Profile: BP PLC (BP)
3 Dec 2013
BP p.l.c. (BP), incorporated on April 14, 1909, is an integrated oil and gas company. The Company provides its customers with fuel for transportation, energy for heat and light, lubricants and the petrochemicals products used to make everyday items as diverse as paints, clothes and packaging. The Company operates in two business segments: Exploration and Production, and Refining and Marketing. Its Exploration and Production segment is responsible for its activities in oil and natural gas exploration, field development and production; midstream transportation, storage and processing, and the marketing and trading of natural gas, including liquefied natural gas, together with power and natural gas liquids. Its Refining and Marketing segment is responsible for the refining, manufacturing, marketing, transportation, and supply and trading of crude oil, petroleum, petrochemicals products and related services to wholesale and retail customers. The segment comprises three main businesses: fuels, lubricants and petrochemicals. Effective March 21, 2013, the Company acquired a 5.66% interest in OAO Neftyanaya Kompaniya Rosneft. In September 2013, UGI Corp announced that its subsidiary, Flaga GmbH, has completed the acquisition of the liquefied petroleum gas (LPG) distribution business of BP in Poland.
Exploration and Production
The Exploration division is accountable for renewing its resource base through access, exploration and appraisal. The Developments division is accountable for the safe and compliant execution of wells (drilling and completions) and projects and comprises the global wells organization and the global projects organization. The Production division is accountable for safe and compliant operations, including upstream production assets, midstream transportation and processing activities, and the development of its resource base. During the year ended December 31, 2012, its Exploration and Production segment included upstream and midstream activities, and gas marketing and trading activities in 28 countries with production from 19 countries. Upstream activities involve oil and natural gas exploration, field development and production. Its exploration and appraisal programme is focused on Angola, Australia, Azerbaijan, Brazil, Canada, Egypt, the deepwater Gulf of Mexico, the United Kingdom North Sea, Oman and onshore the United States. Its development areas include Angola, Australia, Azerbaijan, Canada, Egypt, the deepwater Gulf of Mexico, North Africa, and the the United Kingdom North Sea. The principal areas of production are Angola, Argentina, Azerbaijan, Egypt, Russia, Trinidad, the United Arab Emirates, the United Kingdom and the United States. Midstream activities involve the ownership and management of crude oil and natural gas pipelines, processing facilities and export terminals, liquefied natural gas (LNG) processing facilities and transportation, and its NGL extraction businesses in Canada, Indonesia, the United States and the United Kingdom. Its midstream pipeline interests are the Trans-Alaska Pipeline System in the United States; the Forties Pipeline System and the Central Area Transmission System pipeline, both in the United Kingdom sector of the North Sea; the South Caucasus Pipeline, which runs from Azerbaijan through Georgia to the Turkish border; and the Baku-Tbilisi-Ceyhan pipeline, which runs through Azerbaijan, Georgia and Turkey.
The Company’s LNG activities are located in Abu Dhabi, Angola, Australia, China, Indonesia and Trinidad. BP is also investing in the LNG business in Angola. In addition, its activities include the marketing and trading of natural gas, power and natural gas liquids. These activities provide routes into liquid markets for BP’s produced gas, and generate margins and fees associated with the provision of physical products and derivatives to third parties and income from asset optimization and trading. During 2012, averaged 2,319 thousand barrels of oil equivalent per day. For subsidiaries, 34% of its production was in the United States, 19% in Trinidad and 8% in the United Kingdom.
BP is the producer of hydrocarbons and the acreage holder in the deepwater Gulf of Mexico, operating seven production hubs. The North America Gas business operates onshore in the Lower 48 states producing natural gas, natural gas liquids and coal-bed methane across nine states. BP operates 13 North Slope oilfields (including Prudhoe Bay, Endicott, Northstar, and Milne Point) and four North Slope pipelines, and owns an interest in six other producing fields. BP holds an interest in oil sands leases through the Sunrise oil sands and Terre de Grace oil sands partnerships and the Pike Oil Sands joint venture. BP also develops and produces natural gas, markets natural gas and has exploration interests in the Canadian Beaufort Sea.
BP conducts activity in the Southern Cone region of South America (Argentina, Bolivia and Chile) through Pan American Energy LLC (PAE). BP holds exploration and production licenses covering 1,806,000 acres offshore of the east coast. Facilities include 13 offshore platforms and one onshore processing facility. Production is consisted of oil, gas and NGLs. BP is a partner with Sonatrach and Statoil in the In Salah (BP 33.15%) and In Amenas (BP 45.89%) projects, which supply gas to the domestic and European markets. BP has a joint interest in Virginia Indonesia Company LLC (VICO), the operator of the Sanga-Sanga PSA (BP 38%) supplying gas to Indonesia’s LNG export facility, the Bontang LNG plant in Kalimantan. BP also participates in the Sanga-Sanga coal-bed methane (CBM) PSA (BP 38%), a brownfield, development overlaying the conventional PSA. BP’s upstream activities from the China National Offshore Oil Corporation (CNOOC) operated Yacheng offshore gas field (BP 34.3%), as well as deepwater exploration in the South China Sea’s Block 42/05 (BP 40.82%).
BP operates two PSAs, Azeri-Chirag-Gunashli (ACG) and Shah Deniz, and also holds other exploration leases. TNK-BP, an associate owned by BP (50%) and Alfa, Access and Renova (AAR) (50%), is an integrated oil company operating in Brazil, Russia, Ukraine, Venezuela and Vietnam. BP has interests in Sakhalin through a joint venture company, Elvary Neftegaz, in which BP holds a 49% interest, and its partner, Rosneft Oil Company (Rosneft), holds the remaining 51% interest. Production in the Middle East consists of the production entitlement of associates in Abu Dhabi, where it has interests of 9.5% and 14.67% in onshore and offshore concessions respectively. The Company has direct or indirect interests in certain crude oil and natural gas transportation systems.
BP owns a 46.9% interest in the Trans-Alaska Pipeline System (TAPS), with the balance owned by four other companies. The TAPS transports crude oil from Prudhoe Bay on the Alaska North Slope to the port of Valdez in south-east Alaska. BP also owns a 50% interest in a joint venture company called Denali -The Alaska Gas Pipeline (Denali). In the United Kingdom sector of the North Sea, BP operates the Forties Pipeline System (FPS) (BP 100%), an integrated oil and NGLs transportation and processing system, which handles production from more than 50 fields in the central North Sea. BP, as operator, holds a 30.1% interest in and manages the Baku-Tbilisi-Ceyhan (BTC) oil pipeline. The 1,768-kilometer pipeline transports oil from the BP-operated Azeri-Chirag-Gunashli (ACG) oilfield in the Caspian Sea to the eastern Mediterranean port of Ceyhan and has a capacity of 1.2 million barrels per day. BP is an operator of, and holds a 25.5% interest in, the 693-kilometer South Caucasus Pipeline, which takes gas from Azerbaijan through Georgia to the Turkish border and has a capacity of 780 million standard cubic feet per day. In addition, BP operates the Azerbaijan section of the Western Export Route Pipeline between Azerbaijan and the Black Sea coast of Georgia (as operator of Azerbaijan International Operating Company).
Refining and Marketing
The Company’s Refining and Marketing segment is responsible for the refining, manufacturing, marketing, transportation, and supply and trading of crude oil, petroleum, petrochemicals products and related services to wholesale and retail customers. It has operations in Europe, North America and Asia, and it also manufactures and markets its products across Australasia, southern Africa and Central and South America. The segment operates hydrocarbon value chains covering three main businesses: fuels, lubricants and petrochemicals.
The fuels businesses sell refined petroleum products, including gasoline, diesel, aviation fuel and liquefied petroleum gas (LPG). Within this, the fuels value chains (FVCs) integrate the activities of refining, logistics, marketing, and supply and trading on a regional basis. In addition, it operates a global aviation fuels marketing business and an LPG marketing business. Its lubricants business is involved in manufacturing and marketing lubricants and related services to markets globally. It markets lubricants to the automotive, industrial, marine, aviation and energy markets through its brands of Castrol, BP and Aral. Its Castrol brand is a lubricant brand globally. Its petrochemicals business operates on a global basis and includes the manufacture and marketing of petrochemicals, which are used in everyday products, such as plastic bottles and textiles for clothing.
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