The Baker Panel Report - ABSA

BUSINESS UNIT (REFINERY)Each refinery represents an individual business unit. The refinery plant manager is responsible for a host of activities and objectives relating tonumerous aspects of the business, including safety. 18 Refinery plant managers also are responsible for identifying site risks; implementingGroup standards, minimum expectations, and ETPs; and delivering the refinery’s objectives. 19 Each refinery develops a strategic, long-termplan and then prepares annual plans or objectives consistent with the longer-term plan. The annual plan contains aspirations, targets, keyperformance indicators, and historical data, as well as a discussion of key risks, including safety-related risks. Refineries also prepare andmaintain their own procedures and technical practices in recognition of the different vintages, conditions, technologies, equipment, andprocesses in each of the refineries, as well as unique local rules and regulations.C. U.S. Refining Organizational ChartBP’s overarching philosophy is that safety accountability always runs through the line, with support and challenges from a variety of functions.Accordingly, several strands of BP’s organizational chart have a material impact on process safety management and culture in theU.S. refineries. First and foremost is refining line management, which runs from the senior managers for the Refining strategic performanceunit to the refinery plant managers. This line is highlighted in pink on the organizational chart that appears in Appendix C. (For simplicity, thechart ends with the plant manager of each refinery, although additional layers of management and supervision exist beneath the plantmanager.) While BP’s executive management above the refining strategic performance unit—the Group Chief Executive and the ChiefExecutive, Refining and Marketing—are accountable for the safety of the U.S. refineries, they do not actively manage refinery operations.Beyond line management, seven other strands on the BP organizational chart influence process safety management and safety culture in theU.S. refineries: the new Safety and Operations function, which is centralized at the BP Group level (highlighted in green); the Group Technology function, including Engineering and Integrity Management (highlighted in purple); the Group Vice-President HSSE and Technology, Refining and Marketing segment and personnel reporting to her (highlighted inyellow); the Refining Technology function (highlighted in light blue); the HRO Manager (highlighted in brown); the new position of Vice-President OMS/PSM Program Implementation (highlighted in red); and BP America personnel (highlighted in gold).In addition to the relationships described above, two informal staff support organizations operating within Refining Technology are relevant:the HSSE Network and the Process Safety Community of Practice. Finally, BP is creating a new informal engineering authority reporting line thatwill cut across four of these organizational strands. The roles of executive management, line management, and each of these seven otherstrands of the corporate organization are discussed below.EXECUTIVE MANAGEMENTUnder BP’s Management Framework, the Board delegates accountability for all of BP’s operations to the Group Chief Executive, John Browne,who is based in London. In his interview with the Panel, Browne acknowledged his accountability for all aspects of BP’s operations, includingsafety. Browne in turn delegates responsibility for managing BP’s operations to the respective segment chief executives.Overview of BP’s Organizational Structure and Its Five U.S. Refineries C 32