SafetyandOperationalRiskUpdateMarkBlyExecutiveVicePresident,S&ORProgressinsafetyandriskmanagement•ActingonlessonsfromtheGulfofMexicooilspill•Investmentinintegrityandcapability•DivisionalandFunctionalmodelinUpstream•Riskmanagement•S&ORorganization•Buildingsafetyandoperationalrisk(S&OR)capabilityo175+individualsrecruitedtodate,with160inactiverecruitmento65–70%ofprojectedrecruitmentisexternal–fromtheoilandgasindustryandbeyond•S&ORauthoritiesandindependentviewarecontributingto:oMorecomprehensiveandassuredriskactionplansforeachoperationalunitoMoreincisiveinterventionsonemergingrisksituationsoImprovedinvestigationsandlearningfromallsignificantincidentsoEnhancedcompetencyassuranceofcriticalrolesinsafetyandoperationalriskoConformancewithrequirementsthrough:increasedauditscopereal-timeadviceandguidanceS&ORinterventionrights•GroupsafetyandoperationsriskmanagementstrategicframeconfirmedoIdentifieskeyenduringobjectivesoMulti-yearagendasetstheprioritiesforoperatingentitiesoInformedbylearningandrecentprogressEmbeddingS&OR–highlightssinceMaySelf&independentassuranceconfirmsconductofoperatingDeepcapability&asafeoperatingcultureacrossalllevelsofBPBP’ssafetyandoperationalriskmanagementstrategicframeResultschecks&balancesSystematicoperatingRiskassessment&managementOrganizationcompetence&contractorsLeadershipoperatingleaders&cultureEnduringPrinciplesFocusAreasOMSisthewayBPoperates5Leadership,operatingleaders&cultureOurenduringobjectiveThatBP’soperatingculturecontinuouslycreatesanenvironmentofsafe,compliantandreliableoperationsWhatwearebuildingon•Clearandpervasivetonefromthetoponpriority•Reinforcingactions:oS&ORorganizationandauthoritiesoInitialinterventiononrewardandperformanceobjectivesettingwithemphasisonsafetycontributionfromeveryemployee2011/12activities•Fundamentalrefreshofcorporatevalues,re-emphasizessafetyasthehighestvalue•Revisedperformanceandrewardmechanismreinforcingvalues•Definingexpectationsofoperationsleadersexpressedinpersonalperformanceobjectives•Leveragingexistingcapabilityprogramstoreinforceleadersroleinembeddingvaluesandsafetyculture•Structuredleadershipfieldengagements,whereleadersobserve,inspectandcorrect6Organization,competence&contractorsOurenduringobjectiveThatcriticalrolesarestaffedwithcompetentpeopleandcontractoractivitiesarebeingmanagedsafelyWhatwearebuildingon•Existingcompetencyrequirementsandprograms•Increasedbreadthofrolesdefinedassafetyandoperationalrisk(SOR)critical•S&ORindependentendorsementofSORcriticallineappointments•CompetencyassessmentsofprioritySORcriticalrolescommenced•ExistingOMSrequirementsandprocessforcontractormanagement2011/12activities•AcceleratingassessmentofprioritizedSORcriticalroles•Implementingmandatorycompetencyassurancerequirements•Implementingmandatorycontractormanagementrequirements•Targetedenhancementofmanagementandassuranceplansforpotentialhighconsequencecontractoractivities7RiskassessmentandmanagementOurenduringobjectiveThatBPbusinessescomprehensivelyunderstandtheirsafetyandoperationalrisksandarecontinuallyinactiontocontroloreliminatethemWhatwearebuildingon•Suiteofmandatorypracticesformanagementofoperationalrisks•EnhancedannualprocessformanagementofoperationalrisksoImplementationofgrouppracticeonassessmentandprioritizationoGreatervisibilityandstrongergovernanceoIndependentS&ORscrutiny•S&OR’sinde...