BP 2013 Annual Report Download - page 23

Strategic report
Reserves replacement ratio (%)
Proved reserves replacement ratio is the
extent to which the year’s production has
been replaced by proved reserves added
to our reserve base.
The ratio is expressed in oil-equivalent
terms and includes changes resulting from
discoveries, improved recovery and
extensions and revisions to previous
estimates, but excludes changes resulting
from acquisitions and disposals. The ratio
reflects both subsidiaries and equity-
accounted entities.
The measure helps to demonstrate our
success in accessing, exploring and
extracting resources.
2013 performance The increase in our
reserves replacement ratio included the
impact of final investment decisions on
two significant upstream projects in Oman
and Azerbaijan.
Production (mboe/d)
We report the volume of crude oil,
condensate, natural gas liquids (NGLs)
and natural gas produced by subsidiaries
and equity-accounted entities. These are
converted to barrels of oil equivalent
(boe) at 1 barrel of NGL = 1boe and
5,800 standard cubic feet of natural gas
= 1boe.
2013 performance BP’s total reported
production including our Upstream
segment, and our share of TNK-BP
(from 1 January to 20 March) and
Rosneft (from 21 March to 31
December), was 3% lower than in 2012.
This was mainly due to the effect of
divestments in Upstream.
Total shareholder return (%)
Total shareholder return (TSR)
represents the change in value of a BP
shareholding over a calendar year. It
assumes that dividends are re-invested
to purchase additional shares at the
closing price on the ex-dividend date.
We are committed to maintaining a
progressive and sustainable dividend
policy.
2013 performance TSR grew as a result
of increases in both the BP share price
and in the dividend, with the
improvement for ordinary shares slightly
offset by exchange rate effects.
We report tier 1 process safety events
(PSE), which are the losses of primary
containment of greatest consequence
– causing harm to a member of the
workforce, costly damage to equipment
or exceeding defined quantities.
2013 performance Our reduction in
reported tier 1 PSEs is supported
by our efforts to drive improvement in
process safety. Divestments also
account for part of the reduction. We are
aware there is always more to do to
improve.
We report greenhouse gas (GHG)
emissions material to our business on a
carbon dioxide-equivalent basis. This
includes CO2 and methane for direct
emissions.b Our GHG reporting
encompasses all BP’s consolidated
entities as well as our share of
equity-accounted entities other than
BP’s share of TNK-BP and Rosneft.
Rosneft’s emissions data can be found
on its website.
2013 performance Our total greenhouse
gas emissions decreased by 18%,
primarily due to the divestment of our
Texas City and Carson refineries.
We track how engaged our employees
are with our strategic priorities for
building long-term value. The measure is
derived from answers to 12 questions
about BP as a company and how it is
managed in terms of leadership
and standards.
2013 performance We saw continued
improvement in 2013, and there was
an increase in understanding of our
operating management system, an area
of focus identified the previous year.
While the survey showed an increase in
employee confidence in BP’s leadership,
work is needed to further strengthen
this.
Each year we report the percentage of
women and individuals from countries
other than the UK and US among BP’s
group leaders.
This means we can track progress in
building a diverse and well-balanced
leadership team, helping to create a
sustainable pipeline of diverse talent for
the future.
2013 performance We have increased
the percentage of female leaders again
this year and have extended our focus on
diversity and inclusion beyond the board
and group leaders to include other levels
of management.
Tier 1 process safety eventsaGreenhouse gas emissions
(million tonnes of CO2 equivalent)
Group priorities engagementc (%) Diversity and inclusionc d (%)
Major project delivery
Major projects are defined as large-scale
projects with a high degree of
complexity and a BP net investment of
at least $250 million.
We monitor the progress of our major
projects to gauge whether we are
delivering our core pipeline of activity.
Projects take many years to complete,
requiring differing amounts of resource,
so a smooth or increasing trend should
not be anticipated.
2013 performance In total we delivered
four major projects. Three started up in
Upstream – Atlantis North expansion
Phase 1 in the Gulf of Mexico; Angola
LNG; and North Rankin Phase 2 in
Australia, and one in Downstream –
the Whiting refinery modernization
project.
2009 2010 2011 2012 2013
10
8
6
4
2
8
3
4
2
5
a This represents reported incidents occurring
within BP’s operational HSSE reporting
boundary. That boundary includes BP’s own
operated facilities and certain other locations
or situations. c Relates to BP employees. d Minor amendments have been made to 2012.
b For indirect emissions data see page 45.
BP Annual Report and Form 20-F 2013 19
2009 2010 2011 2012 2013
100
80
60
40
20
74
2009
Data not
collected
43
20
74
2009 2010 2011 2012 2013
100
80
60
40
20
65.0 64.9 61.8 59.8
49.2
2009 2010 2011 2012 2013
100
80
60
40
20
71
Data not
collected
72
67
2009 2010 2011 2012 2013
30
25
20
15
10
5
Women Non UK/US
14
21
14
15
14
19
19
17
18
20
22
2009 2010 2011 2012 2013
60
40
20
0
-20
2.5
3.0
33.0
4.5
2.6
ADS basis Ordinary share basis
27.6
(24.1) (21.4)
14.7
14.0
2009 2010 2011 2012 2013
140
120
100
80
60
129
103
129
77
106
2009 2010 2011 2012 2013
4,250
4,000
3,750
3,500
3,250
3,998
3,822
3,230
3,454
3,331