Miscellaneous termsIn this document, unless the contextotherwise requires, the following termsshall have the meaning set out below.ADRAmerican depositary receipt.ADSAmerican depositary share.AGM<strong>Annual</strong> general meeting.AmocoThe former Amoco Corporation <strong>and</strong> itssubsidiaries.Atlantic RichfieldAtlantic Richfield <strong>Company</strong> <strong>and</strong> itssubsidiaries.AssociateAn entity, including an unincorporatedentity such as a partnership, over whichthe group has significant influence <strong>and</strong>that is neither a subsidiary nor a jointventure. Significant influence is thepower to participate in the financial <strong>and</strong>operating policy decisions of an entitybut is not control or joint control overthose policies.Barrel (bbl)159 litres, 42 US gallons.b/dbarrels per day.boebarrels of oil equivalent.<strong>BP</strong>, <strong>BP</strong> group or the group<strong>BP</strong> p.l.c. <strong>and</strong> its subsidiaries.Burmah CastrolBurmah Castrol PLC <strong>and</strong> its subsidiaries.Cent or cOne-hundredth of the US dollar.The company<strong>BP</strong> p.l.c.Dollar or $The US dollar.EUEuropean Union.GAAPGenerally accepted accounting practice.GasNatural gas.GCROGulf Coast Restoration Organization.HydrocarbonsCrude oil <strong>and</strong> natural gas.IFRSInternational Financial <strong>Report</strong>ingSt<strong>and</strong>ards.Joint controlJoint control is the contractually agreedsharing of control over an economicactivity, <strong>and</strong> exists only when thestrategic financial <strong>and</strong> operatingdecisions relating to the activity requirethe unanimous consent of the partiessharing control (the venturers).Joint ventureA contractual arrangement whereby twoor more parties undertake an economicactivity that is subject to joint control.Jointly controlled assetA joint venture where the venturersjointly control, <strong>and</strong> often have a directownership interest in the assets of theventure. The assets are used to obtainbenefits for the venturers. Each venturermay take a share of the output from theassets <strong>and</strong> each bears an agreed shareof the expenses incurred.Jointly controlled entityA joint venture that involves theestablishment of a corporation,partnership or other entity in which eachventurer has an interest. A contractualarrangement between the venturersestablishes joint control over theeconomic activity of the entity.LiquidsCrude oil, condensate <strong>and</strong> natural gasliquids.LNGLiquefied natural gas.London Stock Exchange or LSELondon Stock Exchange plc.LPGLiquefied petroleum gas.MDL 2179Multi-District Litigation proceedingspending in New Orleans.MDL 2185Multi-District Litigation proceedingspending in Houston.mb/dthous<strong>and</strong> barrels per day.mboe/dthous<strong>and</strong> barrels of oil equivalent perday.mmBtumillion British thermal units.mmboemillion barrels of oil equivalent.mmcfmillion cubic feet.mmcf/dmillion cubic feet per day.MWMegawatt.NGLsNatural gas liquids.OECDOrganization for Economic Co-operation<strong>and</strong> Development.OPECOrganization of Petroleum ExportingCountries.Ordinary sharesOrdinary fully paid shares in <strong>BP</strong> p.l.c. of25c each.Pence or pOne-hundredth of a pound sterling.Pound, sterling or £The pound sterling.Preference sharesCumulative First Preference Shares <strong>and</strong>Cumulative Second Preference Shares in<strong>BP</strong> p.l.c. of £1 each.PSAA production-sharing agreement (PSA) isan arrangement through which an oilcompany bears the risks <strong>and</strong> costs ofexploration, development <strong>and</strong>production. In return, if exploration issuccessful, the oil company receivesentitlement to variable physical volumesof hydrocarbons, representing recoveryof the costs incurred <strong>and</strong> a stipulatedshare of the production remaining aftersuch cost recovery.SECThe United States Securities <strong>and</strong>Exchange Commission.SubsidiaryAn entity that is controlled by the <strong>BP</strong>group. Control is the power to governthe financial <strong>and</strong> operating policies of anentity so as to obtain the benefits fromits activities.Tonne2,<strong>20</strong>4.6 pounds.TrustDeepwater Horizon Oil Spill Trust.UKUnited Kingdom of Great Britain <strong>and</strong>Northern Irel<strong>and</strong>.USUnited States of America.4 <strong>BP</strong> <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Form</strong> <strong>20</strong>-F <strong>20</strong>11
Information about this reportThis document constitutes the <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> Accounts in accordancewith UK requirements <strong>and</strong> the <strong>Annual</strong> <strong>Report</strong> on <strong>Form</strong> <strong>20</strong>-F in accordancewith the US Securities Exchange Act of 1934, for <strong>BP</strong> p.l.c. for the year ended31 December <strong>20</strong>11. A cross reference to <strong>Form</strong> <strong>20</strong>-F requirements is onpage 2.This document contains the Directors’ <strong>Report</strong>, including theBusiness Review <strong>and</strong> Management <strong>Report</strong>, on pages 7-138 <strong>and</strong> 153-172,<strong>and</strong> 174. The Directors’ Remuneration <strong>Report</strong> is on pages 139-151. Theconsolidated financial statements of the group are on pages 173-281 <strong>and</strong>the corresponding reports of the auditor are on pages 175-177. The parentcompany financial statements of <strong>BP</strong> p.l.c. <strong>and</strong> corresponding auditor’s reportare on pages PC1-PC14 <strong>and</strong> page PC1 respectively.The statement of directors’ responsibilities, the independentauditor’s report on the annual report <strong>and</strong> accounts to the members of<strong>BP</strong> p.l.c. <strong>and</strong> the parent company financial statements of <strong>BP</strong> p.l.c. <strong>and</strong>corresponding auditor’s report do not form part of <strong>BP</strong>’s <strong>Annual</strong> <strong>Report</strong> on<strong>Form</strong> <strong>20</strong>-F as filed with the SEC.<strong>BP</strong> <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Form</strong> <strong>20</strong>-F <strong>20</strong>11 <strong>and</strong> <strong>BP</strong> Summary Review<strong>20</strong>11 may be downloaded from bp.com/annualreport. No material on the <strong>BP</strong>website, other than the items identified as <strong>BP</strong> <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Form</strong> <strong>20</strong>-F<strong>20</strong>11 or <strong>BP</strong> Summary Review <strong>20</strong>11, forms any part of those documents.<strong>BP</strong> p.l.c. is the parent company of the <strong>BP</strong> group of companies.Unless otherwise stated, the text does not distinguish between the activities<strong>and</strong> operations of the parent company <strong>and</strong> those of its subsidiaries.The term ‘shareholder’ in this report means, unless the contextotherwise requires, investors in the equity capital of <strong>BP</strong> p.l.c., both direct<strong>and</strong> indirect. As <strong>BP</strong> shares, in the form of ADSs, are listed on the New YorkStock Exchange (NYSE), an <strong>Annual</strong> <strong>Report</strong> on <strong>Form</strong> <strong>20</strong>-F is filed with the USSecurities <strong>and</strong> Exchange Commission (SEC).Cautionary statementIn order to utilize the ‘Safe Harbor’ provisions of the United States PrivateSecurities Litigation Reform Act of 1995 (the “PSLRA”), <strong>BP</strong> is providing thefollowing cautionary statement. This document contains certain forwardlooking statements within the meaning of the PSLRA with respect to thefinancial condition, results of operations <strong>and</strong> businesses of <strong>BP</strong> <strong>and</strong> certainof the plans <strong>and</strong> objectives of <strong>BP</strong> with respect to these items. Thesestatements may generally, but not always, be identified by the use of wordssuch as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’,‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similarexpressions. In particular, among other statements, (i) certain statements inthe Chairman’s letter (pages 8-11), the Group chief executive’s letter (pages14-17) <strong>and</strong> the Business review (pages 18-111), including but not limitedto statements under the headings ‘Our Strategy’, ‘Outlook’ <strong>and</strong> ‘LookingAhead’, with regard to strategy <strong>and</strong> strategic priorities, plans to delivershareholder value, expectations regarding the ‘10-point plan’, expectationsregarding future dividend payments, <strong>BP</strong>’s outlook on global energy trends to<strong>20</strong>30 <strong>and</strong> beyond, the intention to make $38 billion of disposals, anticipatedincrease in operating cash flow <strong>and</strong> margins, future capital expenditure,expected level of investments, the anticipated timing for completion of <strong>and</strong>final proceeds from the disposition of certain <strong>BP</strong> assets, future productionlevels including expectations for an increase in high-margin production,the timing <strong>and</strong> composition of future projects including expected startup, completion, timing of production, level of production <strong>and</strong> margins,expectations for drilling <strong>and</strong> rig activity in the Gulf of Mexico, the timing <strong>and</strong>quantum of <strong>and</strong> timing for completion of contributions to <strong>and</strong> payments fromthe $<strong>20</strong>-billion Trust fund, the expected terms of the proposed settlementagreement with the Plaintiffs’ Steering Committee in MDL 2179 <strong>and</strong> theexpected timing of the fairness hearing <strong>and</strong> court approvals in respectthereof, the expected amount, source <strong>and</strong> timing of payments under anysettlements, expectations regarding regulation <strong>and</strong> taxation of the energyindustry <strong>and</strong> energy users, future global refinery capacity <strong>and</strong> utilization,the timing for completion of the Whiting refinery upgrade, plans regardingthe implementation of enhancements to <strong>BP</strong>’s risk management system,expectations regarding the reduction of net debt <strong>and</strong> the net debt ratio,the expected future level of depreciation, depletion <strong>and</strong> amortization, theexpected level of the refining marker margin, the completion of planned <strong>and</strong>announced divestments, including the planned disposals of the Texas Cityrefinery <strong>and</strong> the southern part of the US West Coast FVC, dates or periodsin which production is scheduled or expected to come onstream or a projector action is scheduled or expected to begin or be completed, <strong>and</strong> the level offuture turnaround activity; (ii) the statements in the Business review (pages18-111), Corporate governance (pages 119-138), the Directors’ remunerationreport (pages 139-151) <strong>and</strong> Additional information for shareholders (pages153-172) with regard to plans to continue the ongoing process of embeddingOMS, the timing for the implementation of the Bly report recommendations,intentions to implement group-wide practices for oil spill preparedness<strong>and</strong> response <strong>and</strong> crisis management, plans to spend $700 million oncertain refinery-related safety measures, plans to implement enhanced <strong>and</strong>st<strong>and</strong>ardized technical practices across the refining business, the timing forthe completion of the Shoreline Clean-up, the timing of, cost of, source ofpayment <strong>and</strong> provision for future remediation <strong>and</strong> restoration programmes<strong>and</strong> environmental operating <strong>and</strong> capital expenditures, the anticipated futurelevel of time for conversion of proved undeveloped reserves to provedreserves, expectations regarding Refining <strong>and</strong> Marketing’s intentions toachieve $2 billion in performance improvement by the end of <strong>20</strong>12, plans tohalve US refining capacity by the end of <strong>20</strong>12, the timing for the completionof construction at the Cherry Point refinery, anticipated investment inAlternative Energy, expectations regarding greater regulation <strong>and</strong> increasedoperating costs in the Gulf of Mexico in the future, <strong>and</strong> costs for providingpension <strong>and</strong> other post-retirement benefits; (iii) the statements in theBusiness review (pages 103-106) with regard to future dividend <strong>and</strong> optionalscrip dividend payments, future capital expenditures <strong>and</strong> capital expenditurecommitments, taxation, intentions to maintain a significant liquidity buffer,future working capital <strong>and</strong> cash flows, gearing <strong>and</strong> the net debt ratio,expected payments under contractual <strong>and</strong> commercial commitments <strong>and</strong>purchase obligations, <strong>and</strong> including under ‘Liquidity <strong>and</strong> capital resources– Trend information’, with regard to production excluding TNK-<strong>BP</strong>, theexpected level of turnarounds, the marketing environment in fuels, lubricants<strong>and</strong> petrochemicals, underlying average quarterly charge from Otherbusinesses <strong>and</strong> corporate, <strong>and</strong> expectations regarding future disposals;<strong>and</strong> (iv) certain statements in the Business review (page 84) <strong>and</strong> Additionalinformation for shareholders (pages 160-166) regarding the anticipatedtiming of trial proceedings, court decisions <strong>and</strong> potential investigations <strong>and</strong>civil or criminal actions by US state <strong>and</strong>/or local governments; are all forwardlooking in nature.By their nature, forward-looking statements involve risk <strong>and</strong>uncertainty because they relate to events <strong>and</strong> depend on circumstancesthat will or may occur in the future <strong>and</strong> are outside the control of <strong>BP</strong>. Actualresults may differ materially from those expressed in such statements,depending on a variety of factors, including the specific factors identified inthe discussions accompanying such forward-looking statements; the timingof bringing new fields onstream; the timing of certain disposals; future levelsof industry product supply, dem<strong>and</strong> <strong>and</strong> pricing; OPEC quota restrictions;PSA effects; operational problems; general economic conditions; politicalstability <strong>and</strong> economic growth in relevant areas of the world; changes inlaws <strong>and</strong> governmental regulations; regulatory or legal actions including thetypes of enforcement action pursued <strong>and</strong> the nature of remedies sought;the actions of prosecutors, regulatory authorities <strong>and</strong> courts; the actionsof all parties to the Deepwater Horizon oil spill-related litigation at variousphases of the litigation; exchange rate fluctuations; development <strong>and</strong> useof new technology; the success or otherwise of partnering; the actionsof competitors; the actions of contractors; natural disasters <strong>and</strong> adverseweather conditions; changes in public expectations <strong>and</strong> other changesto business conditions; wars <strong>and</strong> acts of terrorism or sabotage; <strong>and</strong> otherfactors discussed elsewhere in this report including under ‘Risk factors’(pages 59-63). In addition to factors set forth elsewhere in this report, thoseset out above are important factors, although not exhaustive, that may causeactual results <strong>and</strong> developments to differ materially from those expressed orimplied by these forward-looking statements.Statements regarding competitive positionStatements referring to <strong>BP</strong>’s competitive position are based on thecompany’s belief <strong>and</strong>, in some cases, rely on a range of sources, includinginvestment analysts’ reports, independent market studies <strong>and</strong> <strong>BP</strong>’s internalassessments of market share based on publicly available information aboutthe financial results <strong>and</strong> performance of market participants.Unless otherwise indicated, information in this document reflects 100% of the assets <strong>and</strong>operations of the company <strong>and</strong> its subsidiaries that were consolidated at the date or for theperiods indicated, including minority interests. The company was incorporated in 1909 in Engl<strong>and</strong><strong>and</strong> Wales <strong>and</strong> changed its name to <strong>BP</strong> p.l.c. in <strong>20</strong>01. <strong>BP</strong>’s primary share listing is the LondonStock Exchange. Ordinary shares are also traded on the Frankfurt Stock Exchange in Germany<strong>and</strong>, in the US, the company’s securities are traded on the New York Stock Exchange in the formof ADSs (see page 167 for more details).The registered office of <strong>BP</strong> p.l.c., <strong>and</strong> our worldwide headquarters, is:1 St James’s Square,London SW1Y 4PD, UK.Tel +44 (0)<strong>20</strong> 7496 4000.Registered in Engl<strong>and</strong> <strong>and</strong> Wales No. 102498. Stock exchange symbol ‘<strong>BP</strong>’.Our agent in the US is <strong>BP</strong> America Inc.,501 Westlake Park Boulevard, Houston, Texas 77079.Tel +1 281 366 <strong>20</strong>00.<strong>BP</strong> <strong>Annual</strong> <strong>Report</strong> <strong>and</strong> <strong>Form</strong> <strong>20</strong>-F <strong>20</strong>11 5
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