BP 2011 Annual Report Download - page 10

8 BP Annual Report and Form 20-F 2011
Carl-Henric Svanberg
Chairman Dear fellow shareholder,
In 2011 we re-laid the foundations of BP. Our objective was to ensure your
company is able to deliver sustainable shareholder value in the months and years
ahead. Above all else, this is dependent on BP having the trust of the societies in
which it works – today and over the long term.
During the year the board oversaw a major reorganization designed to
establish a stronger, safer BP. The progress made demonstrates that the company
can and will recover from the consequences of the Deepwater Horizon accident.
We remained mindful of the tragic events seen in 2010 and the need to ensure
such an accident never happens again.
I thank you for the patience you have shown as we work to rebuild your
company.
The board set three priorities for BP. Safety must be enhanced and
embedded. Trust must be regained. Value must be created through a clear
strategic plan. While these priorities are simple to express, substantial activity
is required to turn them into tangible and lasting change.
On safety, the board supported and challenged Bob Dudley and his
executive team as they restructured and enhanced BP’s processes, systems and
culture. Furthermore, the board initiated a review of the way BP manages, reports
and acts on risk, including board oversight.
On trust, we ensured that BP continued to meet its commitments in the
Gulf of Mexico. We co-operated with every official investigation and prepared
for litigation. We worked closely with governments and regulators, and we
communicated openly with shareholders and the wider world.
On value, the board set a 10-point plan focused on growing operating cash
flow and increasing shareholder returns. The company will play to its greatest
strengths and prioritize value over volume. Relentless execution of this strategy
is now needed so we deliver value to our shareholders.
BP’s financial and operating performance in 2011 has created a springboard
for growth. In the upstream, we secured 55 new exploration licences in nine
Chairman’s letter