BP 2011 Annual Report Download - page 11

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Business review: Group overview
BP Annual Report and Form 20-F 2011 9
countries, and our Refining and Marketing segment delivered very strong
earnings. Our $38-billion divestment programme is strengthening the group’s
financial position and focusing our portfolio.
In 2011 we restored your dividend, and I am pleased to report that we
increased the dividend by 14% in February 2012, in accordance with our policy.
The wider world did not stand still in 2011. We saw rapid and sometimes
unpredictable change. This included escalation of the European debt crisis and
political upheaval in countries where BP has significant operations, such as Libya
and Egypt. We kept a close watch on these developments and acted where
required. Our international advisory board assisted us in this task.
The company continually looks for ways to form new relationships and
enhance its partnerships around the world. Our new alliance with Reliance
Industries in India is a significant venture in a fast-growing market. Russia is
particularly important for BP. Our TNK-BP alliance is hugely successful. Since
acquiring 50% of the company for around $8 billion, BP has received around
$19 billion in dividends – which equates to around $2 billion per year. In 2011,
we saw new opportunities in Russia, but these did not progress. This region
still has excellent potential for BP and we remain committed to it. The nature
of our industry is rarely straightforward, and BP will never shrink from pursuing
opportunities simply because they involve challenges.
In my letter last year, I commented on the evolution of the board. This has
continued. My goal is to ensure that the board combines a broad set of skills and
experience. BP’s board should be diverse in the widest sense. It should have
the best blend of the best people from our industry and from other sectors. BP
remains committed to meritocracy as well as diversity.
Andrew Shilston and Professor Dame Ann Dowling have joined the board
as non-executive directors and Brian Gilvary has joined as an executive director.
Left BP’s LNG activities
are focused on building
competitively advantaged
liquefaction projects.