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Please find page 102 of the 2010 BP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Corporategovernance
ThecommitteealsoexaminedquarterlyauditreportsfromBP’sinternal
auditandsafetyandoperationsfunctionswhichhighlightedkeyndings
andmaterialactionsarisingfromauditswhichhadtakenplaceatsegment,
functionalandregionallevelsandtrackedtheirclose-out.Safetyand
environmentalperformanceofprojectswasincludedwithinthereporting
bysegmentandperformanceunit.
Activitiesfromtheexecutive-levelgroupoperationsriskcommittee
(GORC)arereportedtotheSEEACbyitschairateachmeeting.TheSEEAC
receivedregularupdatesonthecompany’sinteractionwithregulatory
agencies,andthecommitteechairmanreceivedabriengfromlegal
counselontheOSHAcitationsinrespectofTexasCity.
GulfofMexico
ThecommitteeexaminedBP’sInvestigationReportandits
recommendationsbeforeprovidinginputfortheboard’sreviewofthe
reportpriortoitspublication.ThecommitteenotedthattheBP
investigationteamhadconducteditsinvestigationindependentlyfrom
theteamsmanagingregularoperationsandtheongoingresponsetothe
incident.Thecommitteealsoreviewed,andreportedtotheboard,
management’searlyactionsinresponsetolessonslearned.Theaction
planthathasbeendevelopedfromthe26recommendationsofBP’s
InvestigationReportwillbetrackedinitsimplementationbythe
committee,againstagreedtimelinesandmilestones.Inmonitoring
progressagainstBP’sInvestigationReport’srecommendations,thesafety
andoperationsauditfunctionwillprovideSEEACwithquarterlytracking
reportsandreportingupdateswillbemadebyupstream’sexecutivevice
presidentDevelopmentsandbythegroupchiefexecutive.Thecommittee
isalsomonitoringother,non-BPinvestigationstodeterminehowthe
conclusionsfromtheserelatetotheactionplanandactivitiesarisingfrom
BP’sInvestigationReport.
Thecommitteewillalsokeepunderreviewtheimplementation
ofthenewsafetyandoperationalriskorganizationalstructureandthe
resourcingitrequirestosupportthedecisionandinterventionrightsithas
inallaspectsofthegroup’stechnicalandoperationalactivities,including
keyinvestmentdecisions.
IndependentExpert
DuaneWilsonwasappointedin2007bytheboardasanIndependent
ExperttoprovideanobjectiveassessmentofBP’sprogressin
implementingtherecommendationsoftheBPUSReneriesIndependent
ReviewPanel(aimedatimprovingprocesssafetyperformanceatBP’sve
USreneries).
Duringtheyear,MrWilsonkeptthecommitteeupdatedonhis
workplanandtheoutcomeofhisvisitstoeachofBP’sveUSrening
sites.InMarch,hepublishedhisthirdannualreportthatassessedBP’s
progressagainstthe10panelrecommendations.Inhisreport,whichwas
publishedinfullonBP’swebsite,heconcludedthatthecompanyhad
madesignicantimprovementsinresponsetoall10recommendationsbut
thatmuchworkremainedtobedone.MrWilson’sfourthreportwillbe
publishedinfullandavailableonourwebsiteinMarch2011andasummary
ofthethirdandfourthreportsisprovidedinSafetyonpage70.
Regionalandfunctionalreports
ThecommitteereceivesareporteachyearontheprogressmadeinHSE
atTNK-BP,notinghoweverthatformaloversightofthejointventure’sHSE
performanceandpoliciesisexercisedbyTNK-BP’sownHSEcommittee.
ItwasreportedthatTNK-BPcontinuedtomakesignicantprogressin
addressingthemainsafety,ethicalandenvironmentalchallenges
confrontingitsinceitscreationin2003.Nonetheless,signicantareas
remainforimprovementandthecommitteewillcontinuetomonitor
progressregularly.
WithjointventureoperationsinIraqgettingunderway,the
committeesoughtandreceivedanupdateontherisksandmanagementof
securityinIraq.
Othertopics
Duringtheyear,thecommitteeexaminedthecompany’scrisisresponse
andcontinuitymanagementplans.Italsoreviewedtheriskidentication
andcompany’sproposedmitigationsrelatingtohydrocarbon
productquality.
Developmentsinthemeasurementofgreenhousegasemissions
wereconsideredbythecommitteeinthecontextofregulatorycompliance
andaspartofthecompany’strackinganddisclosureprocesses.
Committeeevaluation
Forits2010evaluation,theSEEACusedaquestionnaireadministered
byexternalconsultantstoexaminethecommittee’sperformanceand
effectiveness.Thereviewlookedatdifferentareas,includingthebalance
ofskillsandexperienceamongitsmembership,qualityandtimelinessof
informationthecommitteereceives,thelevelofchallengebetween
committeemembersandmanagementandhowwellthecommittee
communicatesitsactivitiesandndingstotheboard.
Thecommitteeconcludedthatitshouldendeavourtoincreaseits
sitevisitsandtraining,notingthattheparticularcircumstancesof2010had
reducedtheopportunityforsuchactivitiesexceptinrelationtotheGulfof
Mexico.Italsobelievedthatitcouldimprovetheprioritizationofits
agendasthroughmorefocusedpre-readmaterial.Thecommittee
considereditscurrentmembershipprovidedawell-balancedresourceand
alsonotedthevaluablecontributionmadebytheIndependentExpert.
100BPAnnualReportandForm20-F2010