Scale remains important, but we are focused on driving forward our financial performance rather than simply growing production volumes. Operating cash flow and replacement cost operating profit will take precedence over barrels of production. We are increasing investment in the areas with the greatest potential to generate strong and reliable growth in operating cash flow, from exploration and deepwater operations to giant fields and gas value chains.
We continued our work to enhance safety and risk management in everything we do. In personal safety, sadly, we had four fatalities in our operations during 2012. Loss of primary containment was reduced by 19% compared with 2011.
BP has continued to meet its commitments to the Gulf Coast. During the year, we worked with state and federal trustees to assess impacts on natural resources and progress early environmental restoration work. We supported independent research through the Gulf of Mexico Research Initiative, so we can better understand and mitigate the potential impacts of future oil spills.
We achieved a profit of $11.6 billion in 2012 compared with $25.7 billion in 2011. Excluding inventory holding gains, our replacement cost profit* in 2012 was $12.0 billion compared with $23.9 billion in 2011.
We took the total of asset sales announced since the start of 2010 to around $38 billion, effectively reaching our target a year early.
* Replacement cost profit for the group is not a recognized GAAP measure. The equivalent measure on an IFRS basis is ‘Profit for the year attributable to BP shareholders’.
In 2012 we resolved federal criminal charges with the Department of Justice and securities claims with the US Securities and Exchange Commission. We continue to work with the Environmental Protection Agency to resolve suspension and debarment issues.
We will do what is in the best interests of our shareholders.
In Russia, the agreed sale of our 50% shareholding in TNK-BP to Rosneft, and the settlement of outstanding disputes with our partners, have brought clarity. On completion, BP will have a 19.75% share of the biggest publicly traded oil company in the world in terms of oil production and reserves.