Shareholders sue BP for negligence on pipeline maintenance

| 8/18/2006

Some of British Petroleum’s shareholders are suing the oil giant, claiming the company’s executives knew that pipelines at Alaska’s Prudhoe Bay were seriously corroded – but took no action.

According to Reuters, the lawsuit seeks unspecified monetary damages.

The corroded lines forced BP to shut down about half of its Prudhoe Bay drilling operations.

Meanwhile, on Wednesday, a pressure surge knocked an above-ground pipeline off its supports when BP tried to add to its output from the half of the field that’s still operating.

There wasn’t any oil spilled, but the accident eliminated chances of producing another 20,000 barrels a day from the field, Reuters reported.