BP 2007 Annual Report Download - page 15

BP sells small quantities of lubricants in Cuba through a 50/50 joint
venture there. In Syria, small quantities of lubricants are sold through a
distributor and BP obtains small volumes of crude oil supplies for sale to
third parties in Europe. These sales and purchases are insignificant and
BP does not provide other goods, technologies or services in these
countries.
Acquisitions and disposals
In 2007, BP acquired Chevron’s Netherlands manufacturing company,
Texaco Raffiniderij Pernis B.V. The acquisition included Chevron’s 31%
minority shareholding in Nerefco, its 31% shareholding in the 22.5 MW
wind farm co-located at the refinery as well as a 22.8% shareholding in
the TEAM joint venture terminal and shareholdings in two local pipelines
linking the TEAM terminal to the refinery. Disposal proceeds were
$4,267 million, which included $1,903 million from the sale of the
Coryton refinery and $605 million from the sale of our exploration and
production gas infrastructure business in the Netherlands.
In 2006, there were no significant acquisitions. BP purchased 9.6% of
the shares issued under Rosneft’s IPO for a consideration of $1 billion
(included in capital expenditure). This represented an interest of around
1.4% in Rosneft. Disposal proceeds were $6,254 million, which included
$2.1 billion on the sale of our interest in the Shenzi discovery and around
$1.3 billion from the sale of our producing properties on the Outer
Continental Shelf of the Gulf of Mexico to Apache Corporation.
In 2005, there were no significant acquisitions. Disposal proceeds
were $11,200 million, which included net cash proceeds from the sale of
Innovene to INEOS of $8,304 million after selling costs, closing
adjustments and liabilities. Innovene represented the majority of the
Olefins and Derivatives business. Additionally, disposal proceeds
included proceeds from the sale of the group’s interest in the Ormen
Lange field in Norway.
Resegmentation in 2008
On 11 October 2007, we announced our intention to simplify the
organizational structure of BP. From 1 January 2008, there are only two
business segments: Exploration and Production and Refining and
Marketing. A separate business, Alternative Energy, handles BP’s low-
carbon businesses and future growth options outside oil and gas.
As a result, and with effect from 1 January 2008:
– The Gas, Power and Renewables segment ceased to report
separately.
– The NGLs, LNG and gas and power marketing and trading businesses
were transferred from the Gas, Power and Renewables segment to
the Exploration and Production segment.
– The Alternative Energy business was transferred from the Gas, Power
and Renewables segment to Other businesses and corporate.
– The Emerging Consumers Marketing Unit was transferred from
Refining and Marketing to Alternative Energy (which is reported in
Other businesses and corporate).
– The Biofuels business was transferred from Refining and Marketing to
Alternative Energy (which is reported in Other businesses and
corporate).
– The Shipping business was transferred from Refining and Marketing
to Other businesses and corporate.
BP ANNUAL REPORT AND ACCOUNTS 2007 13