BP - Wikipedia, The Free Encyclopedia

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BP plc

Type Public limited company

Traded as LSE: BP

(http://www.londonstockexchange.com/exchange/prices-

and-news/stocks/prices-search/stock-prices-search.html?

nameCode=BP)

FWB: BPE (http://www.boerse-

frankfurt.de/en/equities/search/result?

name_isin_wkn=BPE)

NYSE: BP (https://www.nyse.com/quote/XNYS:BP)

Industry Oil and gasPredecessors Anglo-Persian Oil Company

Castrol

Standard Oil of Ohio

ARCO

Amoco

Founded 1909 (as Anglo-PersianOil Company)

1935 (as Anglo-IranianOil Company)

1954 (as British Petroleum)

1998 (as BP Amoco plc)2001 (as BP plc)

Headquarters London, England

Area served Worldwide

Key people Carl-Henric Svanberg (Chairman)

Bob Dudley (CEO)

Brian Gilvary (CFO)

Products Petroleum

Natural gasMotor fuels

Aviation fuels

Petrochemicals

BPFrom Wikipedia, the free encyclopedia

BP plc,[5][6]sometimes referred toby its former name BritishPetroleum, is a British

multinational oil and gas companyheadquartered in London, England.It is the sixth-largest energycompany by market

capitalization,[7]the fifth-largestcompany in the world measured by2012 revenues, and the sixth-largest oil and gas company

measured by 2012 production.[8][9]

It is one of the six oil and gas

"supermajors".[10]BP is verticallyintegrated and operates in all areasof the oil and gas industry,including exploration andproduction,refining, distributionand marketing, petrochemicals,power generationand trading. Italso has renewable energyactivities in biofuels and wind

power.

As of December 2013, BP hadoperations in approximately

80 countries,[4]produced around3.2 million barrels per day

(510,000 m3/d) of oil equivalent,[1]

had total proved reserves of

17.9 billion barrels (2.85 109m3)

of oil equivalent,[11]

andhadaround 17,800 service

stations.[12][13]Its largest divisionis BP America in the United States.In Russia BP owns a 19.75% stakein Rosneft, the world's largestpublicly traded oil and gascompany by hydrocarbon reservesand production. BP has a primarylisting on the London Stock

Exchange and is a constituent ofthe FTSE 100 Index it had amarket capitalisation of85.2 billion as of April 2013, thefourth-largest of any company
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output. 10 oil equivalent(2013)

Services Service stations

Revenue US$ 396.217 billion (2013)[2]

Operatingincome

US$ 31.769 billion (2013)[2]

Profit US$ 23.758 billion (2013)[2]

Total assets US$ 305.690 billion (2013)[3]

Total equity US$ 130.407 billion (2013)[3]

Employees 83,900[4]

Website www.bp.com (http://www.bp.com)

listed on the exchange.[14]It hassecondary listings on the FrankfurtStock Exchange and the New YorkStock Exchange.

BP's origins date back to thefounding of the Anglo-Persian Oil

Company in 1909, established as asubsidiary of Burmah OilCompany to exploit oil discoveriesin Iran. In 1935, it became theAnglo-Iranian Oil Company and in

1954 British Petroleum.[15][16]In1959, the company expandedbeyond the Middle East to Alaska and in 1965 it was the first company to strike oil in the North Sea.British Petroleum acquired majority control of Standard Oil of Ohio in 1978. Formerly majority state-owned, the British government privatised the company in stages between 1979 and 1987. British

Petroleum merged with Amoco in 1998, becoming BP Amoco plc, and acquired ARCO and BurmahCastrol in 2000, becoming BP plcin 2001. From 2003 to 2013, BP was a partner in the TNK-BP jointventure in Russia.

BP has been directly involved in several major environmental and safety incidents. Among them werethe 2005 Texas City Refinery explosion, which caused the death of 15 workers and resulted in a record-setting OSHA fine Britain's largest oil spill, the wreck of Torrey Canyon and the 2006 Prudhoe Bay oilspill, the largest oil spill on Alaska's North Slope, which resulted in a US$25 million civil penalty, the

largest per-barrel penalty at that time for an oil spill.[17]

The 2010 Deepwater Horizon oil spill, the largest accidental release of oil into marine waters in history,

resulted in severe environmental, health and economic consequences,[18]and serious legal and publicrelations repercussions for BP. One-point-eight million gallons of Corexit oil dispersant were used in the

cleanup response, becoming the largest application of such chemicals in US history.[19]The companyplead guilty to 11 counts of felony manslaughter, two misdemeanors, and one felony count of lying toCongress, and agreed to pay more than $4.5 billion in fines and penalties, the largest criminal resolution

in US history.[20][21][22]

Legal proceedings are continuing, with proceedings set to commence in January 2015 [23]to determine

payouts and fines under the Clean Water Act and the Natural Resources DamageAssessment.[24][25][26][27]In September 2014, the judge ruled in the first phase of the case that BP was"reckless" and committed "gross negligence," in a "worst case" ruling that could cost BP $18 billion inadditional penalties above the $28 billion already expended on the spill by that time. BP is appealing the

ruling, which raised concerns about BP's future.[28][29]

Contents

1 History

1.1 1909 to 1954

1.2 1954 to 1979
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1.3 1979 to 2000

1.4 2000 to 2010

1.5 2010 to present

2 Operations

2.1 Operations by location

2.1.1 United Kingdom and Ireland

2.1.2 United States

2.1.3 Other locations

2.2 Main business segments

2.2.1 Oil and natural gas

2.2.2 Oil refining and marketing

2.3 Alternative and low carbon energy

3 Corporate affairs

3.1 Stock3.2 Branding and public relations

4 Environmental record

4.1 Position on global warming

4.2 Hazardous substance dumping 19931995

4.3 Air pollution violations

4.4 Colombian farmland damages claim

4.5 Canadian oil sands

5 Health and safety violations

5.1 1965 Sea Gem offshore oil rig disaster

5.2 Texas City Refinery explosion

5.3 Prudhoe Bay

5.4 2008 Caspian Sea gas leak and blowout

5.5 2010 Texas City Chemical leak

6Deepwater Horizonexplosion and oil spill

6.1 Environmental impact6.2 Effects on human health

6.3 Criminal prosecutions

6.4 Justice Department suit

6.5 Civil proceedings and claims settlement

7 Political influence

7.1 Release of Lockerbie bomber

7.2 Political contributions and lobbying8 Market manipulation investigations and sanctions

9 See also

10 References


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William Knox D'Arcy

A BP Motor Spirit advertisement

from 1922

11 Bibliography

12 External links

History

1909 to 1954

In May 1908 a group of British geologists discovered a largeamount of oil at Masjid-i-Suleiman in Iran. It was the firstcommercially significant find of oil in the Middle East. The Shahof Iran granted a concession to William Knox D'Arcy to enable the

British to drill for Iran's oil.[30][31]On 14 April 1909, the Anglo-Persian Oil Company (APOC) was incorporated as a subsidiary ofBurmah Oil Company. Some of the shares were sold to the

public.

[32]

The first chairman and minority shareholder of thecompany became Lord Strathcona.[31]

Immediately after establishing the company, construction of theAbadan Refinery and the pipeline from Masjid to Abadan started.

The refinery was commissioned in 1912.[31]In 1913, the BritishGovernment acquired a controlling interest (50.0025%) in thecompany and at the suggestion of Winston Churchill, the British

navy switched from coal to oil.[31][33][34]The Royal Navy, whichprojected British power all over the world, came to be run 100%

on oil from Iran.[35]In 1915, APOC established its shippingsubsidiary the British Tanker Company and in 1916 it acquiredthe British Petroleum Company which was a marketing arm of

the GermanEuropische Petroleum Unionin Britain.[31]In1919, the company became a shale-oil producer by establishing asubsidiary named Scottish Oils which merged remaining Scottish

oil-shale industries.[36][37][38][39]

After World War I, APOC started marketing its products in

Continental Europe and acquired stakes in the local marketingcompanies in several European countries. Refineries were builtin Llandarcy in Wales (the first refinery in the United Kingdom) and Grangemouth in Scotland. It alsoacquired the controlling stake in the Courchelettes refinery in France and formed with the Governmentof Australia a partnership named Commonwealth Oil Refineries, which built the Australian's first

refinery in Laverton, Victoria.[31]In 1923, Burmah employed Winston Churchill as a paid consultant tolobby the British government to allow APOC have exclusive rights to Persian oil resources, which were

subsequently granted by the Iranian monarchy.[40]

APOC and the Armenian businessman Calouste Gulbenkian were the driving forces behind the creationof Turkish Petroleum Company (TPC) in 1912 to explore oil in Mesopotamia (now Iraq) and by 1914,

APOC held 50% of TPC shares.[41]In 1925, TPC received concession in the Mesopotamian oilresources from the Iraqi government under British mandate. TPC finally struck oil in Iraq on 14 October1927. By 1928, the APOC's shareholding in TPC, which by now was named Iraq Petroleum Company
http://en.wikipedia.org/wiki/Iraq_Petroleum_Companyhttp://en.wikipedia.org/wiki/Kingdom_of_Iraq_(Mandate_administration)http://en.wikipedia.org/wiki/Oil_reserves_in_Iraqhttp://en.wikipedia.org/wiki/Mesopotamiahttp://en.wikipedia.org/wiki/Turkish_Petroleum_Companyhttp://en.wikipedia.org/wiki/Calouste_Gulbenkianhttp://en.wikipedia.org/wiki/Iranhttp://en.wikipedia.org/wiki/Winston_Churchillhttp://en.wikipedia.org/wiki/Laverton,_Victoriahttp://en.wikipedia.org/wiki/Commonwealth_Oil_Refinerieshttp://en.wikipedia.org/wiki/Government_of_Australiahttp://en.wikipedia.org/wiki/Courcheletteshttp://en.wikipedia.org/wiki/Grangemouth_Refineryhttp://en.wikipedia.org/wiki/Llandarcyhttp://en.wikipedia.org/wiki/World_War_Ihttp://en.wikipedia.org/wiki/Oil_shale_industryhttp://en.wikipedia.org/wiki/Shale_oilhttp://en.wikipedia.org/wiki/British_Tanker_Companyhttp://en.wikipedia.org/wiki/Winston_Churchillhttp://en.wikipedia.org/wiki/Abadan_Refineryhttp://en.wikipedia.org/wiki/Donald_Smith,_1st_Baron_Strathcona_and_Mount_Royalhttp://en.wikipedia.org/wiki/Burmah_Oilhttp://en.wikipedia.org/wiki/Anglo-Persian_Oil_Companyhttp://en.wikipedia.org/wiki/William_Knox_D%27Arcyhttp://en.wikipedia.org/wiki/Qajar_dynastyhttp://en.wikipedia.org/wiki/Middle_Easthttp://en.wikipedia.org/wiki/Masjed_Soleyman_Countyhttp://en.wikipedia.org/wiki/File:BP_Motor_Spirit,_1922.jpghttp://en.wikipedia.org/wiki/William_Knox_D%27Arcyhttp://en.wikipedia.org/wiki/File:William_Knox_D%27Arcy.jpg


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(IPC), was reduced to 23.75% as the result of the changing geopolitics post Ottoman empire break-up,

and the Red Line Agreement.[42]Relations were generally cordial between the pro-west HashemiteMonarchy (193258) in Iraq and IPC, in spite of disputes centered around Iraq's wish for greaterinvolvement and more royalties. During the 192868 time period, IPC monopolised oil exploration

inside the Red Line excluding Saudi Arabia and Bahrain.[43][44]

In 1932, APOC and Royal Dutch Shell formed the joint marketing company in the United Kingdom

named Shell-Mex and BP.[34]In 1934, APOC and Gulf Oil founded the Kuwait Oil Company as anequally owned partnership. The oil concession rights were awarded to the company on 23 December

1934 and the company started drilling operations in 1936.[45][46]In 1935, Rez Shh requested theinternational community to refer to Persia as 'Iran', which was reflected in the name change of APOC to

the Anglo-Iranian Oil Company (AIOC).[30]In 1937, AIOC and Royal Dutch Shell formed theShell/D'Arcy Exploration Partners partnership to explore for oil in Nigeria. The partnership was equallyowned but operated by Shell. It was later replaced by Shell-D'Arcy Petroleum Development Company

and Shell-BP Petroleum Development Company (now Shell Petroleum Development Company).[47]

Following World War II, nationalistic sentiments were on the rise in the Middle East most notablebeing Iranian nationalism, and Arab Nationalism. In Iran, the AIOC and the pro-western Iraniangovernment led by Prime Minister Ali Razmara resisted nationalist calls to revise AIOC's concessionterms in Iran's favour. In March 1951, Razmara was assassinated and Mohammed Mossadeq, a

nationalist, was elected as the new prime minister by the Majlis of Iran (parliament).[48]In April 1951,the Iranian government nationalised the Iranian oil industry by unanimous vote, and the National Iranian

Oil Company (NIOC) was formed, displacing the AIOC.[49][50]The AIOC withdrew its managementfrom Iran, and Britain organised an effective worldwide embargo of Iranian oil. The British government,which owned the AIOC, contested the nationalisation at the International Court of Justice at The Hague,

but its complaint was dismissed.[51]

Prime Minister Churchill asked President Eisenhower for help in overthrowing Mossadeq. The anti-Mossadeq plan was orchestrated under the code-name 'Operation Ajax' by CIA, and 'Operation Boot' bySIS (MI6). The CIA and the British helped stage a coup in August 1953, the 1953 Iranian coup d'tat,which established pro-Western general Fazlollah Zahedi as the new PM, and greatly strengthened thepolitical power of Shah Mohammad Reza Pahlavi. The AIOC was able to return to Iran.

1954 to 1979

In 1954, the AIOC became the British Petroleum Company. After the 1953 Iranian coup d'tat, IranianOil Participants Ltd (IOP), a holding company, was founded in October 1954 in London to bring Iranian

oil back to the international market.[52][53]British Petroleum was a founding member of this company

with 40% stake.[48][52]IOP operated and managed oil facilities in Iran on behalf of NIOC.[52][53]Similar

to the Saudi-Aramco "50/50" agreement of 1950,[54]the consortium agreed to share profits on a 5050basis with Iran, "but not to open its books to Iranian auditors or to allow Iranians onto its board of

directors."[55][56]

In 1953 British Petroleum entered the Canadian market through the purchase of a minority stake in

Calgary-based Triad Oil Company, and expanded further to Alaska in 1959, resulting discovery of oil atPrudhoe Bay in 1969.[34][57]In 1956, its subsidiary D'Arcy Exploration Co. (Africa) Ltd. has been

granted four oil concessions in Libya.[58]In 1962, Scottish Oils ceased oil-shale operations.[39]In 1965,

it was the first company to strike oil in the North Sea.[59]The Canadian holding company of British
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Petroleum was renamed BP Canada in 1969 and in 1971, it acquired 97.8% stake of SupertestPetroleum. Subsequently, Supertest was renamed to BP Canada, and other Canadian interests of BritishPetroleum were amalgamated to the new company.

By the 1960s, British Petroleum had developed a reputation for taking on the riskiest ventures. It earned

the company massive profits it also earned them the worst safety record in the industry.[35]In 1967, thegiant oil tanker Torrey Canyonfoundered off the English coast. Over 100 tonnes of crude oil were

spilled into the Atlantic and onto the beaches of Cornwall and Brittany, causing Britain's worst-ever oilspill.[60]The ship was owned by the Bahamas-based Barracuda Tanker Corporation and was flying the

flag of Liberia, a well-known flag of convenience, but was being chartered by British Petroleum.[60]Theship was bombed by RAF jet bombers in an effort to break up the ship and burn off the leaking oil, but

this failed to destroy the oil slick.[61]

The company's oil assets were nationalised in Libya in 1971, in Kuwait in 1975, and in Nigeria in

1979.[46][50][62]In Iraq, IPC ceased its operations after it was nationalised by the Ba'athist Iraqi

government in June 1972 although legally Iraq Petroleum Company still remains extant,[63]and one of

its associated companies Abu Dhabi Petroleum Company (ADPC), formerly Petroleum Development(Trucial Coast) Ltd also continues with the original shareholding intact.[64][65]

The intensified power struggle between oil companies and host governments in Middle East, along withthe oil price shocks that followed the 1973 oil crisis meant British Petroleum lost most of its directaccess to crude oil supplies produced in countries that belonged to the Organization of PetroleumExporting Countries (OPEC), and prompted it to diversify its operations beyond the heavily Middle Eastdependent oil production. In 1976, BP and Shell de-merged their marketing operations in the UnitedKingdom by dividing Shell-Mex and BP. In 1978 the company acquired a controlling interest in

Standard Oil of Ohio (Sohio).[66]

In Iran, British Petroleum continued to operate until the Islamic Revolution in 1979. The new regime ofAyatollah Khomeini confiscated all of the company's assets in Iran without compensation, bringing to an

end its 70-year presence in Iran.[35]

In 19701980s BP diversified into coal, minerals and nutrition businesses which all were divested

later.[34]

1979 to 2000

The British Government sold 80 million shares of BP at $7.58 in 1979 as part of Thatcher-eraprivatisation. This sale represented slightly more than 5% of BP's total shares and reduced the

government's ownership of the company to 46%.[67][68]After the worldwide stock market crash on 19October 1987, Prime Minister Margaret Thatcher initiated the sale of an additional GBP7.5 billion($12.2 billion) of BP shares at 333 pence, representing the government's remaining 31% stake in the

company.[67][69][70]In November 1987 the Kuwait Investment Office purchased a 10.06% interest in

BP, becoming the largest institutional shareholder.[71]The following May, the KIO purchased additional

shares, bringing their ownership to 21.6%.[72]This raised concerns within BP that operations in the

United States, BP's primary country of operations, would suffer. In October 1988, the BritishDepartment of Trade and Industry required the KIO to reduce its shares to 9.6% within 12 months.[73]
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The final version of the BP shield

logo, introduced in 1989 and used

until 2002 the shield logo was

originally designed by AR Saunders

in 1920

Peter Walters was the company chairman from 1981 to 1990.[74]

During his period as chairman he reduced company's refining

capacity in Europe.[74]In 1982, the downstream assets of BPCanada were sold to Petro Canada. In 1984, Standard Oil ofCalifornia was renamed to Chevron Corporation and it bought

Gulf Oilthe largest merger in history at that time.[75]To settlethe anti-trust regulation, Chevron divested many of Gulf's

operating subsidiaries, and sold some Gulf stations and a refineryin the eastern United States to British Petroleum and Cumberland

Farms in 1985.[76]In 1987, British Petroleum negotiated the

acquisition of Britoil[77]and the remaining publicly traded shares

of Standard Oil of Ohio.[66]At the same year it was listed on theTokyo Stock Exchange where its share were traded until

delisting in 2008.[78]

Walters was replaced by Robert Horton in 1989. Horton carried

out a major corporate down-sizing exercise removing varioustiers of management at the Head Office.[79]In 1992, British Petroleum sold off its 57% stake in BP

Canada (upstream operations), which was renamed as Talisman Energy.[80]John Browne, who hadoined BP in 1966 and rose through the ranks to join the board as managing director in 1991, was

appointed group chief executive in 1995.[81]

British Petroleum entered into Russian market in 1990 and opened its first service station in Moscow in1996. In 1997, it acquired 10% stake in Russian oil company Sidanco, which later became a part of

TNK-BP.[82]

2000 to 2010

Under John Browne, British Petroleum acquired other oil companies, transforming BP into the thirdlargest oil company in the world. British Petroleum merged with Amoco (formerly Standard Oil of

Indiana) in December 1998, becoming BP Amoco plc.[83][84]Most Amoco stations in the United Stateswere converted to BP's brand and corporate identity. In 2000, BP Amoco acquired Arco (Atlantic

Richfield Co.) and Burmah Castrol.[85][86][87][88]As part of the merger's brand awareness, the company

helped the Tate Modern gallery of British Art launchRePresenting Britain 15002000.[89]In 2001, in

response to negative press on British Petroleum's poor safety standards, the company adopted a greensunburst logo and rebranded itself as BP ("Beyond Petroleum") plc.[84]

In the beginning of the 2000s, BP became the leading partner (and later operator) of the BakuTbilisi

Ceyhan pipeline project which opened a new oil transportation route from the Caspian region.[90]On 1September 2003, BP and a group of Russian billionaires, known as AAR (Alfa-Access-Renova),announced the creation of a strategic partnership to jointly hold their oil assets in Russia and Ukraine. As

a result, TNK- was created.[91]

In 2004, BP's olefins and derivatives business was moved into a separate entity which was sold to Ineosin 2005.[92][93]In 2007, BP sold its corporate-owned convenience stores, typically known as "BP

Connect", to local franchisees and jobbers.[94]
http://en.wikipedia.org/wiki/Jobber_(fuel)http://en.wikipedia.org/wiki/Franchiseehttp://en.wikipedia.org/wiki/Ineoshttp://en.wikipedia.org/wiki/Derivative_(chemistry)http://en.wikipedia.org/wiki/Olefinshttp://en.wikipedia.org/wiki/Renova_Grouphttp://en.wikipedia.org/wiki/Access_Industrieshttp://en.wikipedia.org/wiki/Alfa_Grouphttp://en.wikipedia.org/wiki/Baku%E2%80%93Tbilisi%E2%80%93Ceyhan_pipelinehttp://en.wikipedia.org/wiki/Tate_Modernhttp://en.wikipedia.org/wiki/Burmah_Oilhttp://en.wikipedia.org/wiki/ARCOhttp://en.wikipedia.org/wiki/Amocohttp://en.wikipedia.org/wiki/John_Browne,_Baron_Browne_of_Madingleyhttp://en.wikipedia.org/wiki/Talisman_Energyhttp://en.wikipedia.org/wiki/Upstream_(petroleum_industry)http://en.wikipedia.org/wiki/Robert_Horton_(businessman)http://en.wikipedia.org/wiki/Tokyo_Stock_Exchangehttp://en.wikipedia.org/wiki/Britoilhttp://en.wikipedia.org/wiki/Cumberland_Farmshttp://en.wikipedia.org/wiki/Chevron_Corporationhttp://en.wikipedia.org/wiki/Standard_Oil_of_Californiahttp://en.wikipedia.org/wiki/Petro_Canadahttp://en.wikipedia.org/wiki/Downstream_(petroleum_industry)http://en.wikipedia.org/wiki/Peter_Waltershttp://en.wikipedia.org/wiki/File:BP_old_logo.svg


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Steven Koonin, BP's then-Chief

Scientist, speaking in the company

boardroom in 2005 (top right of

picture)

President Barack Obama meeting

with BP executives at the White

House in June 2010 to discuss the oilspill in the Gulf of Mexico

On 23 March 2005, 15 workers were killed and more than 170injured in the Texas City Refinery explosion. To save money,

major upgrades to the 1934 refinery had been postponed.[95]

Browne pledged to prevent another catastrophe. Three monthslater, 'Thunder Horse PDQ', BP's giant new production platformin the Gulf of Mexico, nearly sank during a hurricane. In theirrush to finish the $1 billion platform, workers had installed a

valve backwards, allowing the ballast tanks to flood. Inspectionsrevealed other shoddy work. Repairs costing hundreds ofmillions would keep Thunder Horse out of commission for three

years.[95]

Lord Browne resigned from BP on 1 May 2007. The new chiefexecutive became head of exploration and production Tony

Hayward.[96]In 2009, Hayward shifted emphasis from Lord Browne's focus on alternative energy,

announcing that safety would henceforth be the company's "number one priority".[97]

In 2009, BP obtained a production contract during the 2009/2010 Iraqi oil services contracts tender todevelop the Rumaila field with joint venture partner CNPC, which contain an estimated 17 billion

barrels (2.7 109m3) of oil, accounting for 12% of Iraq's oil reserves estimated at 143.1 billion barrels

(22.75 109m3).[98][99]In June 2010, the BP/CNPC consortium took over development of the

field,[100][101]which was the epicentre of the 1990 Gulf war.[102][103]

2010 to present

On 1 October 2010, Bob Dudley replaced Tony Hayward as the

company's CEO after the Deepwater Horizon oil spill.[104]Afterthe oil spill BP announced a divestment program to sell about$38 billion worth of non-core assets by 2013 to compensate its

liabilities related to the accident.[105][106]In July 2010, it sold itsnatural gas activities in Alberta and British Columbia, Canada, to

Apache Corporation.[107]It sold its stake in the Petroperij andBoquern fields in Venezuela and in the Lan Tay and Lan Dofields, the Nam Con Son pipeline and terminal, and the Phu My 3

power plant in Vietnam to TNK-BP,[108][109]forecourts andsupply businesses in Namibia, Botswana, Zambia, Tanzania and

Malawi to Puma Energy,[110]the Wytch Farm onshore oilfield in

Dorset and a package of North Sea gas assets to Perenco,[111]

natural-gas liquids business in Canada to Plains All American Pipeline LP,[112]natural gas assets in

Kansas to Linn Energy,[113]Carson Refinery in Southern California to Tesoro, Sunray and Hemphill gasprocessing plants in Texas, together with their associated gas gathering system, to Eagle Rock Energy

Partners,[114][115][116][117]the Texas City Refinery and associated assets to Marathon

Petroleum,[118][119]the Gulf of Mexico located Marlin, Dorado, King, Horn Mountain, and Holstein

fields as also its stake in non-operated Diana Hoover and Ram Powell fields to Plains Exploration &Production,[105]non-operating stake in the Draugen oil field to Norske Shell,[120]and the UK's liquefied

petroleum gas distribution business to DCC.[121]
http://en.wikipedia.org/wiki/Royal_Dutch_Shellhttp://en.wikipedia.org/wiki/Draugen_oil_fieldhttp://en.wikipedia.org/wiki/Plains_Exploration_%26_Productionhttp://en.wikipedia.org/wiki/Gulf_of_Mexicohttp://en.wikipedia.org/wiki/Marathon_Petroleumhttp://en.wikipedia.org/wiki/Texashttp://en.wikipedia.org/wiki/Tesorohttp://en.wikipedia.org/wiki/Southern_Californiahttp://en.wikipedia.org/wiki/Linn_Energyhttp://en.wikipedia.org/wiki/Plains_All_American_Pipeline_LPhttp://en.wikipedia.org/wiki/Perencohttp://en.wikipedia.org/wiki/Dorsethttp://en.wikipedia.org/wiki/Wytch_Farmhttp://en.wikipedia.org/wiki/Puma_Energyhttp://en.wikipedia.org/wiki/Forecourthttp://en.wikipedia.org/wiki/Phu_My_3_power_planthttp://en.wikipedia.org/wiki/Apache_Corporationhttp://en.wikipedia.org/wiki/British_Columbiahttp://en.wikipedia.org/wiki/Albertahttp://en.wikipedia.org/wiki/Tony_Haywardhttp://en.wikipedia.org/wiki/Bob_Dudleyhttp://en.wikipedia.org/wiki/Gulf_warhttp://en.wikipedia.org/wiki/CNPChttp://en.wikipedia.org/wiki/Rumaila_fieldhttp://en.wikipedia.org/wiki/Economy_of_Iraq#2009_Oil_services_contractshttp://en.wikipedia.org/wiki/Tony_Haywardhttp://en.wikipedia.org/wiki/Thunder_Horse_PDQhttp://en.wikipedia.org/wiki/Texas_City_Refinery_explosionhttp://en.wikipedia.org/wiki/Gulf_of_Mexicohttp://en.wikipedia.org/wiki/File:Obama-hayward.jpghttp://en.wikipedia.org/wiki/File:Steven_Koonin_BP_2005-02-22.jpg


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BP's world headquarters in St.James's, City of Westminster, London

On 15 January 2011, Rosneft and BP announced a deal to jointly develop East-Prinovozemelsky field on

the Russian arctic shelf.[122]However, the deal was blocked by BP's co-shareholders in TNK-BP due to

a dispute over Russian exploration rights between the two companies, and was nullified.[123]In October2012, Rosneft reached separate agreements with BP and AAR to acquire TNK-BP, with each dealsubject to regulatory approval the price for BP's shares was $12.3 billion in cash and 18.5% of Rosneft's

stock.[124]The deal was completed on 21 March 2013.[125][126]

In February 2011, BP formed a partnership with Reliance Industries, taking a 30% stake in a new Indianoint-venture for an initial payment of $7.2 billion.[127]In September 2012, BP sold its subsidiary BP

Chemicals (Malaysia) Sdn. Bhd., an operator of the Kuantan purified terephthalic acid (PTA) plant in

Malaysia, to Reliance Industries for $230 million.[128]

In 20112013, BP cut down its alternative energy business. The company announced its departure from

the solar energy market in December 2011 by closing its solar power business, BP Solar.[129][130]In2012, BP shut down the BP Biofuels Highlands project which was developed since 2008 to make

cellulosic ethanol from emerging energy crops like switchgrass and from biomass. [131][132][133]

By 2013, BP had fallen from the second largest oil company to the fourth after selling off assets to cover

Deepwater Horizon oil spill-related payouts.[134]

In June 2014, BP agreed a deal worth around $20 billion to supply CNOOC with liquefied natural

gas.[135]

Operations

BP has operations in around 80 countries worldwide[136]with theglobal headquarters in England, located in the St James's area of

London.[137]As of November 2013, the company had a total of

83,900 employees.[4]BP operations are organised into two main

business segments, Upstream and Downstream.[138]

Since 1951, BP publishes its annual Statistical Review of World

Energy, which is considered an energy industry benchmark.[139]

Operations by location

United Kingdom and Ireland

As of 2011 the company employs more than 15,000 people in the UK and Ireland, or about 20% of its

total workforce.[140][141]BP has a major corporate campus in Sunbury-on-Thames which is home to

around 4,500 employees and over 40 business units.[142]Its North Sea operations are headquartered in

Aberdeen, Scotland, where it employs around 3,000 people.[143]BP's trading functions are based at 20

Canada Square in Canary Wharf, London, where around 2,200 employees are based.[142]BP has three

major research and development centres in the UK.[144]
http://en.wikipedia.org/wiki/Canary_Wharfhttp://en.wikipedia.org/wiki/20_Canada_Squarehttp://en.wikipedia.org/wiki/Scotlandhttp://en.wikipedia.org/wiki/Aberdeenhttp://en.wikipedia.org/wiki/North_Seahttp://en.wikipedia.org/wiki/Sunbury-on-Thameshttp://en.wikipedia.org/wiki/Downstream_(petroleum_industry)http://en.wikipedia.org/wiki/Upstream_(petroleum_industry)http://en.wikipedia.org/wiki/CNOOChttp://en.wikipedia.org/wiki/Biomasshttp://en.wikipedia.org/wiki/Switchgrasshttp://en.wikipedia.org/wiki/Cellulosic_ethanolhttp://en.wikipedia.org/wiki/BP_Biofuels_Highlandshttp://en.wikipedia.org/wiki/BP_Solarhttp://en.wikipedia.org/wiki/Purified_terephthalic_acidhttp://en.wikipedia.org/wiki/Reliance_Industrieshttp://en.wikipedia.org/wiki/Russian_continental_shelfhttp://en.wikipedia.org/wiki/East-Prinovozemelsky_fieldhttp://en.wikipedia.org/wiki/City_of_Westminsterhttp://en.wikipedia.org/wiki/St._James%27shttp://en.wikipedia.org/wiki/File:BPheadoffice.JPG


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The BP chemicals plant in Salt End,

United Kingdom

The headquarters of BP America in

Westlake Park, Houston

BP operates more than 40 offshore oil and gas fields, fouronshore terminals and a pipeline network that transports around50 percent of the oil and gas produced in the UK, according to

the company.[145][146]As of 2011, BP had produced 5 billion

barrels (790 106m3) of oil and gas equivalent in the North

Sea[147]and as of 2012 its level of production was about 200,000

barrels per day (32,000 m3/d),[148][149]BP has invested morethan 35 billion in the North Sea since the 1960s, and in 2012announced its plans to invest another 10 billion until 2017. Thecompany announced that it is focusing its investment in the UKNorth Sea into four development projects including the Clair,

Devenick, Schiehallion and Loyal, and Kinnoull oilfields.[150]

BP is the operator of the Clair oilfield, which has been appraised as the largest hydrocarbon resource in

the UK.[148]

In Saltend near Hull, BP operates a petrochemicals plant that produces acetic acid and acetic anhydride

used in the production of pharmaceuticals, textiles and other chemical products. [149][151]At the samelocation, the company operates a biofuel technology demonstration plant in partnership with DuPont,

which uses feedstocks such as wheat to produce biobutanol.[152]In 2007 BP formed a joint venturecalled Vivergo with AB Sugar and DuPont to build a biofuel plant near Hull to convert wheat into

ethanol the remaining plant matter is sold as animal feed.[153]The plant went online in December

2012.[154]

Retail sites operated by BP in the UK include over 1,100 service stations.[155]Its flagship retail brand isBP Connect, a chain of service stations combined with a convenience store, a caf called the "Wild Bean

Cafe",[156][157]and in many stations, a M&S Simply Food shop.[158]

United States

The US operations comprise nearly one-third of BP's worldwide

business interests,[159]and the US is the country with the greatest

concentration of its employees and investments.[160][161]As ofApril 2014, per the company website BP employs approximately

20,000 people in the US.[162][163][164]

BP's major subsidiary in the United States is BP America, Inc.based in Houston, Texas, which is the parent company for the

BP's operations in the United States.[165]BP Exploration &Production Inc., a 1996 established Houston-based subsidiary, isdealing with oil exploration and production, including Gulf of

Mexico activities.[166]BP Corporation North America, Inc.,provides petroleum refining services as also transportation fuel, heat and light energy, and petrochemical

products.[167]BP Products North America, Inc., a 1954 established Houston-based subsidiary, is

engaged in the exploration, development, production, refining, and marketing of oil and natural gas. [168]

BP America Production Company, a New Mexico-based subsidiary, engages in oil and gas exploration

and development.[169]BP Energy Company, a Houston-based subsidiary, is a provider of natural gas,power, and risk management services to the industrial and utility sectors and a retail electric provider in
http://en.wikipedia.org/wiki/New_Mexicohttp://en.wikipedia.org/wiki/Houston,_Texashttp://en.wikipedia.org/wiki/M%26S_Simply_Foodhttp://en.wikipedia.org/wiki/BP_Connecthttp://en.wikipedia.org/wiki/Filling_stationhttp://en.wikipedia.org/wiki/Biofuelhttp://en.wikipedia.org/wiki/Butanol_fuelhttp://en.wikipedia.org/wiki/DuPonthttp://en.wikipedia.org/wiki/Biofuelhttp://en.wikipedia.org/wiki/Acetic_anhydridehttp://en.wikipedia.org/wiki/Acetic_acidhttp://en.wikipedia.org/wiki/Kingston_upon_Hullhttp://en.wikipedia.org/wiki/Salt_Endhttp://en.wikipedia.org/wiki/Schiehallion_oilfieldhttp://en.wikipedia.org/wiki/Clair_oilfieldhttp://en.wikipedia.org/wiki/Houstonhttp://en.wikipedia.org/wiki/Westlake_Park_(Houston)http://en.wikipedia.org/wiki/File:BPAmericasHQ.JPGhttp://en.wikipedia.org/wiki/Salt_Endhttp://en.wikipedia.org/wiki/File:Hedon_Clough_and_the_BP_Chemicals_site_at_Saltend_-_geograph.org.uk_-_145508.jpg


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The Thunder Horse PDQsemi-submersible oil platform in the

Thunder Horse Oil Field

Part of the Trans-Alaska Pipeline

System

Texas.[170]In March 2014, it was reported that BP was to move its US onshore oil and gas assetmanagement to a new subsidiary, in an effort to better compete with the smaller companies that

dominate the US shale gas industry.[171]

BP is the second largest producer of oil and gas and the largest leaseholder in the deepwater Gulf of

Mexico.[163]The company produces roughly 10% of its global output in the region, over 189,000 barrels

per day (30,000 m3/d) of oil equivalent.[172]Of the seven largest

drilling platforms in the Gulf, four are operated by BP.[173]As of2012 BP has oil and gas production in the Gulf from fieldsincluding Atlantis, Mad Dog, Na Kika, and Thunder Horse. Thecompany also holds stakes in fields operated by other companies,including the Mars, Ursa, and Great White fields. BP is theleaseholder of Mississippi Canyon Block 252 (MacondoProspect) and the operator of the Macondo well, the site of the

Deepwater Horizon explosion and oil spill.[174][175]In December2011, BP acquired 11 newly available leases for resource

exploration rights to areas of federal waters in the Gulf and inJune 2012 it acquired 40 further leases in the central region of the

Gulf.[159][176]In March 2014, the EPA's ban barring BP frombidding on new leases in the Gulf, imposed following theMacondo spill, was lifted. BP won 24 bids at auction for leases in

the region totalling $41.6 million.[163]

As of 2012, the company operated about two-thirds of all Alaska

North Slope production.[177]It operates 13 oil fields, four

pipelines, and owns a stake in six additional fields in the NorthSlope.[178][179]BP is the largest partner with just under 50%ownership stake in the 800-mile (1,300 km) long Trans-Alaska

Pipeline System.[180]

In 2013 BP produced more than 1,539 million cubic feet per day

(43.6 million cubic metres per day) of natural gas.[181]The company is the country's sixth largest natural

gas producer with a total of 21,000 wells.[182]Its US Lower 48 onshore division has shale positions inthe Woodford, Oklahoma, Fayetteville, Arkansas, Haynesville, Texas, Eagle Ford, Texas and Utica,

Ohio shales.[183][184][185]It has unconventional gas (shale gas or tight gas) stakes also in Colorado, NewMexico and Wyoming, primarily in the San Juan Basin.[186][187][188]

BP operates Whiting Refinery in Indiana and Cherry Point Refinery in Washington, and has a stake in

the Husky Energy-operated Toledo Refinery in Ohio.[189][190][191][192]Since the early 2000s, thecompany has been focusing its refining business on processing refined products from oil sands and

shales.[190][193]There are several thousand retail sites in the US operating under a BP brand including

BP, ARCO and Ampm.[13]On the US West Coast, BP primarily operates service stations under the

ARCO brand.[194][195]

The company owns three petrochemical plants in the US, which produce approximately four million

tons of petrochemicals each year.[196]Its petrochemical plant in Texas City, located on the same site asthe formerly owned Texas City Refinery, produces industrial chemicals including propylene and
http://en.wikipedia.org/wiki/Propenehttp://en.wikipedia.org/wiki/Ampmhttp://en.wikipedia.org/wiki/ARCOhttp://en.wikipedia.org/wiki/Tight_oilhttp://en.wikipedia.org/wiki/Oil_sandshttp://en.wikipedia.org/w/index.php?title=Toledo_Refinery&action=edit&redlink=1http://en.wikipedia.org/wiki/Husky_Energyhttp://en.wikipedia.org/wiki/Cherry_Point_Refineryhttp://en.wikipedia.org/wiki/Whiting_Refineryhttp://en.wikipedia.org/wiki/San_Juan_Basinhttp://en.wikipedia.org/wiki/New_Mexicohttp://en.wikipedia.org/wiki/Tight_gashttp://en.wikipedia.org/wiki/Shale_gashttp://en.wikipedia.org/wiki/Unconventional_gashttp://en.wikipedia.org/wiki/Utica_Shalehttp://en.wikipedia.org/wiki/Eagle_Ford_Formationhttp://en.wikipedia.org/wiki/Shale_gas_in_the_United_States#Haynesville_Shale.2C_Louisianahttp://en.wikipedia.org/wiki/Shale_gas_in_the_United_States#Fayetteville_Shale.2C_Arkansashttp://en.wikipedia.org/wiki/Shale_gas_in_the_United_States#Woodford_Shale.2C_Oklahomahttp://en.wikipedia.org/wiki/Shale_gas_in_the_United_Stateshttp://en.wikipedia.org/wiki/Trans-Alaska_Pipeline_Systemhttp://en.wikipedia.org/wiki/Alaska_North_Slopehttp://en.wikipedia.org/wiki/Macondo_Prospecthttp://en.wikipedia.org/wiki/Ursa_tension_leg_platformhttp://en.wikipedia.org/wiki/Mars_(oil_platform)http://en.wikipedia.org/wiki/Thunder_Horse_oil_fieldhttp://en.wikipedia.org/wiki/Mad_Dog_oil_fieldhttp://en.wikipedia.org/wiki/Atlantis_oil_fieldhttp://en.wikipedia.org/wiki/Gulf_of_Mexicohttp://en.wikipedia.org/wiki/Trans-Alaska_Pipeline_Systemhttp://en.wikipedia.org/wiki/File:Trans-Alaska_Pipeline_System_Luca_Galuzzi_2005.jpghttp://en.wikipedia.org/wiki/Thunder_Horse_Oil_Fieldhttp://en.wikipedia.org/wiki/Thunder_Horse_PDQhttp://en.wikipedia.org/wiki/File:Thunder_Horse_Semisub.jpg


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styrene.[197]BP's Decatur, Alabama and Cooper River, South Carolina petrochemical plants bothproduce PTA, which is used in the production of synthetic fibre for clothing, packaging and optical

films.[196][198][199]The Decatur plant also produces paraxylene and naphthalene dicarboxlate.[200]

The company's alternative energy operations based in the US include 16 wind farms.[201][202]

Other locations

Africa

In Egypt, BP produces approximately 15% of the country's total oil production and 40% of its domestic

gas.[203]The company also has offshore gas developments in the East Nile Delta Mediterranean, and in

the West Nile Delta,[204]where the company has a joint investment of US$9 billion with RWE to

develop two offshore gas fields.[205][206]

BP is active in offshore oil development in Angola, where it holds an interest in a total of nine oil

exploration and production blocks covering more than 30,000 square kilometres (12,000 sq mi). Thisincludes four blocks it acquired in December 2011 and an additional block that is operated by Brazilian

national oil company, Petrobras, in which it holds a 40% stake.[207]

Asia

BP has a stake in exploration of two blocks of offshore deepwater assets in the South China

Sea.[208][209]

In India, BP owns a 30% share of oil and gas assets operated by Reliance Industries, includingexploration and production rights in more than 20 offshore oil and gas blocks, representing an

investment of more than US$7 billion into oil and gas exploration in the country.[210]

BP has major liquefied natural gas activities in Indonesia, where it operates the Tangguh LNG project,which began production in 2009 and has a capacity of 7.6 million tonnes of liquid natural gas per

year.[211]Also in that country, the company has invested in the exploration and development of coalbed

methane.[212]

BP operates in Iraq as part of the joint venture Rumaila Operating Organization in the Rumaila oil field,

the world's fourth largest oilfield, where it produced over 1 million barrels per day (160 103m3/d) of

oil equivalent in 2011.[213][214]

Australia

In Australia, BP operates two out of the country's five[215]refineries: Kwinana in Western Australia,

which can process up to 146,000 barrels (23,200 m3) of crude oil per day and is the country's largestrefinery, and the Bulwer Island refinery in Queensland, which can process up to 102,000 barrels

(16,200 m3

) of crude per day.[216][217]

Caucasus and the Caspian region
http://en.wikipedia.org/wiki/Queenslandhttp://en.wikipedia.org/wiki/Bulwer_Islandhttp://en.wikipedia.org/wiki/Kwinana_Oil_Refineryhttp://en.wikipedia.org/wiki/Rumaila_oil_fieldhttp://en.wikipedia.org/wiki/Rumaila_Field_Operating_Organizationhttp://en.wikipedia.org/wiki/Tangguh_gas_fieldhttp://en.wikipedia.org/wiki/Reliance_Industrieshttp://en.wikipedia.org/wiki/Petrobrashttp://en.wikipedia.org/wiki/RWEhttp://en.wikipedia.org/wiki/Wind_farmshttp://en.wikipedia.org/wiki/P-Xylenehttp://en.wikipedia.org/wiki/Thin-film_opticshttp://en.wikipedia.org/wiki/Polyesterhttp://en.wikipedia.org/wiki/South_Carolinahttp://en.wikipedia.org/wiki/Decatur,_Alabamahttp://en.wikipedia.org/wiki/Styrene


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A BP "Road Train" in the Australian

Outback

A GDH (subsidiary of BP) oil depot,

Frontigan, Hrault, France.

BP operates the two largest oil and gas production projects in theAzerbaijan's sector of the Caspian Sea, the AzeriChiragGuneshli offshore oil fields, which supplies 80% of the country'soil production, and the Shah Deniz gas field. It also and developsthe Shafag-Asiman complex of offshore geological

structures.[218][219][220]In addition, it operates the Azerbaijan'smajor export pipelines through Georgia such as BakuTbilisi

Ceyhan, BakuSupsa and South Caucasus pipelines.[221]

Europe (ex. United Kingdom and Ireland)

BP's refining operations in continental Europe include Europe'ssecond-largest oil refinery, located in Rotterdam, theNetherlands, which can process up to 377,000 barrels

(59,900 m3) of crude oil per day.[222]

In addition to its offshore operations in the British zone of NorthSea, BP has interests in the Norwegian section of the sea. As ofMarch 2013, BP holds a 19.75% stake in Russia's state-

controlled oil company Rosneft.[126]

In September 2014, BP announced it would acquire theScandinavian aviation fuel business Statoil Fuel & Retail for an

undisclosed amount.[223]

North America (ex. United States)

BP's Canadian operations are headquartered in Calgary and the company operates primarily in Alberta,the Northwest Territories, and Nova Scotia. It purchases crude oil for the company's refineries in theUnited States and has oil sands holdings in Alberta and four offshore blocks in Nova

Scotia.[224][225][226]The company's Canadian oil sands leases include joint ventures with Husky Energy

in the Sunrise Energy Project (50%),[227]and Devon Energy in Pike,[228]and a partnership with ValueCreation Inc. in the development of the Terre de Grace oil sands lease. The BP's investment in the

Sunrise Project is 1.6 billion and it is expected to start production in 2014.[229]

BP is the largest oil and gas producer in Trinidad and Tobago, where it holds more than 1,350 squarekilometres (520 sq mi) of offshore assets and is the largest shareholder in Atlantic LNG, one of the

largest LNG plants in Western Hemisphere.[230]

South America

In Brazil, BP holds stakes in offshore oil and gas exploration in the Barreirinhas, Cear and Campos

basins, in addition to onshore processing facilities.[231]BP also operates biofuel production facilities in

Brazil, including three cane sugar mills for ethanol production.[232][233]

Main business segments

Oil and natural gas
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An Aral service station in

Weiterstadt, Germany

BP Upstream's activities include exploring for new oil and natural gas resources, developing access to

such resources, and producing, transporting, storing and processing oil and natural gas. [234][235]

Upstream is responsible for the operation of BP's wells, pipelines, offshore platforms and processingfacilities. The activities in this area of operations take place in 30 countries worldwide, includingAngola, Azerbaijan, Brazil, Canada, Egypt, India, Iraq, Norway, Russia, Trinidad and Tobago, the

United Kingdom, and the United States.[236]In addition to the conventional oil exploration and

production, BP has a stake in the three oil sands projects in Canada.[107]

Oil refining and marketing

BP Downstream's activities include the refining, marketing,manufacturing, transportation, trading and supply of crude oil,

petrochemicals and petroleum products.[234]Downstream isresponsible for BP's fuels, lubricants and petrochemicalbusinesses and has major operations located in Europe, North

America and Asia.[237]As of November 2013, BP owned or held

a share in 14 refineries worldwide, of which seven were locatedin Europe and three were in the US.[238]

As of 2013 BP owned or had a share in 17 petrochemical

manufacturing plants worldwide.[239]The company'spetrochemicals plants produce products including PTA, paraxylene, and acetic acid. Its petrochemicals,

lubricants, fuels and related services are marketed in over 70 countries.[240]

Air BP is the aviation division of BP, providing aviation fuel, lubricants & services. It has operations in

over 50 countries worldwide. BP Shipping provides the logistics to move BP's oil and gas cargoes tomarket, as well as marine structural assurance.[241]It manages a large fleet of vessels most of which areheld on long-term operating leases. BP Shipping's chartering teams based in London, Singapore, andChicago also charter third party vessels on both time charter and voyage charter basis. The BP-managedfleet consists of Very Large Crude Carriers (VLCCs), one North Sea shuttle tanker, medium size crudeand product carriers, liquefied natural gas (LNG) carriers, liquefied petroleum gas (LPG) carriers, and

coasters. All of these ships are double-hulled.[242]

BP markets petroleum products in approximately 80 countries worldwide.[4]It has around

17,800 service stations, which are primarily operated under the BP brand.[13]

BP Connect is BP'sflagship retail format,[155]although in the US it is gradually being transitioned to the ampm format.[195]

In Germany and Luxembourg, BP operates service stations under the Aral brand, having acquired themajority of Veba l AG in 2001 and subsequently rebranded its existing stations in Germany to the Aral

name.[243]On the US West Coast, in the states of California, Oregon, Washington, Nevada, Idaho,

Arizona, and Utah, BP primarily operates service stations under the ARCO brand.[244]In Australia BPoperates a number of BP Travel Centres, large-scale destination sites located which, in addition to theusual facilities in a BP Connect site, also feature food-retail tenants such as McDonald's, KFC and

Nando's and facilities for long-haul truck drivers.[245]

Castrol is BP's main brand for industrial and automotive lubricants and is applied to a large range of BP

oils, greases and similar products for most lubrication applications.[246]

Alternative and low carbon energy
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A BP photovoltaic (PV) module that

is composed of multiple PV cells.

Two or more interconnected PV

modules create an array.

The Fowler Ridge Wind Farm

BP Solar, a former subsidiary of BP, was a manufacturer andinstaller of photovoltaic solar cells headquartered in Madrid,Spain, with production facilities in India and the People's

Republic of China.[247][248]Operating since 1981 when BPacquired initially 50% of Lucas Energy Systems to become

Lucas BP Solar Systems,[249]the company became whollyowned by BP in the mid-1980s. In 1999 it increased its stake in

the American Solarexplant to 100%, but by 2010 it was closingdown the factory at Frederick, Maryland.[250]BP Solar was

closed on 21 December 2011.[130]

BP established an alternative and low carbon energy business in2005, with plans to invest $8 billion over a 10-year period intorenewable energy sources including solar, wind, and biofuels,and non-renewable sources including natural gas and hydrogenpower. According to the company, it spent a total of $8.3 billion

in these projects through completion in 2013.[251][252][253][254]

As of 2012, the BP Alternative Energy business employed

5,000 people.[252][255]The division is housed within the firm's"other businesses and corporate" unit, and the company does not

break out its financial details.[251]

In the United States, BP has built or purchased 16 wind farmswith total gross capacity of around 2,600 megawatts and another 2,000 MW under development. Thesewind farms include the Cedar Creek Wind Farm, Titan Wind Project, Sherbino Wind Farm, Golden Hills

Wind Project, and Fowler Ridge Wind Farm.

[201][202][256]

In April 2013, BP put its wind energy unit upfor sale, to shift its focus more to its main oil and gas businesses.[201][202][257]However, the sale plan

was cancelled in July 2013.[258]

In Brazil, BP owns two ethanol producersCompanhia Nacional de Acar e lcoolandTropical

BioEnergiawith three ethanol mills.[259][260]In England, it has a stake in the bioethanol producer

Vivergo and together with DuPont has a biobutanol demonstration plant.[152][261]BP has invested in anagricultural biotechnology company Chromatin, a company developing crops that can grow on marginal

land and that are optimized to be used as feedstock for biofuel,[262]and Vedrezyne, which produces

petrochemicals in yeast.[263][264]

The relatively small size of BP's alternative energy operations has led to allegations of greenwashing by

Greenpeace,[265]Mother Jones[266]and oil and energy analyst Antonia Juhasz,[267]among others.[268]

Juhasz notes BP's investment in green technologies peaked at 4% of its exploratory budget prior to

cutbacks.[269]BP's 2008 budget included $20 billion in fossil fuel investment and $1.5 billion in all

alternative forms of energy.[270]The Australian publication The Monthlyreported in August 2010 thatBP's renewable capacity sold annually was "minuscule", less than 1000 megawatts of wind and solar

energy worldwide.[271]

Corporate affairs
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BP stock value (open, high, low and

close prices) on the New York Stock

Exchange in 20002012

BP is the fifth-largest energy company by market capitalization,[7]fifth-largest company in the worldmeasured by 2012 revenues, and the sixth largest oil and gas company measured by 2012

production.[8][9]

In 2013, the company's revenue was US$396.217 billion, operating income was $31.769 billion

and net income was $23.758 billion.[2]As of 2013, 83,900 people employed by the company

worldwide.[4]

The chairman of the BP board of directors is Carl-Henric Svanberg and the chief executive officer is

Robert Dudley.[272]

Stock

BP stock is composed of original BP shares as well as sharesacquired through mergers with Amoco in 1998 and the Atlantic

Richfield Company (ARCO) in 2000.[273][274]

The company'sshares are primarily traded on the London Stock Exchange, butalso listed on the Frankfurt Stock Exchange in Germany. In theUnited States shares are traded in US$ on the New York StockExchange in the form of American depository shares (ADS). One

ADS represents six ordinary shares.[275]

Following the United States Federal Trade Commission'sapproval of the BP-Amoco merger in 1998, Amoco's stock wasremoved from Standard & Poor's 500 and was merged with BP

shares on the London Stock Exchange.[273]The merger with Amoco resulted in a 40% increase in shareprice by April 1999.[276]However, shares fell nearly 25% by early 2000, when the Federal Trade

Commission expressed opposition to BP-Amoco's acquisition of ARCO.[277]The acquisition was

ultimately approved in April 2000 increasing stock value 57 cents over the previous year.[274]

After the Texas City Refinery explosion in 2005, stock prices again fell. By January 2007, the explosion,coupled with a pipeline spill in Alaska and production delays in the Gulf of Mexico, left BP's stock

down 4.5% from its position prior to the Texas City explosion.[278]However by April 2007, stocks had

rebounded 13% erasing the 8.3% loss from 2006.[279]Declining oil prices and concerns over oil

sustainability also caused shares to fall in value in late 2008.[280]

The Deepwater Horizon oil spill in April 2010 initiated a sharp decline in share prices, and BP's shares

lost roughly 50% of their value in 50 days.[281]BP's shares reached a low of $26.97 per share on 25 June

2010 totalling a $100 billion loss in market value[282]before beginning to climb again. Shares reached a

post-spill high of $49.50 in early 2011[283]and as of April 2012 shares remain down approximately 30%

from pre-spill levels.[284]

On 22 March 2013, BP announced an $8 billion share repurchase which will be implemented during 12

18 months.[285][286][287]As of April 2013, $300 million was used, with a minimal impact to the shareprice. The buyback decision followed closure of the TNK-BP deal and it has to offset the dilution to
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earnings per share following the loss of dividends from TNK-BP.[287]According to the company thebuyback would provide shareholders near-term benefits from the reshaping of the company's Russian

business.[285]The buyback is also seen as a way to invest excess cash from the TNK-BP deal.[287]

As of 2012, 38% of BP shares were held by American investors, 36% by British investors, and 14% by

the rest of Europe with the remaining shares held by investors from other countries.[288]Majorinstitutional shareholders include BlackRock Investment Management (UK) Ltd. (5.39% as of 19

February 2013), Legal & General Investment Management Ltd. (3.82% as of 19 February 2013), andCapital Research & Management Co. (Global Investors) (2.33% as of 19 February 2013).[289]

Branding and public relations

In the first quarter of 2001 the company adopted the marketing name of BP, and replaced its "GreenShield" logo with the "Helios" symbol, a green and yellow sunflower logo named after the Greek sungod and designed to represent energy in its many forms. BP introduced a new corporate slogan

"Beyond Petroleum" along with a $200M advertising and marketing campaign.[290][291]According to

the company, the new slogan represented their focus on meeting the growing demand for fossil fuels,manufacturing and delivering more advanced products, and to enable transitioning to a lower carbon

footprint.[292]

By 2008, BP's branding campaign had succeeded with the culmination of a 2007 Effie Award from bythe American Marketing Association, and consumers had the impression that BP was one of the greenest

petroleum companies in the world.[293]BP was criticised by environmentalists and marketing experts,who stated that the company's alternative energy activities were only a fraction of the company's

business at the time.[294]According to Democracy Now, BP's marketing campaign amounted to a

deceptive greenwashing public-relations spin campaign given that BP's 2008 budget included more than$20 billion for fossil fuel investment and less than $1.5 billion for all alternative forms of

energy.[269][270]Oil and energy analyst Antonia Juhasz notes BP's investment in green technologiespeaked at 4% of its exploratory budget prior to cutbacks, including the discontinuation of BP Solar and

the closure of its alternative energy headquarters in London.[269][295]According to Juhasz, "fourpercent...hardly qualifies the company to be Beyond Petroleum", citing BP's "aggressive modes of

production, whether its the tar sands [or] offshore".[296]

BP attained a negative public image from the series of industrial accidents that occurred through the2000s, and its public image was severely damaged after the Deepwater Horizon explosion and Gulf Oilspill. In the immediate aftermath of the spill, BP initially downplayed the severity of the incident, and

made many of the same PR errors that Exxon had made after theExxon Valdezdisaster.[297][298]CEOTony Hayward was criticised for his statements and had committed several gaffes, including stating that

he "wanted his life back."[299]Some in the media commended BP for some of its social media efforts,such as the use of Twitter and Facebook as well as a section of the company's website where it

communicated its efforts to clean up the spill.[300][301][302]

BP began a re-branding campaign in late 2010, and decided to focus its brand on the idea of "bringingbrilliant minds together with technology at a massive scale to meet the world's energy needs", and focus

its messaging on telling stories about people.[303]In February 2012 BP North America launched a $500

million branding campaign to rebuild its brand.[304]
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The company's advertising budget was about $5 million per week during the four-month spill in the Gulf

of Mexico, totaling nearly $100 million.[305][306]

In May 2012, BP tasked a press office staff member to openly join discussions on the Wikipedia article's

talk page and suggest content to be posted by other editors.[307]Controversy emerged in 2013 over the

amount of content from BP that had entered this article.[308][309]Wikipedia co-founder Jimmy Walesstated that, by identifying himself as a BP staff member, the contributor in question had complied with

site policy regarding conflicts of interest.[308]

Environmental record

Position on global warming

In 1997 BP became the first multinational outside the reinsurance industry to publicly support thescientific consensus on climate change, which Eileen Caussen, President of the Pew Center on Global

Climate Change described as a transformative moment on the issue.[310]Prior to 1997, BP was amember of the Global Climate Coalition an industry organisation established to promote global warmingscepticism but withdrew in 1997, saying "the time to consider the policy dimensions of climate change isnot when the link between greenhouse gases and climate change is conclusively proven, but when thepossibility cannot be discounted and is taken seriously by the society of which we are part. We in BP

have reached that point.".[311][312]In March 2002, Lord John Browne, the group chief executive of BP,

declared in a speech that global warming was real and that urgent action was needed.[313]

Hazardous substance dumping 19931995

In September 1999, one of BP's US subsidiaries, BP Exploration Alaska (BPXA), pleaded guilty tocriminal charges stemming from its illegally dumping of hazardous wastes on the Alaska North Slope,paying fines and penalties totaling $22 million. BP paid the maximum $500,000 in criminal fines,$6.5 million in civil penalties, and established a $15 million environmental management system at all ofBP facilities in the US and Gulf of Mexico that are engaged in oil exploration, drilling or production.The charges stemmed from the 1993 to 1995 dumping of hazardous wastes on Endicott Island, Alaskaby BP's contractor Doyon Drilling. The firm illegally discharged waste oil, paint thinner and other toxicand hazardous substances by injecting them down the outer rim, or annuli, of the oil wells. BPXA failedto report the illegal injections when it learned of the conduct, in violation of the Comprehensive

Environmental Response, Compensation and Liability Act.[314]

Air pollution violations

In 2000 BP Amoco acquired ARCO, a Los Angeles-based oil group.[85]In 2003 Californias SouthCoast Air Quality Management District (AQMD) filed a complaint against BP/ARCO, seeking $319

million in penalties for thousands of air pollution violations over an 8-year period.[315]In January 2005,the agency filed a second suit against BP based on violations between August 2002 and October 2004.The suit alleged that BP illegally released air pollutants by failing to adequately inspect, maintain, repairand properly operate thousands of pieces of equipment across the refinery as required by AQMDregulations. It was alleged that in some cases the violations were due to negligence, while in others the

violations were knowingly and willfully committed by refinery officials.[316]In 2005 a settlement was
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reached under which BP agreed to pay $25 million in cash penalties and $6 million in past emissionsfees, while spending $20 million on environmental improvements at the refinery and $30 million on

community programs focused on asthma diagnosis and treatment.[317]

In 2013, a total of 474 Galveston County residents living near the BP Texas City Refinery filed a $1billion lawsuit against BP, accusing the company of "intentionally misleading the public about theseriousness" of a two-week release of toxic fumes which began on 10 November 2011. "BP reportedly

released Sulfur Dioxide, Methyl Carpaptan, Dimethyl Disulfide and other toxic chemicals into theatmosphere reads the report. The lawsuit further claims Galveston county has the worst air quality inthe United States due to BP's violations of air pollution laws. BP had no comment and said it would

address the suit in the court system.[318][319][320][321][322]

Colombian farmland damages claim

In 2006, a group of Colombian farmers reached a multimillion dollar out-of-court settlement with BP for

alleged environmental damage caused by the Ocensa pipeline.[323]An agreed statement said: "TheColombian farmers group are pleased to say that after a mediation process which took place in Bogot inJune 2006 at the joint initiative of the parties, an amicable settlement of the dispute in relation to theOcensa pipeline has been reached, with no admissions of liability." The company was accused ofbenefiting from a regime of terror carried out by Colombian government paramilitaries to protect the450-mile (720 km) Ocensa pipeline BP said throughout that it has acted responsibly and that

landowners were fairly compensated.[324]

In 2009, another group of 95 Colombian farmers filed a suit against BP, saying the company's Ocensapipeline caused landslides and damage to soil and groundwater, affecting crops, livestock, andcontaminating water supplies, making fish ponds unsustainable. Most of the land traversed by the

pipeline was owned by peasant farmers who were illiterate and unable to read the environmental impactassessment conducted by BP prior to construction, which acknowledged significant and widespread risks

of damage to the land.[325]

Canadian oil sands

In Canada, BP is involved in the extraction of oil sands, also known as tar sands or bituminous sands.The company uses in-situdrilling technologies such as Steam Assisted Gravity Drainage to extract the

bitumen.[225][326][327]Members of US and Canadian oil companies say that using recycled groundwater

makes in situ drilling an environmentally friendlier option when compared with oil sands mining.[328]

Members of Canada's First Nations have criticized BP's involvement in the Canadian project for the

impacts tar sands extraction has on the environment.[329]NASA scientist James Hansen said that the

exploitation of Canadian tar sands would mean "game over for the climate".[330][331]In 2010, activist

shareholders asked BP for a full investigation of the project, but were defeated.[332]In 2013 shareholders

criticized the project for being carbon-intensive.[333]

Health and safety violations

Citing conditions similar to those that resulted in the 2005 Texas City Refinery explosion, on 25 April2006, the U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) fined BPmore than $2.4 million for unsafe operations at the company's Oregon, Ohio refinery. An OSHA
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inspection resulted in 32 per-instance willful citations including locating people in vulnerable buildingsamong the processing units, failing to correct de-pressurization deficiencies and deficiencies with gasmonitors, and failing to prevent the use of non-approved electrical equipment in locations in whichhazardous concentrations of flammable gases or vapors may exist. BP was further fined for neglecting todevelop shutdown procedures and designate responsibilities and to establish a system to promptlyaddress and resolve recommendations made after an incident when a large feed pump failed three yearsprior to 2006. Penalties were also issued for five serious violations, including failure to develop

operating procedures for a unit that removes sulfur compound failure to ensure that operatingprocedures reflect current operating practice in the Isocracker Unit failure to resolve process hazardanalysis recommendations failure to resolve process safety management compliance audit items in a

timely manner and failure to periodically inspect pressure piping systems.[334][335]

In 2008 BP and several other major oil refiners agreed to pay $422 million to settle a class-action lawsuitstemming from water contamination tied to the gasoline additive MTBE, a chemical that was once a keygasoline ingredient. Leaked from storage tanks, MTBE has been found in several water systems acrossthe United States. The plaintiffs maintain that the industry knew about the environmental dangers butthat they used it instead of other possible alternatives because it was less expensive. The companies will

also be required to pay 70 percent of cleanup costs for any wells newly affected at any time over the next30 years.[336][337]

BP has one of the worst safety records of any major oil company that operates in the United States.Between 2007 and 2010, BP refineries in Ohio and Texas accounted for 97 percent of "egregious,willful" violations handed out by the U.S. Occupational Safety and Health Administration (OSHA). BPhad 760 "egregious, willful" violations during that period, while Sunoco and Conoco-Phillips each had

eight, Citgo two and Exxon had one.[338]The deputy assistant secretary of labour at OSHA, said "The

only thing you can conclude is that BP has a serious, systemic safety problem in their company."[339]

A report inProPublica, published in the Washington Postin 2010, found that over a decade of internalinvestigations of BP's Alaska operations during the 2000s warned senior BP managers that the companyrepeatedly disregarded safety and environmental rules and risked a serious accident if it did not changeits ways. ProPublica found that "Taken together, these documents portray a company that systemicallyignored its own safety policies across its North American operations -- from Alaska to the Gulf ofMexico to California and Texas. Executives were not held accountable for the failures, and some were

promoted despite them."[340]

The Project On Government Oversight, an independent non-profit organization in the United States

which investigates and seeks to expose corruption and other misconduct, lists BP as number one on theirlisting of the 100 worst corporations based on instances of misconduct. [341]

1965 Sea Gem offshore oil rig disaster

In December 1965, Britain's first oil rig, Sea Gem, capsized when two of the legs collapsed during anoperation to move it to a new location. The oil rig had been hastily converted in

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