Host societies and communities
Host societies and communities
When managed properly, our presence in a region has the potential to contribute to local and national economies
When we move into a new area we look for opportunities to share the benefits of our presence, for example, by helping communities and local businesses to increase their incomes and improve standards of living. BP’s projects and operations have the potential to benefit local communities by creating jobs, supporting community development initiatives, generating tax revenues and providing opportunities for local suppliers.
BP's direct economic contribution in 2012
Direct economic value generated
Revenue plus interest and dividend receipts, royalty income and proceeds of sales assets a
Operating costs Including materials, services and facilities $329 billion
Employee benefits and wages b Costs of employees' salaries and benefits $13 billion
Payments to the providers of capital Includes finance costs and dividends paid $7 billion
Payments to governments Income taxes and production taxes paid $15 billion
Social investment c Revenue and capital expenditure supporting communities around BP's operations $0.09 billion
b. Includes pension and other post-employment benefit costs.
c. Excludes social bonuses paid by BP to goverments, capitalized as part of licence acquisition costs. Excludes expenditure related to the Deepwater Horizon incident.
Local workforceA number of our major operating sites are working to improve representation from their host community in their workforce. In Alaska our workforce includes 2,300 employees. Since 2007, we have provided internships for 125 University of Alaska students and extended full-time offers to more than 140 students.
Developing local suppliersIn a number of locations we run programmes to build the skills of businesses and to develop the local supply chain. These programmes aim to empower local companies to reach the standards needed to supply BP and other organizations. For example, we provide training and share information about required standards in areas such as health and safety. At the same time BP benefits from the local sourcing of goods and services.
AzerbaijanBP’s Enterprise Development and Training Programme (EDTP) in Azerbaijan is designed to support local companies’ efforts to achieve international standards, enhance their competitiveness in supplying the oil and gas sector of Azerbaijan and increase the use of local suppliers by BP’s contractors. The EDTP has appraised more than 1,000 companies since its inception in 2007 and more than 200 companies have participated in its supplier development programmes. The programme has assisted local companies in securing contracts with local companies and institutions valued in excess of $268 million, of which more than $182 million are with BP in Azerbaijan. Additionally, EDTP clients have hired more than 1,000 new employees.
IraqBP leads a consortium of oil companies to increase production from the Rumaila oilfield in Iraq. The consortium has briefed local suppliers on contracting processes, supplier selection, payments and tax, and avoiding corruption.
IndonesiaIn the Bird’s Head region of Papua, we provide one-on-one business consultancy and technical assistance to local businesses during the tender process. This helps businesses to compete to supply goods and services associated with the construction and operation of liquefied natural gas plants.