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

Our organization: Business modelactivities of refining, logistics, marketing, and supply and trading on a regionalbasis. This recognizes the geographic nature of the markets in which we compete,providing the opportunity to optimize our activities from crude oil purchases toend-consumer sales through our physical assets (refineries, terminals, pipelinesand retail stations). In addition, we operate a global aviation fuels business and anLPG marketing business, from which we intend to divest the bulk and bottled LPGmarketing operations.We own or have a share in 16 refineries including five in the US and sevenin Europe. Our focus is on complex, upgraded refineries that are able to processcheaper feedstocks yet yield more valuable products. We also market fuelsthrough around 21,800 retail sites, principally in the US, Europe, Australia andsouthern Africa. Many of our retail sites are now operated by franchisees withwhom we work in close partnership as we seek to ensure our standards andbrand are consistently applied. We divest assets and businesses when we believethey will be of greater value to others. In 2011, we announced that we are seekingbuyers for our Texas City refinery; and for our Carson refinery near Los Angeles,together with its associated integrated marketing business in southern California,Arizona and Nevada.Our lubricants business is involved in manufacturing and marketing lubricantsand related services to markets around the world. In 2011, approximately 45% ofour profit from lubricants was generated from non-OECD markets, and we seegood opportunities for further growth in these areas. We market lubricants to theautomotive, industrial, marine, aviation and energy markets. The business blendsand markets lubricants globally through our key brands of Castrol, BP and Aral.Our strategic relationships with our original equipment manufacturing partnersprovide the ongoing collaboration needed to develop the next generation of highperformancelubricants, such as Castrol EDGE.Our petrochemicals business operates on a global basis and includes themanufacture and marketing of petrochemicals that are used in many everydayproducts, such as plastic bottles and textiles for clothing. Future growth in ourbusiness is focused on the demand centres of Asia, where our relationshipswith joint venture partners are key to our strategy in these increasingly importantmarkets. From 2012 we plan to create a new revenue stream in petrochemicalsthrough licensing some of our leading technology.Above BP is workingwith MendelBiotechnology todevelop andcommercializeseed products withhigh resistance toenvironmental stresses,such as water andnutrient limitation.Left Developed withImperial College London,new Permasense sensorsare helping BP corrosionengineers to see what ishappening inside pipes.30 BP Annual Report and Form 20-F 2011