Purchased for use by Alan Owen on 24 Mar 2020 Order ref F378754 Educational

Purchased for use by alan owen on 24 mar 2020 order

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Purchased for use by Alan Owen on 24-Mar-2020. Order ref F378754. Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F378754
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12 … the tragedy of the Macondo well explosion and subsequent envi ronmental damage has been a watershed incident.” 35 After the oil spill BP announced a divestment program to sell approximately $38 billion worth of non-core assets by 2013 in order to cover its expected liabilities related to the accident. Among many others, the sale of the Texas City Refinery and associated assets to Marathon Petroleum was agreed in October 2012 and was completed on February 1, 2013. Hence, by 2013 BP had fallen to a position in the lower top ranks among the global oil majors after selling off assets to cover claims related to the Deepwater Horizon oil spill. STATUS AND PROSPECTS As the global business activities continued to evolve, BP seemed able to restore some of its earnings capacity to former levels, which was comforting for the board members who had been through a rough period of public scrutiny. With the appointment of a new CEO dedicated to environmental safety, the earlier problems were expected to clear so corporate prosperity would rebound going forward. Everyone in the organization should know that safety was a high priority where increased consciousness makes a difference. This combined with the active oversight of a dedicated board committee, the safety, ethics and environment assurance committee (SEEAC) should go a long way to improve things. As part of the public probe, prosecutors of the US Justice Department also secured indictments against three former BP employees of which two were the supervisors on Deepwater Horizon charging them with obstructing the federal probe. They were responsible for evaluating the pressure tests on the well where incorrect estimates put the rig at risk. While allegedly being aware of the flawed readings, they did not notify their superiors or halt the drilling. This made a clear case to all employees on oil rigs and elsewhere with a message that they are accountable for their decisions made on the job. However, it also exposed BP to a new role as a company that fails to support and protect its own people, but rather blames failures on them. Hence, the attorney for one of the defendants referred to BP as a disloyal employer that “succumbed to the pressure” and abandoned its men to their own fate. 36 BP gradually saw the consequences of the public probes and paid $4.5 billion in fines pleading guilty to a number of charges in 2012 although these penalties were well within the financial means of the company. However, the company also tried to contain the payouts that at times seemed excessive. As a consequence BP announced a new hotline where people could report fraudulent claims from affected businesses and residents on the Gulf Coast. The effort was triggered by an increase in claims and “the announcement comes a week after attorneys for BP argued before a three-judge panel of the 5th U.S. Circuit Court of Appeals
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