Annual report
From IOC to IEC
We have set our strategy to transform from an International Oil Company to an Integrated Energy Company focused on delivering solutions for customers.
This is a major, necessary step in support of our purpose to reimagine energy for people and our planet, and our ambition to become a net zero company by 2050 or sooner and help the world get to net zero.
After more than a century defined by oil and gas through two core businesses, upstream and downstream, our strategy positions us to become a very different energy company in the next decade.
This means we plan to
Significantly scale-up our low carbon energy business
Transform our customer mobility and convenience offer
Focus our oil, gas and refining portfolio
Drive down emissions as part of our net zero ambition
Our business model
Delivering value for bp, our shareholders and society. Our new business model is more integrated and faces the energy transition head on. We believe it can deliver for the changing demands of stakeholders, with an absolute focus on operational excellence, so that our businesses are safe, reliable and efficient.
Our strategy
| Metrics | 2020 | 2025 | 2030 |
|---|---|---|---|
| Developed renewables to final investment decision | 3.3GW 2019 2.6GW |
20GW | 50GW |
| Bioenergy production | 30Kb/d 2019 23Kb/d |
50Kb/d | >100Kb/d |
| LNG portfolio | 20Mtpa 2019 15Mtpa |
25Mtpa | 30Mtpa |
| Traded electricity | 214TWh 2019 250TWh |
350TWh | 500TWh |
| Metrics | 2020 | 2025 | 2030 |
|---|---|---|---|
| Customer touchpoints | 11.5 million 2019 >10 million |
>15 million | >20 million |
| Strategic convenience sites | 1,900 2019 1,600 |
>2,300 | >3,000 |
| Retail sites in growth markets | 2,700 2019 1,300 |
7,000 | >8,000 |
| Castrol sales and other operating revenues | $5.4bn 2019 >$6.5bn |
~$7.5bn | ~$8bn |
| Electric vehicle charge points | 10,100 2019 >7,500 |
>25,000 | >70,000 |
| Margin share from convenience and electrification | 27.6% 2019 ~25% |
~35% | ~50% |
| Metric | 2020 | 2025 | 2030 |
|---|---|---|---|
| Unit production costs | $6.39/boe 2019 $6.84/boe |
~$6/boe | . |
| Upstream production | 2.4mmboe/d 2019 2.6mmboe/d |
~2mmboe/d | ~1.5mmboe/d |
| Upstream plant reliability | 94% 2019 94.4% |
96% | >96% |
| Refining throughput | 1.6mmb/d 2019 1.7mmb/d |
<1.5mmb/d | ~1.2mmb/d |
| Refining availability | 96% 2019 94.9% |
96% | >96% |
Case studies
In order to advance our purpose and ambition, we have identified three strategic focus areas, and we’ve set targets and aims against these out to 2025 and 2030. These provide the basis for a common set of enduring objectives for bp as we transform the organization consistent with the long-term energy transition. Here are some examples of how we performed in 2020.
Sustainability
Sustainability is a critical foundation of our strategy. Our new sustainability frame links our strategy to our purpose – to reimagine energy for people and our planet.
Our frame focuses on three areas where we believe we can make the biggest difference, with aims and objectives linked to the UN Sustainable Development Goals.
Sustainability frame
Energy Outlook
Our bp Energy Outlook considers three main scenarios that explore the possible pathways the energy transition may take over the next 30 years.
Key downloads
Our key reports include information about our financial and operating performance, sustainability performance and also global energy trends and projections.
This document constitutes the Annual Report and Accounts in accordance with UK requirements and the Annual Report on Form 20-F in accordance with the US Securities Exchange Act of 1934, for BP p.l.c. for the year ended 31 December 2020. A cross reference to Form 20-F requirements is included on page 351.
This document contains the Strategic report on the inside front cover and pages 1-70 and the Directors’ report on pages 71-102, 105 (in part only), 127-128, 231-258 and 301-349. The Strategic report and the Directors’ report together include the management report required by DTR 4.1 of the UK Financial Conduct Authority’s Disclosure Guidance and Transparency Rules. The Directors’ remuneration report is on pages 103-126. The consolidated financial statements of the group are on pages 129-230 and the corresponding reports of the auditor are on pages 130-154. The parent company financial statements of BP p.l.c. are on pages 259-300.
The Directors’ statements (comprising the Statement of directors’ responsibilities; Risk management and internal control; Longer-term viability; Going concern; and Fair, balanced and understandable), the independent auditor’s report on the annual report and accounts to the members of BP p.l.c., the parent company financial statements of BP p.l.c. and corresponding auditor’s report and a non-GAAP measure of operating cash flow excluding Gulf of Mexico oil spill payments« in the tables on pages 41, 43 and 46 do not form part of bp’s Annual Report on Form 20-F as filed with the SEC.
To obtain a hard printed copy of BP's complete audited financial statements, free of charge, UK based investors should contact BP Distribution Services by clicking the link above or calling +44 (0)870 241 3269 or by emailing bpdistributionservices@bp.com. If based in the US or Canada investors should contact Issuer Direct by calling +1 888 301 2505 or by emailing bpreports@issuerdirect.com.
BP p.l.c. is the parent company of the bp group of companies. The company was incorporated in 1909 in England and Wales and changed its name to BP p.l.c. in 2001. Where we refer to the company, we mean BP p.l.c. The company and each of its subsidiaries« are separate legal entities. Unless otherwise stated or the context otherwise requires, the term “BP” or "bp" and terms such as “we”, “us” and “our” are used in this report for convenience to refer to one or more of the members of the bp group instead of identifying a particular entity or entities. Information in this document reflects 100% of the assets and operations of the company and its subsidiaries that were consolidated at the date or for the periods indicated, including non-controlling interests.
The company’s primary share listing is the London Stock Exchange. In the US, the company’s securities are traded on the New York Stock Exchange (NYSE) in the form of ADSs (see page 332 for more details) and in Germany in the form of a global depositary certificate representing bp ordinary shares traded on the Frankfurt, Hamburg and Dusseldorf Stock Exchanges.
The term ‘shareholder’ in this report means, unless the context otherwise requires, investors in the equity capital of BP p.l.c., both direct and indirect. As the company's shares, in the form of ADSs, are listed on the NYSE, an Annual Report on Form 20-F is filed with the SEC. Ordinary shares are ordinary fully paid shares in BP p.l.c. of 25 cents each. Preference shares are cumulative first preference shares and cumulative second preference shares in BP p.l.c. of £1 each.
Please refer to the Cautionary statement on page 329 of the full bp Annual Report and Form 20-F 2020 for further information on forward-looking statements.