BP 2013 Annual Report Download - page 26

Group performance
Our progress in 2013 has set us up well to deliver our
10-point plan and forms the foundations for delivering
value in the long term.
We continued to operate within a disciplined financial framework in 2013 – with organic capital
expenditurea of $24.6 billion (within the expected $24-$25 billion range). Upstream BP-operated plant
efficiencyb of 88% and strong refining availability of 95.3% in Downstream demonstrated our
progress in operational efficiency. We completed the transactions to increase our shareholding in
Rosneft to 19.75%. And, we are continuing to meet our commitments in the Gulf of Mexico, while
making our case in court.
Segment performance
For Upstream and Downstream
performance see pages 25 and 31
respectively.
2013-2014 milestones set out in our 10-point plan
Drilling up to 25 wells per year.
We completed 17 exploration wells and made seven potentially commercial discoveries in 2013.
It was our most successful year for exploration drilling in almost a decade.
A further nine major upstream project start-ups.
Three major projects were started up in 2013 and another three in January and February 2014.
We expect a further four major upstream projects to start up in 2014.
Unit operating cash marginsc from new upstream projects in 2014 are expected to be double
the 2011 average.d
We continued to bring on major projects in key regions such as Angola and the Gulf of Mexico.
Bringing onstream the major upgrade to the Whiting refinery in the second half of 2013.
We completed the commissioning of all major units for the refinery upgrade, transforming it into
one of our advantaged downstream assets in our portfolio.
Completing our $38-billion divestment programme by the end of 2013.
We completed our $38-billion divestment programme in 2012 – effectively a year early.
In October 2013, we announced our plan to divest a further $10 billion before the end of 2015.
We have a high-value, focused portfolio that plays to our strengths.
Our divestments have removed complexity, strengthened the balance sheet and left us with a
more distinctive set of assets that play to our strengths – deep water, gas value chains, giant
fields and high-quality downstream businesses.
Increasing overall operating cash flowe by 50% in 2014 compared with 2011.f
We are on track to meet our goal of generating more than $30 billion of operating cash flow in 2014.
We expect to use around half of the extra cash for increased investment and around half for
other purposes, including increased distributions to shareholders.
As at 31 December 2013 we had bought back 753 million shares for a total amount of $5.5 billion,
including fees and stamp duty, since 22 March 2013. The dividend paid in 2013 was 36.5 cents
per share, up 30% compared with the dividend of 28 cents per share paid in 2011.
a Organic capital expenditure excludes acquisitions, asset
exchanges, and other inorganic capital expenditure.
b See footnote a on page 25.
c See footnote f on page 13.
d See footnote g on page 13.
e See footnote a on page 56.
f See footnote b on page 56.
BP Annual Report and Form 20-F 201322
In May we completed the successful
commissioning of a state-of-the-art diesel
hydrotreater and hydrogen plant at the Cherry
Point refinery in Washington state.
The Mad Dog field in the Gulf of Mexico was
discovered in 1998 and is one of BP’s largest
discoveries in the Gulf of Mexico to date.