BP 2012 Annual Report Download - page 28

Our performance – continued Our focus on safe, reliable and compliant
operations has translated into improvements in
both personal and process safety. We have
seen a 16% improvement in our days away from
work case frequency since the start of 2010,
and a 22% improvement in our loss of primary
containment incidents over the same period.
We have continued to open up new exploration
opportunities. In 2012 we added almost
68,000 square kilometres (approximately
26,250 square miles) of new acreage in Brazil,
Canada, Egypt, Namibia and Uruguay; and in the
Gulf of Mexico and Ohio in the US. The Ohio
acreage covers Utica/Point Pleasant, a
promising shale basin. Since 2010 we have
accessed around 400,000 square kilometres
(approximately 154,500 square miles) of new
acreage – an area roughly the size of California.
This is more than double the acreage accessed
by BP from 2000 to 2009.
We made good progress in the four areas we
believe most likely to provide us with higher
margin barrels – Angola, Azerbaijan, the North
Sea and the Gulf of Mexico.
In Angola, we started production at two projects
during 2012 (see page 23). We also continued a
programme of exploration and appraisal.
In Azerbaijan, the Shah Deniz consortium – a
seven-member group led by BP – selected
Nabucco West as the single pipeline option for
the potential export of gas to Central Europe,
while the Trans-Adriatic Pipeline was selected
as the potential route for exports to Italy.
Negotiations on transit and marketing terms will
determine which project will be selected as the
route to market, ahead of our final investment
decision on Shah Deniz. We remain on course
to start up the West Chirag production and
drilling platform in late 2013.
In the North Sea, 2012 saw high levels of
activity. We achieved start-ups, sold a number
of non-strategic assets and moved forward with
a major programme of long-term investment
(see A new chapter in the North Sea, page 24).
These actions reflect our strategy of focusing on
higher margin projects.
Although uncertainties about the consequences
of the Gulf of Mexico oil spill remain, we believe
that the Gulf of Mexico remains an important
source of medium and long-term growth. The
sale of non-core assets in the region should
allow us to concentrate on our four operated
hubs, together with further exploration activity.
In our existing Gulf of Mexico hubs, 80% of our
estimated ultimate recovery is still in the ground.
We are also continuing our Paleogene appraisal
programme of high temperature/high pressure
reservoirs in the Lower Tertiary area.
Following an 18-month review that reassessed
the technical and economic challenges involved
in developing the Liberty field in Alaska safely
and profitably, we announced in June that we
had suspended our development plans. We are
working with regulators to develop alternative
plans for the field.
$2.8 billion
Our Downstream segment’s replacement
cost profit before interest and tax in 2012.
94.8%
Our Solomon refining availability in 2012.
Downstream
For more on the segment’s financial
performance see pages 74-75.
Winning partnerships
As an Official Partner of the London 2012
Olympic and Paralympic Games, BP invested
its resources and capabilities over four years
to support the Games.
We formed partnerships with the Olympic
and Paralympic Committees in the UK, US and
seven other countries of strategic importance to
BP. We supported 60 athletes as they trained
and competed. We provided advanced fuels and
engine oils for 5,000 official vehicles and helped
offset carbon emissions produced by over half a
million spectators’ journeys. We also brought the
magic of the Olympic and Paralympic Games to
millions through the Cultural Olympiad and the
London 2012 Festival.
We believe our support to the Games enabled
us to improve perceptions of BP and enhance
our reputation, with communications and
advertising raising public awareness of BP’s
contribution. The Games also provided an
opportunity to strengthen our relationships
with many business partners from around the
world, who took part in an immersive business
‘experience’ using innovative visual techniques
to demonstrate BP technology. London 2012
was a huge source of inspiration for our
employees too, with many having the
opportunity to contribute their time and
energy to its success.
Business review: Group overview
BP Annual Report and Form 20-F 2012
26