
Contractors
We expect and encourage our contractors and their employees to act in a
way that is consistent with our code of conduct. Our OMS includes
requirements and practices for working with contractors.
We seek to set clear and consistent expectations of our contractors. Our
standard model upstream contracts, for example, include health, safety,
security and environmental requirements. Bridging documents are
necessary in some cases to define how our safety management system
and those of our contractors co-exist to manage risk on site.
To help us manage risks effectively and take advantage of economies of
scale, we are focusing on developing deeper, longer-term relationships
with selected upstream contractors. We have established global
agreements in areas such as engineered equipment and well services.
Our partners in joint arrangements
We seek to work with companies that share our commitment to ethical,
safe and sustainable working practices. Our code of conduct states that
we seek to clearly communicate our relevant expectations to our business
partners, agreeing contractual obligations where applicable.
We have a group framework for identifying and managing BP’s exposure
related to safety, operational, and bribery and corruption risk from our
participation in non-operated joint arrangements.
Typically, our level of influence or control over a joint arrangement is linked
to the size of our financial stake compared with other participants. In
some joint arrangements we act as the operator. Our OMS applies to the
operations of joint arrangements only where we are the operator.
In other cases, one of our partners may be the designated operator, or the
operator may be an incorporated joint arrangement company owned by
BP and other companies. In those cases, our OMS does not apply as the
management system to be used by the operator, but is generally available
as a reference point for engagement with operators and co-venturers.
The Toledo refinery in Ohio processes around 160,000 barrels of crude oil
each day to make gasoline, jet fuel and other products.
★ Defined on page 252. BP Annual Report and Form 20-F 2014
Strategic report
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