BP 2011 Annual Report Download - page 47

Business review: Group overview
BP Annual Report and Form 20-F 2011 45
Our current strategic priorities are set out in our 10-point plan (see pages
38-39). Among other things, this aims to target investments and disposals
efficiently, renew and reposition our portfolio and deliver our major projects to
plan. As part of managing the risks to delivery of the 10-point plan we conduct
regular planning and performance-monitoring activity, including the planning
of disposals; we focus on the delivery of major projects; and we pursue the
development of continued technological advances and innovation.
The diverse locations of our operations around the world exposes us to a
wide range of political developments and consequent changes to the economic
and operating environment. For example, our investments in Russia could be
adversely affected by heightened political and other environment risks. As such,
we try to actively manage our relationships in Russia, including with the Russian
federal government and with TNK-BP. We also seek to manage the group’s
exposure in Russia through our development of BP’s overall portfolio.
Many of our major projects and operations are conducted through joint
ventures or associates and through contracting and sub-contracting arrangements
where BP may not have full operational control. We seek to manage such joint
venture and contractor relationships actively, and this may include monitoring
compliance with applicable standards.
As a result of the Deepwater Horizon oil spill there is significant uncertainty
regarding the extent and timing of costs and liabilities relating to the incident,
the impact of the incident on our reputation and the resulting possible impact on
our licence to operate including, among other things, our ability to access new
opportunities. In addressing these risks we seek to co-operate with investigators
and we encourage the application of responsible and objective scientific analysis
in determining outcomes. We always seek to comply with local regulations and,
in some cases, our required practices will exceed regulations if our assessment
of the operating risk indicates it would be beneficial to do so. We seek to engage
with local communities in order to foster improved relationships and reputation.
Left Bernard Looney, BP’s
Executive Vice President,
Developments, on board
the Deep Ocean Clarion
rig in Brazil.
Above Work at BP’s
Tangguh facility, West
Papua, Indonesia; where
gas is collected and
distributed to energy
markets via ship.