BP 2015 Annual Report Download - page 13

Our executive vice president for corporate business activities, Katrina Landis, decided to
step down after a very successful 24 years in BP. We have taken this opportunity to
simplify and better align responsibilities within the team, appointing Lamar McKay as
deputy chief executive, leading on key accountabilities such as strategy and safety, with
Bernard Looney succeeding Lamar as Upstream chief executive.
Building a platform for growth
The agreements we reached in July with US federal, state and the vast majority of local
government bodies will, subject to court approval, settle our largest remaining legal
exposures relating to the Deepwater Horizon accident and oil spill in 2010. This is a realistic
outcome that gives BP clarity to plan for the future.
To build that future, we are continuing to invest in a disciplined way in a portfolio that is
well balanced in several respects – geographically across regions, across our upstream and
downstream businesses and across resource types – conventional and unconventional oil
and gas, as well as the renewable energies of biofuels and wind. This gives us resilience
and flexibility now and in the future.
In the Upstream, in addition to a well-managed base of existing operations, we had three
major project start-ups in 2015 and we made final investment decisions on four projects,
including the West Nile Delta project in Egypt, where we are seeing some best-in-class
drilling performance. Looking ahead, we expect significant new production from projects
starting up between 2015 and 2020, including our mega projects at Shah Deniz 2 in
Azerbaijan and Khazzan in Oman, which will create value for decades. These projects are
on time and on budget.
In the Downstream, we continue to focus on resilient and improving performance and
growth from a quality portfolio of high-performing refineries, a competitive petrochemicals
business and growing fuels marketing and lubricants businesses.
In 2015 we furthered our relationship with Rosneft to that of a strategic partner, with
involvement in exploration, appraisal and production in some of the world’s most prolific oil
and gas provinces. In China, we have signed new agreements to supply liquefied natural
gas and to explore for shale gas. And we continue to build relationships in BP’s historic
heartlands of the Middle East, with growing opportunities in Oman, Kuwait, Egypt and Iraq.
Acting on climate change
We continue to support action to address the risk of climate change. Through the Oil and
Gas Climate Initiative – a business coalition that accounts for over a fifth of global oil and
gas production – we are sharing best practices and developing common approaches, such
as on the role of natural gas, the lowest-carbon fossil fuel and on energy efficiency. We
also joined with BG Group, Eni, Reliance, Repsol, Royal Dutch Shell, Statoil and Total to call
on the UN and governments to put a price on carbon so that businesses and consumers of
energy can better work within frameworks that are clear.
We welcome the direction provided by the historic agreement reached at the UN climate
conference in Paris. Governments, companies and consumers all have to make an
appropriate contribution and we will continue to play our part through means including
energy efficiency, renewable energy and increasing the share of natural gas in our portfolio.
Adapting for now and the future
Over the years BP has responded to changing circumstances many times. Each time we
have learned, adapted and evolved. This experience, gained over more than 100 years, is
one of our greatest assets. Today, we are well placed to weather the storm and navigate
through a testing environment to emerge in good shape for taking advantage of new
opportunities. I am confident that BP will be delivering energy for our customers and value
for our shareholders long into the future.
Bob Dudley
Group chief executive
4 March 2016
Top: Bob Dudley meets Russian deputy prime
minister for social affairs, Olga Golodets, at the
London Science Museum Cosmonauts exhibition.
Bottom: Bob Dudley speaks with Pemex CEO,
Emilio Lozoya Austin and Total CEO Patrick
Pouyanné at the OGCI event in Paris.
★ Defined on page 256.
Strategy
For more information on our strategic
priorities and longer-term objectives
see pages 12-17.
Industry context
See how we are responding to
the lower price environment on
pages 18-19.
BP Annual Report and Form 20-F 2015 9
Strategic report