Building a stronger, safer BP
Annual Report and Form 20-F 2012
Building a stronger, safer BP
Front cover imagery The Petroleum Geo-Services (PGS) Ramform Sterling seismic vessel, which conducts seismic surveys for BP. Left image: the vessel working in the Ceduna Basin, Australia. Centre image: the vessel tows 12 streamers (pictured) behind it, each 8km long and equipped with hydrophones to pick up echoes from the rocks below the seabed. Right image: seismic data is picked up by vessel’s onboard computer system.
BP Annual Report and Form 20-F 2012
BP in 2012
The group made good progress this year. We worked to enhance safety and risk management. We continued to meet our commitments in the Gulf of Mexico. We sold assets and reduced complexity. And we focused investment on areas where we see higher margins. Over the following pages, we report on the actions taken to build a stronger, safer BP.
4 8 10 12 15
Information about this report Business review: Group overview BP at a glance Chairman’s letter Group chief executive’s letter Energy outlook Our business model 20 22 28 30 32 Our strategy Our performance Our key performance indicators Our management of risk Cautionary statement
Business review: Group overview Business review: BP in more depth
Pages 3 – 32 Pages 5 – 00 Pages 33 – 100
33 Business review: BP in more depth
34 38 46 51 55 57 59 Financial review Risk factors Safety Environmental and social responsibility Employees Technology Gulf of Mexico oil spill 63 72 80 82 84 90 94 98 Upstream Downstream TNK-BP Other businesses and corporate Oil and gas disclosures for the group Liquidity and capital resources Regulation of the group’s business Certain deﬁnitions
Pages 101 – 152
101 Corporate governance
102 104 109 112 114 116 117 120 Governance overview Board of directors Executive team How the board works Board effectiveness Shareholder engagement Risk in BP Audit committee 122 124 125 126 126 127 147 Safety, ethics and environment assurance committee Gulf of Mexico committee Nomination committee Chairman’s committee UK Corporate Governance Code compliance Directors’ remuneration report Regulatory information
Pages 153 – 160
153 Shareholder information
154 154 155 155 155 157 158 Called-up share capital Share prices and listings Dividends UK foreign exchange controls on dividends Shareholder taxation information Major shareholders Purchases of equity securities by the issuer and afﬁliated purchasers 158 159 159 159 159 Fees and charges payable by ADSs holders Fees and payments made by the Depositary to the issuer Documents on display Administration Annual general meeting
Pages 161 – 176
161 Additional disclosures
162 171 174 Legal proceedings Critical accounting policies Relationships with suppliers and contractors 174 175 175 Material contracts Related-party transactions Exhibits
Pages 177 – PC11
177 Financial statements
178 179 186 Statement of directors’ responsibilities Consolidated ﬁnancial statements of the BP group Notes on ﬁnancial statements 263 PC1 Supplementary information on oil and natural gas (unaudited) Parent company ﬁnancial statements of BP p.l.c.
20F Cross reference to Form 20-F
Introduction and contents BP Annual Report and Form 20-F 2012 1
Information about this report
Frequent abbreviations ADR American depositary receipt. ADS American depositary share. Barrel (bbl) 159 litres, 42 US gallons. b/d Barrels per day. boe Barrels of oil equivalent. GAAP Generally accepted accounting practice. Gas Natural gas. Hydrocarbons Crude oil and natural gas. IFRS International Financial Reporting Standards. Liquids Crude oil, condensate and natural gas liquids. LNG Liqueﬁed natural gas. LPG Liqueﬁed petroleum gas. mb/d Thousand barrels per day. mboe/d Thousand...