BP’s Drilling Rig Faces Safety Issues

Sarah Woodman, Global events journalist
August 09, 2010 /

The massive drilling rig that sank in the Gulf of Mexico resulted in largest offshore oil spill in the history of United States. Deepwater Horizons was owned by Transocean. Transocean stated that all efforts are being made to find the cause of this accident. An investigation has been ordered. The assessment is also being made by internal and external auditors to assess the magnitude of damage done.

BP’s drilling rig was having safety issues long before the incident happened. This was revealed by an internal audit approximately seven months back. In the report submitted by the internal audit the safety loopholes had been clearly mentioned. There was a maintenance backlog of about 390 maintenance jobs which were overdue for more than a month. It had been stated in the report that Deepwater Horizon rig needed immediate attention and the backlog required to be updated.

The crisis has also been attributed to slackness on the part of BP. The performance of the Deepwater Horizon rig also suffered due to the lack of senior managers. BP is trying to shirk its responsibility by saying that it would not be proper to blame it for the incident. It asserted that contractor Transocean had owned the rig and most of the people working on the rig were also appointed by it. Hence, the blame game is on with each of them trying to put the blame on the other.

The oil giant faced the heaviest quarterly loss in the corporate history of Britain. BP in a move to cover the costs done by the damage has booked a $32.2 billion provision. This is a huge price to pay for a crisis which could have been averted if the recommendations in the report given by the BP’s internal audit were taken seriously.


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