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BP hit with record $87 million fine

BP - 15 killed on 2005 explosion
BP - 15 killed on 2005 explosion

British oil giant BP has been hit with a record US fine of $87 million for safety violations at a Texas refinery where 15 people were killed in a 2005 explosion.

US Labor Secretary Hilda Solis said BP had failed to address critical safety issues at the Texas City refinery following the 2005 explosion and had also committed new violations.

Inspectors found 270 cases in which BP failed to comply with agreed changes to its safety systems.

They also found 439 new safety violations which ‘if unaddressed could lead to another catastrophe," Solis said in a conference call with reporters.

Many of those new violations were related to the pressure release system at the root of the massive blast in 2005 that also injured 170 people.

BP said in a statement that the majority of the citations ‘relate to a previously announced disagreement’ as to whether it is in compliance with safety regulations.

‘BP continues to believe we are in full compliance and the company will formally contest these citations,’ the company said.

‘While we strongly disagree with their conclusions, we will continue to work with the agency to resolve our differences.’

The BP Texas City Refinery is the third largest refinery in the US, with a capacity of 475,000 barrels of crude per day. It is located on a 1,200-acre facility in Texas City, southeast of Houston.