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

Our organization: Business modelIn detailFor more information onExploration and Production,see BP in more depth.Page 80Upstream and midstream – playing to our strengthsOur Exploration and Production segment is responsible for our activities inoil and natural gas exploration, field development and production; midstreamtransportation, storage and processing; and the marketing and trading of naturalgas, including liquefied natural gas, together with power and natural gas liquids.Our exploration division obtains access to and finds resources at scale in theworld’s key hydrocarbon basins. We are an industry leader in seismic imaging,a key technology in the identification of potential hydrocarbon resources. Ourdevelopments division develops our hydrocarbon resources, applying effectiveproject execution and capital efficiency. Our production division then extractsresources efficiently and maximizes their recovery.We focus on areas that play to our strengths – deepwater, gas value chains(including the infrastructure required from field to market) and giant fields. Weare increasing investment with a particular focus on exploration. We activelymanage our portfolio, including divesting assets when we believe they may bemore valuable to others than to ourselves. This allows us to focus our leadership,technical resources, and organizational capability on the resources we believe aremost likely to flourish in our portfolio.In 2011, our upstream and midstream activities took place in 30 countriesincluding Angola, Azerbaijan, Canada, Egypt, Norway, Russia, Trinidad & Tobago(Trinidad), the UK, the US and other locations within Asia, Australasia, South America,North Africa and the Middle East. Exploration and Production also includes gasmarketing and trading activities, primarily in Canada, Europe and the US. In Russia,we have an important associate through our 50% shareholding in TNK-BP, a major oilcompany with exploration assets, refineries and other downstream infrastructure.Upstream technologyflagshipsInherently reliable facilitiesManaging and reducingintegrity risk.Field of the Future®Applying real-timedata capabilities toenable safe and efficientoperations.Well advisorDelivering safe, reliableand efficient welloperations through theintegration of real-timedata.Advanced seismic imagingLocating and accessingnew resource throughindustry-leading imaging.Deepwater facilitiesResearching andengineering advancedequipment for safer, morereliable deepwater subseasystems.Beyond sand controlMaximizing productionand managing risk fromsand-prone reservoirs.Unconventional gasRecovering gas fromunconventional rocks usinginnovative technologies.Pushing reservoir limitsGrowing recovery factorsto maximize resourcesfrom existing oilfields.Unconventional oilDeveloping new technologiesto recover heavy oil.28 BP Annual Report and Form 20-F 2011