spotlight: china perfecting the blend...the rumaila operating organisation (roo) has increased...

BPMAGAZINETHE INTERNATIONAL MAGAZINE OF THE BP GROUP ISSUE 1 2011

PERFECTINGTHE BLENDBP Magazine reports from China, where a 30-year partnershipis helping the country address its energy needs.

40 SPOTLIGHT: CHINA

06 BOB DUDLEY BP CEO discussessafety and risk

12 GOM TIMELINEKey dates in oil spill response

28 OMANMajor milestonefor gas project

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BP MAGAZINEThe international magazine of the BP Group – ISSUE 1 2011

BP Magazine is published quarterly for external readers around theworld, as well as past and present BP employees. Its content does notnecessarily reflect official company views.

The copyright for photographs and illustrations in BP Magazine is notalways owned by BP. Please contact BP Photographic Services for details.

managing editorDavid [email protected]

editorLisa [email protected]

distributionCarolyn Copland+44 (0) 20 7496 4340

designPhil Steed – Steed [email protected]

print managementWilliams Lea

image contributorsBP ImageshopLance BellMagic Torch

Welcome. A year has passed since the tragicaccident at the Deepwater Horizon oil rig in theGulf of Mexico, in which 11 men lost their lives.The subsequent oil spill lasted 87 days andrequired an unprecedented response. As BP pausesto mark this difficult event, its chief executive,Bob Dudley, talks to BP Magazine (page 6) abouthow the company continues to meet itsobligations in the Gulf Coast region, the changesbeing made in BP and the challenges it still faces.We’ve also created a timeline of last year’s events(page 12) and we examine one of the graphics thathelped explain the scale of the subsea challenge(page 18). The events of 2010 have left BP with aseries of commitments, not least to continueputting safety and risk management at the heartof its operations. We meet the team at the SECCOpetrochemicals plant in China who has achieved88.6 million manhours without a fatality or majorprocess safety incident as a consequence (page44). Turning to other parts of the BP business, wereport on developments in Oman to bring tightgas reserves online and we find out about one ofBP’s new biofuels businesses (page 50). Lisa Davison> Editor

contents / issue 1 2011

© BP p.l.c., 2011

+ Features

06 In his own words BP chief executive Bob Dudleydiscusses the challenges facing the company as it marks the firstanniversary of the Gulf of Mexico oil spill. By Lisa Davison Photography by Harrison McClary, Graham Trott, Stuart Conway and Tim Campbell

GULF OF MEXICO 12 Timeline On 20 April 2010, a fire and explosion on theDeepwater Horizon rig led to the deaths of 11 men and a majoroil spill. This timeline looks back at the key events in theresponse that followed.

18 The subsurface challenge Graphics and images werevital in telling the public what BP was doing to stop the leak. Thisfish’s eye illustration shows the scale of the offshore response.

20 Map of the region A geographical view of the Gulf Coastregion and its affected communities. Illustration by Lance Bell

22 Interview Mark Bly is the head of BP’s safety andoperational risk division and he talks about what’s changingwithin the company. Photography by Rocky Kneten, Marc Morrison and Stuart Conway

28 Major milestone With gas now flowing through a BP test facility, Oman’s hopes of unlocking its significant tight gasreserves take a step closer to reality. By Amanda Breen Photography by Richard Davies and Mehmet Binay

Cover story

40 Collaborative approach How BP’s long history ofworking with China is helping it support the country’scommitments to safety, growth and energy security. By Jaclyn Clarabut Photography Simon Kreitem

50 Talent pool The acquisition of Verenium’s cellulosicbiofuels business has substantially increased BP’s biotechnologycapability, through cutting-edge technology and talented people. By Paula Kolmar Photography by Joshua Drake and Frank Hom

56 Ultimate winners The student team that won theinaugural Ultimate Field Trip competition talks about their six-week experience as BP interns. By Jaclyn Clarabut Photography by Graham Trott and Stuart Conway

+ Regulars

04 For the record A snapshot of BP news and statistics fromaround the world.

27 BP Faces Randy Fletcher and Brad Byczynski talk abouthow they help BP emergency responders to think aboutleadership in a different way. By Paula Kolmar Photography by Marc Morrison

38 Science made simple How horizontal drilling ishelping to extract more unconventional sources of hydrocarbons. By Amanda Breen Illustration by Magic Torch

48 Viewpoint Senior executives attend a meeting with theBritish chancellor to formalise the Reliance deal. Photography by Stuart Conway

62 Parting shot Firefighters perform drills at the Abadanrefinery in the 1920s and 30s. Photography by BP Archive

50

12 GoM timelineThe response to the Gulf of Mexicooil spill involved thousands ofpeople working round the clock toclean the beaches and Gulf of oil,treat affected wildlife, handle claimsand stop the flow of oil. BP Magazinedocuments the key moments.

06

UK

US

Australia

Azerbaijan

Argentina

Indonesia

Iraq

Egypt

Brazil

For the recordHighlights from around the globe > Spring 2011

the quarter in numbers

7The number of centsper share BP paid as adividend for the fourthquarter of 2010

$4.6 billionBP’s replacement costprofit for the fourthquarter of 2010

$30 billionThe total amount ofdivestment activity BP has pledged tocomplete by the end of 2011

$40.9 billionThe total pre-taxcharge related to theGulf of Mexico oil spill

BP has made three newappointments to its boardin the past six months.Phuthuma Nhleko joinedas a non-executive directorin February 2011. He is thevice president of MTNGroup, the mobile

telephone multinationalcompany, based in SouthAfrica. Meanwhile, BrendanNelson, a director of theFinancial Services SkillsCouncil since 2008, andFrank L ‘Skip’ Bowman, aformer head of the US

Global: Board appointments

04 Issue 1 2011 BP MAGAZINE

Nuclear Navy, joined asnon-executive directors inNovember 2010. Each ofthese appointments areregarded as the next step incontinuing to strengthenBP’s board to meet futurechallenges.

New faces: from left to right,Brendan Nelson, Frank L ‘Skip’

Bowman and Phuthuma Nhleko

BP MAGAZINE Issue 1 2011 05

ArgentinaPan American sale Bridas Corporation hasagreed to purchase BP’sinterests in Pan AmericanEnergy, the Argentina-based oil and gas company.Bridas already owns 40% ofthe company, and will buyBP’s remaining 60% for atotal of $7.06 billion cash.The transaction is expectedto be completed in 2011.

AustraliaNew licencesBP has been awarded fourdeepwater offshore blocksin the Ceduna sub-basin, offthe coast of south Australia.“This is a material and earlymove into an unexploreddeepwater basin,” said BP’sexecutive vice president ofExploration Mike Daly.Exploration activity will bephased over six years andsubject to detailedenvironmental assessment.

UK Asset saleA number of BP-operated oiland gas fields in the UK havegone up for sale. The assetsinvolved are the WytchFarm onshore oilfield inDorset and all of thecompany’s operated gasfields in the Southern NorthSea, including associatedpipeline infrastructure and

the Dimlington terminal.The divestments will allowBP to focus resources andinvestment on its diverseCentral North Sea, NorthernNorth Sea, West of Shetlandand Norway assets, and onsuccessful delivery of its newmajor projects. Meanwhile,BP has been awarded licenceinterests in seven UKoffshore exploration blocks –its largest award in the UKfor a decade.

Global Lubricants saleBP is looking for buyers forits world-famousDuckhams and Veedollubricant brands. Both havebeen in existence since theinvention of the motor cararound the start of the 20thcentury. The successfulbuyer will get global rightsto a wide portfolio ofregistered trademarks forthe respective masterbrands, as well as theassociated product sub-brands and iconic logos.

IraqProduction milestoneThe Rumaila OperatingOrganisation (ROO) hasincreased production bymore than 10% above the1.066 million barrels a dayinitial production rateagreed in December 2009.

It marks a major milestonein the redevelopment ofthe super-giant field inSouthern Iraq.

Egypt Gas discovery BP Egypt has made asignificant gas discovery inthe deepwater West NileDelta area. The Hodoadiscovery is located some80 kilometres (50 miles)northwest of Alexandria.The well was drilled to adepth of 6,350 metres(20,830 feet) and is the firstOligocene deepwaterdiscovery in the West NileDelta area.

Indonesia Licence awardedThe government ofIndonesia has awarded BP a100% interest in the NorthArafura oil and gasproduction sharingcontract (PSC) in onshorePapua province. The field islocated 480 kilometres (300 miles) southeast of the BP-operated Tangguhgas plant.

Azerbaijan New dealBP has signed a newproduction sharingagreement (PSA) with

SOCAR (State Oil Companyof Azerbaijan Republic).The two organisations willconduct joint explorationand development of theShafag-Asiman structure inthe Azerbaijan sector of theCaspian Sea.

Brazil Biofuels expansionBP is to acquire majoritycontrol of the Brazilianethanol and sugar producerCompanhia Nacional deAçúcar e Álcool (CNAA) forapproximately $680million. When CNAA’sassets are fully developed,this is expected to increaseBP’s overall Brazilianproduction capacity toaround 1.4 billion litres ofethanol equivalent per year(9 million barrels).

US Refining divestmentBP is to halve its USrefining capacity with thesale of two of its USrefineries. The companyplans to complete the saleof Texas City refinery andCarson refinery (below),together with its associatedintegrated marketingbusiness in southernCalifornia, Arizona, andNevada by the end of 2012.


Snapshot: Bob Dudleyaddresses the media in Biloxi,Mississippi, 30 July 2010.


Interview> Lisa Davison Photography> Harrison McClary, Graham Trott, Stuart Conway, Tim Campbell

IN THESPOTLIGHTAN INTERVIEW WITH BP’S CEO BOB DUDLEY

➔ interview

The tragic events of 20 April 2010, in which an explosion on theDeepwater Horizon drilling rig in the Gulf of Mexico led to the deathsof 11 men and oil leaking into the Gulf for 87 days, have left anindelible mark on BP and its people. Not least its new chief executive.


Interview> Bob Dudley

Like a number of BP’sAmerican staff, Bob Dudley grew up alongthe Gulf Coast, spending childhoodholidays swimming and fishing in itswaters. It was these close ties with theregion that brought him into the responseearly on, and made him the ideal choice tohead up BP’s Gulf Coast RestorationOrganization, an entity that was created inJune 2010 to manage all aspects of BP’s spillresponse. It was a role he was to carry outfor just three months, before replacingTony Hayward as BP’s chief executive.

Dudley took on the top job in one of themost challenging periods in BP’s 100-yearhistory. As well as the complex engineeringthat was needed to physically stop the oilleak, the spill required a massive onshoreand offshore response, with some 48,000people playing a role at its peak (see pages 12-21). Within a few days of theaccident, BP began paying claims to thosewhose livelihoods had been affected, andlater pledged $20 billion to a trust fund, tocontinue meeting those claims, as well as thecost of Natural Resource Damages claims. As efforts to cap the well were repeatedlyunsuccessful, costs continued to rise, whilethe company’s share price fell sharply andits credit rating was downgraded.

Dudley says BP needs to take the lessonsof the tragedy “deeply into the fabric of our

organisation”, with a more intense focus onrisk management. “BP has a choice,” hesays. “It can step away from risk, or it canlearn from the incident and focus on riskmanagement to an accelerated degree. Weneed our people to think about potentiallow-probability, high-impact events, andthen plan for them.”

New steps to strengthen safety and riskmanagement are top of Dudley’s prioritiesfor BP. These will help fulfil the nextpriority – to earn back trust – and providethe foundation for the third – to buildshareholder value in a safe and sustainableway for the long term.

To help put safety and risk managementat the heart of the company, BP hasrestructured the way it rewardsperformance, encouraging individuals tothink about their personal legacy to thecompany and its assets. Under the newstructure, staff are being asked to set outpriorities in the areas that the companywants to see strengthened. Those prioritiesinclude their personal commitments topromoting safety, risk management,compliance, teamwork and, crucially, howthey will work towards long-term as well asshort-term goals.

“I saw people work like this during theGulf of Mexico response. BP employeesfrom all the over the world played their

part, either directly, down on the beach orin a crisis centre, or indirectly, stepping upand filling in, making sure the rest of thebusiness ran safely, reliably and performedwell. There was this strong desire to act asstewards for the wider business. That is thespirit we need to capture and replicateright across the organisation.

“If everyone has a sense of long-termstewardship over our assets every day,” hecontinues, “then people will also start tospeak up more if they have concerns. I wantus to sharpen our everyday attitude tooperational and technical risk, to ensure it isthe norm for people on the frontline tospeak about risk, and for managers to listen.”

This ‘sharpening’ of attitudes has beenembodied by the creation of a new safetyand operational risk (S&OR) division.Headed by Mark Bly (see page 22), theorganisation will have its safety expertsembedded within BP’s operating divisionsto guide, scrutinise and, if necessary,intervene. It will also have a central team ofspecialists who will establish and updateBP’s safety and risk management standards.

“For the most part, BP was makingsteady progress on safety before theincident,” says Dudley. “However, we mustnow accelerate that and make sure itapplies everywhere. My expectation is thatS&OR will not only look at day-to-dayoperations, but also how we design ourfacilities for the future.”

Another major organisational shift isoccurring in the upstream business, nowdivided into three divisions – Exploration,Development and Production. The changesare a further evolution of work startedbefore the oil spill and, says Dudley, willhelp BP focus on the capabilities it needs tomanage its risks. “This is a necessaryadjustment to the approach that was »

“I want us to sharpen our everyday attitude tooperational and technical risk, to ensure it isthe norm for people on the frontline to speakabout risk, and for managers to listen.”


“If everyone has a sense of long-termstewardship over our assets every day,then people will also start to speak upmore if they have concerns.”

Diverse roles: Dudley addressesan audience of employees at thecompany’s offices in Sunbury, UK(below). Opposite, on the podiumwith Admiral Thad Allen at theSouthern Governors’ Associationconference in August 2010.


instituted in 1992, when the company tookaction to recover from financial trouble. Atthat time, we created a series of businessunits and we basically said to the heads ofthose units: ‘You are your own CEO’. Thatplanted a drive for performance within theDNA of this company, and empoweredpeople to do amazing things in a difficultperiod, but it also meant that systems andprocesses became less standardised. I don’twant BP to lose that entrepreneurial sense– or its very good relationshipmanagement – but by putting in place thisnew structure, we can apply those qualitiesat the same time as having the rigour,consistency and standardisation we need tooperate safely and responsibly everywhere.

The consequences of the Gulf of Mexicoincident are far-reaching, and, says Dudley,“they leave BP a different company fromthe one we were a year ago.” This iscertainly true in the financial sense, withthe company posting its first full-year lossin 18 years. The ongoing costs of the oil

spill had already been anticipated back insummer 2010, with the temporarysuspension of the dividend and theannouncement that BP would divest $30 billion in assets by the end of 2011.

It is also true that the shape of BP willnever quite be the same again. In the driveto create shareholder value in a safe andsustainable way, Dudley and his team are‘resetting’ the portfolio to create a companythat plays to its core strengths and moveswith the currents in the global energymarket. One such trend is the expectationthat energy demand in the matureindustrialised countries will remain fairlyflat, while soaring in Asia and otheremerging economies. Consequently, as wellas divesting non-strategic assets in theupstream, BP has announced it will halveits US refining capacity, with the sale ofTexas City and Carson refineries. Dudleypays tribute to the work done in theseoperations while acknowledging that theynow offer more value to others than to BP.

Interview> Bob Dudley

The rationale behind theseannouncements is to retain the positionsthat offer the greatest competitiveadvantage, including a series of newupstream projects, and create a portfoliothat has the potential for stronger growthfrom a smaller base.

“It’s about ongoing value as much ascurrent production volumes. It’s aboutquality over quantity and it’s about choicesfor the future, rather than the legacy of thepast,” says Dudley. “We’re focusing not somuch on short-term outputs – today’sbarrels and dollars – but on inputs thatdrive long-term value – safety, compliance,relationships, capability and technology.The BP of the future will be smaller, but itwill also be safer, more agile and stronger. It will be a company that is committed torebuilding value and trust for the longterm, by doing the right things and doingthem well.”

The most tangible sign of progress forshareholders is the reinstatement of a


All this seems to point to the fact thatthe world is still willing to do business withBP. “Over the past few months, I’ve travelledto China, Brazil, Russia, Trinidad, India andAzerbaijan, and the message I’m getting isthat the governments in these countrieshave been watching the response in theGulf of Mexico very carefully,” says Dudley.“They believe we responded in the way theyhoped any company would respond in theirown country. They tell me that they wouldlike us involved in their country becausewe know more about this than anyone.Indeed, we’re sharing what we’ve learnedvery widely as people ask us to do so.”

Much will depend on the company’sfuture relationships with the US;relationships that are the focus of a lot ofwork. “BP continues to do the right thing inthe US,” Dudley says. “We’re working withthe regulators in Washington, meeting ourobligations on the Gulf Coast, we’refunding various programmes. So, I feelpretty good about those relationships atthe moment.” Dudley continues to makefrequent trips to the region to meet withlocal people affected by the spill, withofficials and BP employees.

“I’m very proud of the dedication ofpeople across BP,” Dudley says, believingthe staff’s continuing commitment wasreflected in strong third- and fourth-quarterresults, despite the year’s overall loss.“There’s no doubt 2010 was a very difficultyear for BP, yet we delivered strongunderlying performance, once you stripout the costs associated with the Gulfincident. To a degree, this reflects higher oilprices, but that’s not the only factor. It also

“The BP of the future will be smaller, but it willalso be safer, more agile and stronger. It will bea company that is committed to rebuildingvalue and trust for the long term, by doing theright things and doing them well.”

Team player: Dudley meetsemployees who have made itthrough to the finals of BP’sinternal recognitionprogramme, October 2010.

shows how BP’s people all over the worlddelivered strong performance inchallenging circumstances and it showstheir dedication to doing the right thing.”He includes the several-hundred-stronggroup of retirees who came back to helpthe company during the crisis.

Ultimately, as a result of the changes heis implementing, Dudley believes peoplewill look at BP in a very different light. “I’dlike people to say BP really ‘gets it’, that itappears to be wanting to help lead thefrontiers of risk management, as well asoperating safely on the frontiers; that it’sgot a new way of working with contractorsand suppliers; and that it’s lived up to itscommitments in the Gulf. That’s a toughagenda, but only then do I think we can getback on the right path.

“This year is going to be one ofconsolidation, as we focus on completingour divestment programme, continue tomeet our obligations in the US and bringnew rigour to the way we manage risk,” hecontinues. “None of those things is easy, soit’s important to have leaders who reallylisten to their people.

“I don’t assume that I always know theanswer to something. I can draw on yearsof experience and intuition, but we need tobe constantly enquiring and learning andlistening to everyone – including thequietest voice in the room. We have to keepthinking the unthinkable – be itoperational, financial or compliance risk.Nobody has all the answers. Only byworking together and making the most ofeveryone’s capabilities will we begin tomove the company forward.” ■

dividend and this, says Dudley, reflects thecompany’s stronger underlyingperformance. However, it has been loweredsince the last payment in recognition thatBP still needs to continue to meet itsobligations in the Gulf of Mexico andmaintain financial flexibility.

One thing that has not changed, as far asDudley is concerned, is BP’s distinctiveability to look for oil, and, at a presentationto investors in February, he announced thatthe company would increase itsinvestment in exploration. Indeed, evenbefore February, BP announced a swathe ofnew access deals covering the UK,Australia, Azerbaijan, Egypt and China.Then later in February, it announced amajor partnership with Reliance IndustriesLimited of India, that will see BP taking a30% stake in 270,000 square kilometres(104,000 square miles) of offshoreexploration and production contracts aswell as creating a joint venture to marketnatural gas in the country.


➔ Gulf of Mexico Deepwater Horizon> Timeline

20 APRIL-01 OCTOBER

APRIL

RESPONSE TO A CRISIS

21 AprilThe DWH continues toburn. Eleven peopleremain missing. Searchand rescue effort iscoordinated betweenTransocean’semergency and familyresponse team, BP andthe US Coast Guard.

22 April The DWH sinks. BPactivates an extensiveoil spill response thatincludes a flotilla ofresponse vessels,protective boom anddispersant. Plans fordrilling a relief well are initiated.

23 April The search for themissing 11 crewmembers issuspended, aftercovering 12,950 squarekilometres (5,000square miles).

25 AprilEfforts begin toactivate the blowoutpreventer (BOP), usingsubmersible remotelyoperated vehicles(ROVs). Ultimately,these proveunsuccessful and the BOP does not seal the well.

Field operations are co-ordinated fromHouma, Louisiana,with almost 500 peopledeployed.

27 April US Secretary ofHomeland SecurityJanet Napolitano andSecretary of theInterior Ken Salazarset out details of ajoint investigation ofthe incident.

28 AprilFirst controlled burn iscarried out.

24 April Oil spill response effort gets underway, including skimming of oilywater from the surface anddeployment of protective boom.

20 AprilAn explosion and fireoccur on the DeepwaterHorizon (DWH),Transocean’s semi-submersible rig in theGulf of Mexico. Eleven ofthe 126-member creware missing. Transoceanhad been drilling anexploration well for BP.

Source: bp.com and restorethegulf.gov

US

CO

AST

GU

AR

D


MAY

30 AprilStaging posts for boomand other equipmentare set up in Venice,Louisiana; Pascagoulaand Biloxi, Mississippi;Mobile, Alabama; andPensacola, Florida.

1 May Former head of the USCoast Guard AdmiralThad Allen isdesignated NationalIncident Commanderfor the USGovernment’scoordinated response.

2 May Drilling begins on arelief well designed tointercept andpermanently seal theleaking oil well. TheDevelopment Driller III(DDIII) is drilling the well.

5 May BP makes $25 millionblock grants to each ofthe states of Louisiana,Alabama, Mississippiand Florida, to helpthem implement oilspill contingencyplans.

9 May Efforts to place acontainment domeover the main leakpoint are suspended,after a build-up ofhydrates preventssuccessful placement.

16 May The DevelopmentDriller II (DDII) beginsdrilling a second, back-up relief well.

4 MayBP begins payingclaims to thosewith lossescaused by the spill.

30 AprilThe first oiled bird – a northerngannet – is captured and treated byTriState Bird Rescue and Research,in Venice, Louisiana, contracted byBP to rehabilitate wildlife.

4 May More than 2,000 volunteers are trained to assist in theresponse effort. Volunteers include local fishing crews,whose boats can be used as ‘vessels of opportunity’ toassist contractors in deploying boom.

On 20 April 2010, tragedy struck in the Gulf of Mexico. An explosion and fire on the DeepwaterHorizon rig led to the deaths of 11 men and a major oil spill. While the leaking well was finallycapped on 15 July 2010, BP continues to play an active role in the affected communities, withoffices in the four Gulf states of Louisiana, Alabama, Mississippi and Florida. The company ispaying the legitimate claims of individuals, businesses and government entities impacted by theaccident, is working with federal and state trustees to assess the environmental impacts of thespill and supporting efforts to promote tourism. Here, BP Magazine charts some of the key datesof an unprecedented response to an unprecedented event.

Photography> Marc Morrison, Tim Campbell, Joshua Drake, Bobby Chapman, Rocky Kneten & Harrison McClary

18 May A riser insertion tubetool (RITT) beginscollecting an estimated2,000 barrels of oil aday. Gas is flaredonboard the Discoverer Enterprise.

25 May BP’s internalinvestigation teamsays it is focusing onseven mechanisms,including the wellcasing, pressures tests, procedures todetect hydrocarbons in the well, and thefailed BOP.

29 MayBP announces thesuspension of the topkill procedure. It hasnot been able toovercome the flow ofoil, despite 30,000barrels of heavy mudbeing pumped into the well.

4 JuneBP announces secondadvance payments of claims for thosewith losses caused by the spill.

The DiscovererEnterprise beginsreceiving oil and gasfollowing thesuccessful installationof the LMRP cap.

8 JuneThe LMRP cap is nowcollecting 15,000barrels of oil a day.

10 JuneBP provides additional$25 million grants toFlorida, Alabama andMississippi.


MAY JUNE

17 MayBP announces grantsto help Gulf Coaststates promotetourism – $25 millionto Florida and $15 million each toAlabama, Mississippiand Louisiana.

26 May‘Top kill’ operationsbegin in an effort tostop the flow of oil byinjecting heavydrilling fluids intothe well.

29 MayPlans begin for thedeployment of acontainment cap –known as the lowermarine riser package(LMRP) – from theDiscoverer Enterprisevessel, from whichoil and gas can bepiped to the surface.

24 MayBP commits $500 million to the Gulf of MexicoResearch Initiative (GRI) – a10-year open researchprogramme to study the impact of the spill andresponse on the environment.

15 June Fast-track funding of$25 million isannounced as part ofthe environmental GRI– to support studies atLouisiana StateUniversity, FloridaInstitute ofOceanography, and the Northern GulfInstitute consortium.

16 June Following a meetingwith President Obama,BP agrees to create a$20 billion trust fundto meet obligationsarising from the spill. It is also announcedthat individual andbusiness claims will beadministered by KenFeinberg, known for hishandling of priorclaims facilities.

BP suspends dividendpayments for the restof 2010.

17 JuneBP chief executive TonyHayward testifies to USCongress.

19 JuneClaims payments topthe $100 million mark,with 31,000 chequesissued in seven weeks.

23 JuneBP sets out the role of the Gulf CoastRestorationOrganization, includingclean-up andremediation, liaisingwith public officials,communicating withthe public andimplementing thecompensation fund.

10 JulyThe LMRP cap isremoved in preparationfor its replacementwith a sealing cap,capable of increasingcontainment capacityor potentially shuttingin the well.


JULY

22 JuneNet revenue from thesale of recovered oilis to be donated tothe National Fish andWildlife Foundation.$5 million is donatedimmediately.

6 JulyVessels of Opportunity programmeenhanced to make better use of localcommercial and charter fishingvessels and crews.

16 JuneA second containment system isoperational, carrying oil and gas fromthe MC252 well to the Helix Q4000vessel. The gas is flared on board.

12 JulySealing cap is put inplace with theinstallation of thethree ram cappingstack.

16 JulyClaims payments top$200 million. To date,32,000 claimants havereceived one or morepayments.

27 JulyBP announces that BobDudley will take overfrom Tony Hayward asBP’s group chiefexecutive from 1 October.

BP also announces it has taken a $32.2 billion pre-taxcharge for the spill,including the $20billion claims fund,and will sell up to $30billion worth of assetsas part of prudentapproach to managingits finances.

4 AugustThe National Oceanicand AtmosphericAdministration andDepartment of theInterior announce thatthe vast majority of theoil from the spill haseither evaporated orbeen burned, skimmed,recovered from thewellhead or dispersed.

Tests show the MC252well appears to havereached a staticcondition after eighthours of pumping mudin the ‘static kill’operation.

5 AugustBP carries outcementing operationsto seal the well.

16 AugustBP announces $52 million of fundingfor support andoutreach onbehavioural healthacross the Gulf Coastregion.

18 August BP flushes drilling mudand hydrocarbonsfrom the MC252 well inadvance of a pressuretest to ensure the wellis secure.

21 AugustForty-eight-hourambient pressure testis deemed successful.

23 AugustThad Allen announcesthat 90% of the hardboom deployed hasbeen removed.

Claims paymentsreach almost $400 million. The GulfCoast Claims Facility(GCCF), headed by KenFeinberg, beginshandling individualand business claims.

2 September The capping stack ontop of the DWH BOP isremoved by thedrillship DiscovererEnterprise.

3 SeptemberThe DWH BOP issuccessfully removedfrom the well by theHelix Q4000. The DDIIinstalls a new BOP.


JULY AUGUST SEPTEMBER

5 AugustClaims payments top$300 million. More than40,000 individuals andbusinesses have beenaffected by the spill.

3 AugustBP begins injectivitytesting in advance ofstatic kill operations.

15 JulyOil ceases to flow into the Gulf of Mexico, as a well integrity test beginsand the ‘three ram capping stack’ is closed, shutting in the well.

7 SeptemberBP announces it isproviding $10 millionto the NationalInstitutes of Health(NIH) under the GRI, tosupport a study ofpotential public healthissues relating to theoil spill and other spill-related healthresearch.

8 SeptemberAn investigation led byMark Bly, BP’s head ofSafety and Operations,concludes that nosingle factor causedthe MC252 tragedy, butthat a sequence offailures involving anumber of differentparties led to theexplosion and fire. Thereport was conductedindependently by ateam of more than 50technical and otherspecialists, drawn frominside BP andexternally.

16 SeptemberRelief well drilled bythe DDIII interceptsthe annulus of theMC252 well. Totalmeasured depth of theannulus interceptpoint is 5,479 metres(17,977 feet).

19 September Admiral Thad Allenconfirms that well killoperations on theMC252 well in the Gulfof Mexico arecomplete, with boththe casing and annulusof the well sealed bycement.

29 September BP announces it willcreate a new safetydivision with sweepingpowers to oversee andaudit the company’soperations around theworld. BP also revealsplans to re-structureits Exploration &Production segmentfrom a single businessinto three divisions –Exploration,Developments andProduction.

1 OctoberBob Dudley becomeschief executive officerof BP.


OCTOBER

26 AugustAfter almost two months of work to translocatesea turtle nests on Florida’s Northwest coast andAlabama’s coast, the operation is suspended assurveys find healthy, unoiled Sargassum availablefor hatchlings entering the Gulf. This type ofseaweed is the main habitat for hatchlings.


➔ Gulf of Mexico

A COMPLEX OPERATIONThroughout the response, BP kept thepublic informed of its operations via aseries of illustrations. The one opposite isperhaps the most recognisable, due to itsfish’s eye view of subsurface activities.With the large vessels sometimes havingto move within 12 metres (40 feet) ofeach other, this diagram shows thecomplexity of the operation. It alsoreveals the level of activity on theseafloor and the need for care whenmoving any vessel, no matter its size,since many were supporting tetheredremotely operated vehicles or wereconnected to the seafloor via pipes. Forthis reason, the dedicated simultaneousoperations (SimOps) team was crucial inkeeping the subsurface response running.

Aerial view: the MC252 well site on 10 July 2010. The Discoverer Enterprise sitsat the centre, with the Discoverer Inspirationarriving to the right. On the left sit theDDII and DDIII and just in front of theEnterprise sits the Helix Q4000.

Crisis response> The subsurface challenge

MISSISSIPPI

LOUISIANATotal BP paymentsand investments

$2,006,450,000

Total BP paymentsand investments$550,900,000

TEXAS

Houston

New Orleans

GULF OF MEXICO

95 90

Biloxi


➔ Gulf of Mexico

Ayana McIntosh-Lee is one of the BPemployees who have moved to theGulf Coast to provide assurance tolocal and state stakeholders that thecompany will live up to itsobligations. She talks to BP Magazine about a typical day andwhy it’s important BP maintains thispermanent presence.

What does your role involve?As the general manager for externalrelations, my role involves leading andmanaging all aspects of the BP Gulf CoastRestoration Organization’s (GCRO) externalrelationships in Alabama at the local andstate level, including community,government and media relations. Alongwith a dedicated team of professionals, who

work tirelessly to help BP live up to itscommitments, I see myself as a liaisonbetween the company and keystakeholders. It’s my job to manage risk, toidentify opportunities and to ensure thelines of communication remain open.

Why is it important that BP maintainsa permanent presence in your region?There are some in the community whobelieve that BP will pack up and leave anyday. However, in December, we opened theBP GCRO’s Alabama office in Gulf Shores,which currently has more than 100employees and contractors overseeingbeach clean-up operations and externalrelations activities. This accident was areminder that the people along the GulfCoast are our neighbours. They are the fenceline community to our Gulf of Mexicooperations, and it’s important that we buildand maintain a long-term, mutually-beneficial relationship with them, just as we

do around the world. In Alabama,maintaining a strong local presence andliving up to our commitments is part of thejourney toward recovery.

Why did you agree to be thatrepresentative?I visited coastal Alabama years ago and wasstruck by its beauty and home-townfeel. During the response, I was deployed toMobile and was saddened to return underthe circumstances. Despite the challengespresented by the spill, I found the peoplewelcoming and appreciative of anyassistance that could be provided. It didn’ttake long to realise that this was more than ajob. It was an opportunity to make adifference for BP and the impactedcommunity. Fortunately, I’m surrounded bya talented, committed team that isdetermined to make a positive difference.They understand, as I do, that ourneighbours are counting on us.

A massive response was mounted along the Gulf Coast in the hours and days following the oil spill,and while the well is now capped, BP remains committed to meeting its obligations in the region.

THE ONGOING RESPONSE

COMMUNITYCOMMITMENT

Crisis response> The Gulf Coast region

AREAENLARGED

ALABAMA

FLORIDA

Total BP paymentsand investments$998,200,000

Total BP paymentsand investments

$1,678,200,000

Miami

IncidentLocation

GCCF claimscentre

BP office

BP crisisresponse centre

kmkm 200200100100

85 80

25

30

Gulf Shores

Mary Esther


RESPONSE STATISTICS

48,000Number of people deployed at peak

13 million feet Total amount of boom deployed at peak

125Number of aircraft deployed at peak

>6,500Number of total active vessels deployed at peak

2,079Total number of visibly oiled birds collected alive

2,263Total number of visibly oiled birds collected dead

Sources: BP Annual Report; Deepwater Horizon ResponseConsolidated Fish and Wildlife Collection, 25 January 2011.

As of 17 March 2011, the state payments include payments to government entities forcontingency planning, response and removal advances and other damages; claims payments

to individuals and businesses by BP (through 23 August 2010) and by the Gulf Coast ClaimsFacility (since 23 August); payments to Vessels of Opportunity participants, tourism, Natural

Resource Damage Assessments, research, behavioural health, and community contributions.


Interview> Nic WelshPhotography> Rocky Kneten, Marc Morrison and Stuart Conway

MARKBLY

AN INTERVIEW WITH BP’S HEAD OF SAFETY & OPERATIONAL RISK

➔ interview

Six months since the release of the BlyReport, BP’s internal investigation into the

causes of the Deepwater Horizon explosionand subsequent oil spill, its author,

Mark Bly talks to BP Magazine about thecompany’s new safety and operational risk

division and what lessons the companycan learn from other industries.


What is the role of the new Safety andOperational Risk (S&OR) organisation?Our role is to drive safe, compliant andreliable operations across BP. We do this infour ways. First, we set and update therequirements that are used across thebusiness for safety and operational riskmanagement. Second, we provide expertscrutiny of safety and risk, independent ofline managers, advising, examining andauditing what our operations do. Third, weprovide deep technical expertise to theoperations. Fourth, we have the ability tointervene if needed to cause correctiveaction. We have a central team ofspecialists, as well as more than 500 peoplewho are deployed in BP’s businesses,providing guidance and scrutiny, andexamining how risks are being assessed onrigs, at refineries and across BP’s operations.

What is the difference between thecentral team and the deployed staff?The central team is the source of BP’ssubject matter expertise. They are thecustodians of group requirements, as wellas audit and capability programmes. Theyinclude many of BP’s top engineers andsafety specialists, several of whom haveexperience of other industries where majorhazards have to be managed.

Our deployed S&OR teams work withthe line businesses – ranging fromupstream oil and gas development andproduction to refineries, petrochemicalplants and retail networks. They help thebusinesses apply BP’s standards in theirown situations and they report back to thegroup on how operational risks are beingmanaged business by business. In otherwords, they provide an extra set of eyes andears with respect to safety and operational

risk on the frontline. They also providetailored coaching and support,coordinating expert advice and input from the central teams as appropriate.

How does S&OR relate to the linemanagement in each operation? A key part of our role is to provide anexpert view on risks and how they aremanaged that is independent of the linemanagement. But I must emphasise thatthis does not mean that business leadershand over safety to us. It is absolutely clearthat the people who run operations – theline managers – are accountable formanaging safety and compliance in thoseoperations. They have the responsibility tomanage risks and bring together peoplewith the right skills and competencies. Butthey need advice and scrutiny from peoplewho are specialists in safety and risk. Ourteams will have the authority we need tointervene if that becomes necessary, butour aim is to have all risks managed insuch a way that we don’t have to use that authority.

BP had a safety organisation prior tothe Gulf of Mexico oil spill, so what isnew about this?Several things. First, we have moreauthority than before. S&OR has a seat atthe top management table, and we havealso put in place specific decision rights,veto rights and intervention rights. Second,the 500-plus S&OR specialists who aredeployed locally to work alongside ourbusinesses worldwide report to myorganisation through the deployed S&ORteams. They are independent of linemanagement and this creates strongerchecks and balances. Third, S&OR will be

much more active in working with theoperations, to understand the risks andhow they are being managed.

Can you give any examples of whereS&OR is already in action?The greatest measure of the S&ORorganisation’s success is when we workcollaboratively with the line to drive safetyand risk reduction. There are several casesof this. For example, shutting down aproduction platform to repair fire waterpumps, instead of continuing to let themrun while maintenance work was carriedout. It is a costly thing to do, but it is theright thing to do. There are already anumber of recent cases where drilling rigshave either been turned away or we arenegotiating modifications before we areprepared to use them.

“Our deployed S&OR teamsprovide an extra set of eyesand ears with respect tosafety and operational riskon the frontline. They alsoprovide tailored coachingand support, coordinatingexpert advice and inputfrom the central teams as appropriate.”

safety, is a former director of the UK’sDounreay nuclear power plant andpreviously served as a naval engineer on aPolaris submarine. John will take onresponsibility for BP’s standards being clear,coherent and simple to use. He acts as headof profession for all engineers across the BPGroup. John Sieg, BP’s group head ofoperations and the Operating ManagementSystem, has 37 years of operationsleadership in DuPont and BP. We also havepeople, such as Robert Riley and JeanneJohns, who have been named into seniorS&OR positions because of their trackrecords in safety within BP. Under Robert’sleadership, BP Trinidad and Tobagotransformed its safety performance frombeing bottom of the league in the upstreambusiness to top of the league in just fouryears, a significant part of which was


Interview> Mark Bly

What lessons can BP learn from otherindustries?We have to realise that other sectors hadother experiences and have developedsafety and operational risk management indifferent ways. Good examples are the civilnuclear industry, the nuclear navy and theaerospace industry. We can learn fromthese perspectives. Those who haveexcelled have demonstrated a systematicapproach, an ability to learn and that theyhonour their standards.

What sort of experience do members ofyour leadership team have? We have some very experienced people inS&OR, with a wide variety of backgrounds,including nuclear, petrochemicals and themilitary. For example, John Baxter, ourgroup head of engineering and process »

achieved through strong engagement withsuppliers and contractors to achievealignment between operating standardsand safety management procedures. As amember of the board of SECCO – ourpetrochemicals joint venture in China (see page 44) – Jeanne oversaw a focus onsafety that led to a remarkable 88.6 millionhours worked without a single fatality ormajor process safety incident.

It’s been six months since BP’s internalinvestigation was released – whatprogress has been made in theupstream specifically to respond to theincident and implement therecommendations? The first thing that BP did was to accept all26 recommendations. Implementing themrequires detailed work. Members of the


investigation team have provided input tothe project team that is working onimplementation of the recommendations.And I see solid progress in many otherways. For example, a centralised wellsorganisation has been created to managedrilling activities to consistent standardsacross the globe. Independent third-partycertification of our drilling contractors’subsea blowout preventers has beencompleted to check the testing andmaintenance of their emergency systems.The auditing of the rigs that drill our wellshas moved across into my S&OR auditteam. Work is also underway to enhancethe standards for cementing and wellintegrity testing, including a new approvalsprocess and stringent contract laboratoryquality audits. In the North Sea, the team isbuilding a next-generation capping stack,based on what we learned from the one

used to shut in the Macondo well. We alsocontinue to enhance the ‘ranging’technology that saved time during therelief well operation by enabling us to usesensors to detect the location of the targetwell without removing the drill bit beingused to drill the relief well.

BP has changed the way it rewards itsemployees and has asked all staff toinclude safety-specific priorities whenthey set their priorities for the yearahead. Why is that important?We want to reward the right things, and topof the list is safety and risk management. So, in our performance managementsystem for 2011, we’ve asked everyone tosay how they will contribute to safety, risk

Interview> Mark Bly

management, compliance, teamwork,capability-building and long-term goals – aswell as this year’s goals. We’re also makingit a priority for managers to be goodlisteners – and one reason for this is thatyou may not realise you have a problemunless you listen to everyone. The otherside of that coin is that we are reinforcingthe encouragement for everyone to speakup more if they have a concern. Everyonemust feel able to raise their hand. We’reasking people to state explicitly how theywill demonstrate these qualities in theirwork, and rewarding them according tohow well they do so. This very directlyincentivises people to promote safety, to actas one team and to work to buildsustainable long-term value. ■

“The greatest measure of the S&ORorganisation’s success is when we workcollaboratively with the line to drivesafety and risk reduction.”

Randy Fletcher & Brad ByczynskiRandy Fletcher and Brad Byczynski have five days to make a room full of experienced BP emergency responders (fire fighters) think ofleadership in a new way. That means five days to challenge the participants’ existing notions of what leadership is and help them buildon their existing skills. In their day jobs, Brad is discipline leader for crisis management at Naperville, Illinois, while Randy is HSSEmanager at Toledo refinery’s reformer project in Ohio. The goal of the bi-annual, voluntary course is to plant the idea that managingand leading people require very different skills. “In a crisis, you need a leader,” says Randy. “We try to ensure they’re out there in BP.”Brad: “First, we have to earn their trust and confidence in our experience-based knowledge.” Randy: “Then, we have to guide them inrebuilding a stronger vision of what makes a leader.” Brad: “Plus, help them become a leader that people will follow in a crisis.” Randy:“It’s a pretty intense five days. Ultimately, it’s up to the individual to decide to re-create themselves into a valuable leader.” ■

LEADING BY EXAMPLE

Photography> Marc Morrison BP Faces



➔ upstream

Gas development> Oman


OMANLAYING THE

GROUNDWORKFour years after signing an exploration and production

sharing agreement with Oman, gas has begun to flowthrough a BP test facility. The achievement marks a

major milestone in what could become a flagshipproject for BP and a chance for Oman to underpin its

energy reserves for years to come.

Report> Amanda BreenPhotography> Richard Davies + Mehmet Binay

Team spirit: workers (main image)lay power cable to the new gas

facility to connect it to the existingpower supply. The work has to becarried out in this way due to the

soft sand terrain. Below, an Omanilady shows off her hennaed hands.

This traditional art involves paintingintricate patterns; workers out in

the field; and 60% of BP Oman’s staffare now Omani nationals.


Work and play: personal safety is crucialin this inhospitable environment, so a

reflective jacket and parasol are importanttools for the man charged with alertingdrivers to upcoming roadworks. Below,

street kids practise their cricket strokesnear the Muttrah souk in Muscat.


The Sultanate only need look to itsneighbours to witness what happens whenthere’s even a temporary blip in the energysupply; in 2010, extreme summertemperatures prompted spikes in powerdemand that resulted in high-profileelectricity outages across the Middle East,from Amman to Sharjah. It’s not a scenariothat Oman wishes to face as well.

But just maintaining the needs andcomforts of today is not the only concernfor the minister, Dr Mohammed bin HamadAl Rumhy; Oman also has big plans for thefuture. In its latest five-year developmentplan, the Gulf state pledged to spend $78 billion, through to 2015, with themajority to be invested in infrastructure,including roads, hospitals and education.

Not to say that this country on thesoutheastern corner of the Arabianpeninsula has been left behind in terms ofmodernity; it has come a long way in the 40 years since Sultan Qaboos bin Said cameto power. Omanis can now expect to livemore than a quarter of a century longerthan their predecessors in 1970, thanks toimproved healthcare. The economy hasalso boomed, with gross domestic productgrowing from $256 million in the 1970s, toan estimated $62.25 billion in 2010,according to the International Monetary Fund.

Such prosperity is much in evidence onthe ground, where, in a nod to thesignificance of both tradition and innovation,old and new sit comfortably together:abandoned forts and watchtowers overlookthe sleek, multi-lane highways of the capital,Muscat. White-washed low-rise buildings,with their domes or arabesque windows, co-exist with grand, beachside hotel complexes,while the shaded alleys of the Muttrah souk,crammed with everything from bright whitedishdashas to framed khanjars, provide analternative to the gleaming shopping mallsthat house Gap and Subway.


»

ARABIANSEA

GULF OF OMAN

PERSIANGULF

60 68

20

16

AREAENLARGED

OMAN

SAUDIARABIA

UAE

QATAR

YEMEN

IRAN PAKISTAN

INDIA

Salalah

Thamarit

Duqm

Khazzan

Sur

MUSCAT

Sohar

Ibri

Nizwa

Mina Qabus

kmkm 500500250250

To continue this economic growth,though, Oman needs to be self-sufficient inits energy supply. With declining oilproduction – and reserves that are notcomparable to its Gulf neighbours –accessing the proven natural gas depositsburied deep beneath the desert has become a priority.

Recovering some of those resources isnow also becoming a reality, as BP Oman’ssix-year project to appraise and developtwo gas fields – Khazzan and Makarem – inBlock 61 has reached a significantmilestone. Four years after the companysigned an exploration and productionsharing agreement with the government,gas is now flowing into a test facility thatrecords vital data from the reservoirs.

“This really is a challenging project, butwe’re finding that by applying the righttechnology, it is possible to open up thesereserves,” says Jonathan Evans, vicepresident for BP Oman.

When Oman’s minister for oil and gas needs to put his country’s demand fornatural resources into perspective, he chooses a striking image. “I tell people thatwe drink gas here and breathe it, too,” says the man who is charged with ensuringthat the oldest independent state in the Middle East has enough gas to keep thewater desalination plants pumping and the air conditioners whirring.


Discovered in the late 1990s, Khazzanand Makarem proved hard to develop atthe time, as they contain what is known as‘tight’ gas. This is held in reservoirs wherethe permeability of the rocks is so low thathydrocarbons cannot easily flow intoproduction wells without help.

In its North American gas business, BPhas proven adept at accessing such ‘tight’reservoirs, and it is this expertise that hasbeen brought to bear in Oman. Techniquessuch as hydraulic fracturing stimulationmean that BP is achieving more thandouble previous flow rates.

“We’ve seen encouraging results so farfrom some of the appraisal wells,” Evanssays, “and now we’ve brought the extendedwell testing [EWT] facility online, gas isflowing into the compressor station. Thisphase is about acquiring production datafor up to nine months, to understand howthe wells decline, and what that means interms of how much gas could be deliveredfrom the entire field.”

The newly-constructed EWT site wasinaugurated by the UK Prime MinisterDavid Cameron and Minister Al Rumhy(see page 34). This year, five appraisal wellswill be tied into the site and the

monitoring of flow rates, reservoir declineand gas composition will paint the bigpicture of the fields’ potential. Rather thanflaring the tested gas, once compressed, itruns through export lines to a government-owned processing facility, 33 kilometres(20 miles) away, to prepare it for thenational market.

The introduction of hydrocarbons into anew facility has its risks, meaning the BPOman team has focused on rigorous start-upprocedures. Gary Campbell, BP health andsafety manager for the Middle East andPakistan, says, “Once the system is operating,there are high pressures, high temperaturesand electricity flowing through, so our mainconcern is implementing the right processesso the plant can work as it is designed to,safely and efficiently.

“We take a multi-disciplinary approachto start up the equipment, what we call a‘Go-No Go’ process. That’s essentially achecklist for all areas of the operation – fromtesting the emergency response plan, toensuring the right people have completedthe appropriate training – so that everyoneis satisfied we are ready to go.”

More than 500 people are at work in thefield operations, and improving safety

Oman in numbersLand area 309,500 km sqPopulation total (2009) 2,845,415 Adult literacy rate 87 % (of people 15 years+)Urban population (2005) 72%Travel & tourism contribution to GDP (2010) 7.6% or $4,359 millionSource: World Bank, World Travel & Tourism Council

Then and now1970 2008

Life expectancy at birth 49.4 years 75.9 yearsHospitals 2 58Schools 3 1,283Telephone subscribers 557 3,493,527Gross domestic product $256 million $59.94 billionSource: National Economy Ministry, International Monetary Fund

standards among local contractorcompanies became a priority soon after theproject began. To protect the workforcefrom the hazards associated with seismicsurveys, drilling operations or pipelineconstruction, BP increased its number ofHSE advisors in the field to oversee safepractices, and determine that jobs werecarried out with properly certifiedequipment. “It’s been a learning curve forsome contractors to understand that we’rewilling to stop the job if they’re not doing itsafely,” Campbell says.

Personal safety also requires attention inthis inhospitable and isolated desert setting.Block 61 is located around 400 kilometres(250 miles) southwest of Muscat, but thefive-hour drive – prolonged by the need tonegotiate the graded roads on the latter partof the journey at a careful speed – may aswell deposit you on a different planet.

It’s a place where miles of dusty terrain,combined with the sun’s bleached haze,induce an hypnotic effect and whereprotection from the elements is always aconcern. It seems reasonable then to spot aman in a reflective jacket, indicating thestart of road works, with a red flag in onehand and a garden parasol in the other. Orto witness a group of drivers taking a breakon a rug laid out beneath the enormousundercarriage of their transporter trucks, tomake the most of the only shade.Conditions can change rapidly, too; lateafternoon sandstorms suddenly whip up tocreate near-zero visibility, with gustingwinds that feel as hot as a hairdryer.

Keeping people safe here means takinginto account all the environmental factors– while workers are accustomed to facingsummer temperatures of up to 50°C (120°F),food and water quality needs to bemaintained in such circumstances toprevent contamination.

Field operations: more than 500 people are at work outin the desert, helping to construct new gas facilities.Opposite, engineers work at the fracturing site.

Continued on page 36 »



In Block 61, gas lies buriedunder rock so hard thatdrilling, in places, can onlyprogress at around half ametre every hour. Fourstacked reservoirs arefound at 5-5.5 kilometres(3.1 and 3.4 miles) deep,where temperatures rangefrom 140-160°C (280-320°F).

The first step in appraisingthe reservoirs was to reprocessexisting seismic data, as well asconduct a new survey in 2008covering 2,800 squarekilometres (1,080 square miles).This subsurface data helps topinpoint natural fractures in therock that can indicate the bestlocations to drill appraisal wells.

Seven of a planned nine wellsare now complete, including onehorizontal well that targeted thethird reservoir down, the Amin.What was anticipated to be adifficult exercise, given thehardness of the rock at a depthof 5,200 metres (17,000 feet),

produced some surprises for BP’sdrilling team.

“We were able to drill thehorizontal section both fasterand farther than we hadoriginally anticipated,” saysJohn O’Neill, BP’s vice presidentfor drilling and completions forthe Middle East. “We hadplanned for 500 metres [1,640 feet], but were able toprogress out to 750 metres[2,460 feet], which was veryencouraging. We are nowplanning to extend out to 1,000metres [3,280 feet] on the nexthorizontal, and possibly furthertest our capacity to do so forfuture field development.”

That achievement isattributed to two factors. Firstly,a thorough understanding ofthe subsurface environmentallows the drillers to direct thedrilling path along the axis ofstress in the rocks. Selecting themost appropriate down-holeequipment was also important;

the drill bit and turbineassembly that power throughthe rock were carefully chosen,along with the drilling fluidthat maintains good hydraulicsin the borehole, important forcleaning out the drilled holeand avoiding any hole collapse and allowingcontinued drilling.

Once complete, all the wellsneed to be stimulated for gas toflow. Hydraulic fracturingoperations – or ‘fraccing’ – inthe Khazzan/Makarem verticalwells have achieved significantresults so far. This techniquesees fluids and gels pumpedinto the well, under pressure,and down into the reservoir tocreate cracks in the rocks toimprove permeability. Materialsknown as proppants – man-made sand-like products withtremendous crush resistance –then hold these cracks open.The gas then flows through the fissures.

In 2010, BP completed thelargest-ever gel frac operationin Oman, pumping 1 millionpounds of proppant into theKhazzan-6 well. BP’s bespoke,multi-disciplinary approach tostimulating each well has madeall the difference, according toMartin Rylance, seniorpetroleum engineer andadvisor, who leads the fraccingoperations.

“Every well is different, andeach is studied in detail to makesure we take the optimumapproach. Our use of downholegauges to read pressure andtemperature, and bespokechemistry to improve the flow-back and clean-up are alsoproving vital.

“At this stage, we want tolearn the most we can fromthese wells, as they are likehuge data surveillance enginesthat allow us to construct somemore general approaches forfull-field development.”

GETTING GAS OUT OF A TIGHT SPOT> TECHNOLOGY


His Excellency Dr Mohammed bin Hamad AlRumhy has served as Oman’s minister for oiland gas since 1997. Previously, he wasassistant dean of Engineering at SultanQaboos University and worked for Petroleum Development Oman in the 1980s.He gained his PhD in petroleum engineeringfrom the Royal School of Mines, ImperialCollege London.

Can you explain why Oman is so in need of gas?Our power needs are ever-increasing; we havevery ambitious programmes to build newtowns and cities – like Duqm, which is anindustrial city with a new airport and railwaysystem. Anytime that you start thinking aboutdevelopment, you can smell gas – either it willfuel the growth or there is a lack of it. Whenwe talk about tourism, we want to build hotelsand resorts. Every time I hear these ambitiousplans, I worry whether we have enough gas toprovide the energy and water needed. That’swhy I say we drink gas here, because it powersour water desalination plants. So, for us, in theMinistry, we do not want to be the reason whywe don’t develop. BP is making headway inhelping us solve this uncertainty.

Why does technology have such a big part toplay in the Khazzan/Makarem project?We know there is gas in these reservoirs, but weare not sure how we can succeed in releasing itand making it flow. Dealing with thesubsurface, there are always unexpected factorsbeyond our control to consider. However, withthe knowledge and technical know-how thatexists in BP, the results from the wells andfracturing programme are very encouraging.

The Ministry of Oil & Gas is working closelywith BP to develop these reservoirs. What doyou believe are the foundations for asuccessful partnership?Personally, I like to understand our partners andfor them to understand us. We have a strongrelationship with BP; if we get good results forthe project, we will be pleased, but even if wedon’t, we want to keep that friendship andunderstanding. We think Oman has a lot tooffer international companies and a goodpartnership is something we can create. Can wecreate a good reservoir? Probably not – that’sdown to Mother Nature – but in terms of thingswe can do, I think we are being successful.

Why is it important to build a local businesswith local staff?The oil and gas industry in this country has areputation for developing not onlyhydrocarbon resources but people, too. It’sanother extremely important part of ourbusiness: it is necessary to build goodrelationships, to develop people and to develop resources.

How can BP contribute to this ongoing skilldevelopment?It is good for the country and for our partners,such as BP, to be successful in creating talent,particularly among locals. We now havesources where we can turn for the right peopleand then develop them through differentinitiatives, such as BP’s Challenge programme,as well as our own.

People here have tended to associatethemselves with one employer for a long time.But that is changing. We now see people inMuscat moving from one company to another,which is healthy. So, I’m sure that BP, as a goodcorporate citizen, will contribute to thisprogress and continue to nurture talent in Oman.

What are some of the ministry’sexpectations for this project in 2011?With gas flowing into the receiving facility,this is a big milestone for theKhazzan/Makarem development. The questionnow is how long these wells can flow, whattheir rate is and all the technical aspects thatcome along with that. We will start to put allthose pieces together, as it is extremelyimportant for us to understand the behaviourof the reservoir.

If the project is deemed commercially viable,and full-field development goes ahead, whatwould it mean for Oman in terms of theprovision of additional hydrocarbonresources?It could be huge. If this project turns out as wehope, it will change the way we think of ourenergy needs in this country. I hope theopportunities we’ve had in recent years willcome again; we missed some because of fear ofgas availability. If we can produce certainvolumes of gas for the next 20 or 50 years, wecan do a lot. And that, for a country of our size,will change things – I’m looking forward tothat change.

> INTERVIEW

OMAN’S MINISTER FOR OIL AND GASDR MOHAMMED BIN HAMAD AL RUMHY

“We now see peoplein Muscat moving

from one companyto another, which ishealthy. So, I’m sure

that BP, as a goodcorporate citizen,will contribute tothis progress and

continue to nurturetalent in Oman.”



Leaving the residential camps behind,long distances and variable road conditionsmake driving challenging. Vehicleinspections and the use of in-vehiclemonitoring systems to track behind-the-wheel behaviour help to manage this risk.

Road safety initiatives have also put theissue in the spotlight. Kamil Al Lawati, HSEteam leader, says, “We launched aneducational campaign, together with majorcontractors in Block 61, where participantsused simulators to experience a vehiclerollover and show why mobile phone usewhile driving is banned in BP. Around 800people took part, and it was well-received.Our focus now is to make sure our drivingpolicies are well-communicated andenforced through regular monitoring.”

Such lessons about the everydaychallenges of operating in Oman areinvaluable for BP in formulating plans forthe future, when net production in thefully-developed field could yield up to 1 billion cubic feet of gas a day. If theproject is given the green light in late 2012,gas could flow by 2016.

In the meantime, the company ismaking a substantial investment, not just infinancial terms – although that will amountto $750 million in this appraisal phasealone – but in terms of people and talent torun the business in the years ahead.

What started with a handful ofexpatriate staff based in a Muscat hotelroom has already transformed into anorganisation of around 100 people, 60% ofwhom are Omani nationals. Thatheadcount will potentially increase toaround 700 by 2016; it is a figure thatrepresents a huge recruitment challenge,one that will need to be met predominantlyby the local population.

With that in mind, BP is turning to thegraduate market in Oman, to attractuniversity-leavers into its Challengetraining programme. “We hired our firstfour Omani Challengers in 2010, in drillingand engineering disciplines, and we’re

looking to significantly increase thatrecruitment this year by raising our profilelocally,” says Evans, adding that technicians– who undertake four years training in theirchosen field – will also be hired in 2011.

BP has already surpassed its initialgovernment target for the proportion ofnational staff within the organisation. Theundersecretary at the Ministry for Oil andGas, Nasser bin Khamis Al Jashmi, whochairs the joint management committee ofgovernment and BP representatives thatoversees the project’s activities, is pleasedwith the progress so far.

“For BP to reach a level of 50%Omanisation, as we call it, within fouryears, is a very good achievement,” he says.“The Ministry of Manpower has set a targetfor all oil and gas companies operating hereto reach 90%; that is achievable, but wealso have to allow new companies to meetthat level within a realistic timeframe.

“It needs to be done in the proper way,without compromising the project’sobjective, which is to produce gas in a safeand reliable manner. That requires skilled,well-trained people and we wish to seesome of BP’s knowledge and experiencetransferred to locals.”

With a 50-year-old oil and gas industry,Oman has a highly-skilled workforce in thesector. BP is benefiting from this talent, as

local staff are progressing rapidly in thecompany. Khalid Al Kindi, who joined theprocurement and supply chainmanagement team with nine years’experience, is one such example.

“I arrived with plenty of industryexposure, but I’ve learned so much in a shortperiod; most importantly I think are theleadership skills and internationalperspective,” says Al Kindi, who advanced tobecome team leader, and has now taken on amanagerial role in BP’s business in Jordan, inless than four years. For their part, nationalstaff offer vital local context to the business,thanks to their deep understanding of themarket in which the company operates.

Sharing expertise like this – betweenlocal and international colleagues, and on abroader scale between country andcompany – is a natural outcome ofworking together in partnership. Of course,the ultimate objective of this co-operationis to secure future gas production from theKhazzan and Makarem fields, a result thatwould bring mutual benefit.

For BP, it would mean establishing aflagship project in the Middle East, wherethe company took its first pioneering stepsmore than 100 years ago. While for Oman,developing these gas reserves at full scalewould represent an opportunity to underpinits energy supply for years to come.

Continued from page 32 »

Desert setting: Block 61 is located around 400kilometres southwest of Muscat in the middle

of the desert. Below, the souk at Muttrah ispacked with traditional Omani goods.


> EXHIBITION> BRITISH MUSEUM, LONDON

TREASURES OF OMAN


Silver jewellery and traditional costumes from Oman’s diverse regions holdgreater significance than mere aesthetic appeal, a new exhibition at London’sBritish Museum reveals.

To mark the 40th anniversary of the accession of Sultan Qaboos bin Said, BPapproached the museum with the idea to create the display, with support fromOman’s Ministry of Tourism. The resulting exhibit features items of personaladornment that offer insight into the country’s rich history.

From a set of 10 finger rings, worn together on special occasions, toceremonial weaponry, the artefacts highlight the country’s variedmetalworking traditions from the past century. Some of these are increasinglyrare; for example, the modern preference for gold has resulted in a steadydecline in demand for the silversmith’s skills.

The display includes intricately decorated bracelets, head ornaments andearrings. It is complemented by brightly-coloured, traditional outfits that havebeen donated by the Ministry of Tourism.

Among them is a woman’s shimmering, indigo-dyed cotton abuthail (dress)from the southern Governorate of Dhofar. The use of indigo is anothervanishing custom, particularly in urban centres, as the blue stains that transferto the wearer’s skin or hair are no longer considered desirable, despite thebelief that indigo has talismanic properties.

Fahmida Suleman, the display’s curator, says, “Omani jewellery and costumeis not only ornamental, but is considered to have protective functions. Wedidn’t want to show these objects simply as works of art, but bring themtogether to display them as a living culture with different purposes.

“Adornment acts as a means of identification, too; for example, a pair ofchunky anklets would be worn by women from the north, or the interior.Oman is a mosaic of different ethnicities and cultures, each with their owntradition of costume and jewellery.”

The exhibited objects also reflect Oman’s historical trade links with thewider world. Necklaces dating from the 1950s are adorned with importedcoins, such as Indian rupees or Austrian thalers, from previous centuries.

Scientists at the British Museum are using X-ray technology to analyse themetalwork to produce further research on the techniques of craftsmanship. ■

» Adornment and identity: jewellery and costume from Oman is on display at theBritish Museum until 11 September.

➔ science made simple

On the level

hink drilling for oil and gas,and the first image thatcomes to mind is usually oneof carving out a long, straightvertical section through the

Earth’s surface to reach the fossil fuels thatlie buried deep below. Such conventional,upright wells are obviously a mainstay ofthe industry, but the technique ofhorizontal drilling is commonplace, too.

In fact, statistics show that, in the US,the number of rotary rigs drillinghorizontal holes in February 2011 wasalmost double that of those working on thevertical equivalent. So, why does theindustry turn to horizontal drilling?

The main advantage of a horizontal wellis that it allows producers to make contactwith more of the reservoir, so moreresources can be recovered from asingle well. A vertical borehole isdrilled first, then ‘kicked off’ at around a90-degree angle, through the subsurfaceformation. On its own, a vertical wellmay only access a vertical slice of the

so-called ‘pay zone’ typically around 30 metres (100 feet) wide, whereas ahorizontal well may run through, say, 900 metres (3,000 feet) of that same zone.Accordingly, production rates may increaseby orders of magnitude.

In accessing hydrocarbons such as‘unconventional’ gas – difficult to extractas it lies in reservoirs with lowpermeability – the technique of horizontaldrilling comes into its own, since itgenerates higher production rates and makesextraction more economically viable.Horizontal drilling has its environmentalbenefits, too; not only are fewer wellsrequired on the surface, but

their location can avoid sensitive areas,thanks to the ability to reach reservoirsthat are not located directly beneath a rig.

Subsurface and drilling teams need toconsider a number of factors whendeciding whether a horizontal well isappropriate for a reservoir. First andforemost is the geology; in a very hard,deep rock formation, the length of time ittakes to drill horizontally may make itcounter-productive, when a number ofvertical wells could be completed in thesame timeframe. Producers, therefore, needto weigh up the time and cost ofdeveloping a horizontal well, versus theimproved productivity it will yield.

To help plan for fracture stimulation inhorizontal sections, geologists analyse datacarefully to determine the stress lines inthe rock, where drilling will also proceedwith greater momentum and speed. Oncethe operation is underway, measurementwhile drilling (MWD) systems measuredownhole and formation conditions,relaying precise, real-time informationback to the surface, to allow safer, moreaccurate drilling.

In deep reservoirs, such as those that BPis dealing with in Oman’s Block 61,high temperatures (above 150°C

While vertical wells remain at theheart of the oil and gas business,increasingly, the industry is turningto horizontal drilling in order toextract more unconventional sourcesof hydrocarbons in a moreenvironmentally sensitive manner.

Horizontal stats

T

Report> Amanda BreenIllustration> Magic Torch


Rotary rig count in United States (11 February 2011)

Directional 225Horizontal 980 (up 48.94% from 2010)Vertical 516 (up 12.42%)http://www.energydigger.com/rig-counts/u.s.-rig-counts.aspx

or 300°F) can provide a challenge, as theymay cause the deterioration of downholeequipment, particularly the electroniccomponents of the MWD tools. However,this aspect can be managed by circulatingfluids around the drill assembly to keep thewellbore cooler.

Hole-cleaning becomes more difficult inhorizontal wellbores. In a vertical scenario,mud is pumped down the drill pipe tocirculate the cuttings up and out of thewell – any that are not swept outimmediately, fall back into the flow of theascending fluid. That process is not sostraightforward in a horizontal alignment,but techniques such as rotating the pipewhile drilling and optimising the flow rateof mud can help.

BP has developed its expertise inhorizontal drilling over the past two


Glossary

Cuttings: small fragments of rockcut by the drill bit and brought to thesurface by the flow of drilling mud.

Hole-cleaning: the process ofclearing solids from the wellbore,during drilling.

Kick-off point: the depth in avertical hole at which a horizontalhole is started.

Pay zone: a productive area in aformation, which is sufficiently thickand contains a high enoughconcentration of oil or gas to makeproduction commercially viable.

decades. In North America, drillinghorizontal wells has become routinepractice to access unconventional gasresources. Last year, BP’s North AmericaGas business drilled 63 horizontals in fourdifferent fields, with the horizontalsections taking anywhere from five to 30days to complete, at average depths of4,570 metres (15,000 feet). Deeper still, ataround 5,200 metres (17,000 feet), BP Omancompleted its first horizontal well in Block61 last December, drilling out to 750 metres(2,460 feet).

As drilling techniques and equipmentcontinue to evolve, horizontal wells arelikely to reach farther than ever before, andin doing so, unlock the planet’s morechallenging hydrocarbon reservoirs thatwill help meet future energy demand. ■

Report> Jaclyn ClarabutPhotography> Simon Kreitem


➔ international operations Business report> China

CHINATo some, the phrase when East meets West depicts what happens whentwo cultures collide. For BP and China, there is no such clash, rather a 30-year history of teaming up to share common interests in areas such as safety, sustainable growth and solving the energy needs of the future.

THEFUEL FOR GROWTH

Recipe for success: lubricantsmixed specially for the Chinesemarket at the Castroltechnology centre.

AREAENLARGED

kmkm

PHILIPPINESEA

Urumqi

Xi’an

Guangzhou

Zhuhai

Shanghai

Nanjing

DalianBEIJING

Harbin

Chongqing

MYANMAR TAIWAN

PHILIPPINES

VIETNAMLAOS

THAILAND

BANGLADESH

BHUTAN

INDIA

CHINA

NEPAL

PAKISTAN

TAJIKISTAN

MONGOLIA

JAPANNORTH KOREA

SOUTH KOREA

RUSSIA

KAZAKHSTAN

KYRGYZSTAN

85

20

145

40

1,0001,000500500


Liming Chen’s life changedthe day he learned he hadpassed the nationaluniversity entranceexams, when his resultswere announced over hisvillage’s loud speakersystem. Born in poverty

on a farm in the middle of the Junger basin– an area surrounded by mountains in thefar northwest of China – Liming’sschoolwork consisted more of cottonpicking than multiplication tables. Today,he heads up BP’s $4.7 billion businessinvestment in China.

“I always say to young people ‘if youbelieve that you can learn only what theyteach you in school, then I should be afarmer today,’” he says.

Liming and millions like him haveraised themselves out of poverty, as Chinahas transformed. With double-digit growthover the past 30 years, it is now the world’ssecond largest economy, and its car marketoutstrips the US, with 18 million vehiclessold last year, compared to 11 million soldin the US.

But as China looks to a future that manypredict will see it replace the US as theworld’s largest economy, Liming doesn’tforget the lessons of the past.

“The harsh environment taught me theimportant lesson of teamwork,” he says. Itis a sentiment that pervades BP’s work inChina. “Our focus is not just on BP’s needs,but on China’s needs and findingoverlapping interests and room for co-operation.”

“You have to be willing to learn, but youalso have to be humble enough to learn fromothers,” he adds. The work to implement the

Vital statistics:

Name: ChinaTotal area: 9,596,961 square kilometresPopulation: 1,336,718,015Life expectancy: 74.68 yearsCapital city: BeijingClimate: extremely diverse; tropical in southto subarctic in northReligion: Daoist (Taoist), Buddhist, Christian3%-4%, Muslim 1%-2%

»

best safety measures at SECCO (see page 44),BP’s petrochemical joint venture with stateoil company Sinopec, is proof of this belief.BP has also shared its experience ofresponding to the Gulf of Mexico oil spill,and the lessons it has learned, with state oilcompanies such as Sinopec.

BP has a long history with China, and ispartnering the country in some majorareas. It is working with Chinesecompanies on building safer operations;teaming up with Chinese companieslooking for global expansion; and helpingChina find ways to meet its growing energyneeds, which includes developingalternative forms of energy.

It is also supporting the country’s growth– in February 2011, BP’s petrochemical plantat Zhuhai announced plans for a hike inproduction of purified terephthalic acid(PTA) to 1.7 million tonnes a year, making itone of the largest PTA plants in the world.

And BP is playing a supporting role asChina increases its presence on theinternational stage, partnering Chinesecompanies to access new resources. In fact,these partnerships are proving successfulin Angola, Indonesia and Iraq. Liming says,“Iraq is a big deal that combines BP andCNPC capabilities and strength together.”

These joint projects are important asChina looks to increase its energy security.BP’s Energy Outlook 2030 projects China’s oilconsumption will grow by 8 million barrelsof oil a day (mb/d), to reach 17.5 mb/d by2030, overtaking the US as the world’s largestoil consumer. “I believe multinationalcompanies like BP can play an importantrole in China’s energy security,” Liming says.

To this end, BP has joined in alliancewith the China National Offshore Oil

Corporation (CNOOC) to explore for andproduce gas from the South China Sea, asthe country attempts to reduce its heavydependence on coal, which now makes up70% of its energy mix. As China cleans upits skies and polluted cities, cleaner fuelssuch as gas are experiencing strong growth.

“BP could be a strong supporter of theChinese desire for transformation fromtoday’s energy and pollution-intensivepattern of growth, to a cleaner and moresustainable future,” says Xavier Chen, BP’svice president of policy and integration in China.

Liming agrees. “China knows it can’trepeat the model that industrialisedcountries have gone through, with highenergy consumption and environmentaldamage. The central government hasimplemented tough measures that includereducing the energy intensity of grossdomestic product by 20% in just five years.


Business report> China

Night and day: Shanghai’s famousstrolling spot, The Bund, by night

(above) and a new dawn in makingfuels of the future at the Dalian

Institute of Chemical Physics.


With its mass of grey steel setagainst an imposingskyline, SECCO is a giant ofa petrochemical plant. The

figures speak for themselves: it is BP’s singlelargest investment in China, producing 3.5 million tonnes of petrochemicals –essential ingredients in resins, fibres, plasticsand synthetics. It employs up to 10,000people, at peak maintenance, and straddles200 hectares (500 acres) – large enough tohouse around 200 full-size football pitches. It is also home to one of the world’s largestolefins crackers – the equipment necessaryto turn longer chain hydrocarbons intosmaller olefins, such as ethylene.

But away from the formidable exterior,inside the main building is where thisbehemoth takes on a distinctly personal feel,with a brightly coloured display of postersplastered across the walls. One shows aSECCO employee and her child playing ball,with text that talks about her love for herdaughter and the importance of family. Farfrom decoration, these posters have proved akey step in creating an unrivalled safetyrecord in China and helped SECCO achievesomething remarkable – 88.6 million hoursworked without a single fatality or majorprocess safety incident. This record earnedSECCO the main accolade in 2010 in BP’sinternal recognition programme, whichattracts more than 1,000 entries every year.

Working to embrace the very best BP andSinopec standards, SECCO has built a uniquesafety culture, one that leadership andemployees alike have embraced. At its heartlies a programme called ‘incident and injuryfree’ (IIF) – dubbed locally ‘we care’ – that seeksto make safety personal to every employee.

BP’s Mark Wilson oversaw the programme.He says, “It was hard work, but we changedpeople’s thinking from ‘I’ll work safelybecause I have to’, to ‘I want to work safelybecause it’s good for me and it means I can gohome to my family.’”

Formed in 2001, SECCO is BP’s $2.7-billion50:50 joint venture with Sinopec and itssubsidiary, the Shanghai Petroleum Company.From the beginning, the idea was to set thestandard in safety practices, in a country thathas seen more than 1 million industrialfatalities in the previous nine years.

“We wanted to bring the best internationalBP safety standards to this project,” says JeanneJohns, who sat on the SECCO board. “We

weren’t going to accept that just because it wasChina it wasn’t going to be done this way.”

Changing mindsets is often challenging, butit was the appeal to people’s values that madethe difference. “Bringing home money and asmiling face to the family means everything,”says Xiaoping Yang, SECCO’s director of HSSEand quality, “and that’s how people’sunderstanding shifted. It wasn’t about beingsafe because they had to – they wanted to.”

One example of this shift is the way inwhich product is moved safely to customers inChina, whether by road, rail, ship or pipeline.

“Road transport, especially, is a daily risk,”says Hee Teik Tan, SECCO’s commercialdirector. “So, we’ve trained the trainers to doin-cabin observation and pick up basic issues,such as putting on seat belts and obeying thespeed limit. They’ve taken real ownership ofthe issues, which means we can meetcustomers’ orders and get our people homesafely, too. There’s no magic formula. It’s amatter of engaging people to show them themerits of getting it right safety-wise.”

That engagement extends to treatingcontractors as partners and equals, with trainingfor thousands of rural migrant workers, theimplementation of personal and process safetyprocedures, auditing and inspection, and sharingknowledge with the contractors’ leadership.

The link between personal and processsafety is an important one, and the SECCOleadership has deliberately tried to pay moreattention to process safety, because a failurethere, however small, could lead to personalsafety issues at scale. And that’s where anemphasis on safety pays off.

As a consequence, SECCO has helped buildBP’s credibility as a partner for the future.SECCO is now considered a ‘force for good’ bylocal communities and government agencies– and by BP.

Presenting SECCO with the internal ‘BP at itsBest’ award in 2010, group chief executive BobDudley described the team as the one that “bestrepresents everything that BP wants to be –living out all of our values in a very clear way.”

For the SECCO team, the recognition comesat a point in their safety journey when theyhave good reason to reflect on their success.

“We’ve been on this journey for so long,”says Wilson. Does he feel the pressure tomaintain the safety record? “No,” he says. “Thepressure comes from wanting the people whowork here to go home safely – I don’t need anymore pressure than that.”

MAKING PROCESS SAFETY PERSONALReport> Lou Craig


Inside out: cycling is the way mostworkers get around the 200-hectare

SECCO site (above). In the controlroom, monitors help staff keep a

close eye on the safety of the site.


“There’s no magic formula. It’sa matter of engaging people toshow them the merits ofgetting it right safety-wise.”Hee Teik Tan



These targets provide an opportunity forBP to work with car manufacturers toimprove efficiency and lower emissions,when the desire to own a vehicle is a keyaspiration for the new Chinese middle class.

One example of that desire is thepopularity of the first-ever live televisiondraw for a licence plate. Thousands ofBeijingers watched and waited, hopeful thattheir number would come up. But the oddswere stacked against them, with a one in 10chance of winning. Figures suggest 200,000people had applied online that month forthe chance to ‘win’ one of only 20,000 newplates that would allow them to take toroads so congested that they sometimesresemble a car park rather than a highway.

Designed by the Beijing citygovernment to ease congestion, the lottery-style system began in January 2011, with anew batch of plates released each month.The plan is to limit the number of new carsto 200,000 a year.

With the number of cars on the capital’sroads almost doubling in five years, to 4.76 million, the gridlock has become thestuff of legend. In Shanghai, where BP’slubricants team has built a technologycentre, the locals ask visiting Beijingers, “Is the traffic really that bad?”

Curbs on new vehicles are already inplace in Shanghai, revealing just oneexample of some environmental brakesbeing applied to the more unsustainableparts of China’s economic boom. Complexemission standards exist, too, to clean upthe air in the cities.

For car manufacturers, the challenge isto meet new standards on vehicleemissions and curb fuel consumption, bydesigning greater engine efficiency.Another challenge exists – to build enginesappropriate for the local environment,where traffic congestion means the engineand its lubricants must work harder.

This is where BP’s lubricants brand,Castrol, is playing a role, partnering with thelocal car makers. In Europe, the companyalready works with manufacturers such asBMW and Ford to co-engineer lubricantsthat work together with the new engines toimprove fuel efficiency.

Castrol is a relative newcomer in theChinese market, having only been in thecountry for 16 years. It was the firstinternational lubricants manufacturer,however, to set up a technology centre in China.

The centre is not only designed toprovide deep expertise in the developmentof lubricants, with state-of-the-art analysis,blend science and friction-testinglaboratories onsite, but also as a place towork closely with car manufacturers.

“Chinese manufacturers want to workwith people to improve their technology,and if they see a local option to work withan international brand, that’s an attractiveproposition,” says Paul Turner, China andNorth Asia sales director for Castrol. “Forus, it’s not about flying in and saying I’ll seeyou in six months time. Instead, we cannow have a weekly conversation and reallywork on a project together.”

He adds: “Having a technology centrehere means we can get in on the groundand help the manufacturers meet newcomplex emission standards and work withthem as their business grows.”

According to Zhi Min Liu, technologymanager at the Castrol centre, thechallenge for the car manufacturers is tobuild a smaller but more powerful engine.As the concentration becomes smaller, sodoes the necessity for thinner oil to flowthrough the engine, while still cooling andprotecting the engine against wear andkeeping it clean. “We’re designing tailor-made products rather than general ones.The oil is treated as a key part rather than ageneral part,” he says.

While the centre seeks to formulatelubricants that will work with the fuels oftoday, across the country, BP is also lookingto find the fuels of the future.

Sitting on the northeast tip of China,500 kilometres (310 miles) from Beijing, isthe port city of Dalian, home to cutting-edge laboratories that could hold the key tothe country’s energy outlook.

The Dalian Institute of ChemicalPhysics (DICP) exists to develop hi-techtechnologies in the fields of chemistry andcatalysis, that could benefit the sustainabledevelopment of China. It houses theDalian National Laboratory for CleanEnergy, which targets efforts to buildrenewable and energy-efficienttechnologies.

On campus, there is an enthusiasm fortechnology, with students keen to exhibit

“I believe multinational companieslike BP can play an important role inChina’s energy security.”Liming Chen

Transport options: Beijing’s roads canoften resemble a car park (above, left).

Above, pedestrians and roller skatersget away from the traffic.

»


advances in chemistry, catalysis andmembrane technology, or use the latest kitto see right into the heart of chemicalprocesses in real time.

BP has supported this approach over thepast 10 years, working with the institute inthese fields. And the partnership is not adistant one, with BP offices located oncampus. As the close relationship hasgrown, so has the confidence that thepartnership can yield cost-effectivetechniques for making fuels and chemicalsthrough converting coal or biomass.

“I believe the work we’re doing herecould form the basis for the energytechnologies of the future, maybe in cleancoal or biomass conversion technology,”says Professor Bao, who has worked with BPfor a decade, and was recently elected oneof the youngest of the 709 academicians ofthe esteemed Chinese Academy of Sciences(CAS). Academicians aren’t rare at DICP –of the 124 chemistry members of CAS,Dalian is home to 12 of them.

For now, the success of the partnershipis the partnership itself, according to GregSearle. As BP’s research manager, based atDICP, Searle is proud of the capability thatboth partners bring. DICP is stocked withtalent, with 750 Master and PhD chemistrystudents on campus.

Searle says, “What you’ve got here is aworld-leading research capability, withmore post-graduate chemistry students andtalent than anywhere else in the world.”

He adds, “I believe key technicalbreakthroughs happen when you’re

“BP has been very goodat helping with ourintellectual property,managing patentsinternationally andbringing patent expertshere, so that ourtechnology can have amore global reach.”Professor Bao

New direction: cutting-edgeequipment at the Dalian Instituteof Chemical Physics that allowsresearchers to watch catalyticprocesses in action.

working at the boundaries. Here in Dalian,we are working at the boundaries of a largemultinational company and a leadingresearch institute, the boundaries of Eastand West and of fundamental and appliedresearch – it is hugely exciting.”

And the relationship is mutuallybeneficial, with give and take on bothsides. “This is a place where ideas can betested quickly, reliably and at relativelylow cost, with the aim of turning greatideas into new global technologies,” Searle says.

Professor Bao says, “BP has been verygood at helping with our intellectualproperty, managing patentsinternationally and bringing patentexperts here, so that our technology canhave a more global reach.”

Professor Li Wen Zhao was one of theinitiators of the DICP and BP relationship,and is proud of how it has grown. He agreesthat BP has helped the institute to seeopportunities outside of the lab. “BP has theexperience in the industrialisation of aprocess. We have many new ideas, butwhich ideas could be converted toindustrial use? This is where BP has astrong team and much experience to help us,” he says.

So when can we see a new processdeveloped at DICP with BP that’s ready tobe industrialised for use in China? Searlesays: “Technology development needs timeand patience, but we really believethe current portfolio has the potential todeliver in the next few years.” ■

Viewpoint> Signing ceremony


British Chancellor of the Exchequer George Osborne (far right) talks to the press pool at Number 11,Downing Street, following a meeting with BP chief executive Bob Dudley (far left), BP chairman Carl-Henric Svanberg and Reliance Industries Limited managing director Mukesh Ambani. BP and Reliancehad just signed an agreement to create a partnership that will see BP take a 30% stake in 23 oil and gasproduction sharing contracts in India. The two companies will also form a 50:50 joint venture tosource and market gas in the country. The partnership will combine BP’s deepwater exploration anddevelopment expertise with Reliance’s skills in project management and operations. The 23 contractswill continue to be operated by the Indian company. The transaction constitutes one of the largestforeign direct investments into India. “This partnership meets BP’s strategy of forming alliances withstrong national partners, taking material positions in significant hydrocarbon basins and increasingour exposure to growing energy markets,” said Svanberg. In the background is a portrait of the lateBritish prime minister David Lloyd George, by Sir William Orpen. Look out for a full report on thedeal later this year. ■

REPORT: LISA DAVISON

Historic partnership


PHOTOGRAPHY: STUART CONWAY


➔ biofuels Business acquisition> Verenium

EXPERTSIN THEIRFIELDBP’s acquisition of Verenium’s cellulosicbiofuels business demonstrates thecompany’s commitment to thisalternative fuel. But, it’s not just aboutlaboratories and cutting-edge technology.Sometimes, it’s the people and theirknow-how that are the greatest assets.

Delicate work: a BP scientistperforms micro-tube reactions

at the biofuels globaltechnology centre, San Diego.

REPORT> PAULA KOLMAR PHOTOGRAPHY> JOSHUA DRAKE & FRANK HOM


Business acquisition> Verenium

“We all sat in theconferenceroom – everyVereniumemployee – aswe have done,

regularly, for company meetings and majorannouncements. But that day, we did notknow that we were waiting to find outwhich of us would become BP employeesand which were to stay with Verenium,”says Gordana Djordjevic, senior scientist inthe biofuels industry, and a recent additionto BP’s biofuels business. “Vereniumemployees left the room; the rest of usstarted a new future in BP.”

Purchasing a company’s assets doesn’talways just involve land, structures, rightsand market share. Sometimes, it isexperience and expertise that are theprimary assets. When it bought a large partof the biotech company Verenium inSeptember 2010, BP Biofuels’s global staffalmost trebled: scientists, researchers,engineers, operators and project managerswith advanced skills in developing biofuelsjoined the company, bringing with themcutting-edge technology, laboratories andan advanced demonstration plant.

Verenium’s technology centre in SanDiego, California, is replete with researchlaboratories set up for designing and testingbiofuel components. Jennings, Louisiana, is

home to its demonstration plant, where thenew biofuel samples are run in large-scalequantities. In Florida, BP is growing andimproving high-yielding energy cane(much like sugarcane, but not usable as afood product) and has begun growing moreacreage in East Texas.

BP is now a big player in the globalbiofuels industry: the key is talented people,and their collective knowledge about howbiofuels work and, more importantly, howto make them work more efficiently.

It’s challenging to integrate a group ofexperienced people from a small companyinto a major corporation, but, fortunately,everyone is motivated to meet an aggressiveperformance schedule, safely andsuccessfully.

“The scientific biotechnology talent thatnow defines the BP biofuels group issubstantial,” says Ken Jefferd, integrationmanager. “With this huge talent pool in SanDiego, and the operational demonstrationplant and its staff of 75 in Jennings, BP islaunching our biofuels business onto awhole new level. During the transitionperiod, our task has been to provide theresource support to enable focus on safetyand business performance, as wesimultaneously integrate Verenium into BP,allowing the new biofuels team to grow anddeliver more than they ever have before.”

In tandem, the Jennings facility

underwent major upgrades to make itoperational for the first time andinvestment in the operational side of BP’sUS biofuels processing capacity willcontinue for years to come.

Philip New, head of BP Biofuels, knewearly on that giving the new employeesownership of how the global technologycentre and Jennings demonstration plantoperated was central to success. “Wediscussed BP’s values in depth, agreedspecific milestones for production, andlistened for the things in Verenium’s waysof working that BP Biofuels should learnfrom, and reinforce in the future. It ishaving a major impact, and I am excited byhow positive everyone is about the change.Our aim is to be one team – where you can’tsee the join – I think we’re getting there.”

Building trust has been critical in gettingthe teams onboard. “People are seeing theresources behind the work we are expectedto do, and are realising that if goals are metand technology packages delivered, BP willmake biofuels a market reality in itsportfolio of products,” says Nelson Barton,one of the key people joining BP as globalhead of research and development.

“For scientists and researchers, seeingresearch converted into a saleable productis a powerful motivation to push theboundaries. During and after theacquisition process, BP communicated and

Core components: researchers and atechnician at work in the biofuelstechnology centre and demonstrationplant (far left and middle). Below, bytapping into the energy locked inenergy cane, biofuels can reduce thedependence on petroleum.

followed through with pledges to worktogether, listen and fulfill investmentagreements. Trust has been earned fromboth directions.”

Carey Buckles, manager of the Jenningsfacility, recognised the positive impact ofthe acquisition immediately. “Resourceshave been critical to getting the plant to anoperational level. Our demonstration plantis vital for generating data for large-scaleassessment.” The technology centredevelops the biotechnology and tests it insmall quantities.

“Our value as the processing link is inrevealing what works and what doesn’t.Only after that information is logged canthe San Diego group refine thebiotechnology with confidence,” saysBuckles. “As part of the BP biofuels group,we are up and running at demonstrationscale, directly as a result of the investmentand leadership support of BP.”

Sue Ellerbusch is already seeing theresults. As manager of BP Biofuels in NorthAmerica, she has been involved withVerenium since the start, including with theBP joint venture that preceded theacquisition. “In a matter of weeks, after thecompanies announced that BP wouldacquire the biofuels segment of Verenium,the people transferring to BP clearly startedto see themselves as BP employees. Theyrecognised that we were serious about the

future of biofuels and planned to be a majorpart of it.”

Visibly encouraged by the smoothtransition and enthusiastic new biofuelsstaff, Chicago-based Ellerbusch says, “Wehave a lot to accomplish over the next fewmonths and it will be challenging. With theuplifting attitude of the creative biofuelsexperts now among us, I have confidencethat we can and will succeed, while keepingBP values embedded.”

“It was difficult to separate fromVerenium colleagues, and somewhatdisquieting to move into a corporatestructure,” says Djordjevic. “The fact of thematter is, with BP, we can look forward toan exciting, innovative future growing thebiofuels business: we can seriously exploreideas and follow through at scale to createvalue; our research will be put to use.” Asthe senior biofuels scientist, Djordjevic islooking past tomorrow and on to makingreal progress in biofuels, so that it becomesa viable, everyday fuel. “To see our workbecome a reality motivates us even furtherto make inroads to practical biofuels.”

When asked what is pivotal in theintegration and motivation of the globaltechnology group, New and Jefferd agree:clear, truthful communication and respectfuldialogue. According to Jefferd, “With it, BPwill carve out a successful place in thebiofuels industry. Without it, we would fail.”

“For scientists andresearchers, seeingresearch convertedinto a saleableproduct is a powerfulmotivation to pushthe boundaries.”Nelson Barton



New growth: a farmerand energy cane supplierinspects his next crop.

“We’re determined to do biofuelsexceptionally well – using veryefficient feedstocks grown andprocessed sustainably, anddeveloping advanced technologieswith the potential to make goodbiofuels even better.”Philip New


Business acquisition> Verenium

Turning grass into fuel is a simple way of putting it, but that’sprecisely what BP is doing with its new US-based biofuelsbusinesses. With the purchase of Verenium’s specialist business,BP has taken a major position in cellulosic biofuels – fuels thatare produced from non-edible grasses or woody crops, as opposedto the corn and wheat that provide most of today’s ethanol.

“The acquisition demonstrates BP’s intent to be a leader in thecellulosic biofuels business in the US, and positions us as one ofthe few global companies with an integrated end-to-endcapability, from research and development throughcommercialisation to distribution and blending,” says PhilipNew, chief executive of BP Biofuels.

“Our early partnership with Verenium has been fruitful,enabling the companies to develop a leading cellulosic ethanoltechnology package, driven forward by the skills and expertise ofpeople from both companies. By acquiring Verenium’s cellulosicbiofuels technologies, BP Biofuels should be well placed toaccelerate the delivery of low-cost, low-carbon, sustainablebiofuels, at scale.”

World leaders are pressing scientists and businessesworldwide to develop biofuel technologies and products thatwill relieve dependence on non-renewable fossil fuels, and meetthe growing demand for cleaner fuel.

By tapping into the energy locked in energy cane, biofuels canreduce the dependence on petroleum, while successfullylowering carbon emissions. If produced well, they can alsostimulate agriculture in marginal areas and produce far fewergreenhouse gas emissions than conventional gasoline. Accordingto New, “We’re determined to do biofuels exceptionally well –using very efficient feedstocks grown and processed sustainably,and developing advanced technologies with the potential tomake good biofuels even better.”

The US appetite and market for supporting biofuels is strong;it is the major consumer of fossil fuels globally and the EnergyIndependence and Security Act has spurred efforts to change themix with commercially available alternatives. BP has taken upthe challenge and its $98 million Verenium acquisitions areproof of that commitment.

Since 2006, BP has announced investments of more than $1.5 billion in biofuels research, development and operations, andhas announced investments in production facilities in Europe,Brazil and the US. This includes partnerships with other companiesto develop the technologies, feedstocks and processes required toproduce advanced biofuels, and $500 million over 10 years in theEnergy Biosciences Institute (EBI), at which biotechnologists areinvestigating applications of biotechnology to energy.

With Verenium, BP believes it has access to a technology thatcan deliver commercially viable ethanol, at scale, and turn grassinto fuel in a sustainable way, for the first time in the world.

Cellulosic materials are found in the stems, stalks, and leavesof plants, as well as the trunks and branches of trees, and inagricultural wastes. Cellulosic materials are abundant worldwide– making up most of terrestrial biomass by weight. The fact thatthey are not needed for food or animal feed – unlike other biofuelfeedstocks – explains why they have attracted so much scientific,political and commercial interest. ■

NEW DEAL TO ACCELERATEBIOFUELS DELIVERY

What the Verenium dealmeans for BP:● Purpose-built bioscience R&D

facilities in San Diego, California.● Intellectual property related to

proprietary cellulosic biofuels R&Dand conversion technology.

● 1.4 million-gallon-per-yeardemonstration facility in Jennings,Louisiana.

● Sole ownership of Galaxy BiofuelsLLC, which holds the parties’ jointlydeveloped intellectual property.

● Sole ownership of Vercipia Biofuels,which is commercialisingproprietary technology forcellulosic ethanol production.


➔ careers Talent development> Ultimate Field Trip 2010

THE

Talented team: geologystudents Chris Hunter, LizzieRiley and Ben Said spent sixweeks working with BP in 2010.The trio are pictured here inone of BP’s highly immersivevisualisation environments(HIVE) in Sunbury, UK. HIVEsfeature a series of three-dimensional computer screensaround which teams can gatherto study data and images.


Report> Jaclyn ClarabutPhotography> Stuart Conway & Graham Trott

The prize was the field trip of a lifetime, and for the three studentswho won the inaugural Ultimate Field Trip competition, the coveted

summer internship with BP certainly lived up to its name.

ULTIMATE TEAM


The six-week internship gives the winnersaccess to the full range of BP’s North Seaoperations, including a stay on an offshoreplatform, a trip to Norway and access to BPmentors. But the internship is nosightseeing holiday. The students musthelp BP address real-world problems on aproject that gives them the chance to puttheir own ideas into practice.

The competition is now in its secondyear, and for BP, it exists to attract the bestscience, technology, engineering andmathematics (STEM) students, and to give them an insight into the excitingcareers and opportunities offered by theenergy industry.

The battle for places has been fierce,with interest from hundreds of studentsacross the UK. Such was the standard of thestudents who made it to the 2010 final, thatall 15 were guaranteed a first interviewwith the company after graduation. But,there could only be one team thatultimately won the trip and that prize wentto Team Meltdown.

“We thought everyone would be betterthan us. But we put in a lot of hard work,and it really paid off.” So says Chris Hunter,who alongside Lizzy Riley and Ben Saidmade up the members of Team Meltdown.

A group of young people stand on stage in front of a liveaudience ready to take tough questions from a panel ofexperts. This is not the latest television talent show, butthe grand final of the Ultimate Field Trip competition,where the brightest UK students pitch their ideas to a BPjury, who will decide which team will win a summerinternship with the company.

»

Although the competition is aimed atSTEM undergraduates, that didn’t stop thesecond-year geology students fromImperial College, London, entering. Theywere attracted by the chance to contributeto solving climate change – a topic familiarto today’s undergraduates, who have grownup at the same time as climate changeconcerns have developed.

Fifty-two entries from teams of threewere eventually narrowed down to five setsof hopefuls. At a grand final held atLondon’s Natural History Museum in April2010, Meltdown impressed the judgingpanel of senior BP executives with theiranswer to the question: what innovative,scientific ideas can your team come upwith to address the carbon dioxide (CO2)emitted from a typical power station, using natural gas from the North Sea togenerate electricity?

Inspired by their studies of the Ice Age,Meltdown fought off stiff competition –and a tough BP panel – with their winningproposal for cutting carbon emissions byusing photosynthetic single cell micro-organisms, such as algae and bacteria.

Crowned champions by BBC Radio 4news presenter John Humphrys, the teamjoined BP during their summer break. One

Ultimate Field Trip 2011This year’s entrants were asked to form ateam of three and submit innovative,scientific ideas for maintaining the UKcontinental shelf as a global centre ofmarine technology and engineeringexcellence, by extending the useful life ofNorth Sea oil and gas infrastructure – andpotentially, the oil and gas fields – as theireconomically productive activity comesto an end. The final is scheduled for April2011. See www.bp.com/fieldtrip formore information.


Talent development>Ultimate Field Trip 2010

Tough competition: five teamseventually battled it out for theinternship at last year’s grandfinal (opposite), presenting theirideas to a BP jury. Above, BenSaid says his perception of theNorth Sea industry has changedas a result of his time at BP.


of their first tasks was to complete theirbasic offshore safety induction andemergency training, which includeshelicopter submersion instruction – a keysafety skill for anyone travelling offshore toan oil and gas installation – to teachhelicopter passengers a safe escape routeshould the aircraft have to ditch at sea.

For all three students, the experience wasworth it for the chance to go offshore to BP’sETAP platform. With its nine differentreservoirs, BP’s Eastern Trough Area Project(ETAP) is one of the largest North Sea oil andgas projects of the past 20 years.

Chris says, “Making our descent in thehelicopter and then landing on theplatform was amazing.” Ben adds, “Lookingdown through the floor and seeing theocean beneath your feet, that’s a reallyimpressive experience. We were there for aweek, but we really wanted to stay longer.”

Team Meltdown was there to assess thetechnical feasibility of adding a newtechnology to ETAP. Developed byCalifornia company Alphabet Energy, thetechnology is a waste heat recovery unitthat can generate electricity from wasteheat. The brief was to look at whether it wasfeasible to retrofit this technology to thepower turbine exhaust system on ETAP. Thetrio had to verify both the operating anddesign conditions across various utilitysystems; perform a mass and energy balance,in addition to verifying the economicfeasibility of each design.

BP’s Geoff Noble mentored the students,who, he says, impressed him by whole-heartedly tackling process engineering,despite having geosciences backgrounds,“Credit to them for getting stuck in. Theyhad the confidence to find the right peopleon the platform, and that’s what we’relooking for: people who have theconfidence to do that.”

Process engineer Raj Misra also played arole in guiding the team. He says,“Determining whether a retrofit of thismagnitude is feasible is not always bestachieved by pouring over heaps of designdocumentation in the office. In theappraise project phase, it is invaluable tosurvey the proposed offshore locationidentified for the modifications and discussthe project directives with the relevantplatform-based operations personnel.While on the platform, an engineer canappreciate the equipment layout inaccordance with the design drawings.Discussions with both onshore- andoffshore-based personnel will help to

ensure that the design incorporates humanfactors and is inherently safe.”

The research group tasked with studyingthe economic feasibility of the project alsotook Meltdown to Norway. Here, theytravelled to Stavanger, home to part of BP’sNorth Sea business, to assess whether theamount of carbon tax saved by the

technology would make the multi-milliondollar investment worthwhile in Norway.

Taking a well-earned break, the grouphiked to Pulpit Rock, a massive 604-metre-(1,982 feet) high cliff above Lysefjorden.“This was definitely one of the highlights,”says Lizzie.

At the end of the study, the teampresented their findings to BP’s North Seaexecutive team. As the technology was stillunproven, the students advised that it wasmore prudent to await the results ofindustrial trials prior to installing theequipment in a harsh offshore environment.

Graham Howes, BP’s Alternative Energyadviser, attended the presentation withinterest. “I was impressed with the workthey did, but I was disappointed with theresults. But, now we have that information,we have a starting point and a lot of insightinto how we could make it work. The teamwas looking at an early-stage technologythat we think has a place in the future andcould be significant for BP,” he says.

The students from Meltdown could alsohave a place in BP’s future, as all three haveaccepted further internships with thecompany. ■

QUICK FIRE Q&A WITH THE WINNERS

LizzieWhat did you learn about working in theoil industry? You have the opportunity to dowhatever you want; you’re not restricted. Andmost roles are inter-related.What did you learn about yourself? I wantto change my career path and go intoenvironmental science.

BenWhat was your highlight? The finalpresentation of our project – that was a nice,satisfying feeling, particularly havingsomeone say it taught them something. What did you learn about working in theoil industry? I think the general perceptionis that the North Sea is a dying industry, butthat’s not the case! The technology we lookedat (as part of the final project) showed that.

ChrisWhat did you learn about working in theoil industry? It’s a lot more complex, withlots of different career options, and it’s anindustry I’d definitely like to get involved in. Any advice for this year’s entrants?Anyone can enter it, we were geologists andwe won. It wasn’t because we were smarter,but we tried really hard. We had the mostamazing summer. If we hadn’t won, Iwould’ve spent the summer doing 12-hourshifts on minimum pay – or sleeping!


Talent development>Ultimate Field Trip 2010

Bright futures: Lizzie (facingpage), Chris (above) and Benhave all accepted furtherinternships with BP. Opposite,BBC Radio 4 news presenterJohn Humphrys hosted the2010 grand final.


They were the Randy Fletchersand Brad Byczynskis (see page 27)of their day. These two imagescapture members of the Anglo-Persian Oil Company’s firebrigade, based at Abadanrefinery, at work. The top imagewas taken in 1935 outside thestation, while the photograph tothe right-hand side shows a firedrill being carried out in 1926.

PARTING SHOTPhotography> BP Archive

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