BP 2009 Annual Report Download - page 12

Group overview
Our organization
BP is one of the world’s leading international oil
and gas companiesa. We operate in more than
80 countries, providing our customers with fuel
for transportation, energy for heat and light,
retail services and petrochemicals products for
everyday items.
As a global group, our interests and activities are held or operated
through subsidiaries, jointly controlled entities or associates established
in – and subject to the laws and regulations of – many different
jurisdictions. These interests and activities covered two business
segments in 2009: Exploration and Production and Refining and
Marketing. BP’s activities in low-carbon energy are managed through our
Alternative Energy business, which is reported within Other businesses
and corporate.
Exploration and Production’s activities cover three key areas.
Upstream activities include oil and natural gas exploration, field
development and production. Midstream activities include pipeline,
transportation and processing activities related to our upstream
activities. Marketing and trading activities include the marketing and
trading of natural gas, including liquefied natural gas (LNG), together
with power and natural gas liquids (NGLs).
Refining and Marketing’s activities include the supply and
trading, refining, manufacturing, marketing and transportation of crude
oil, petroleum and petrochemicals products and related services.
The two business segments each comprise a number of
strategic performance units (SPUs), which are organized along either
geographic or activity-related lines. The role of the SPU includes the
development of local capability and the fostering of external stakeholder
relationships. Each SPU is of a scale that allows for a close focus on
performance delivery by its respective segment, which includes the
appropriate management of costs.
aOn the basis of market capitalization, proved reserves and production.
Our group functions and regions support the work of our segments and
businesses. Their key objectives are to establish and monitor fit-for-
purpose functional standards across the group; to act as centres of deep
functional expertise; to access significant leverage with third-party
suppliers; and to establish and maintain capabilities among the
functional staff employed within our operating businesses. In addition,
the head of each region provides the required integration and
co-ordination of group activities in a particular geographic area and
represents BP to external parties.
Where we operate
BP’s worldwide headquarters is in London. The UK is a centre for
trading, legal, finance and other business functions as well as three
of BP’s major global research and technology groups.
We have well-established operations in Europe, the US, Canada,
Russia, South America, Australasia, Asia and parts of Africa. Currently,
around 67% of the group’s capital is invested in Organisation for
Economic Co-operation and Development (OECD) countries, with
around 40% of our fixed assets located in the US and around 20%
in Europe.
Exploration and Production
BP’s major areas of production in 2009
•BP subsidiary
•Equity-accounted entity
Unless otherwise indicated, information in this document reflects 100% of the
assets and operations of the company and its subsidiaries that were consolidated
at the date or for the periods indicated, including minority interests. The company was
incorporated in 1909 in England and Wales and changed its name to BP p.l.c. in 2001.
BP’s primary share listing is the London Stock Exchange. Ordinary shares are also traded
on the Frankfurt Stock Exchange in Germany and, in the US, the company’s securities
are traded in the form of ADSs. (See pages 100 to 101 for more details.)
Our worldwide headquarters is located at:
1 St James’s Square,
London SW1Y 4PD, UK.
Tel [phone].
Our agent in the US is BP America Inc.,
501 Westlake Park Boulevard, Houston, Texas 77079.
Tel [phone].
BP Annual Report and Accounts 2009
Business review
10