BP p.l.c. operates as an integrated oil and gas company. The company owns 19.75% of the voting shares of OJSC Oil Company Rosneft (Rosneft), a Russian oil and gas company. Segments As of December 31 2014, the company had three segments: Upstream, Downstream and Rosneft. Upstream segment The Upstream segment is responsible for activities in oil and natural gas exploration, field development and production, and midstream transportation, storage and processing. The company also markets and trades natural gas, including liquefied natural gas, power and natural gas liquids. In 2014, the company’s activities took place in 28 countries. The company explores for oil and natural gas under a range of licensing, joint arrangement and other contractual agreements. The company gained access to new potential resources covering approximately 47,000 square kilometers in five countries: Australia, Greenland, the U.K. (North Sea), the U.S. (Gulf of Mexico) and Morocco. In December 2014, the company signed a production-sharing agreement (PSA) with the State Oil Company of the Republic of Azerbaijan to jointly explore for and develop potential prospects in the shallow water area around the Absheron Peninsula in the Azerbaijan sector of the Caspian Sea. The company’s oil and natural gas production assets are located onshore and offshore and include wells, gathering centres, in-field flow lines, processing facilities, storage facilities, offshore platforms, export systems (e.g. transit lines), pipelines and LNG plant facilities. It includes production from conventional and unconventional (coalbed methane, shale) assets. The principal areas of production are Angola, Argentina, Australia, Azerbaijan, Egypt, Trinidad, the UAE, the U.K. and the U.S. Gas marketing and trading activities: The company markets and trades natural gas (including liquefied natural gas (LNG)), power and natural gas liquids (NGLs). This provides the company with routes into liquid markets for the gas the company produces. The integrated supply and trading function manages its trading activities in natural gas, power and NGLs. Gas and power marketing and trading activity is undertaken primarily in the U.S., Canada and Europe to market both BP production and third-party natural gas, support group LNG activities, and to manage market price risk and create incremental trading opportunities through the use of commodity derivative contracts. Strategy: The company’s strategy includes the following: a continued focus on safety and the systematic management of risk; prioritizing value over volume; disciplined investment in three distinctive engines for growth; delivery of competitive operating cash growth through improvements in efficiency and reliability – for both operations and investment; and strong relationships built on mutual advantage, deep knowledge of the basins in which the company operates and technology. Downstream The Downstream segment has significant operations in Europe, North America and Asia, and also manufactures and markets products in Australasia, Africa and Central and South America. Downstream is the product and service-led arm of the company, made up of the following three businesses: Fuels – This business includes refineries, fuels marketing and convenience retail businesses, together with oil supply and trading activities that make up fuels value chains (FVCs). The company sells refined petroleum products including gasoline, diesel and aviation fuel. Lubricants – This business manufactures and markets lubricants and related products and services. Petrochemicals – This business manufactures products at locations worldwide, mainly using proprietary BP technology. These products are then used by others to make essential consumer products, such as paint, plastic bottles and textiles. Refining: As of December 31, 2014, the company owned or had a share in 14 refineries producing refined petroleum products that the company supplies to retail and commercial customers. Logistics and marketing: The company operates an infrastructure and logistics network that includes pipelines, storage terminals and tankers for road and rail. It supplies fuel and related retail services to consumers through company-owned and franchised retail sites, as well as other channels, including dealer wholesalers and jobbers. The company also supplies commercial customers within the transport and industrial sectors. Strategy: The company’s strategy focuses on improving returns, growing operating cash flow, and building a quality Downstream business that aims to lead the industry as measured by net income per refining barrel. Rosneft segment The company holds a position in Russia through its 19.75% share in Rosneft. Upstream: Rosneft operates as an oil company in Russia and worldwide. Rosneft has a resource base of hydrocarbons onshore and offshore, with assets in all hydrocarbon regions of Russia: western Siberia, eastern Siberia, Timan-Pechora, Volga-Urals, north Caucasus, the continental shelf of the Arctic Sea, and the Far East. Rosneft participates in international exploration projects or has operations in countries, including the U.S, Canada, Vietnam, Venezuela, Brazil, Algeria, the United Arab Emirates, Turkmenistan and Norway. Downstream: Rosneft owns and operates 10 refineries in Russia and also has an interest in 4 refineries in Germany through its Ruhr Oel GmbH partnership with the company. As of December 31, 2014, Rosneft owned and operated approximately 2,500 retail service stations. Its downstream operations also include jet fuel, bunkering, bitumen and lubricants. Significant Events In May 2015, BP and Sinopec Fuel Oil announced the formation of a 50:50 marine fuels bunkering joint-venture, BP Sinopec Marine Fuels Pte Ltd. In June 2015, Rosneft and BP signed several agreements strengthening the long term strategic relationship between the two companies, at the St. Petersburg International Economic Forum. History BP p.l.c. was founded in 1889.
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