Exhibit No. Worldwide Court Inc.
THE INTERNATIONAL MAGAZINE OFTHE BP GROUP
ISSUE 1 2011
BPM GAZINE
Interview> Nic Welsh Photography> Rocky Kneten, Marc Morrison and Stuart Conwav
AN INI-ERVIEW WITH BP'S IIEAD OF SAFET'Y & OPERAI-IONAL RISK
Six monthssincethe release of the Bly into the Report, BP's internalinvestigation causes of the Deepwater Horizonexplosion andsubsequent oil spill, its author, Mark Bly talksto BPMagazineabout the risk new safety and operational company's divisionandwhat lessons the company canlearnfrom otherindustries.
22lssue r ?011 BPMACAZINE
"(-r L,,r depioyecl S&OR'.eanrs provldean exlra setof eyes
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What is the role of the new Safety and Operational Risk (S&OR)organisation? Our role is to drive safe, compliant and BPWe do this ln reliabieoperations across four ways First,we setand updateihe
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provide dsk on thefrontlineTheyalso tailored coachinB andsupporl, andinput advice coordinating expert
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\ ' . n - . . l o r . a f - . y " r do p c r ; l r n " l r r , l Second, management. we provideexpert ol scrutiny of safetyand risk,independent line managersadvising, examiningand do Third, we auditing what our operations
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Fourth, wehavetheabilitvto operations iater.r'ene ifneeded to cause corrective a centralleamo{ a(tion We haYe t h a o o p e ,p J p p . r a l . : ra r.n-ll a.m,-r" in BP's who aredeployed businesses, providing guidance andscrutiny, and how risksarebeingassessed on examrning r g s a tr e f i n e r . e . d"" r o . B P ( o p e r J lri , , What is the differencebetween the cenEal team and the deployedstaff? is thesource of BP's Thecentral tearn expertise subject matter Theyarethe aswell custodians of groupreq!irements,
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How does S&ORrelate to the line in eachoperation? management A key partofour roleis to provide an expert viewon risks andhow theyare managed thatis independent of theline rnanagement. ButI mustemphasise that leade{5 thisdoes not meanthatbusrness cLear handoversafety to us It is absoiLrlely that thepeopie who run operationsthe
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managingsafetyand compliancein those p e r di , n l h " h a v - t h er " p o r b i l i . i r o managensks and bring togetherpeople with the right skills and iompetencies But they needadviceand scruriny lrom people - d i -L'q- 'L I i N . ! ) L r , id'cr) teamswill have the autho tywe need to r nPrF'ir'/ r--.^1r. FP.'rvhlt our aim is to have all risksmanagedi. su.h a way thal we don't have to use that authority BP had a safety organisation prior to the Gulf of Mexico oil spill, so what rs new about this? Severalthings First,we have more authority than before S&ORhas a seatal the top management table,and we have rights, also put in placespecificdecision veto rights and inten'ention righls Second, lh 5oo pius S&ORspecialists who are rdeour I . a . l vr o w u r ( a l o 1 g J ,p l o 1 . d businesses worldwide report to my organisatron S&OR lhrough the deployed
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muchmoreactive in working with the and operalions, to understand therisks
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speciaiists,severai safety of whomhave
e \ p p r i e n . cl O l h " ti r O J I r l P \ h " r c m d O r hazards have to be managed Our deploled S&ORteamswork with the line businesses rangingfrom upstreamoil and gasdevelopment and production to refineries, petrochemical pLants and relail networks They help Lhe ( D p l \B P ' , . a n J a r dr r r h - i r b u t n e . . ea o\rn siluation5and they report back to the risksare being group on ho\\' operational managed by businessIn other busrness and wOrds, they providean extrasel of eye5 to safetyand operationaL earswith respect
24 irsLe 1 7C1l BP MACAZINE
Can you give any examples of where S&OR is already in action? The grealesl measure of the S&OR organisation's sulcess is when we work . . . a b o r lj \ - . y w i h r l - - t n r o d r i v p . a t - l \ cases and risk reduction There areseveral shuttingdown a of thrs For example, production plallorm to repairfire water pumps,insteadofcontinuing to let them run while maintenance work was caried ''he ^ vhr'"^'nLr"l ,', li:
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stronger management and this creales Third, S&ORwill be checksand balances.
n u m h e ro I r e " n 1 a s q w h p r d r i ] l i n gr i g q have either been turnedaway or we are we are negotiatingmodifications before prepared to use them
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Mark Biy
WhaT lessons can BP learo from other indus!riesz \\t hare to reahse h:d thai o.her secrcrs o:her expeirrnaes anJ ha\,f ileveLopea s a i e t ia . l o p e a a t i o n a l r i s m ka n a t e - n e ni t n 6raferen t [.],\"aLroJ examp[s air tht ai\ | nualearindustr,v, the nui learnar,) :rd 1[e aeroil:laeinCLtslry: \Ve can ,earn.rorn thiie perspeatrvfs Tho.jewho have ercelleuha,..e denon!ir,tlei a s!sLenalrL a p p r r a c h. : n a : i L i v i L r ir:arn:nit 1h l t t h e i h a n a r utrh e i rJ u t J ; l t , - . What son oi expenence do rnenrbersot yoLrrleadership team hdve, \Ve h!!e somi v..rv exprnenlec feople rn S&Oll,wirh a rvidr raiiety oibackgrourds, inclr,rJin n gu c L i ' a:i d t r ( ] a h e m i a a i s , rtl h ]d e miliiar,v 3or exanpli:. John8ax:ef. o.li g:oup hearlo1engineering and prcc--ss
iaie l). is a Io imer dlre.tor of t l-. '.,K's Douared\ nucle,lrporverLilant tnC prer,touslV sen'ed:s r navalengileer oa a P o l a r is sl : n a r i n e J o h nw i L lL a t ec n r:esponsibil:tv for BI''s si.ludarisbcinBcleai aaharlnl nnd srmpL.t! c.a H aalsashead o, proless:on .,.rr a(rossthe BP al. ;rgineer-c Gr.up Join Sr.g,BPr qroup heaco1 o!eratioi]sanJ the Opeiating\lanagemen! Syltam ha:lll yfirs ol rrpciallans leailcrshi!in DuPonlard Bi !\i: also ha',t '. Rl " John:,r'ro h;vr bre;r n:nrd inkr senio; S&ORp.rsilionsber.ruse of tlreir trai k re.ords i n : a l r t y w t r h l n B P L l n C eL robert s 'f!bago ladersirip. Bt' tririird ard rrar-(tarnedit! sater! periurmlore iront bcirE [,t.r:tln of thr ir.rgi.re ir:h,. upsrream brsiless to trtprf LheL:agrLr in jusLlour l..ars,a srgnil Lait pirL !l whi.h $,a:
achit,,,eC through slrcng angaB,"meni,,\ith sufpLers ani conlractrtrs :o aihievt aLigrmeoL belweenoper!ling staidarcc po-o \ d ," " . , )m.'rnL\c. oI i,ie bo;rd .-,1Sl(,{--Oour peiruahemlaals lclr.t vcnlLfe rn Clrrni (sre page41) Jean.eo!ersav,l iciu: oc s a f e l v : i a rL r dl o a r e m a . k a b e 8 36 m i l L i o r
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raaj.rfproces!sa:el,v iialdenr l L s b e e n s r x m o n t h s s l n c e B P ' sr n t e r D d invesdgaticn was released ' what progress has been madc rn the upstream specificalLylo respond t., lhe lncjdent and inrplenrenr the aecomrnendaLiorls2 l he iirst thing that BPilld !vasio a..ept all .r6reaommend.rtion:Irnpierr.:ntrng th,.rrr reqrLires .lerailedwrrrk Nlel:1rers oi the
B P M A C A Z I N as : . . la : 25
Interview> Mark Bly
lnvestigation teamhave provided input to theproject teamthatisworkrng on implementation of therecommendations AndI see solidprogress in manyother waysForexample, a centralised wells organisation has been created lo manage drillingactivrties to consistent standards across theglobeIndependenl third party cenr[..atro on fo u r d r i l l i n g . o n r r d . t o r \ preventers subsea blowout has been completed to check thetesting and maintenance of theiremergency systems Theauditing of themgs thatdrill our wells hasmoved across into my S&OR audit team. Workis alsounderway to enhance thestandards for cementing andwell integrity testing, including a newapprovals process andstringent contract laboratory q u a l iy a u d i t > il r t h eN o f l hS p a . ' hr e eam building a nextgeneiation capping stack, based on whatwe leamed fromtheone
used to shutin theMacondo well.Wealso continue to enhance the'ranging' technoLogy thatsaved timeduringthe reliefwell operanon by enabling usto use snsors to detect thelocation of thetarget wellwithoutremovrng thedrill bit being used to drill thereliefwell BPhas changedthe way it rewards its employeesand has asked all staff to include safety-specifi c priorities when they set their priorities for the year ahead.Why is that important? Wewant to rewardtheright things, and top of thelist issafe ty andrisk management So, in our performance management system for 2orr, we've asked everyone to sayhow theywill contributeto safety, risk
management, comphance, teamwork, capability building andlongtermgoals as well asthisyeaisgoalsWe'realsomaking rt a prio ty for managers lo be good listenersandonereason for thisisthat yourna)notreali,e youhave problen " Listen unlessyou to everyone.The other side of thatcoinis thatwe arereinforcing theencouragement for everyone to speak up moreif theyhavea concem. Everyone mustfeelableto raisetheir hand.We're people asking to state exphcitly how they w i l ld p m o n r t r atr h esq e u a j i l i ei s n their e work,andrewarding themaccording to howwell theydo so Thisverydirectly peopleto promotesafety, incentivises to act asoneteam andto work to build Iongtermvalue! sustainable
LheS&OR l> When we w.r< 66-1;fp1.r1.r, sw L L ht h e l r e t o d n v e V
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