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

Our organization: Business modelBP’s business model is to create value acrossthe entire hydrocarbon value chain. This startswith exploration and ends with the supply ofenergy and other products that are fundamentalto everyday life.Business review: Group overviewAbove When completed in thesecond half of 2013, modernizationwork at our Whiting refinery shouldenable BP to capture additionalmargins.In detailFor more information aboutAlternative Energy, see Otherbusinesses and corporate.Page 101In detailFor definitions of subsidiaries,joint ventures and associates,see Miscellaneous terms.Page 4BP is one of the world’s leading integrated oil and gas companies. a Our objectiveis to create value for shareholders and supplies of energy for the world in a safeand responsible way. We strive to be a safety leader in our industry, a world-classoperator, a responsible corporate citizen and a good employer.At each stage of the hydrocarbon value chain there are opportunities for usto create value – both through the successful execution of activities that are coreto our industry, and through the application of our own distinctive strengths andcapabilities in performing those activities.We have two main business segments: Exploration and Production, andRefining and Marketing. Through these, our activities are focused on finding,developing and producing essential sources of energy, and turning thesesources into products that people need. We provide our customers with fuel fortransportation, energy for heat and light, lubricants to keep engines moving, andthe petrochemicals products used to make everyday items like plastic bottles.We also invest in renewable energy sources, which we believe will be anincreasing source of value for BP. Our activities are focused on biofuels and wind.These are managed through our Alternative Energy business, which is reported inOther businesses and corporate.Our projects and operations help to generate employment, investment andtax revenues in countries and communities around the world. The relationshipswe form with governments, partners, contractors, customers, franchisees andsuppliers are very important to the success of our business. We are committed tobeing responsible, meeting our obligations, and building long-lasting relationships.As a global group, our interests and activities are held or operated throughsubsidiaries, branches, joint ventures or associates established in – and subjectto the laws and regulations of – many different jurisdictions. Our worldwideheadquarters is in London. The UK is a centre for trading, legal, finance and otherbusiness functions as well as three of BP’s major global research and technologygroups. We have well-established operations in Europe, the US, Canada, Russia,South America, Australasia, Asia and parts of Africa. Around 61% of the group’sfixed assets are located in OECD countries, including around 37% in the US andaround 18% in Europe.The significant subsidiaries of the group at 31 December 2011 and the grouppercentage of ordinary share capital (to the nearest whole number) are set out inFinancial statements – Note 45 on page 251. For information on significant jointlycontrolled entities and associates of the group, see Financial statements – Notes24 and 25 on pages 215 and 216 respectively.aOn the basis of market capitalization, proved reserves and production.BP Annual Report and Form 20-F 2011 25