State-controlled oil company StatoilHydro ASA faced stinging criticism for lax safety measures Thursday following a government agency's probe of a May offshore oil and gas leak that "could have become a major disaster."

Some 156 of 217 crew were evacuated from the Statfjord A offshore oil platform because experts feared a May 24 oil and gas leak during maintenance could have caused an explosion. No one was seriously injured and the platform was not damaged.

The Norwegian government's Petroleum Safety Authority said its investigation into the incident showed serious violation of safety regulations.

"In insignificantly different circumstances, this could have become a major disaster with the loss of human life," the authority said in a letter to StatoilHydro.

It said it was also looking at the May accident in the context of a series of mishaps that have hit the company, included a 28,000 barrel oil spill at the same field in December 2007. The agency also criticized StatoilHydro for sloppy safety measures after investigating that spill.

The latest investigation said StatoilHydro, the key producer on Norway's offshore fields, failed to follow key points in its own safety procedures, with fundamental weaknesses in risk assessment, carrying out critical operations and following up subcontractors.

"Organizational and leadership aspects seen as the root cause of the incident," the letter said. It said the agency was ordering the oil company to make specific improvements to avoid similar problems in the future.

The agency ordered StatoilHydro to review its procedures and safety plans, and report back with specific steps by Nov. 1.

Tore Torvund, who took over as head of StatoilHydro's Norwegian offshore operations a year ago, said the company has been working hard to improve systems.

"I understand the criticism form the Petroleum Safety Authority. I am trying to do something about it," he said. "This is a very serious criticism."

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On the Net:

www.ptil.no

www.statoilhydro.com

(dm)