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BP chief Hayward facing Congress BP 'disregarded dangers' at well
(40 minutes later)
Tony Hayward is at Congress a day after visiting the White HouseTony Hayward is at Congress a day after visiting the White House
Congress has begun a hearing for BP chief executive Tony Hayward over his company's role in the Gulf of Mexico oil disaster. BP chief executive Tony Hayward has been told by Congress his firm ignored dangers when drilling in the Gulf of Mexico.
House committee on energy and commerce chairman Henry Waxman told him he would have to explain apparent risks taken by the firm. House committee on energy and commerce chairman Henry Waxman said he would have to explain BP's actions before the oil rig disaster.
BP has agreed a $20bn (£13.5bn) compensation fund for victims of the spill. Mr Waxman added that corporate "complacency" at BP before the 20 April spill had been "astonishing".
He is expected to say he is "personally devastated" by the spill. Mr Hayward is expected to say he is "personally devastated" by the spill.
Congressmen earlier sent him detailed questions about events leading up to the explosion of the Deepwater Horizon drill rig on 20 April. Congressmen earlier sent Mr Hayward detailed questions about events leading up to the explosion of the Deepwater Horizon drill rig.
BP says it will withhold dividends until the end of the year as part of its response to the spill.BP says it will withhold dividends until the end of the year as part of its response to the spill.
It has agreed a $20bn (£13.5bn) compensation fund for victims of the spill.
Meanwhile, the firm's first containment device for the ruptured well is working again after a brief shutdown.Meanwhile, the firm's first containment device for the ruptured well is working again after a brief shutdown.
The capping system, which pipes leaking oil to a vessel on the ocean surface, was switched off for five hours on Tuesday after lightning struck the containment ship.
And BP announced on Wednesday that a second containment system had been launched, designed to bring oil and gas to the surface.And BP announced on Wednesday that a second containment system had been launched, designed to bring oil and gas to the surface.
BP chairman Carl-Henric Svanberg has been forced to apologise after telling reporters that BP was not a greedy company and that it cared "about the small people". He later said he "spoke clumsily". 'Tremendous risks'
'Terrible reality' Congressman Waxman said in his opening remarks that BP had "cut corner after corner" in order to save money, which led to the explosion and fire on board the Deepwater Horizon.
Mr Hayward made a gaffe last month - in which he said he wanted the leak to stop as he would "like my life back" - which was widely seen as insensitive to all those affected by the 20 April rig blast and subsequent spill. He said Congress could find no evidence that BP had been monitoring the risks.
BP released snippets of a prepared statement he will read to the committee in which he will say: "I fully grasp the terrible reality of the situation." "Deepwater drilling is inherently dangerous," he said.
And he will also update the Congressmen with the progress of BP's internal investigation into the spill. "As the entire country now knows, an uncontrolled blowout can kill rig workers and cause an environmental disaster.
"I understand people want a simple answer about why this happened and who is to blame," he will say. "We wanted to know whether you were briefed about the risks and were monitoring the safety of the drilling operation.
"We could find no evidence that you paid any attention to the tremendous risks BP was taking.
"We reviewed 30,000 pages of documents from BP, including your e-mails. There is not a single e-mail or document that shows you paid even the slightest attention to the dangers at this well."
BP has released snippets of a prepared statement Mr Hayward is due to read to the committee.
"I fully grasp the terrible reality of the situation," he is quoted as saying.
"I understand people want a simple answer about why this happened and who is to blame.
"The truth, however, is that this is a complex accident, caused by an unprecedented combination of failures.""The truth, however, is that this is a complex accident, caused by an unprecedented combination of failures."
BP has been accused by US politicians of failing to follow proper procedures in the run up to the 20 April explosion on the Deepwater Horizon rig. Specific questions were href="http://thehill.com/blogs/congress-blog/energy-a-environment/103255-letter-to-tony-hayward-chief-executive-officer-of-bp-rep-henry-waxman-and-rep-bart-stupak">set out in a letter to Mr Hayward on Sunday by Mr Waxman and fellow committee member Bart Stupak.
Mr Hayward has been asked to answer specific questions, which were set out in a letter on Sunday by Mr Waxman and fellow committee member Bart Stupak.
In particular, they want Mr Hayward to answer allegations that BP:In particular, they want Mr Hayward to answer allegations that BP:
  • Went against the advice of its own plan review regarding the well's design and chose a riskier, cheaper and quicker casing option
  • Used only six centralisers to make sure the casing ran down the centre of the well bore, rather than the 21 recommended by sub-contractor Halliburton
  • Rejected warnings by its own plan review and Halliburton in preparations for a cementing job
  • Decided to forego a recommended safety step in the circulation of drilling mud
  • Did not deploy a "lockdown sleeve" that would have prevented the seal from being blown out from below
  • Went against the advice of its own plan review regarding the well's design and chose a riskier, cheaper and quicker casing option
  • Used only six centralisers to make sure the casing ran down the centre of the well bore, rather than the 21 recommended by sub-contractor Halliburton
  • Rejected warnings by its own plan review and Halliburton in preparations for a cementing job
  • Decided to forego a recommended safety step in the circulation of drilling mud
  • Did not deploy a "lockdown sleeve" that would have prevented the seal from being blown out from below
"It appears that BP repeatedly chose risky procedures in order to reduce costs and save time and made minimal efforts to contain the added risk," the congressmen wrote. Earlier, BP chairman Carl-Henric Svanberg was forced to apologise after telling reporters that BP was not a greedy company and that it cared "about the small people". He later said he "spoke clumsily".
"If this is what happened, BP's carelessness and complacency have inflicted a heavy toll on the Gulf, its inhabitants, and the workers on the rig," they say. 'No limit'
'Strong and viable company'
BP has agreed to pay $5bn into the compensation account, known as an escrow fund, before the end of 2010. The remainder is to be paid over the following three years.BP has agreed to pay $5bn into the compensation account, known as an escrow fund, before the end of 2010. The remainder is to be paid over the following three years.
The agreement was announced by US President Barack Obama after he met BP executives at the White House.The agreement was announced by US President Barack Obama after he met BP executives at the White House.
"We will continue to hold BP and all other responsible parties accountable," Mr Obama said."We will continue to hold BP and all other responsible parties accountable," Mr Obama said.
"And I'm absolutely confident BP will be able to meet its obligations to the Gulf Coast and to the American people." He insisted there would be no cap on the amount BP might be asked to contribute.
"BP is a strong and viable company and it is in all of our interests that it remain so." Analysts say the firm's finances should be strong enough to withstand the fiscal fallout from the spill.
Mr Obama insisted there would be no cap on the amount BP might be asked to contribute. The blast on the Deepwater Horizon led to the deaths of 11 people, caused the rig to sink, and has since seen hundreds of thousands of barrels of oil spew into the Gulf of Mexico.
Analysts said the firm's finances should be strong enough to withstand the fiscal fallout from the spill.
The blast on the Deepwater Horizon on 20 April led to the deaths of 11 people, caused the rig to sink, and has since seen hundreds of thousands of barrels of oil spew into the Gulf of Mexico.
Some of the oil is now washing ashore in states along the Gulf coast.Some of the oil is now washing ashore in states along the Gulf coast.
The spill threatens to cripple businesses and seriously damage wildlife across the Gulf.The spill threatens to cripple businesses and seriously damage wildlife across the Gulf.
It has already paralysed the fishing industry in the area and wiped billions of dollars off BP's value.It has already paralysed the fishing industry in the area and wiped billions of dollars off BP's value.
Are you affected by this story? Send us your comments on the Congress committee.Are you affected by this story? Send us your comments on the Congress committee.