BP under John Browne ( 1995-2007)

1995 •Browne Appointed CEO

▪ John Browne appointed as CEO

▪ Fundamentally changed BP’s culture, making financial 1998
•Purchased Amoco.
Renamed New company
considerations (cost cutting measures) and achieving BP Amoco PLC

targets the priority

•BP Amoco acquires
▪ Rise in share prices lead to strategy of growth through 2000 Arco and Burmah
Castrol
acquisition
▪ During Browne’s tenure, BP’s market value rose 2005 •Refinery Explosion at
Texas
fivefold, with its share price rising 250%.
▪ Browne had domineering management style and a •Oil spill at Alaska due to
select band of executives. Looked more for challenges 2006 fractured pipelines
than about managing day-to-day details of business
•Browne Resigns.
▪ Cost cutting measures resulted in “pruning of safety and 2007 Hayward appointed as
CEO
maintenance costs”

1
BP under John Browne ( 1995-2007)

▪ Incident -1 ( Texas – March 2005)

▪ Explosion at refinery. Death of 15 employees and 170 injured
▪ BP fined $50 M and paid $265 M more for safeguards.

▪ Incident -2 (Alaska – 2006)

▪ Fractured pipeline caused 2 oil spills. Corrosion found in other Alaskan pipelines
▪ Fined $20 M. Reputation tarnished and criticized for it’s lack of safety culture,
recklessness and regulatory violations