Good afternoon everyone and thank you for joining us today. Welcome to BPs Upstream Investor Day. We are very pleased to have you with us, whether in person, over the phone or on the web. For those here in Sunbury you will have seen…
Thank you Jess. 4
Today is primarily about giving you a clearer view of the longer-term direction of BP with a specific focus on our Upstream business. Much has happened in the few weeks since our 3Q Results so Im going to start by updating you on…
Before we start Id like to briefly bring you up to date with changes to our Upstream organization and explain who is with us today. A little over a week ago we announced the appointment of Lamar McKay as Chief Executive of our Upstream…
Turning now to the start of our agenda and our US legal position. We have recently taken further steps to significantly reduce the legal risks facing the company. We have now reached a significant milestone with completion of the 20…
consequences and distraction that would have accompanied such a proceeding. Subsequent to BP reaching this agreement, on the 28th November the Environmental Protection Agency in the US announced that BP is temporarily suspended from…
As we announced on the 22nd of October, we have taken a major step forward in re-positioning our business in Russia. We have reached agreement with Rosneft to sell our share in TNK-BP for cash and an 18.5% stake in Russias leading oil…
To understand the potential of BPs investment in Rosneft, it is helpful to look back on the results BP has achieved in TNK-BP. Between 2003 and 2011, TNK-BPs proved reserve base grew from slightly more than nine billion barrels to almost…
As we move forward, BPs near 20% shareholding in Rosneft provides a new and exciting opportunity to grow the value of a Russian company. The production and reserve potential of Rosneft is about four times as big as TNK-BP was 10 years…
The left side of this slide shows Rosnefts early assessment of the synergy focus areas of its combination with TNK-BP. On the right are the areas where BPs knowledge of merger integration processes can be applied. BP has the skills and…
As this chart illustrates in more detail, the close location of TNK-BP and Rosneft greenfield developments in the Yamal peninsula and Eastern Siberia provide the opportunity to realise natural industrial synergies. Rosneft estimates the…
So how does the BP shareholder benefit BPs 19.75% ownership in Rosneft can bring value to BP shareholders in at least three ways: growth in the value of BPs shareholding; cash returns through Rosnefts dividend payments; and access to new…
open up new horizons for the creation and realisation of value for both sets of shareholders. Now at this point, I am pleased to welcome Mikhail Kuzovlev to the stage for a message from the Rosneft board that he asked to deliver today…
So we are pleased with the progress we have made in the US and in Russia towards resolving significant uncertainties for the Group and in creating an exciting new future in Russia. But we are also focusing hard on the rest of BP which…
It is easy to lose sight of how far we have come so before going any further I want to list a few of the more significant milestones of 2012. We have announced divestments of around 15 billion of assets in 2012 with announced…
commissioned in the second half of next year. And as mentioned already we have made the last payment into the Gulf of Mexico Trust Fund. 15
All of these milestones are key markers of progress against our ten-point plan and our 2014 commitments to growing operating cash flow. Brian is going to update you on this shortly but Id like to turn first to our longer-term direction…
Looking first at safety and reliability, we are starting to see signs of improvement. In the Downstream, for example, we have seen sustained improvements in refining availability over the last five years which supported our ability to…
Turning now to our portfolio where I have already mentioned the 37 billion of announced divestments. This has not only been about unlocking cash and increasing financial flexibility, but about focusing the portfolio and greatly reducing…
These changes are part of creating the foundation for what we want BP to be in the future. A company with a clear direction and distinctive for: A more focused and lower risk footprint, with strengthened incumbent positions; A leading…
We will also be a company with a clear focus on growth in sustainable free cash flow. Central to this is an intention in the Upstream to invest for medium-term cash generation and to create multiple options for longer-term growth. So the…
Thank you Bob. Ill begin by outlining the financial impact of the changes Bob has highlighted; and also provide the group level financial context for todays upstream presentations in terms of our overall capital spending plans and…
Let me start by covering some of the factors affecting our near-term outlook for operating cash flow. We have announced some major corporate changes. First of all, we have announced an agreement to sell our 50% share of TNK-BP to…
reported fourth quarter production volumes by around 50 mboed relative to the third quarter. Full year 2013 reported volumes are expected to be impacted by around 150 mboed relative to 2012, the majority of which relates to higher-margin…
Taking all of this into account we expect to see operating cash flow of 30-31 billion in 2014. On a like-for-like basis, this represents more than 50% growth in operating cash flow versus 2011, and is consistent with the guidance we gave…
The purpose of today is to give you more insight on the quality of our Upstream opportunity set, underpinning an increase in upstream capex of around 40 to 50% between 2011 and 2014. This will be funded in part by higher free cash flow…
At the same time we expect to maintain a prudent financial framework. We will continue to target gearing in the 10 to 20% range over time while uncertainties remain. At the end of the third quarter net debt was 31.5 billion, with…
There are two key messages I would like to leave you with today: Our 2014 operating cash flow delivery is underpinned. Beyond 2014 we have a clear plan to grow sustainable free cash flows. Continued reinvestment into high-margin…
Thank you Brian. 27
Thanks Brian. To summarise the Group perspective. We have made significant progress in re-positioning BP for sustainable growth into the future, through a significant change programme addressing safety and reliability, the shape of our…
First question comes from.. At end of Q&A: That brings us to the end of our question and answer session and the end of our webcast. We will now say good bye to all those of you who have joined us over the web or telephone lines. For…
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