Oil & Energy
Anadarko Points Finger At BP On Gulf Spill
Anadarko Petroleum Corp., which owns a quarter of BP PLC’s blown-out oil well in the Gulf of Mexico, late Friday blasted BP’s “reckless decisions and actions” that led to the well’s explosion.
Anadarko Chairman and CEO, Jim Hackett’s statement came after some elected officials said Anadarko should help pay for the massive cleanup and spill-related claims.
Company spokesman, John Christiansen said the comments were in response to “a week’s worth of testimony” and other information and data compiled on the disaster.
“The mounting evidence clearly demonstrates that this tragedy was preventable and the direct result of BP’s reckless decisions and actions,” said Hackett in the statement.
“We recognize that ultimately we have obligations under federal law related to the oil spill, but will look to BP to continue to pay all legitimate claims as they have repeatedly stated that they will do,” he added.
The information disclosed last week “indicates BP operated unsafely and failed to monitor and react to several critical warning signs during the drilling” the statement continued.
“BP’s behaviour and actions likely represent gross negligence or willful misconduct,” he stressed.
BP Chief Executive Officer, Tony Hayward said in a statement that the company strongly disagreed with the allegations
“These allegations will neither distract the company’s focus on stopping the leak nor alter our commitment to restore the Gulf coast,” Hayward said.
“Other parties besides BP may be responsible for costs and liabilities arising from the oil spill, and we expect those parties to live up to their obligations,” he noted.
Anadarko, with 10 per cent stake in the BP operations, had no employees on the well and was a non-operating partner in the project. The rig was owned by Transocean Ltd. of Switzerland and operated by BP.
Anadarko also hinted at potential legal action against BP.
The statement said BP had a duty to perform the drilling “in a good and workmanlike manner and to comply with all applicable laws and regulations.”
The contract also holds BP responsible to its co-owners for damages “caused by its gross negligence or willful misconduct.”
Christiansen would not say whether Anadarko could be absolved of paying spill-related costs if lawmakers find BP negligent, or confirm that Anadarko intends to take legal action. “We’re looking at what’s available to us under our contractual remedies,” he said.
Anadarko said any actions it takes “to protect its rights relative to BP’s performance” will not shift the financial burden to taxpayers.
Anadarko’s statement came as BP’s chairman said Hayward was on his way out of the day-to-day oversight of the oil spill crisis, a day after he was pummeled by lawmakers in an appearance on Capitol Hill. Hayward’s refusal on Thursday to answer lawmakers’ questions, claiming that he was out of the loop, left many members of the House committee furious.
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Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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