BP 2009 Annual Report Download - page 23

BP Annual Report and Accounts 2009
Business review
21
Forward-looking statements
In order to utilize the ‘Safe Harbor’ provisions of the United States Private
Securities Litigation Reform Act of 1995, BP is providing the following
cautionary statement. This document contains certain forward-looking
statements with respect to the financial condition, results of operations
and businesses of BP and certain of the plans and objectives of BP with
respect to these items. These statements may generally, but not always,
be identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’,
‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘plans’,
‘we see’ or similar expressions. In particular, among other statements,
(i) certain statements in Business review (pages 10-63), including under
the headings ‘Outlook’, with regard to strategy, management aims and
objectives, future capital expenditure, the future scrip dividend
programme, future hydrocarbon production volume and the group’s ability
to satisfy its long-term sales commitments from future supplies available
to the group, date(s) or period(s) in which production is scheduled or
expected to come onstream or a project or action is scheduled or
expected to begin or be completed, capacity of planned plants or facilities
and impact of health, safety and environmental regulations; (ii) the
statements in Business review (pages 10-52) with regard to anticipated
energy demand and consumption, global economic recovery, oil and gas
prices, global reserves, expected future energy mix and the potential for
cleaner and more efficient sources of energy, management aims and
objectives, strategy, production, petrochemical and refining margins,
anticipated investment in Alternative Energy, anticipated future project
developments, growth of the international businesses, Refining and
Marketing investments, reserves increases through technological
developments, with regard to planned investment or other projects,
timing and ability to complete announced transactions and future
regulatory actions; and (iii) the statements in Business review (pages 53-
63) with regard to the plans of the group, the cost of and provision for
future remediation programmes and environmental operating and capital
expenditures, taxation, liquidity and costs for providing pension and other
post-retirement benefits; and including under ‘Liquidity and capital
resources’ – Trend Information, with regard to global economic recovery,
oil and gas prices, petrochemical and refining margins, production,
demand for petrochemicals, production and production growth,
depreciation, underlying average quarterly charge from Other businesses
and corporate, costs, foreign exchange and energy costs, capital
expenditure, timing and proceeds of divestments, balance of cash
inflows and outflows, dividend and optional scrip dividend, cash flows,
shareholder distributions, gearing, working capital, guarantees, expected
payments under contractual and commercial commitments and purchase
obligations; are all forward-looking in nature.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances
that will or may occur in the future and are outside the control of BP.
Actual results may differ materially from those expressed in such
statements, depending on a variety of factors, including the specific
factors identified in the discussions accompanying such forward-looking
statements; the timing of bringing new fields onstream; future levels of
industry product supply, demand and pricing; operational problems;
general economic conditions; political stability and economic growth in
relevant areas of the world; changes in laws and governmental
regulations; actions by regulators; exchange rate fluctuations;
development and use of new technology; the success or otherwise of
partnering; the actions of competitors; natural disasters and adverse
weather conditions; changes in public expectations and other changes to
business conditions; wars and acts of terrorism or sabotage; and other
factors discussed elsewhere in this report including under ‘Risk factors’
on pages 18-20. In addition to factors set forth elsewhere in this report,
those set out above are important factors, although not exhaustive, that
may cause actual results and developments to differ materially from
those expressed or implied by these forward-looking statements.
Business review
Business review – Group overview
Statements regarding
competitive position
Statements referring to BP’s competitive position are based on the
company’s belief and, in some cases, rely on a range of sources,
including investment analysts’ reports, independent market studies and
BP’s internal assessments of market share based on publicly available
information about the financial results and performance of market
participants.
Further note on certain activities
During the period covered by this report, non-US subsidiaries or other
non-US entities of BP, conducted limited activities in, or with persons
from, certain countries identified by the US Department of State as State
Sponsors of Terrorism (‘Sanctioned Countries’). These activities continue
to be insignificant to the group’s financial condition and results of
operations.
BP has interests in, and is the operator of, two fields and a
pipeline located outside Iran in which the National Iranian Oil Company
(NIOC) and an affiliated entity have interests. BP buys crude oil, refinery
and petrochemicals feedstocks, blending components and LPG of Iranian
origin or from Iranian counterparties primarily for sale to third parties in
Europe and a small portion is used by BP in its own facilities in South
Africa and Europe. Until recently BP held an equity interest in an Iranian
joint venture that has a blending facility and markets lubricants for sale to
domestic consumers. In January 2010, BP restructured its interest in the
joint venture and currently maintains its involvement through certain
contractual arrangements, which it keeps under review in light of pending
legislative developments in the US. BP does not seek to obtain from the
government of Iran licences or agreements for oil and gas projects in
Iran, is not conducting any technical studies in Iran and does not own or
operate any refineries or petrochemicals plants in Iran.
BP sells lubricants in Cuba through a 50:50 joint venture there and
in 2009 purchased a cargo of naphtha from a non-Cuban counterparty
that was loaded in Cuba. In Syria, lubricants are sold through a distributor
and BP obtains crude oil and refinery feedstocks for sale to third parties
in Europe. In addition, BP sells crude oil and refined products into Syria.
BP supplies fuels and lubricants to airlines and shipping
companies from Sanctioned Countries at airports and ports located
outside these countries.
BP monitors its activities with Sanctioned Countries and keeps
them under review to ensure compliance with applicable laws and
regulations of the US and other countries where BP operates.