BP 2010 Annual Report Download - page 73

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Businessreview
Business review
waystosystematicallygatherinformationsufcienttoensure
completionofidentiedprocesssafetyactionitemswithinreasonable
timeperiods;and
• inthesecondhalfof2010,thequalityofsomeaspectsofincident
investigationsandreportsdidnotmaintainthelevelsachievedin2009.
Inresponse,aContinuousImprovementTeamwascharteredthat
developedanumberofprocessimprovementstobeimplementedin
early2011.
TheFourthReportisexpectedtobepublishedinfullinMarch2011andwill
bemadeavailableonourwebsite.
Capability development
BPstrivestoequipitsstaffwiththeskillsneededtoapplythesystems
andprocessestostrengthenourmanagementofriskandprocesssafety.
Wehaveprovidedextensiveandfocusedtrainingprogrammesforour
operationspersonnelatalllevels.
ThistrainingprovisionincludesourOperationsAcademy
programmesforseniormanagement,deliveredinpartnershipwiththe
MassachusettsInstituteofTechnology,US;specializedoperationaland
technicalmanagementprogrammes,forexamplecoursesinengineering
andprojectmanagementattheUniversityofManchester,UK;andprocess
safetyandmanagementtrainingforourfront-lineleaders,deliveredunder
ourOperationsEssentialsprogramme,whichseekstoembedtheBPway
ofoperatingasdenedbyourOMS.Todate,approximately11,800
managers,supervisorsandtechnicianshaveattendedatleastone
workshopwithintheOperationsEssentialsprogramme;additionally,more
than35,000eLearningmoduleshavebeencompleted.
Wecommunicateourexpectationsforqualied,competentand
experiencedcontractorpersonnelthroughourprocurementprocess.
Thesebecomeobligationswithintheformalcontract.Wefurthermanage
capabilitydevelopmentofourstrategicsuppliersthroughaformalized
performancereviewprocessatoperationalandstrategiclevelsthatis
informedwithperformancedataaroundagreedkeymetrics.Theresultof
theseperformancereviewmeetingsisagreedjointplanstodeliverthe
performanceoutcomesrequired.
ThechallengesoftheGulfofMexicoincidentacceleratedlearning
andcapabilitydevelopmentforbothBPandthosewhoworkedwithuson
theresponseandfortheoilindustry.Itishopedthatbysharingthese
lessons,thewiderindustrywillbeabletorespondmoreeffectivelyand
efcientlytoanysimilarincidents.
BPandthird-partyresponderslearnedvaluablelessonsin
collaboration,systemization,information-sharing,commandandprotocol.
Someofthemostvaluablecapabilityadvancementsweretechnical,with
particularlyvaluableexperiencesintheareasofsubseacontainment
systems,remotelyoperatedvehicles,reservoirvisualization,hydrate
inhibition,rapidretrotting,andapplicationofdispersants.Theshoreline
responseefforthasbuiltanexpandedresourceoftrainedresponders,and
thevesselsofopportunityprogrammehasbuiltabaseoftrained,vetted
andlocallyknowledgeableresponders.
Safety performance
BPreportspubliclyonitspersonalsafetyperformanceaccordingto
standardindustrymetrics.In2010,ouroverallreportedrecordableinjury
frequency(RIF)was0.61,comparedwith0.34in2009and0.43in2008.
ThenatureoftheGulfCoastresponseefforthasresultedinpersonalsafety
incidentratessignicantlyhigherthanotherBPoperations.Injuries
occurredprimarilyduringboomdeploymentandthebeachclean-up
activities,andrelatetoaworkingpopulationrapidlyrecruitedtoworkin
newroles,inunfamiliarenvironments.
Ourreporteddayawayfromworkcasefrequency(DAFWCF)in
2010was0.193,comparedwith0.069in2009and0.080in2008.This
increaseisdueinlargeparttotheresponseeffort,butalsoreectsa
substantialincreaseintherestofBP.Therewereninedayawayfromwork
casesresultingfromtheDeepwaterHorizonaccidentandnineasaresult
oftheaircrashinCanada.
Weapplyaformalprocessdesignedtoensurethatadequate
controlstomitigateourinternalrisksareinplace,whileconstantlylooking
forwaystostrengthenthesesystems.BPreviewsrisksatalllevelsofthe
organizationand,followingtheGulfofMexicoincident,ourgroupchief
executivechallengedouroperationstoensurethatallriskreviewscorrectly
identifyandmitigatelower-probabilitybuthigher-impactevents.
BPtakesmajorincidentsandhigh-potentialincidentsveryseriously;
themoresignicantincidentsarescrutinizedbyGORC,whohastheoption
torequireoperationsleaderstoprovideassurancethatcorrectivemeasures
arebeingtaken.
BPhaslearnedimportantlessonsfrommajorincidentsatourTexas
Cityreneryin2005andthePrudhoeBayeldinAlaskain2006.We
implementedoursix-pointplan,designedtoaddresstheimmediaterisks
andpriorities,andthenbegantheroll-outofourOMSunderpinnedbyour
capabilityprogrammes,andstrengthenedourglobalauditteam.
IntheGulfofMexico,ourinternalinvestigationandresultantreport
formonlyastartingpointforwhatisexpectedtobeanextendedprocess
tofullyanalysetheGulfofMexicoaccidentandimplementtheappropriate
measuresdesignedtopreventrecurrence.
Contractor management
BP’sOMSformalizesstandardsandrecommendedpracticesforselecting
andworkingwithcontractors.Thisincludesassessingthecontractor’s
safetyperformanceaspartoftheselectionprocess,anddeningsafety
requirementsincontracts.
AsaresultoftheGulfofMexicoaccident,whichinvolvedmultiple
contractingpartners,wearereviewinghowbesttoprovideconsistentand
effectivecontractoroversight.Thisprocessbeganinlate2010andwillbe
focusingonthewayweworkwithcontractorsforallonshoreandoffshore
rigactivities,particularlyinregardtosafetyandoperationalrisk.
Environment
Theworld’sdemandforenergyisincreasingandourbusinessofnding
andproducingsomeofthatenergymeansweoperateinincreasingly
diverselocationsglobally.Manyoftheselocationspresentchallenges
aroundtheirenvironmentalsensitivityandmanagingourimpactonthe
areaswhereweoperateisatthecoreofouractivities.
Westrivetominimizeourimpacts,whethertoland,air,water
orwildlife,throughasystematicapproach,supportedbyrigorousrisk
assessmentandmanagement,preventivemeasuresandtraining.
Environmental management
Weworktounderstandthesensitivitiesoftheenvironmentsinwhichwe
operateandourresponsibilitiesfrombeginningtoendofourprojects.By
adoptingafullprojectcycleapproachtoenvironmentalmanagement,we
strivetoidentifythepotentialenvironmentalimpactsofournewprojects,
intheplanningstageandduringoperations.Wecontinuethisapproach
afteroperationshaveended,throughourremediationstrategy.
Ourenvironmentalandsocialgroupdenedpractices(E&SGDP),
launchedinApril2010,detailtherequirementstohelpusidentifyand
managetheenvironmentalandsocialrisksofmajornewprojects,projects
innewaccesslocationsandthosethatcouldaffectaninternational
protectedarea.OurE&SGDPisalignedwithenvironmentalandsocial
standardsandpracticesgenerallyacceptedintheoilandgasindustry.
Thesegroupdenedpracticesincludeenvironmentalandsocial
requirementsforninekeyissues:internationalprotectedareas;water
management;drillingwastesanddischarges;greenhousegas(GHG)
emissions(includingenergyefciencyandaring);ozonedepleting
substances;indigenouspeople;physicalresettlement;securityandhuman
rights;andimpactassessment.
Allourmajoroperatingsitesarecertiedundertheinternational
environmentalmanagementsystemstandardISO14001,withthe
TexasCityplantandTangguhLNGfacilitysuccessfullyreceivingcertication
in2010.
Nonewprojectsenteredaninternationalprotectedareain2010.
OurinternationalprotectedareasclassicationincludestheInternational
UnionfortheConservationofNature(IUCN)I-IV,RamsarandWorld
Heritagedesignations.
BPAnnualReportandForm20-F2010 71