Los Angeles 9/29/2010 7:17:12 PM
News / Business

BP's incoming CEO to launch new safety division

BP's incoming chief executive announced Wednesday that he's creating a new safety division following criticism of the energy giant's recent internal report on what caused the massive Gulf oil spill.

Bob Dudley said, the safety division would have "sweeping powers"  to oversee and audit the company's global operations.

The new safety division would be “powerful” and “designed to strengthen safety and risk management across the BP group,” the company said in a statement. “It will be responsible for ensuring that all operations are carried out to common standards.”

BP came under pressure to review its operations following the explosion in April on a rig in the Gulf that killed 11 people and leaked millions of barrels of oil into the water before it was sealed this month.

Mr. Dudley, who was in charge of the Gulf cleanup effort, said the new changes were intended to rebuild trust in BP. In a message to BP staff around the world, Mr. Dudley said that “there are lessons for us relating to the way we operate, the way we organize our company and the way we manage risk.”

Mr. Dudley said he also plans to split the upstream division into three new units, exploration, development and production. They would be led by three different executives who would report directly to Mr. Dudley.

Mr. Dudley also plans a “fundamental review” of how BP creates incentives for business performance to find out how it can encourage staff to improve safety and risk management.