BP 2011 Annual Report Download - page 18

16 BP Annual Report and Form 20-F 2011
• Weplantousearoundhalfoftheincreasedcashowforinvestmentandhalffor
other uses including increased distributions to shareholders.
• Andnally,youwillbeabletomeasurebalancesheetstrength.
The plan makes a greater priority of creating value for the shareholder, rather than
simply increasing production volume. We will sell assets earlier in their lifecycle
following discovery if we spot opportunities to reinvest in higher growth areas. We
are also being selective in where we invest along the supply chain. For example,
we are selling certain mature fields that hold more value for others, and we are
selling a number of refining and marketing assets that do not match our aspirations.
I want to say a little more about the areas of strength at the heart of
our strategy.
Exploration is our lifeblood. We had a record year for new access in
2011, gaining 55 exploration licences in nine countries. This opened up around
315,000km2 for exploration. We intend to more than double exploration
investment over the next three years.
In deep water, we are confident in our ability to design, engineer and operate
large installations safely. 2012 will be a busy year for us in the deepwater regions
of Angola, Brazil and the Gulf of Mexico.
In detail
For more on the
strategic priorities set
out in the 10-point plan,
see Our strategy.
Pages 37-41
Group chief executive’s letter
In giant fields, work with our partners has increased output at Iraq’s
Rumaila field by more than 10%. BP was the first supermajor to exceed its
production target in Iraq. During the year we also announced we will be investing
approximately $14 billion – with our partners – in the UK North Sea.
Natural gas is set to be the fastest-growing fossil fuel globally to 2030.
Here, we are forging new partnerships, such as the strategic alliance created in
2011 with Reliance Industries in India. We continue to have a significant focus
on developing unconventional resources around the world. Taking technology
and skills developed in North America, we are working with the governments of
Oman and Algeria to develop their large tight gas reservoirs, and we also continue
to work in Indonesia to develop their onshore coalbed methane fields.
We also have exceptional expertise in building supply chains. For example,
we move gas from 6,000 metres below the Shah Deniz field in Azerbaijan to
markets in Western Europe, 3,000 kilometres away.
Left New investment
announced in 2011 may
extend production at the
Clair field of the UK North
Sea to 2050.
Right February 2011
saw BP announce a
partnership with Reliance
Industries spanning the
gas value chain in India,
from exploration to
marketing.