The BP StoryBrian MillerAGI Leadership Forum – May 1, 2006

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Who we are

…market capitalization $231 billion (as at 7 Feb 2006)

BP is an oil, gas, petrochemicals and renewables company

We employ around 102,900 peopleWe have operations on 6 continents and in over 100 countries

…annual revenues/turnover of $253 billion (in 2005)

…the 2nd largest oil & gas company and one of the 10 largest companies in the world

…serving 13 million customers every day

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What we do

BUSINESS SEGMENTS

RESOURCES

Exploration & Production

CUSTOMER FACING

Refining & MarketingGas, Power & Renewables Integrated Supply & Trading

(including Acetyls & Aromatics from Petrochemicals)

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Our global presence

Oil

Gas

Chemicals

Refining

Market positions

An opportunity and a responsibility

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Where our people come from

1. Some Mobil employees became part of BP staff post dissolution of JV in Europe2. BP acquired some Belgium assets

1.

2.

(2000)

(2002)(2002)

(2000)

(1999)

(1996)

(2000)

(2001) (2001)

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Reserves and enterprise value: 1997

End of year 1997, based on published data

ENI

Shell

BP

Exxon

ChevronChevronAmocoAmoco

Elf

TOT

Texaco

ARCO

Philips

REP

Mobil

Fina0

Reserves billion boe

EV $bn

50

100

150

200

250

300

5.0 10.0 15.0 20.0 25.0

7

0

50

100

150

200

250

300

350

0.0 5.0 10.0 15.0 20.0 25.0

Proved Reserves boe billion

En

terp

rise V

alu

e $

bn

Exxon/Mobil

BPRoyal Dutch Shell

TOTAL

Chevron

Conoco/Phillips

ENI

Repsol

SectorStructural Change since 1997

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The world’s largest companies

Source: Financial Times 31 March 2005

Market Cap ($bn) Company

382 1 General Electric

380 2 Exxon Mobil

262 3 Microsoft

234 4 Citigroup

221 5 BP

212 6 Wal-Mart Stores

210 7 Royal Dutch/Shell

199 8 Johnson & Johnson

195 9 Pfizer

178 10 Bank of America

176 11 HSBC

171 12 Vodaphone

165 13 IBM

148 14 Total

144 15 Intel Corporation

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Our aspirationA great future

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“To be numbered amongst the world’s great

companies when evaluated on financial returns

and growth, being a great place to work and

building a positive relationship with society.

BP’s strategy, February 2004 “Our fundamental purpose as an

organization is to provide better goods

and services in the form of light, heat,

power and mobility to increasing numbers

of people and thereby to deliver

shareholder value on a long term basis.

Sustainability Report 2005

Our aspiration and our purpose

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Attract and retain top talent

top brand

Consistently rated as a buy by top

brokers

Consistent out-performance of

peers

Highly regarded by customers & stakeholders

As rated by other senior executives

Source: McKinsey

Key dimensions of great companies

Top brand

Financial performance

Desirable employer

Admired and respected by peers

Great company

Recommendedby brokers

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Our business strategyFuelled with possibilities

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Existing profit centers

Existing profit centers: managed decline

Latin America

North America Gas

North Sea

Middle East

Alaska

Egypt

0

500

1000

1500

2000

2500

3000

2002 2003 2004 2005 2006 2007 2008 2009 2010

thou

sand

boe

/day

EPCs Disposals

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New profit centers

Capital efficiency: project delivery

Asia Pacific

North Africa

AngolaTrinidad

Gulf of Mexico Deepwater

TNK-BP

Azerbaijan0

500

1000

1500

2000

2500

3000

3500

2002 2003 2004 2005 2006 2007 2008 2009 2010

thou

sand

boe

/day

NPC+Kaz TNK-BP

For further information contact Michael Elliott michael.elliott2@uk.bp.com

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Connecting to the Future--Business and Policy Intersections

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BP is a gas supermajor

Our medium-term intent is to grow by 2% to 3% a year, in line with global gas demand by:

• Gas now makes up some 40% of BP’s total production

• BP is one of the world’s largest gas marketer and traders providing gas to customers in 26 countries

• We are the second largest supplier of gas into LNG plants

• realising the full potential of existing and new profit centres

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Alternative Energy

• In 2005, we established a new business called BP Alternative Energy to generate and market cleaner, low carbon power from solar, wind, hydrogen and natural gas sources.

• $8 billion investment over 10 years.

• Globally, the power sector is the biggest source of greenhouse gas emissions – responsible for about twice the emissions of the transport sector.

• Some 40% of the power-generating capacity required to meet projected world electricity demand in 2020 has yet to be built.

• The business will initially employ around 2,500 people.

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Alternative Energy

Solar

• Operating for over 30 years we are one of the world’s top three solar manufacturers and marketers.

• We plan to increase sales of solar panels from 110MW capacity to 300MW by 2008.

Wind

• We have constructed two wind farms in the Netherlands producing enough power for over 15,000 Dutch homes.

• Under Alternative Energy we aim to grow our wind business from 30MW to 450MW in 2008 and become a Top Tier player by 2015.

Hydrogen Power

• Generating power from hydrogen using fossil fuels such as coal, oil and natural gas. In June 2005 we announced our plans to design the world’s first commercial hydrogen power plant in Scotland and earlier this year we announced a proposal to build a second plant in California.

• The carbon dioxide emissions from generating power in this way are 90% lower than those that would be generated by burning fossil fuels.

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Alternative Energy

Natural Gas to Power• BP already owns, operates or contracts 12 gigawatts of

gas-fired power capacity – enough to power over 10 million homes.

• The majority of these plants produce electricity with combined cycle gas turbines and cogeneration plants.

• Over the next 3 years we plan to start construction of two new gas-fired cogeneration power facilities with an output of more than 700 megawatts.

Power Marketing & Trading • Among the top tier power marketers in North America.• In 2004, we provided customers with 300 million megawatt

hours of electricity.• We also provide our wholesale customers with secure,

reliable electricity and innovative risk management services to help reduce price volatility.

• In many markets we are able to offer a number of low-carbon products, including certified green electricity, as well as integrated solar and clean grid power solutions.

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Our challengeA sustainable existence

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““Sustainability is fundamental to our purpose as a group.

Everything we do is designed to achieve the goal that our board

sets on behalf of our shareholders, to maximize shareholder value

on a long-term basis. In order to maintain value in the long term,

we not only have to develop a successful business strategy but

pursue it in such a way that we earn the trust of shareholders,

customers, local communities, governments and others whose

support is critical to our long-term future. To retain that trust we

have to behave responsibly and consistently.

BP’s Sustainability Report 2004 (published April 2005)

Sustainability How we work

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BP’s business profile continues to change

Changes to our asset portfolio present reputational risks that drive our increasing focus on corporate responsibility

Iran

Kuwait

Existing Profit Centres

Nigeria

Libya

New Profit Centres

Russia

0

1000

2000

3000

4000

5000

6000

1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Pro

du

cti

on

(m

boe/d

)

2008

Source: 2005 – 2008 BP estimates

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Environment Climate change context

• World’s estimated annual emissions from hydrocarbon consumption is nearly 25 billion tonnes of CO2

• Emissions from BP’s productsaccount for approx 5% of global CO2 emissions

• BP’s operations contribute less than 0.4% of annual global emissions

• We are looking at ways to reduce emissions from our products as well as our operations

Slide 2

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Environment Our position on climate change

We will continue to focus on three main areas:

1. Provide leadership

2. Continue to reduce the carbon content or impact of our products

3. Continue to minimise our operational emissions

Our position is that there is no single solution!

BP brand story

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Perceptions

• British company

• Big oil company that makes a lot of money

• A global enterprise

• An energy company

• An organisation that cares about the environment

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Our brand aspiration

“ We want to build one of the world’s“ great brands by building an“ organisation devoted to revolutionising“ the world’s relationship with energy.”

Lord Browne (2000)

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USA

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Communicates a promise….

Evokes a set of expectations and associations - from every experience

with a person, product, service or company

A brand…

        

Experiences :

• How we work

• What we say

• What we do

• What we stand for

• How we deliver value Reputation

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BP brand theme…beyond petroleum..

• abandoning oil and gas or getting out of hydrocarbons

• focusing only on alternatives (renewables)

• the products we produce and sell, but it is also about our relationships & how we think, behave & perform as a company

• referring to it as the name of the company

• using it just as an expression in advertising

it does Not mean we are…

• reaching past one company to combine the talents of many

• delivering performance without trade-offs

• it’s the courage to lead, not just the ability to compete

• innovating, improving & making a difference

• being creatively engaged and applying the skills we have to provide answers, not excuses

Beyond is about…

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Thank you… Questions???