BRITISH PETROLEUM

PRAMIT PRATIM GHOSH – 17 KRISHNAKUMAR J – 25 ABINASH NAYAK – 34

HISTORY
 1901 - 1908 : First Oil (An Uncertain Beginning) :

English entrepreneur William D’ Arcy gets exclusive rights to search for oil in south west Persia in 1901.
On the early morning of 26 May 1908, oil was explored as the drill reached 1,180 feet. Within a year, the Anglo-Persian Oil Company, which would one day become BP, was in business.

The company had plenty of oil but no one to sell it to. and the UK government became a major shareholder in the company. It took two years. The resolution passed resoundingly. and more established companies in Europe and the New World had the market in industrial oils cornered. Cars were still too expensive. 1909 . The work was slow and painstaking. By 1914 the Anglo-Persian project was nearly bankrupt for the second time in its short history. Churchill thought Britain needed a dedicated oil supply. and he argued the case in Parliament.   . where Anglo-Persian was building a refinery complex.1924 : Early History (From Struggle to Success) :  The Field of Naphtha was 210 rugged kilometres from the mouth of the Persian Gulf.

Anglo-Persian bought an 18th-century mansion at Sunbury-on-Thames. Royal Navy complained that the oil from Anglo-Persian was causing engine problems in colder climates. 535 railway tank wagons. the British government seized the company’s assets. During the war. including 520 depots. and set up a research laboratory in the basement to address such scientific challenges. Anglo-Persian had an instant distribution network in the UK.  .102 road vehicles. the British Petroleum brand was originally created by a German firm as a way of marketing its products in Britain. four barges and 650 horses. Despite its name. 1. With that. and the Public Trustee sold them to Anglo-Persian in 1917. near London.

BP’s growth on the continent abruptly stopped. when Britain entered World War II.1945 : Through WWII (Progress through turmoil)  : BP-labelled gasoline pumps appeared around Britain in the 1920s and 30s.000 by 1925. over 6. and BP. But the good times wouldn’t last much longer. Shell and the other brands on sale in the UK were consolidated together into a generic fuel labelled ‘Pool’. 1925 . Everything changed in the autumn of 1939. Persia changed its name to Iran in 1935.   . Suddenly gasoline was a rationed commodity. and to stay modern the company followed suit. There were 69 pumps in 1921.

killing 657 crew. England. Anguished by the risks of transporting oil to Britain from Iran. . The company obliged. During the war. 44 of the company’s tankers were sunk. upping production at a field in Nottingham. with 260 others taken prisoner of war. the British government asked Anglo-Iranian to find more oil on British soil than the trickle it had previously discovered.

1970 : Post War (Big Changes. after a decade of drilling dry wells along the North Slope. A new arrangement allowed a consortium of companies to run the oil operations in Iran. the board changed the company’s name to The British Petroleum Company. Greece. In 1951 the Iranian Parliament nationalized oil operations within the country’s borders. Germany and Italy plus started new marketing efforts in Switzerland. In 1954. Within 18 months. Scandinavia and the Netherlands. BP gasoline went on sale for the first time in New Zealand. Governments around the world boycotted Iranian oil. Alaska. Anglo-Iranian’s stake was 40%. the Iranian economy was in ruins. In 1968.   . 1946 . BP tapped into its share of the largest oil reservoirs ever found on the North American continent. New Prospects) :  After war Anglo-Iranian invested in refineries in France.

 1971 . Iraq. Saudi Arabia. Instead a 25% stake in Standard Oil of Ohio (Sohio) ensured that Sohio facilities were standing by to bring the first Alaskan gasoline to market. and in 1987 BP bought the company outright. no BP refineries or stations in the United States were there to take it. Qatar announced that if they weren’t nationalizing their resources immediately they would within the next 10 years. BP’s stake in Sohio grew over the years. When the oil started to flow from Alaska. Abu Dhabi.1999 : Late Century (Finding a new momentum):  In 1971. Ghaddafi nationalized BP’s share of an oil production operation in Libya. Iran.  .

In the late 1990s. Later.  . transport and sell fuel. BP’s old rival on the North Slope of Alaska. BP and Amoco joined to form BP Amoco. Castrol’s motor oils and Aral’s distinctive European operation would also join the group. joined the portfolio. BP accelerated its sell-off of businesses – minerals. with stiff competition in the energy industry setting off a string of prominent mergers. refine. nutrition – that weren’t core to what the company had always done well: find. Then ARCO. Fully privatized and in a period of intense self-scrutiny. That same year the British government sold the last of the shares it held in BP.

devoted to making from all the various types of low-carbon energy – solar. BP had previously announced that it was to sell Innovene to INEOS on 7 October 2005. .   BP created a unit. BP Alternative Energy. natural gas. wind. Azerbaijan. BP had a lot of oil and gas in the proverbial pipeline. BP announced the consolidation of the olefins and derivatives businesses into a stand-alone entity called Innovene. The sale was completed on 16 December 2005. Indonesia and elsewhere. large-scale and profitable business. 2000 & Beyond : New Millennium (Looking Ahead)  : With major. North America. long-term projects in Russia. biofuels – a viable. in the petrochemicals sector. In 2005. the Gulf of Mexico.

South America.   . Russia. standardize the way to do business and. Norway. Africa. UK. the Middle East and Asia. leverage their strengths globally. in doing so. The new "Upstream" organisation aims to deepen functional expertise. Canada. BP restructured the Exploration and Production (E&P) Segment. Its main areas of activity include the US.BUSINESS PORTFOLIO  Upstream:  In September 2010. field development and production. Upstream activities include oil and natural gas exploration. BP has exploration and production interests in 25 countries.

refining. It produces PTA from plants in the US. managing the supply. toluene. Malaysia and Taiwan.Its aromatics business link BP's oil and chemicals operations. Refining and Marketing:    Refining and Marketing covers four main activities: supply and trading. These include mixed xylenes. China. operating primarily in Europe and North America. marketing and transportation of crude oil and petroleum products to wholesale and retail customers. but also in Australasia.  .BP is a producer of purified terephthalic acid (PTA). Korea. paraxylene and other aromatics streams. parts of Southeast Asia. Africa and Central and South America. BP's reconfigured petrochemical businesses are currently made up of: Acetyls . Belgium.  Aromatics .BP is a supplier of acetyls products with its main products being acetic acid and acetic anhydride. marketing and sales of its portfolio of aromatics products.  PTA/ Polyester intermediates . BP markets its products in over 100 countries. benzene. Brazil. Indonesia.

 Alternative Energy business:  The portfolio of BP Alternative Energy covers a wide range of renewable and alternative energy technologies from large-scale commercial businesses in solar and wind power to exciting new areas. such as carbon capture and advanced biofuels. such as ethanol and biodiesel. and investing in research to explore advanced biofuels that will emit less carbon and use non-food crops. BP Alternative Energy already has substantial businesses in solar photovoltaic. wind and gas-fired power and is developing projects in advanced biofuels and carbon capture and storage as well as new areas such as concentrated solar thermal power.   BP Biofuels is blending and distributing bio-components. .

while Kuwait and United Arab Emirates – are typically joint venture activities. Indonesia. Elsewhere in Africa.COUNTRY PORTFOLIO  Africa:  BP has exploration and production activity in Africa is focused on Algeria. BP markets lubricants and oil products throughout the region. Vietnam and Pakistan.    . South Korea and Malaysia. BP also holds a leadership position in Liquefied Natural Gas (LNG) in China. with major retail operations in India and China. Angola and Egypt. BP Solar has a manufacturing plant in India. while they have significant chemicals manufacturing in China. their main activities are in refining and marketing.  Asia:  BP’s exploration and production activities are centred in China. with a significant retail presence in Southern Africa.

BP’s corporate headquarters are located in London . where BP Solar is also a major marketer of solar panels. The UK is also home to three of BP’s major global research and technology groups. and the UK is therefore a centre for trading. Sales and marketing of lubricants and oil products takes place throughout the region. finance and other mainstream business functions. with major retail operations in both Australia and New Zealand. BP’s exploration and production business in Europe covers the North Sea – both the UK and Norway. BP is involved in a number of exploration and production projects in Azerbaijan. In Russia BP has an important joint venture through 50% ownership of TNK-BP. a major oil company with the majority of its assets in Russia. legal. Australasia:  BP’s exploration and production activities in Australia and New Zealand are centred in Australia.  Europe:    .

BP Biofuels is the latest business to arrive in Brazil. BP’s lubricants business has been operating for over 50 years. In Canada. and aviation fuels have been sold to main airlines for 9 years now. as a joint venture. Exploration and production work is a core aspect of BP’s presence in Colombia and Venezuela. In Brazil.  South America:   . through which BP has been producing ethanol since 2008. North America:  BP group is the largest oil and gas producer and one of the largest gasoline retailers in the United States. BP’s activities focus on the production of natural gas and derivatives and are currently considering a North American natural gas pipeline project in a joint venture.   Exploration and production work is a core aspect of BP’s presence in Trinidad and Tobago.

GLOBAL MARKET POSITION  Upstream:  In response to the Gulf of Mexico accident and oil spill. . Colombia. Venezuela. This structure is designed to help them focus on how they manage risk. Egypt. and buying. and build technical capability for the future. They are increasing investment in exploration.  In 2010 BP disposed of almost $22 billion of upstream assets located in the US. developing and selling upstream assets with a focus on maximizing returns rather than building volume. Vietnam and Pakistan. deliver common standards and processes. Canada. BP have re-organized upstream business into three separate divisions: Exploration. This disposal programme has been an opportunity to further upgrade and focus portfolio. Developments and Production. Argentina.

including Brazil. The Hodoa gas discovery in Egypt’s deepwater West Nile Delta was a significant exploration discovery in 2010. . Royal Dutch Shell and TOTAL. BP seek to renew resource base by discovering and accessing new fields. the South China Sea and Australia’s Ceduna basin. BP accessed major new basins. BP also entered into a strategic alliance to explore and develop areas of the South Kara Sea in the Russian Arctic. In 2010 BP deepened positions in the North Sea. and by increasing resources from fields they currently operate. Canada heavy oil. US shale gas. Azerbaijan and Indonesia. the Gulf of Mexico.  BP apply enhanced oil recovery (EOR) technologies to increase the amount of oil recovered from wells. In addition.   Competitors: Exxon Mobil.

This has increased brand awareness for Castrol master brand and product brands. Employing scientists and engineers from China and abroad. Developing Lubricants Technology: Castrol opened a new lubricants technology development centre in China in 2010. In pursuit of this in the US. BP narrowed focus within the continent to South Africa and Mozambique as these countries offer the greatest synergies with supply chain and portfolio of assets in the region. following a strategic review. Within FVCs in southern Africa.  . During the year Castrol also sponsored the 2010 FIFA World Cup in South Africa. BP’s team is collaborating with vehicle manufacturers and other partners to develop leading-edge technology. Texas City refinery and southern part of West Coast FVC have been divested. Refining and Marketing:  Focus on quality and integration: This is expected to enhance BP’s six integrated fuels value chains (FVCs) around the world to maximize efficiency and profitability.

Siemens.    . including Vercipia Biofuels. End-to-end Biofuel Capabilities: BPhave continued to invest throughout the biofuels value chain. including increasing the energy output. In 2010 BP acquired Verenium’s lignocellulosic biofuels business. Competitors: GE Energy. wind and solar. BP have developed and demonstrated several key innovative solar technologies. SunOpta and Vestas. Q-Cells. end-to-end capability in biofuels. and they are aligned with BP’s core capabilities. along with demonstration projects and technology development in carbon capture and storage as they believe these have the potential to be a material source of low-carbon energy. Alternative Energy business:  BP’s alternative energy business is focused on biofuels. lowering the cost. providing BP with integrated. from sustainable feedstocks that minimize pressure on food supplies to the development of the advantaged fuel molecule biobutanol. and improving installation and maintenance of solar modules.

These transactions made BP a significant operator of Alaskan oil fields and pipelines. and an ignominious leadership change. by acquiring Amoco and Arco.65 billion.  The company became a behemoth. to say the least. Reduced production and lower refining margins haven't helped. The growth-through-aquisition strategy continues on a smaller scale. . BP paid Chesapeake Energy for a stake in Arkansas's Fayetteville Shale field and an interest in Oklahoma's gas-producing shale properties. The company has faced tragedies. market manipulation allegations. trying ones for BP. in part. the former British Petroleum.  The last few years have been. maintenance problems. In two separate transactions totalling $3. is the Integrated Oil and Gas company with the third-most sales and the fourth largest market capitalization in the world.FINANCIAL ANALYSIS  BP.

89 per share) in 2010.6 billion on sales and other operating revenues of $239 billion. In 2009. up from $239 billion in 2009.  The share price plunged as a result of the Gulf oil spill.  BP's Revenue increased to $297 billion in 2010. Higher energy prices outweighed the production lost in the Gulf of Mexico. . $12. BP indicated it would sell as much as $40 billion of assets to raise cash. BP achieved profits of $16. causing the company's market value to fall from $190 billion in April to $90 billion in June 2010. BP recorded pre-tax charges totalling $40. These charges caused BP to end 2010 with a loss of $3. BP operated the Deepwater Horizon drilling rig that failed with tragic results in April 2010 in the Macondo area of the Gulf of Mexico.7 billion on revenue of $309 billion. including a $20 billion compensation claims fund. To cover the disaster's costs. The market value has since recovered to about $150 billion.858 billion ($28 billion after taxes.

.  The Exploration and Production unit achieved sales of $15.2 billion.0 billion estimate by 5.6 billion was 6.42 to $4. The company's Revenue is dependent. Revenue (i. The latest Revenue amount.3 percent to 95. fell short of our $75. up from $14.2 billion in the third quarter of 2009.9 percent. BP's average Global Indicator Refining Margin improved from $3.3 billion to $63.9 billion in the September 2009 quarter. If sales to other BP units are excluded.0 percent.  Refining and Marketing sales rose from $60. Refining availability improved from 94.5 billion. Sales and Other Operating Revenues) of $70. on how much oil and natural gas it produces and refines and the prices at which various energy products are bought and sold. for the most part.. excluding internal sales.6 percent more than $66.e. which was lower than in the second quarter.6 billion. a 32-percent jump. Exploration and Production's sales rose from $5.3 billion to $6.53 per barrel.

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