BP 2012 Annual Report Download - page 17

Who we are
BP is one of the world’s leading integrated oil
and gas companies.a We aim to create value
for shareholders by helping to meet growing
demand for energy in a responsible way. We
strive to be a safety leader in our industry, a
world-class operator, a responsible corporate
citizen and a good employer.
Through our work we provide customers
with fuel for transportation, energy for heat
and light, lubricants to keep engines moving,
and the petrochemicals products used to make
everyday items as diverse as paints, clothes and
packaging. Our projects and operations help to
generate employment, investment and tax
revenues in countries and communities around
the world.
At each stage of the hydrocarbon value chain
there are opportunities for us to create value –
both through the successful execution of
activities that are core to our industry, and through
the application of our own distinctive strengths
and capabilities in performing those activities.
How we are organized
We have two main business segments:
Upstream and Downstream. Through these we
find, develop and produce essential sources of
energy, and turn these sources into products
that people need.
We also hold a 50% shareholding in the major
Russian oil company TNK-BP, which owns
upstream and downstream assets. In
November, marking what we expect to be an
exciting new future for BP in Russia, we signed
final, binding agreements with Rosneft, Russia’s
leading oil company, for the sale of our share in
TNK-BP for $12.3 billion in cash (which includes
a dividend of $0.7 billion received from TNK-BP
in December 2012) and an 18.5% stake in
Rosneft. The transaction is expected to
complete in the first half of 2013. Combined
with BP’s existing 1.25% shareholding, this will
result in BP owning 19.75% of Rosneft.
In renewable energy, our investments and
activities are focused on biofuels and wind.
In addition, our emerging businesses and
ventures unit invests in a broad range of energy
projects and technologies. Our renewables and
venturing activities are managed through our
Alternative Energy business, which is reported
in Other businesses and corporate on page 82.
Our commitments
Keeping a relentless focus on safety is the top
priority for everyone at BP.
Rigorous management of risk helps to
protect the people at the front line, the places
in which we operate and the value we create.
We understand that operating in politically
complex regions and technically demanding
geographies requires particular sensitivity to
local environments.
Through our business model we aim to create value across
the hydrocarbon value chain. This starts with exploration and
ends with the supply of energy and other products fundamental
to everyday life.
Our business model
BP is the largest foreign investor in Azerbaijan
and operates two production-sharing
agreements – Azeri-Chirag-Gunashli and Shah
Deniz – and other exploration leases. Above is
the West Azeri platform.
a
On the basis of market capitalization, proved reserves
and production.
Business review: Group overview
BP Annual Report and Form 20-F 2012
Business review: Group overview
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