BP 2010 Annual Report Download - page 16
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Group overview
Ourorganization
BPisoneoftheworld’sleadinginternationaloil
andgascompanies.aWeoperateormarketour
productsinmorethan80countries,providingour
customerswithfuelfortransportation,energyfor
heatandlight,retailservicesandpetrochemicals
productsforeverydayitems.
Asaglobalgroup,ourinterestsandactivitiesareheldoroperatedthrough
subsidiaries,jointlycontrolledentitiesorassociatesestablishedin–and
subjecttothelawsandregulationsof–manydifferentjurisdictions.These
interestsandactivitiescoveredtwobusinesssegmentsin2010:
ExplorationandProductionandReningandMarketing.BP’sactivitiesin
low-carbonenergyaremanagedthroughourAlternativeEnergybusiness,
whichisreportedwithinOtherbusinessesandcorporate.
ExplorationandProduction’sactivitiesincludeoilandnaturalgas
exploration,elddevelopmentandproduction;midstreamtransportation,
storageandprocessing;andthemarketingandtradingofnaturalgas,
includingliqueednaturalgas(LNG),togetherwithpowerandnaturalgas
liquids(NGLs).Duringthefourthquarterof2010,aspartofourwider
responsetotheGulfofMexicoincident,wedecidedtoreorganizeour
ExplorationandProductionsegmenttocreatethreeglobalfunctional
divisions:Exploration,Developments,andProduction,integrated
throughaStrategyandIntegrationorganization.Thisisdesignedto
fundamentallychangethewaythesegmentoperates,withaparticular
a
Onthebasisofmarketcapitalization,provedreservesandproduction.
focusonmanagingrisk,deliveringcommonstandardsandprocessesand
buildingpersonnelandtechnologicalcapabilityforthefuture.The
Explorationdivisionisaccountableforrenewingourresourcebasethrough
access,explorationandappraisalactivities.TheDevelopmentsdivisionis
accountableforthesafeandcompliantexecutionofwells(drillingand
completions)andmajorprojects.TheProductiondivisionisaccountablefor
safeandcompliantoperations,includingupstreamproductionassets,
midstreamtransportationandprocessingactivities,andthedevelopment
ofourresourcebase.Divisionalactivitiesareintegratedonaregionalbasis
byaregionalpresidentreportingtotheProductiondivision.
ReningandMarketing’sactivitiesincludethesupplyandtrading,
rening,manufacturing,marketingandtransportationofcrudeoil,
petroleumandpetrochemicalsproductsandrelatedservices.Thesegment
comprisesanumberofstrategicperformanceunits(SPUs),whichare
organizedalongeithergeographicoractivity-relatedlines.EachSPUisof
ascalethatallowsforaclosefocusonperformancedelivery,starting
withsafety,andincludestheappropriatemanagementofoperatingand
nancialparameters.
Ourgroupfunctionsandregionssupporttheworkofoursegments
andbusinesses.Thekeyobjectivesofthefunctionsaretoestablishand
monitort-for-purposefunctionalstandardsacrossthegroup;toactas
centresofdeepfunctionalexpertise;toaccesssignicantleveragewith
third-partysuppliers;andtoestablishandmaintaincapabilitiesamongthe
functionalstaffemployedwithinouroperatingbusinesses.Inaddition,the
headofeachregionprovidestherequiredcross-segmentintegrationand
co-ordinationofgroupactivitiesinaparticulargeographicareaand
representsBPtoexternalparties.
InJune2010,followingtheGulfofMexicoincident,weestablished
theGulfCoastRestorationOrganization(GCRO)andsubsequently
equippeditwithdedicatedresourcesandcapabilitiestomanageallaspects
ofourresponsetotheaccident.Thisorganizationreportsdirectlytothe
groupchiefexecutiveandisoverseenbyaspecicnewboardcommittee.
AmongthechangeswehavemadefollowingtheGulfofMexico
incident,wehaveredenedandstrengthenedthescopeandaccountabilities
ofthegroupfunctionforsafetyandoperations,creatinganenhanced,
independentSafetyandOperationalRisk(S&OR)function,tooverseeand
auditthecompany’soperationsaroundtheworld.Thefunctionhasitsown
expertstaffembeddedinBP’soperatingunits,includingexplorationprojects
Exploration and Production
BP’s major areas of operation in 2010
BPsubsidiary
Equity-accountedentity
Locationwhereall,orthemajorityof,our
operationsweredisposedduring2010or
heldforsaleat31December2010
14BPAnnualReportandForm20-F2010