BP 2015 Annual Report Download - page 76

BP Annual Report and Form 20-F 201572
Independent expert – Upstream
Mr Carl Sandlin continued in his role as an independent expert to provide
further oversight regarding the implementation of the Bly Report
recommendations. He formally reported directly to the SEEAC twice in
2015 and presented detailed reports on his work, including reporting on a
number of visits made to company operations around the world; he also
met in private with the chair and other members of the committee during
the year. He reported that all 26 recommendations in the Bly Report were
completed by the end of 2015. He gave his final report to the SEEAC in
January 2016 and his engagement ceased in February 2016. We thank him
for his work with the committee since 2012.
Process safety expert – Downstream
Mr Duane Wilson finalized his engagement with the committee in his role
as process safety expert for the Downstream segment. He completed his
work with segment management to monitor and advise on the process
safety culture and learnings across the segment. He submitted his final
report to the SEEAC in January 2015 and completed his engagement in
April 2015. The committee thanks him for his work, including on process
safety culture.
Reports from group audit, group ethics and compliance and the
business integrity functions
The committee received quarterly reports from each of these functions. In
addition, both the head of group audit and the group ethics and compliance
officer met in private with the chairman and other members of the
committee during the year.
Field trips
In June members of the committee visited Trinidad to examine both the
offshore facilities (the Cassia platform) and the onshore liquefied natural
gas terminal (Atlantic LNG). In November the chairman and other
committee members visited operations at the Khazzan gas field
development in Oman; in December the chairman and other members of
the committee and the board visited the Rotterdam refinery in the
Netherlands. In all cases, the visiting committee members received
briefings on operations, the status of local operating management
system★ (OMS) implementation and risk management and mitigation.
Committee members then reported back in detail about each visit to the
committee and subsequently to the board.
Committee review
For its 2015 evaluation, the committee examined its performance and
effectiveness through a questionnaire and interviews by external
facilitators. Topics covered included the balance of skills and experience
among its members, the quality and timeliness of information the
committee receives, the level of challenge between committee members
and management and how well the committee communicates its activities
and findings to the board.
Members
Paul Anderson
(chairman)
Member since February 2010; committee chair
since December 2012
Alan Boeckmann Member since September 2014
Frank Bowman Member since November 2010
Antony Burgmans Member since February 2004
Cynthia Carroll Member since June 2007
Ann Dowling Member since February 2012
John Sawers Member since July 2015
Meetings and attendance
There were six committee meetings in 2015, plus an additional five joint
meetings with the audit committee. All directors attended every meeting
for which they were eligible, with the following exceptions:
• Alan Boeckmann did not attend the committee meeting on
13 May 2015 due to prior commitments.
• Cynthia Carroll did not attend the committee meeting on
2 December 2015 due to a conflicting board meeting.
In addition to the committee membership, all SEEAC meetings were
attended by the group chief executive, the executive vice president for
safety and operational risk (S&OR) and the head of group audit or his
delegate. The external auditor attended some of the meetings (and was
briefed on the other meetings by the chair and secretary to the
committee), as did the group general counsel and group ethics and
compliance officer. The committee scheduled private sessions for the
committee members only (without the presence of executive
management) at the conclusion of each meeting to discuss any issues
arising and the quality of the meeting.
Activities during the year
Safety, operations and environment
The committee received regular reports from the S&OR function, including
quarterly reports prepared for executive management on the group’s
health, safety and environmental performance and operational integrity.
These included quarter-by-quarter measures of personal and process
safety, environmental and regulatory compliance and audit findings.
Operational risk and performance forms a large part of the committee’s
agenda.
During the year the committee received specific and separate reports on
the company’s management of risks in marine, wells, pipelines, explosion
or release at our facilities and major security incidents. The committee
reviewed these risks and their risk management and mitigation in depth
with relevant executive management.
• GCE operations risk reports.
• Quarterly reports on HSE performance and operational
integrity.
• Sustainability reporting annual overview.
• Fair, balanced and understandable.*
• Field trips led by the SEEAC (including visits to
Trinidad, Oman and Rotterdam refinery).
* Undertaken jointly with the audit committee.
• External auditor assurance of
sustainability reporting.
• Group audit assurance of system of
internal control.
• S&OR audit assurance (as part of group
audit).
• Explosion or release at facilities.
• Major security incidents.
• Well incident.
• Pipeline incident.
• Marine incident.
• Review of effectiveness of BP’s system of
internal control and risk management*.
• Quarterly group audit reports.
• Quarterly significant allegations and
investigations reports.
• Quarterly ethics and compliance reports.
• Annual ethics certification*.
• Ethics and compliance function remit*.
• Principal risks, viability and significant failings and
weaknesses*.
Monitoring of
operations and
reporting
External and
internal audit
Risk reviews
System of internal
control and risk
management
SEEAC focus in 2015