BP 2011 Annual Report Download - page 16

14 BP Annual Report and Form 20-F 2011
Bob Dudley
Group Chief Executive
Group chief executive’s letter
Dear fellow shareholder,
Following the tragic Deepwater Horizon accident of 2010, BP entered 2011
facing a range of uncertainties. These included concerns about our ability to
operate safely in deep water, meet our financial commitments in the Gulf of
Mexico, and recover the trust and value we had lost. We were also subject
to intense speculation around the future and direction of the company.
By the end of the year we had successfully resolved some significant
uncertainties facing the company. We set new standards for safety, led by our
safety and operational risk organization, and we reshaped our upstream business.
We strengthened the group’s financial position by progressing our divestment
programme. We worked to earn back trust through co-operation with the official
investigations and actively sharing the lessons learned. We set a clear strategic
direction through a 10-point plan focused on building value for shareholders.
We also received permission to resume operations in the Gulf of Mexico –
a significant milestone.
During the year more clarity also emerged over the 2010 accident as
official investigation reports were published. Their central conclusions supported
that of our own investigation – namely that what happened in the Gulf of Mexico
was a complex accident involving multiple causes and multiple parties. I am
pleased that we were able to reach settlements with Mitsui, Weatherford,
Anadarko and Cameron during 2011. On 3 March 2012 we announced a
settlement with the Plaintiffs’ Steering Committee, subject to final written
agreement and court approvals, to resolve the substantial majority of legitimate
economic loss and medical claims made by individual and business plaintiffs in
the Multi-District Litigation proceedings pending in New Orleans (MDL 2179). The
legal process continues with other parties.
We recognize there is a great deal more to do, but I can report that
BP finished its year of consolidation in robust shape.
Through the year, BP’s employees worked with great determination to
enhance what we do and how we do it. This work will continue. I want to
make it absolutely clear that we are not seeking a return to business as usual.
The events of 2010 demand more than that. As we move ahead, our job is to
make BP a stronger, safer company by further embedding safety at the heart
of the company, continuing to earn back trust, and creating long-term value for
shareholders once again. In this letter, I outline in more detail the actions taken
in 2011 to achieve these objectives.