French oil giant Total abandons arguments in Buncefield case

07 October 2008

French oil group Total has abandoned its defence of compensation claimed by residents living in areas neighbouring its fuel depot site in the UK where an explosion, regarded to be the largest explosion in peace time Europe, took place in 2005.

The about-face came on the fourth day of the civil lawsuit regarding the blast, and the move now puts at risk around £700 million in damages for Total.

The only way to avoid total responsibility, is if Total chooses to rope in its joint venture partner Chevron, to offload some responsibility to that company. Total and Chevron are joint owners of the depot's operating company, Hertfordshire Oil Storage Ltd, where the blast took place.

The explosion, and the ensuing blaze billed as Europe's largest peacetime fire was caused in the wee hours of 11 December 2005, on account of 300 metric tonnes of petrol overflowing from a tank. Investigators said that a gauge on the tank in the Buncefield depot, near Hemel Hempstead, in Hertfordshire, was jammed, and failed to register that petrol was still being pumped into the storage even though the vessel was at capacity. The blast was heard upto 100 miles away.

Lawyers for the residents and businesses impacted by the blast say after years of legal wrangling and squabbles, Total's last-minute move to drop its defence is "appalling".

Total has now chosen to admit that all losses resulting from the disaster should be reimbursed, irrespective of their distance from the site. Originally, it was arguing that the joint venture was liable only for damage sustained within a 451 metre "damage circle".

Total also chose to settle a counter-claim against TAV Engineering, the company that makes the safety switch which had failed to shut down the pipeline automatically, citing "confidential terms". Earlier, both Total and Chevron were suing TAV Engineering, accusing it of negligence.