BP Annual Report and Form 20-F 2011 - Company Reporting

Group chief executive’s letterBob DudleyGroup Chief ExecutiveDear fellow shareholder,Following the tragic Deepwater Horizon accident of 2010, BP entered 2011facing a range of uncertainties. These included concerns about our ability tooperate safely in deep water, meet our financial commitments in the Gulf ofMexico, and recover the trust and value we had lost. We were also subjectto intense speculation around the future and direction of the company.By the end of the year we had successfully resolved some significantuncertainties facing the company. We set new standards for safety, led by oursafety and operational risk organization, and we reshaped our upstream business.We strengthened the group’s financial position by progressing our divestmentprogramme. We worked to earn back trust through co-operation with the officialinvestigations and actively sharing the lessons learned. We set a clear strategicdirection through a 10-point plan focused on building value for shareholders.We also received permission to resume operations in the Gulf of Mexico –a significant milestone.During the year more clarity also emerged over the 2010 accident asofficial investigation reports were published. Their central conclusions supportedthat of our own investigation – namely that what happened in the Gulf of Mexicowas a complex accident involving multiple causes and multiple parties. I ampleased that we were able to reach settlements with Mitsui, Weatherford,Anadarko and Cameron during 2011. On 3 March 2012 we announced asettlement with the Plaintiffs’ Steering Committee, subject to final writtenagreement and court approvals, to resolve the substantial majority of legitimateeconomic loss and medical claims made by individual and business plaintiffs inthe Multi-District Litigation proceedings pending in New Orleans (MDL 2179). Thelegal process continues with other parties.We recognize there is a great deal more to do, but I can report thatBP finished its year of consolidation in robust shape.Through the year, BP’s employees worked with great determination toenhance what we do and how we do it. This work will continue. I want tomake it absolutely clear that we are not seeking a return to business as usual.The events of 2010 demand more than that. As we move ahead, our job is tomake BP a stronger, safer company by further embedding safety at the heartof the company, continuing to earn back trust, and creating long-term value forshareholders once again. In this letter, I outline in more detail the actions takenin 2011 to achieve these objectives.14 BP Annual Report and Form 20-F 2011