Unsafe culture led to BP Texas refinery blast

SAN ANTONIO, Texas (Reuters) - An unsafe culture at oil major BP was behind an explosion at its massive Texas oil refinery that killed 15 people and injured about 180 others in 2005, the head of the main government body investigating the accident said on Monday.

"As the investigation unfolded, we were absolutely terrified at the fact that such a culture could exist at the Texas City facility," said U.S. Chemical Safety Board Chairman Carolyn Merritt in a speech to the National Petrochemical and Refiners Association conference in San Antonio.

The CSB on Tuesday will unveil its final draft report into the explosion, the worst U.S. industrial accident in decades.

BP settled several lawsuits related to the explosion, one of several incidents that have called into question the safety practices of the London-based oil major.

Merritt said the problems at BP were similar to those seen by the CSB in the past 10 years as corporate cost-cutting has found a favorite target in safety programs.

"In order to fix a problem you've got to accept that you've got a problem," Merritt said.

Many of the companies that have come under CSB's scrutiny like BP tend to make safety audits into "superficial paperwork exercises," she said to 1,200 refining and petrochemical executives at the NPRA meeting.

A BP spokesman reiterated the company's acceptance of responsibility for the accident.

"Our own internal report found serious problems with the safety culture at Texas City and also identified the critical factors leading to the terrible tragedy that occurred there," said BP spokesman Ronnie Chappell.

"We are addressing the safety culture issues across BP, as we have been doing since the accident in 2005," he added.

An advisory panel led by former U.S. Secretary of State James Baker found dangerous conditions at all five of BP's U.S. refineries and recommended an overhaul to safety procedures across the U.S. refining sector.

The blast at the 460,000 barrel per day (bpd) Texas City refinery, along with a series of problems at BP's Alaska operations, have tarnished the company's reputation over the past two years.

Asked by an audience member if the CSB has looked at the financial costs of plant accidents, Merritt said a person only had to look at how BP has been affected since the 2005 explosion.

"Is there anyone out there who believes preventative maintenance doesn't save money?" Merritt asked. "Raise your hand. Raise your hand."

No hands were raised.