Upstream

We are building a business that is safer, more modern and efficient, and delivering real value and tangible growth – to 2021 and beyond

Our business model and strategy

The Upstream segment is responsible for our activities in oil and natural gas exploration, field development and production, as well as midstream transportation, storage and processing. We also market and trade natural gas, including liquefied natural gas, power and natural gas liquids. In 2016 our activities took place in 28 countries.

With the exception of our US Lower 48 onshore business, we deliver our exploration, development and production activities through five global technical and operating functions:

  • The exploration function is responsible for renewing our resource base through access, exploration and appraisal, while the reservoir development function is responsible for the stewardship of our resource portfolio over the life of each field.
  • The global wells organization and the global projects organization are responsible for the safe, reliable and compliant execution of wells (drilling and completions) and major projects.
  • The global operations organization is responsible for safe, reliable and compliant operations, including upstream production assets and midstream transportation and processing activities.
We optimize and integrate the delivery of these activities across 13 regions, with support provided by global functions in specialist areas of expertise: technology, finance, procurement and supply chain, human resources and information technology. 

The US Lower 48 continues to operate as a separate, asset-focused, onshore business. 

Our strategy is to have a balanced portfolio across the world’s key oil and gas basins, while maintaining a focus on capital discipline and quality execution to deliver value. Our incumbent positions and the relationships we hold with resource owners create both stability and opportunity.

Our strategy is enabled by:

  • A relentless focus on safety, reliability and the systematic management of risk.
  • The quality execution of our projects, our operations, our drilling, and managing our reservoirs – the greatest source of value and returns that we have.
  • Growing value through improving returns and cash flow. We actively manage our portfolio, divesting where it makes sense, and pursue acquisitions where value can be created.
  • The capability of our people, who are motivated and equipped to take on the world’s great oil and gas challenges. We have a global workforce that is embracing digital technology to drive improved productivity in everything we do. 

Our future growth includes an expected 800,000 barrels of oil equivalent per day of production from new projects by 2020, with 500,000 barrels of oil equivalent per day of this new capacity planned to be online by end of 2017. This, combined with our recent portfolio additions, is expected to increase our new production by around 1 million barrels per day by 2021. 

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