BP May Take Back Some Contractor Responsibilities Following Gulf Oil Spill

BP Plc will revise its relationship with contractors in the wake of the Gulf of Mexico oil spill, according to outgoing Chief Executive Officer Tony Hayward.

The producer may take back some of the responsibilities of contractors after the explosion onboard the BP-leased Deepwater Horizon drilling rig on April 20, he told British lawmakers. Hayward cited a lack of rigor in terms of oversight of contractors as one factor behind the spill, something the company had already addressed.

“The industry will look very hard at the nature of relationships between operators and contractors in a number of dimensions in the light of this tragedy,” Hayward told the Energy and Climate Change Committee of the U.K. House of Commons. “It’s possible that some of the things may come back into BP.”

London-based BP on Sept. 8 published a report on the fatal blowout on the rig that faulted its own engineers. The blame for many of the mistakes rests primarily with rig owner Transocean Ltd., Halliburton Co., which cemented the well, and Weatherford International Ltd., which provided valves for the well, according to the 234-page report after a probe by more than 50 BP engineers, geologists and hired investigators.

“The industry was not prepared to deal with a subsea blowout in 5,000 feet of water,” Hayward said today. “The reason we were not prepared is we believed we mitigated that risk.”

To contact the reporters on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net Brian Swint in London at bswint@bloomberg.net.

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