BP 2012 Annual Report Download - page 18

Our business model – continued The relationships we form with shareholders,
governments, regulators, non-governmental
organizations, local communities, customers,
franchisees, partners, contractors, suppliers and
others in our industry are crucial to the success
of our business. We are committed to building
long-lasting relationships, meeting our obligations
and acting responsibly.
We believe that the best way to achieve
sustainable success as a group is to act in the
long-term interests of our shareholders, our
partners and society. Through our work we
aim to create value for our investors and
benefits for the communities and societies
in which we operate, with the safe and
responsible supply of energy playing a vital
role in economic development.
Our people
We employ nearly 86,000 people, including
14,700 service station staff in Europe and
Asia. The majority of our employees are
located in the US and Europe. The qualities
and abilities of our employees have a powerful
effect on our ability to compete and meet our
commitments to investors and the wider
world. We provide a range of professional
development programmes and training to
help our employees develop their skills and
capabilities. We are committed to creating an
inclusive work environment where everyone is
treated fairly, with dignity, respect and without
discrimination.
Our presence
As a global group, our interests and activities
are held or operated through subsidiaries,
branches, joint ventures or associates
established in – and subject to the laws and
regulations of – many different jurisdictions.
Our worldwide headquarters is in London.
The UK is a centre for trading, legal, finance
and other business functions as well as three
of BP’s major global research and technology
groups. We have well-established operations
in Europe, the US, Canada, Russia, South
America, Australasia, Asia and parts of Africa.
BP has freehold and leasehold interests in real
estate in numerous countries, but no individual
property is significant to the group as a whole.
For more on the significant subsidiaries of the
group at 31 December 2012 and the group
percentage of ordinary share capital see Note 45
on page 255. For information on significant jointly
controlled entities and associates of the group,
see Notes 24 and 25 on pages 218-220.
Value creation
We seek to add value at each stage of our
operations, from exploration to marketing.
We believe that by operating across the full
hydrocarbon value chain we can create more
value for shareholders, as benefits and costs
can often be shared by our segments.
Integration also enables us to develop shared
functional excellence in areas such as safety
and operational risk, environmental and social
practices, procurement, technology and
treasury management more efficiently.
1
2
1. OECD 64%
2. Non-OECD 36%
Location of group’s fixed assets
1
2
1. US 39%
2. Non-US 61%
Our employees
For more on BP’s employees in 2012
see pages 55-56.
Material improvement
Purified terephthalic acid (PTA) is the primary
raw material for polyester, which is used in
textiles and packaging. Our proprietary PTA
technology has significantly lower capital and
operating costs compared with conventional
PTA plants. Our estimates suggest that it
discharges 75% less water, generates 65%
lower greenhouse gas emissions and 95%
lower solids waste compared with competing
technologies.
We have invested significantly in this
proprietary technology and believe that
maximum value for BP will come from both
investing in projects such as our Zhuhai 3
project in Guangdong, China and through
licensing. We announced our first third-party,
non-affiliate, PTA licensing deal in July to JBF
Petrochemicals. They intend to build a 1.25
million tonnes per annum PTA unit in India –
expected onstream at the end of 2014.
Our work with PTA is part of an ongoing
research and development programme
designed to improve the manufacturing
efficiency in petrochemicals. Along with PTA,
we have industry leading technology,
intellectual property and know-how in
paraxylene and acetic acid.
Business review: Group overview
BP Annual Report and Form 20-F 2012
16