Leading from the top in BP

Steve Flynn Vice President, HSSEBP Group Safety and Operations

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What I’m going to cover

• Our track record

• Leading from the very top

• Our Strategic approach

• The way forward

• BP’s leadership model

• Summary

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BP days away from work frequency rate – last 20 years

1.44

1.22 1.2 1.18

0.6

0.43 0.430.39

0.27 0.250.19

0.13 0.10 0.09 0.08 0.11 0.08 0.07

0.44

1.56

0.84

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

87 88 89 90 91 92 93 94 95 96 97 98 99 2000 2001 2002 2003 2004 2005 2006 2007

North sea disaster; Grangemouth incident

Safety in performance contracts

Clear vision introduced‘getting health, safety & environment right’

Advanced safety auditing

Texas City incident

Golden rules of safety

Measures Days Away From Work Case Frequency (DAFWCF) per 200,000 hrs

BP Amoco merger

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BP’s HSSE performance

0

200

400

600

800

1000

1200

1999 2000 2001 2002 2003 2004 2005 2006 2007

Recordable Injury Frequency

Oil Spills greater 1 bbl

Integrity Management Incidents

Workforce Fatalities

0

5

10

15

20

25

30

1999 2000 2001 2002 2003 2004 2005 2006 2007

non road related road related

0

0.5

1

1.5

1999 2000 2001 2002 2003 2004 2005 2006 2007 0

20

40

60

80

2004 2005 2006 2007

Reported High Potentials Major Incidents

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March 23, 2005

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Leading from the very topThe BP Group Operations Risk CommitteeThe Group Operations Risk Committee (GORC) is chaired by Tony Hayward and meets monthly. It brings together our segment CEOs with senior functional expertise to oversee and build a foundation for consistent, safe, reliable operations. This includes:

• Incident analysis, learning and response• Monitoring performance indicators• Reviewing delivery of the Six-Point Plan • Oversight of development and implementation of BP’s

Operating Management System (OMS)• Oversight of HSE and Operations capability development• Independent Panel response and its integration into plans and OMS

The GORC also model the expected leadership behaviours and sets the tone at the top of the organization for others to follow

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Strategic model

Performance & risk – through layers of protection to reduce the potential for major incidents and losses:

− plant – engineering hardware, control systems, physical layouts

− processes – management systems to identify, control and mitigate risks, and drive continuous operational improvement

− people – capability in terms of leadership skills, relevant knowledge and experience, and the organizational culture

‘Hard barriers’ are more reliable than ‘soft barriers’, but all ultimately rely on people

The ‘Swiss Cheese’ Model

Hazard Protective‘Barriers’

Weaknessesor ‘Holes’

PlantProcesses

People

Accidentdeliver Performance

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Strategic approach

SustainableCompetitive Advantage

Business Value

Destruction

Neutral

Catastrophic Loss Significant Risk

Mitigation Essentials

Legal Compliance

Basics &BP Requirements

Efficiency

Excellence

Business specific

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Immediateaction Six-Point Plan Deep

Embedding Aspiration

Pla

nt

Pro

cesses

Peop

le

Strategic milestones – sustainable

Temporary AccommodationBlow-down Stacks

Operating procedures

Integrity Management &Control of Work

Compliance

Audit Actions

Major Accident RiskOperating

ManagementSystem (OMS)

… sustained by the right

organisational capability & cultureOperations Competence

World ClassOperating Company

‘Getting HSE Right’ Management System

2005 2011+

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The BP leadership model

- Items related to imperatives identified in CEO 6-point plan

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In summary…

For BP, our journey is about:

• getting the basics right, consistently

• not just occupational safety but also process safety

• developing and maintaining integrated and consistently delivered systems and processes which underpin learning and sharing

• ensuring risks are owned and managed locally, in a sustainable way

• developing well-trained, competent people and teams who have pride in what they do

• creating and sustaining a world class operating culture, supported by a few clear and well-understood values and behaviours and an environment of continuous performance improvement…

And most of all, it’s about leadership