Tony Hayward, the chief executive of BP, sought to draw a line under the most turbulent period in the British oil group’s history yesterday after agreeing to fines of almost $400 million (£195 million) for the Texas refinery blast, Alaskan oil pipeline leaks and price-fixing of propane contracts.

BP America admitted wrongdoing and agreed to pay the fines in return for the US Government ending investigations into price manipulation and not bringing further criminal charges against the company in relation to the Texas City explosion.

BP has agreed to pay a $50 million fine for the Texas City blast — the largest criminal fine levied by the Department of Justice (DoJ) — and $20 million for a pipe leak at its Prudhoe Bay oilfield in Alaska last year.

It is understood that Mr Hayward, since becoming chief executive this summer, has sought to clear up rapidly BP’s ongoing investigations and outstanding litigation.

Bob Malone, BP America’s chairman, said yesterday: “These agreements are an admission that, in these instances, our operations failed to meet our own standards and the requirements of the law. For that, we apologise. They represent an absolute commitment to work with the Government as we continue our efforts to prevent another tragedy like Texas City, to make our Prudhoe Bay pipeline corrosion programme more responsive to changing operating conditions and to ensure our participation in the nation’s energy markets is always appropriate.”

BP has pleaded guilty to one offence in connection with the Texas City fire in March 2005, which killed 15 people and injured 170. The company admitted failing to have “adequate written procedures for maintaining the ongoing mechanical integrity of process equipment” at the refinery and for failing to alert workers of the dangers they faced housed in temporary trailers on the refinery site.

Mr Malone conceded that BP’s lax attitude to safety had led to the deaths of the Texas refinery workers. He said: “If our approach to process safety and risk management had been more disciplined and comprehensive, this tragedy could have been prevented.”

As well as the $50 million fine, BP accepted a three-year probationary period. It also pledged to continue cooperation with a government inquiry into the refinery blast. Under the agreement, the DoJ will not bring additional criminal charges against BP in connection with the explosion.

On the Alaskan pipeline leaks, BP admitted violating US environmental law after the corrosion of its Prudhoe Bay oil transit lines led to the biggest oil spill recorded in the Bay.

BP’s plea bargains also draw a line under investigations into it for manipulation of the prices of propane, gasoline and crude oil. Propane is used by millions of Americans in very rural or poor areas who lack access to ordinary gas for heating and cooking. BP said it had admitted propane price manipulation in 2004 and trying to manipulate the price in 2003. BP has agreed to pay $303 million in fines in return for all criminal inquiries into price fixing of propane, gasoline and crude being dropped after a three-year good conduct period.

Meanwhile, Paul K. Kelly, a former BP trader, will pay a $400,000 civil penalty for attempting to manipulate unleaded gasoline futures contracts listed at the New York Mercantile Exchange, the Commodity Futures Trading Commission said.

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