Source future growth
We target opportunities with the greatest potential to increase value, using our commercial agility and technical capability. This allows us to build a strong pipeline for future growth. KPI: Proved reserves replacement ratio.
Focus on high-value upstream assets
We are strengthening our portfolio of high-return and longer-life assets – across deep water, giant fields, gas value chains and unconventionals – to provide BP with momentum for years to come. KPI: Production.
Build high-quality downstream businesses
We benefit from our high-performing fuels, lubricants, petrochemicals and biofuels businesses. Through premium products, powerful brands and supply and trading, Downstream provides strong cash generation for the group. KPI: Refining availability.
Strategy in action
Unlocking energy potentials
BP has invested in Egypt for half a century. And in recent years, it has been a key location for BP discoveries. Our ongoing investment and exploration activities are helping to unlock energy potential in the area. In March we made a gas discovery 6,400 metres below sea level in the North Damietta offshore area. We are working with the Egyptian government to accelerate the development of the Atoll discovery. The discovery is in line to become our next major project in Egypt after completion of our West Nile Delta project.
Optimizing our assets
The Caspian Sea is one of the world’s leading hydrocarbon provinces and we have been the major presence in development of Azerbaijan’s offshore oil and gas fields since our office in Baku opened in 1992. The country’s gas production is dominated by one of the world’s largest fields, Shah Deniz – BP’s biggest discovery since Prudhoe Bay in Alaska in 1968. Developing Shah Deniz Stage 1 involved drilling some of BP’s most difficult wells – at depths of around 6,000 metres below sea level and under high pressures. And in only seven years, we also drilled the deepest exploration well in the Caspian to date, built the platform and onshore terminal and laid the 700km South Caucasus pipeline through Azerbaijan and Georgia to the Turkish border. Our technical expertise and ongoing maintenance of the facilities has helped Shah Deniz provide a consistently secure and reliable supply of gas to the region and in 2015 we achieved almost 100% plant reliability. This has helped to increase production from the existing facilities. Shah Deniz Stage 1 has reliably delivered plateau production throughout 2015, with 9.9 billion standard cubic metres of gas and about 18.3 million barrels of condensate produced.
Our Castellón refinery in Spain has been ranked among the best refineries for availability in the world by Solomon international standards. Since 2009 the refinery has had an ongoing programme in place that is focused on unlocking local employee knowledge to find efficiencies and improvements to safety and operations. Using BP’s continuous improvement methodology, the programme has captured more than 2,500 ideas, with contributions from around 80% of the refinery’s employees. Ideas have covered everything from reducing risks, improving efficiency, increasing margins, reducing costs and increasing plant availability to improving staff engagement. All of these have been analysed to draw out underlying issues and develop actions that address these. By April 2015 around 1,000 ideas had been implemented and the benefits of the programme are being realized with reduced break-even margins, improved safety ratios and increased plant availability and utilization. The programme has contributed to the improvement in Castellón’s break-even margin by more than $2 per barrel between 2009 and 2015. The refinery has also seen that steps to improve safety go hand-in-hand with improving operational reliability. Since the programme began, there has been a steady reduction in tier 1 and 2 process safety events – those with the potential to cause the most harm to people and property. Over the same time, the refinery’s utilization – a measure of how much crude is being processed – improved, up from 78% in 2009 to 93% in 2015.