+ 16 DIGITAL AGE 22 INDIA 46 STATS REVIEW The technology to Fuelling a Marking 60 years manage corrosion growing giant of energy data THE INTERNATIONAL MAGAZINE OF THE BP GROUP ISSUE 2 2011 BPMAGAZINE 08 SPOTLIGHT: EXPLORATION NEW PROSPECTS BP Magazine talks to the company’s Exploration leader about investing for the future. Welcome. There’s been a lot of debate lately about whether the days of ‘easy oil’ are over. But, contents / issue 2 2011 I suspect that if you were to ask the late William Knox D’Arcy – BP’s founder – he would probably + Features have told you there was nothing ‘easy’ about Cover story looking for oil in the early 20th century. One 08 Future assets BP’s head of Exploration, Mike Daly, talks about the company’s series of new access thing is clear – finding new sources of energy deals and the importance of passing on knowledge to remains the lifeblood of any oil and gas company. the next generation of explorers. By Lisa Davison We talk to Mike Daly, BP’s head of Exploration Photography by BP Imageshop & Corbis (page 8), about this ongoing search and find out 16 Corrosion control Managing the effects of corrosion on platforms and refineries is a daily task, so the why flexibility is crucial to success. On page 22, development of new technologies is proving vital in helping we head for India, a nation with rising energy BP’s engineers tackle it. By Jaclyn Clarabut Photography by Marc Morrison needs and the hydrocarbon potential to meet 22 Indian investment With a new partnership with some of that demand. In other parts of the India’s Reliance Industries, BP looks set to tap into an magazine, we return to the Gulf of Mexico (page opportunity to help this nation meets its growing energy 32), to find out what some of the local fishermen needs. By Amanda Breen Photography by Corbis & iStockphoto are experiencing as they get back to work a year 32 Back to work With the Gulf Coast fishing season now in full swing, four local fishermen give their views on after the oil spill; we take a look back at 60 years the industry one year after the oil spill. By Ray Viator of the BP Statistical Review of World Energy (page 46); Photography by Marc Morrison and Ray Viator and on page 60, British Paralympian Shelly Woods 40 Plain sailing A new programme created by BP talks about preparing for London 2012 and her Shipping looks set to change the way commercial shipping travels the high seas. By Ian Valentine Photography by Graham Trott role as one of BP’s athlete ambassadors. 46 Numbers game The 60th edition of BP’s Statistical Lisa Davison> Editor Review of World Energy was published in June and to mark the occasion we look back at some of its highlights. By Chris Cragg Illustration by Alex Williamson 52 Going for gold British Paralympian Shelly Woods is one of six British athletes who BP is supporting in the run- up to the Olympic and Paralympic Games in 2012. She talks about training, competing and her ambassador role for BP. By Amanda Breen Photography by Serena Ovens & Action Images BP MAGAZINE + Regulars The international magazine of the BP Group – ISSUE 2 2011 BP Magazine is published quarterly for external readers around the 04 For the record A snapshot of BP news and statistics world, as well as past and present BP employees. Its content does not from around the world. necessarily reflect official company views. The copyright for photographs and illustrations in BP Magazine is not 06 Science made simple With BP’s large assets and always owned by BP. Please contact BP Photographic Services for details. thousands of kilometres of pipeline, corrosion is a key concern for the company. But what is it and how does it managing editor design form? By Jaclyn Clarabut Illustration by Brett Ryder David Vigar Phil Steed – Steed Design [email protected] [email protected] www.steeddesign.com 30 Viewpoint Local schoolchildren showcase their work editor at one of BP’s sites in southeast England. Lisa Davison print management [email protected] Williams Lea Photography by Jon Challicom distribution image contributors Carolyn Copland BP Imageshop 51 BP Faces Jeff Waytashek talks about life as a +44 (0) 20 7496 4340 Lance Bell corrosion expert and why he has the rustiest truck in the Heart Agency parking lot. By Jaclyn Clarabut Photography by Marc Morrison Corbis Action Images 58 Archive A look back at some of the explorers of BP’s past. Photography by BP Archive 62 Parting Shot: Artist’s impression This year’s Cover image: The FPSO Polvo in Brazil. BP will become the operator BP Portrait Award winner revealed Photographer Jon Challicom of the Polvo field, following a transaction between it and Devon Energy. Polvo currently produces 25,000 barrels of oil per day. © BP p.l.c., 2011 46 Stats and facts Marking 60 years of the BP Statistical Review of World Energy. For the record Highlights from around the globe > Summer 2011 the quarter in numbers 3 US The number of China contractors that BP and Davy Process Technology UK Germany are to collaborate with to promote the Brazil Indonesia Azerbaijan commercialisation of the BP/Davy Fischer Tropsch process. 5 The number of China: energy growth laboratories that BP has China became the world’s all forms of energy grew World Energy, the longest- helped open at the Qafqaz largest energy consumer in strongly in 2010 and running, consistent set of University, Azerbaijan. 2010, overtaking the US increases in fossil fuel objective, global energy during a year in which the consumption suggest that data used by business, rebound in the global global carbon dioxide academics and economy drove emissions from energy use governments to inform 5.6% consumption higher, and at rose at their fastest rate policy and decision a rate not seen since the since 1969. The figures making. For more on the The rate of growth in aftermath of the 1973 oil come from the 60th annual history of the Statistical global energy consumption price shocks. Demand for BP Statistical Review of Review, see page 46. in 2010. This is the highest rate since 1973. $680 million The amount in cash, subject to closing adjustments, that BP will receive from the sale of ARCO Aluminum to a consortium of Japanese companies. Energy giant: China overtook the US as the world’s largest energy consumer for the first time in 2010. 04 Issue 2 2011 BP MAGAZINE US BP’s plan, announced in Indonesia. BP and co-owner complete its purchase of 10 GoM agreement July 2010, to divest up to Pertamina were jointly exploration and production BP has reached an $30 billion of assets by the awarded the Tanjung IV blocks from Devon Energy. agreement with MOEX end of 2011. CBM PSC through a direct The blocks will give BP a Offshore and its affiliates, award from the Government broad deepwater Mitsui Oil Exploration and Azerbaijan of Indonesia. Meanwhile, BP exploration position MOEX USA Corporation, to Agreement ratified and co-owner PT Sugico offshore Brazil and includes settle all claims between the The Parliament of the Graha (Sugico) were jointly two onshore licences in the companies related to the Republic of Azerbaijan has awarded the Kapuas I, II and Parnaiba basin. Deepwater Horizon ratified the new production III CBM contracts. accident. MOEX had a 10% sharing agreement between Germany interest in the Macondo BP and SOCAR on joint UK Refinery partnership well and has joined BP in exploration and Olympic exhibition Rosneft has become a new recognising and development of the Shafag- BP and London’s Royal partner in BP’s German acknowledging the findings Asiman structure in the Opera House are refining joint venture, Ruhr of the Presidential Azerbaijan sector of the collaborating with The Oel GmbH. This follows the Commission. Under the Caspian Sea. Under the Olympic Museum to create completion of the deal agreement, MOEX USA 30-year agreement, BP will a free exhibition that will announced last October, in Corporation will pay BP be the operator, with a tell the Olympic story which BP’s existing partner, $1.065 billion. BP will 50% interest, while SOCAR through the endeavours of PDVSA of Venezuela, agreed immediately apply the will hold the remaining ancient and modern to sell its 50% interest in the payment to the $20-billion 50% equity. Olympians. Called The joint venture to Rosneft. trust fund it established to Olympic Journey: The Story of meet individual, business US the Games, the exhibition Brazil and government claims, as Gulf restoration will be staged at the Royal Biofuels expansion well as the cost of Natural BP has signed an agreement Opera House for the BP is to acquire majority Resource Damages. with federal and state duration of the 2012 control of the Brazilian agencies that will accelerate Olympic Games. Unique ethanol and sugar producer work starting this year to artefacts, graphics, film and Companhia Nacional de restore areas of the Gulf of audio from The Olympic Açúcar e Álcool (CNAA). Mexico that were affected Museum in Lausanne, When CNAA’s assets are by the Deepwater Horizon Switzerland, will be shown fully developed, this is accident. The agreement in London for the very first expected to increase BP’s commits up to $1 billion to time as part of the overall Brazilian projects that will restore exhibition. production capacity to injured natural resources in around 1.4 billion litres of the Gulf at the earliest Brazil ethanol equivalent per year.