BP Annual Report and Form 20f 2018 PDF

Growing the business
and advancing the

energy transition
BP Annual Report and Form 20-F 2018

Advancing energy to
improve people’s lives
Contents
Strategic report Financial statements
Helge Lund succeeded
Overview Carl-Henric Svanberg 113 Consolidated financial statements
2 BP at a glance as chairman. Helge of the BP group
4 How we run our business joined the board in July 134 Notes on financial statements
and took the chair on Supplementary information on
210
6 Chairman’s letter
1 January 2019. oil and natural gas (unaudited)
8 Group chief executive’s letter
See page 6. Parent company financial
238
9 The changing energy mix
statements of BP p.l.c.
Strategy
10 Our strategy
12 BP investor proposition Corporate governance Additional disclosures
14 Major project start-ups 58 Board of directors 273 Contents
63 Executive team Including information on liquidity
Performance and capital resources, oil and gas
68 Introduction from the chairman
16 Measuring our progress disclosures, upstream regional
70 Board activity in 2018
18 Global energy markets analysis and legal proceedings.
74 Shareholder engagement
19 Group performance
74 International advisory board
22 Upstream Shareholder information
75 Audit committee
28 Downstream 81 Safety, ethics and environment 305 Contents
34 Rosneft assurance committee Including information on dividends,
37 Other businesses and corporate 83 Remuneration committee our annual general meeting
38 Alternative energy 84 Geopolitical committee and share prices.
40 Innovation in BP 315 Glossary
85 Chairman’s committee
43 Sustainability 86 Nomination and governance committee Non-GAAP measures reconciliations
320
43 Safety and security
87 Directors’ remuneration report 323 Signatures
45 Climate change
48 Managing our impacts 110 Directors’ statements 324 Cross-reference to Form 20-F
49 Value to society 325 Information about this report
49 Human rights
50 Ethical conduct
51 Our people
53 How we manage risk
Glossary
55 Risk factors
Words and terms with this symbol are defined in the glossary on page 315.
Cautionary statement
This document should be read in conjunction with the cautionary statement on page 303.
What we do Our people
We provide customers with fuel for and our values
transport, energy for heat and light,
power for industry, lubricants to keep The BP values express who we are
engines moving and the petrochemicals and what we stand for. They capture the
products used to make everyday items individual and collective behaviours we
such as paints, clothes and packaging. expect from everyone who works for us.
Our people help build enduring
Find out more about our activities
on page 4. relationships based on mutual trust
with governments, customers, partners,
suppliers and communities.
Read more about our people on page 51

or visit bp.com/values.
Informing our thinking
Global prosperity is shaping economic
and energy trends.
By 2040:
Safety
Respect GDP doubling
Excellence >2.5 billion people
lifted from low incomes
Courage
See how we consider a range of
scenarios on page 9.
One team
Our performance
in 2018
See how our businesses have performed
and how we are reducing our emissions,
Our strategy improving our products and creating low
Our four strategic priorities are designed carbon businesses.
to allow us to be competitive at a time Find out more on pages 16 to 56.
when prices, policy, technology and
customer preferences are evolving
rapidly.
Find out more on page 10.
BP Annual Report and Form 20-F 2018 1

BP at a glance
We are a global energy business Scale

with wide reach across the
world’s energy system. We have
73,000 78 19,945
employees countries million barrels of oil
operations in Europe, North and equivalent – proved
South America, Australasia, Asia hydrocarbon reservesa
and Africa.
18,700 63,000
Data as at or for the year ended 31 December 2018 retail sites square kilometres of
unless otherwise stated. new exploration a
n a combined basis of
O
access subsidiaries and equity-
accounted entities.
BP in action Completed a significant

turnaround at our largest
Acquired Chargemaster,
operator of the UK’s
Purchased a 16.5% interest
in the UK’s Clair field from
Highlights of some of refinery, Whiting in largest electric vehicle ConocoPhillips – increasing
our activities in 2018. the US. charging network. our share to 45.1%.
Opened more than

220 REWE to Go®
convenience retail
sites in Germany.
Signed a production-sharing
Acquired a portfolio of
agreement with SOCAR to
unconventional assets from BHP
explore and develop in the
in some of the best basins across
North Absheron basin in
Texas and Louisiana.
Azerbaijan’s Caspian Sea.
Signed an agreement
with the governments of
Opened our 440th
Mauritania and Senegal
BP-branded retail site
to enable development of
in Mexico.
the BP-operated Greater
Tortue Ahmeyim gas
Formed a strategic alliance project.
with Petrobras to explore
joint projects in upstream,
downstream, trading and low
carbon. And accessed new
acreage in the Santos basin, Gained approval for the
offshore Brazil, making us the Ghazeer project to develop
second-largest exploration the second phase of the
holder in the basin. Khazzan field in Oman.
2 See Glossary BP Annual Report and Form 20-F 2018

Strategic report – overview
Performance
$9.4bn 3.7 16 Six major projects
started up in 2018
profit attributable million barrels of oil tier 1 process
to BP shareholders equivalent per day – safety events
hydrocarbon productiona
(2017 $3.4 billion) KPI (2017 3.6mmboe/d) KPI (2017 18) KPI
$12.7bn 100%
underlying replacement group proved reserves
cost profit replacement ratio a a
On a combined basis of
KPI See key performance
subsidiaries and equity-
indicators on page 16. (2017 $6.2 billion) KPI (2017 143%) KPI
accounted entities.
See pages 14 and 15.
Completed a deal to Invested in PowerShare – a Chinese More on our

develop resources in company that’s connecting EV
renewables activity
the Kharampurskoe and drivers, charge point operators
Festivalnoye licence and power suppliers. And signed
areas in Russia, jointly a memorandum of understanding
with Rosneft. with NIO Capital to explore
opportunities in advanced mobility.
Investments in electric vehicle

technology on page 42.
Low
carbon ambitions on
pages 46-48.
Took delivery of British

Partner – the first of six
state-of-the-art liquefied
natural gas ships being
constructed in
South Korea.
Fuelled the first non-stop

flight from Perth to
London with Air BP jet
fuel produced at our
nearby Kwinana refinery.
Lightsource BP delivered its

first Indian solar project. And BP
sanctioned the second phase of
the KG D6 development in the
‘Satellite cluster’ deepwater gas
fields in India with Reliance.
BP Annual Report and Form 20-F 2018 See Glossary 3

How we run our business
Business model foundations
Safe and reliable operations Talented people
From the deep sea to the desert, We strive to create and maintain a safe We work to attract, motivate, develop and
from rigs to retail, we deliver operating culture where safety is front and retain the best talent the world offers and
centre. This is not only safer for people equip our people with the right skills for
energy products and services
and the environment – it also improves the the future. Our performance and ability
to people around the world. reliability of our assets. to thrive globally depend on it.
We provide customers with fuel for See Safety and security on page 43. See Our people on page 51.
transport, energy for heat and light,
power for industry, lubricants to keep
engines moving and the petrochemicals
products used to make everyday items
such as paints, clothes and packaging. 1 Finding oil and gas
We have a diverse portfolio across
businesses, resource types and
geographies. Having upstream,
downstream and renewables businesses,
along with well-established trading
capabilities, helps to mitigate the impact
of commodity pricing cycles. Our
geographic reach gives us access to
growing markets and new resources,
as well as diversifying exposure to
geopolitical events. We are helping to
meet the dual challenge of society’s
need for more energy while reducing
emissions through our ‘reduce, improve,
create’ framework (see page 46).
We believe that our long history,
well-recognized brands and customer
offers, combined with our unique
partnership with Rosneft, help
differentiate us from our peers.
2 Developing and extracting oil and gas
Creating value
Our role in society
The energy we produce helps support 1 Finding oil and gas We also seek to grow or extend the life of
economic growth and improve quality existing fields – such as our Clair Ridge project,
New access allows us to renew our portfolio,
of life for millions of people. We strive to which is helping unlock additional resources
discover additional resources and replenish
be a world-class operator, a responsible from the Clair field in the UK North Sea.
our development options. We focus our
corporate citizen and a great employer. exploration activities in the areas that are See Upstream on page 22.
We believe the societies and competitive in the portfolio, and develop and
use technology to reduce costs and risks. 3 Transporting and trading
communities we work in should benefit
from our presence. We aim to create We move oil and gas through pipelines and by
eveloping and extracting
2 D
ship, truck and rail. We also trade a variety of
positive, meaningful and sustainable oil and gas
impacts in those communities through products including oil, natural gas, liquefied
our social investments. We develop the resources that meet our natural gas, power and carbon products, as
return threshold and produce hydrocarbons well as derivatives and currencies. BP’s traders
We contribute to economies around that we then sell to the market or distribute serve more than 12,000 customers across
the world by employing local people, to our downstream facilities. Our upstream some 140 countries in a year. Our customers
helping to develop national and local pipeline of future projects gives us choice range from independent power producers to
suppliers, and through the funds we about which we pursue. utilities and municipalities. We are the largest
pay to governments from taxes and trader of natural gas in North America.
other agreements.
We use our market intelligence to analyse
See bp.com/society for more information supply and demand for commodities across
on how we generate value to society.
our global network.
4 BP Annual Report and Form 20-F 2018

Technology and innovation Partnerships and collaboration Governance and oversight
New technologies help us produce energy We aim to build enduring relationships Our risk management systems and policy
safely and more efficiently. We selectively with governments, customers, partners, provide a consistent and clear framework
invest in areas with the potential to add greatest suppliers and communities in the countries for managing and reporting risks. The board
value to our business, now and in the future, where we operate. regularly reviews how we identify, evaluate
including building lower carbon businesses. and manage risks.
See Innovation in BP on page 40. See Rosneft on page 34 and Upstream analysis See How we manage risk on page 53
by region on page 279. and Corporate governance on page 57.
3 Transporting and trading 4 Manufacturing and marketing
6 Venturing 5 Generating renewable energy
anufacturing and marketing fuels

4 M In petrochemicals our proprietary technology And in solar energy we target the growing
and products solutions deliver leading cost positions demand for large-scale solar projects
compared to our competitors. In addition to worldwide through Lightsource BP.
We produce refined petroleum products
our own petrochemicals plants, we work
at our refineries and supply distinctive See Alternative energy on page 38 and
with partners and license our technology
fuels and convenience retail services to Climate change on page 45.
to third parties.
consumers. Our advantaged infrastructure,
6 Venturing
logistics network and key partnerships help See Downstream on page 28.
us to have differentiated fuels businesses We invest in high-tech companies to help
and deliver compelling customer offers, 5 Generating renewable energy accelerate and commercialize new
including lower carbon products. We have been investing in renewables for technologies, products and business
many years. Our focus is on biofuels, models. Our focus is on five areas that
Our lubricants business has premium
biopower, wind energy and solar energy. are core to our strategy for advancing the
brands and access to growth markets.
We operate a biofuels business in Brazil, energy transition: advanced mobility,
It also leverages technology and customer
using one of the world’s most sustainable and bio and low carbon products, carbon
relationships, all of which we believe gives
advantaged feedstocks to produce renewable management, digital transformation and
us competitive advantage. We serve
ethanol and power. We also provide renewable power and storage.
automotive, industrial, marine and energy
power through our significant interests in
lubricant markets across the world. See bp.com/venturing.
onshore wind energy in the US, and develop
and deploy technology to drive efficiency.

Chairman’s letter
I am of the view that more energy with

fewer emissions – the dual challenge
– can be met if a progressive and
pragmatic approach is taken to the
energy transition.
Dear fellow shareholder,

2018 has been a year of very good operating performance, important
strategic progress and continued change. Our teams have delivered
strong results across the business and we are well positioned to
continue to deliver value as we play our part in the dual challenge
of delivering more energy with fewer emissions.
It was an honour to be appointed chairman of BP. I have huge
respect for the responsibilities that come with the role and I will do
my utmost to provide thoughtful leadership to the board of directors
and support for Bob Dudley and his team as we advance BP in a
changing energy landscape.
BP’s strong position is a great tribute to my predecessor as chairman,
Carl-Henric Svanberg. During his nine-year tenure Carl-Henric did an
outstanding job of guiding our company through difficult times.
On behalf of the board, I want to thank him for his contribution.
It has been a pleasure to get to know my new colleagues on the board,
and I believe we have a wide ranging combination of diversity, skills,
experience and knowledge that we need to steer the company through
a landscape that is both uncertain and presents possibilities. Last year
we welcomed Dame Alison Carnwath and Pamela Daley to the board,
each with extensive experience gained in a range of executive and
non-executive roles in large companies. And this year we say farewell to
$8.1bn Alan Boeckmann and Admiral Frank ‘Skip’ Bowman. Alan and Skip have
both made valuable contributions during their tenures, particularly
total dividends distributed through their leadership and membership of our safety, ethics and
to BP shareholders environment assurance committee.
Strengthening organizational culture and capability

6.3% The work of the board will continue to evolve over time to make sure
that BP is best positioned to advance the energy transition, embrace
ordinary shareholders digital disruption and meet society’s changing expectations of major
annual dividend yield companies. In my short time so far at BP I have already seen for myself
many examples of the commitment of our people. Their drive and
6.4%
determination have brought BP to where it is today, and I want to thank
them for their hard work. It is critically important we continue to
strengthen our organizational capabilities – both by developing our
ADS shareholders
people and by continuing to attract the world’s top talent. We look
annual dividend yield
forward to doing this by continuing to foster a diverse and inclusive
culture, where everyone feels valued.

Our progressive, pragmatic approach to the This year, the board is pleased to support a resolution that has been
energy transition proposed by a group of investors at our annual general meeting in May.
The resolution, if passed, will pave the way for additional reporting to
There are two defining priorities for our industry. One is to produce help investors better understand how BP’s strategy is consistent with
more energy to meet growing global demand as emerging economies the Paris climate goals. We see this as an important opportunity for
develop and provide people with a better quality of life. The other is investors to appraise our progress in responding to the dual challenge.
to play our part in reducing greenhouse gas emissions. I am of the Further details can be found in the Notice of Meeting, to be published
view that more energy with fewer emissions – the dual challenge – in April.
can be met if a progressive and pragmatic approach is taken to the
energy transition.
Our clear purpose
In BP we recognize that energy in many forms will be required, produced Finally, I think it is important for BP’s success that we have a clear
in ways that are cleaner and better. That is why we see ourselves not purpose – one that is strongly linked to society’s needs. That is why
just as an oil and gas business but as a global energy business. We also one of the first things I have done with the board is review our purpose
recognize that we must be constantly improving and seeking out new in line with our strategy and values. Our purpose is to advance energy
ideas and possibilities. We must be able to learn fast and harness all the to improve people’s lives. Today the world needs more energy than
potential of the rapid advances in digital and other new technologies. ever but with fewer emissions. To help meet this dual challenge we
have to be financially strong and make sure we continue to be an
Earning trust through strong values attractive investment through the energy transition.
Pursuing this approach, BP is guided by its values of safety, respect, I look forward to working with Bob and the team as we advance the
excellence, courage and one team. These are values I personally energy transition, delivering through our strategy, guided by our values
share. I believe they help to build trust with our people, partners, and inspired by our purpose. I also look forward to hearing from you, and
the communities in which we work, and with you, the owners of meeting many of you, in the coming months and years as we look to
the company. reward your trust and confidence in BP.
Above all, our primary focus has to always be on operating safely
and reliably, minute by minute, day after day. Protecting people, the
environment and our assets is always our top priority and the bedrock
on which success is built. I think of it as having the tightest defence in
the league, like a good football team. If you have a strong defence, you
can be more forward looking, compete harder and be better positioned
to win. Helge Lund
Chairman
We value the dialogue we have with you and others, sharing our 29 March 2019
achievements, our challenges and our plans and seeking your views.
This report is one of many ways we update you on our activities
and progress.
More information
Corporate governance
Page 57

Group chief executive’s letter
Our strategy is delivering value for you,

our shareholders, while being flexible
and agile for the energy transition
underway.
Advancing the energy transition

The deals we made and the strategy we have in place are evidence that
BP is a forward-looking energy business. One that is already playing an
active role in advancing the energy transition.
That’s why we are making bold changes across our entire business to
reduce emissions in our operations, improve products to help customers
reduce their own emissions, and to create new low carbon businesses.
This is our ‘reduce, improve, create’ (RIC) framework which we are
backing up with clear targets. I am pleased to report we are making
good progress against these targets.
BP is also working with peers on a range of fronts, in particular to tackle
methane emissions and create opportunities for carbon capture,
utilization and storage. You’ll see this in our work with the Oil and Gas
Dear fellow shareholder, Climate Initiative, which I chair, and whose members now represent
30% of global oil and gas production.
I am pleased to report that 2018 was another remarkable year for BP.
Our safety performance continued to improve overall, helping to create As well as action across the industry, at BP we understand that meeting
record operational reliability, which led to strong production, and record our own low carbon ambitions is a shared responsibility across our
refining throughput. entire business. That’s why we are now incentivizing around 36,000
employees who are eligible for an annual cash bonus to play a role by
Strength in numbers linking their reward to one of our emissions reduction targets.
This ultimately contributed to us maintaining a healthy balance sheet

as we more than doubled our underlying profit, nearly doubled our
Possibilities everywhere
return on average capital employed, and significantly increased We will continue to be open and transparent about our ambitions, plans
operating cash flow. and progress, recognizing that the trust of our shareholders and other
stakeholders is essential to BP remaining a reliable and attractive
It was a year in which we secured our biggest deal in 20 years, acquiring long-term investment. And only by ensuring we remain a world-class
BHP’s world-class unconventional oil and gas onshore US assets. We investment, can we most effectively play our part in advancing a low
also made progressive moves in mobility, such as the acquisition carbon future.
of the UK’s leading electric vehicle charging network to create
BP Chargemaster. As a global energy business with scale, expertise and strong
relationships around the world, we don’t just believe we have an
BP is in good shape. Our strategy is delivering value for you, important part to play in the dual challenge, we see value-generating
our shareholders, while being flexible and agile for the energy opportunities for BP throughout the energy transition.
transition underway.
We’re making good progress delivering our strategy while flexing and
• We continued to focus on advantaged oil and gas in the Upstream,
adapting to an environment that is changing fast. We have a great team
delivering new supplies of gas from four of our six new major projects
at BP and I would like to thank them all for their continued dedication and
brought online in 2018. We are also expanding our LNG portfolio and
relentless commitment to advancing the energy transition.
developing new markets in transport and power.
• In the Downstream, we expanded our retail offer, as seen by more
than 25% growth in our convenience partnerships, to around 1,400
sites worldwide.
• As we pursue venturing and low carbon across multiple fronts,
Lightsource BP doubled its global solar presence to 10 countries. Bob Dudley
• And we underpinned all this by continuing to modernize our plants, Group chief executive
processes, and portfolio by harnessing the potential of digital and new 29 March 2019
technologies to provide greater efficiencies, reliability and safety.
GAAP equivalents
Profit attributable to shareholders: $9.4bn (2017: $3.4bn)
Average capital employed: $165.5bn (2017: $159.4bn)

The changing energy mix

The BP Energy Outlook explores the forces shaping the
global energy transition out to 2040 and the key uncertainties
surrounding that transition. We use the scenarios in the
Outlook together with a range of other analysis and
information when forming our long-term strategy.
The demand for energy is set to increase significantly – growing That said, oil and gas could meet at least 50% of the world’s energy
economies need energy to support their industry and infrastructure. needs in 2040 – even in a scenario consistent with the Paris goals, with
In all the scenarios considered, world GDP more than doubles by 2040 the share of gas growing aided by increasing use of carbon capture, use
driven by increasing prosperity in fast-growing developing economies. and storage.
In the evolving transition scenario, this improvement in living standards Gas offers a cleaner alternative to coal for power generation and can
causes energy demand to increase by a third by 2040, driven mainly by lower emissions at scale. It also provides a valuable partner for
India, China and other developing Asian economies. The rate of growth renewables intermittency, delivers heating at the high temperatures
however is slower than in the previous 20 years, as the world increasingly required by industry and is increasingly used in transportation. Across
learns to produce more with less energy. Despite this, a substantial our scenarios, gas grows robustly, overtaking coal as the second-largest
proportion of the world’s population in 2040 could live in countries where source of energy by 2030.
the average energy consumption per person is relatively low.
Oil demand grows for the next 10 years in our evolving transition scenario,
At the same time, the energy mix is changing as technology advances, before gradually levelling out due to factors such as accelerating gains in
consumer preferences shift and policy measures evolve. Renewables vehicle efficiency and greater use of biofuels, natural gas and electricity.
are now the fastest-growing energy source in the world today and in our The largest source of oil demand growth is the non-combusted use of oil,
evolving transition scenario we estimate that they could account for for example as a feedstock for petrochemicals.
15% of all energy consumption in 2040 – and in other scenarios more.
Energy consumption – 2040 projections

34%
23%
28%
4%
7%
4%
Actual energy mix

2017
Evolving transition 1 Evolving transition

27%
26%
20%
15%
4%
7%
2040 This scenario assumes that

government policies, technology
and social preferences continue to
evolve in a manner and speed seen
Rapid transition
23%
26%
29%
7%
6%
9%
2040 over the recent past.

2 Rapid transition
This scenario is consistent with the
0 5 10 15 20 Paris goals, and is broadly similar to
Billion tonnes of oil equivalent. The sum of the fuel shares may not equal 100% due to rounding. the reduction in carbon emissions in
the IEA’s Sustainable Development
Oil Gas Coal Nuclear Hydro Renewables Scenario.
1 Evolving transition 2 Rapid transition

More information
• World energy demand increases by one third • Oil demand in 2040 decreases by 14Mb/d.
BP Energy Outlook
from 2017 to 2040. Biofuels grow by 4Mb/d.
See bp.com/energyoutlook for more information on
• CO2 emissions from energy use increase • CO2 emissions from energy use decline our projections of future energy trends and factors
that could affect them out to 2040.
by 7% by 2040. by around 45% by 2040.
BP Technology Outlook
• Oil and gas account for more than half of • Global energy consumption grows by See bp.com/technologyoutlook for information on
global energy in 2040. around one fifth. how technology could influence the way we meet
the energy challenge into the future.

Our strategy
Society is demanding solutions

for more energy, delivered in new Growing advantaged oil
and better ways for a low carbon and gas in the upstream
future. Our strategy is designed
to meet this dual challenge.
Through new technologies, energy will be
produced more efficiently and in new ways,
helping to meet the expected rise in demand.
Our strategy allows us to be competitive at a Invest in more oil and gas,
time when prices, policy, technology and producing both with increasing
customer preferences are evolving rapidly. efficiency.
We believe having a balanced portfolio with
advantaged oil and gas, a competitive
Key highlights
downstream and a range of low carbon
activities, with the flexibility of our strategy, Transforming US onshore
gives us optionality whatever path the
transition takes.
With the experience we have and the portfolio
we’ve created, we can embrace the energy
transition in a way that enhances our investor
proposition, while continuing to meet the need
for energy.
More information
Purchased unconventional assets from BHP,
Financial framework
How this underpins our commitment giving us access to some of the best basins
to disciplined investment and growing in the onshore US.
shareholder value. See page 13.
See Upstream on page 24.
Collaborative partnerships
Signed a new production-sharing agreement
with SOCAR, Azerbaijan’s state oil and gas
company, to jointly explore and develop block
D230 in the Caspian Sea. And formed a
strategic alliance with Petrobras to explore joint
projects in upstream, downstream, trading and
low carbon in Brazil.
See Upstream analysis by region on page 279.
Project approvals
Sanctioned Ghazeer in Oman – the second
phase of development in the Khazzan gas
field; Alligin and Vorlich in the UK North Sea;
the Cassia Compression and Matapal gas
projects in Trinidad; KG D6 Satellites in India;
Zinia 2 in Angola; Manuel and Atlantis Phase 3
in the Gulf of Mexico; and Tortue in Mauritania
and Senegal.
Major project start-ups

Started up six major projects, making a
significant contribution to the 900,000 barrels
per day of expected new production from major
project start-ups between 2016 and 2021.

Strategic report – strategy
Market-led growth in the Venturing and low carbon Modernizing the
downstream across multiple fronts whole group
Innovate with advanced products Pursue new opportunities Simplify our processes and enhance
and strategic partnerships. to meet evolving technology, our productivity through digital
consumer and policy trends. solutions.
Convenience partnerships Harnessing battery power Using wearable technologies
Opened more than 220 additional REWE to Made a series of investments in electric Trialled new technologies, such as smart
Go® retail sites in Germany, taking the total vehicle technology and infrastructure to help glasses in the US and digital vests in Oman,
number of convenience partnership sites to us respond to rising demand for battery to help increase safety and efficiency at our
around 1,400 across our global retail network. charging facilities, including the acquisition operations.
of Chargemaster, operator of the UK’s largest
electric vehicle charging network.
See Downstream on page 28. See Innovation in BP on page 42. See page 52.
Growing retail in new markets Advancing solar Cloud-based technologies

Expanded our network to 440 BP-branded Lightsource BP has doubled the number Deployed Plant Operations Advisor on our
retail sites in Mexico and opened our first of countries where it has a presence since four platforms in the US Gulf of Mexico. The
sites in Indonesia. December 2017. cloud-based tool helps reduce the time it
could take engineers to diagnose a problem
See Downstream on page 28. See Climate change on page 45.
from hours to minutes.
Sustainable aviation fuel Turning waste to fuel See Innovation in BP on page 40.
Entered into an innovative collaboration Licensed technology, developed by BP and
between Air BP and Neste, a leading Johnson Matthey, to Fulcrum BioEnergy® for Intelligent operations
renewable products producer, to secure and use at their planned US commercial-scale Installed APEX technology across all our
promote the supply of sustainable aviation fuel. waste-to-fuels plant. upstream BP-operated assets to gather data
about every well and help identify efficiency
See Climate change on page 45.
Strong brands and partnerships improvements.
Strengthened our lubricants and fuels Cleaner power See Innovation in BP on page 40.
partnership with Renault Sport Racing – Working with the Oil and Gas Climate Initiative
extending our BP Castrol sponsorship and to progress the Clean Gas Project, which plans Process automation
broadening the relationship to include joint to use natural gas to generate power, and then Reduced the time it takes to complete manual
development of advanced mobility solutions capture and transport the CO2 by pipeline for tasks, such as contract management and
and new technologies. storage in a formation under the southern customer data processing, by using robotic
North Sea. process automation. This is helping to optimize
See Downstream page 28.
our business processes, drive productivity and
See bp.com/sustainability for more information.
improve customer satisfaction.

BP investor proposition
of demand in a low carbon world. We have strong incumbent positions

in many of the world’s top hydrocarbon basins and a robust pipeline
of growth opportunities – see page 27. We started up six major projects
in 2018.
Fit for the Focused on
Safer The Downstream business has a strong and focused presence. We
future returns have advantaged manufacturing facilities, considerable potential for
growth in our marketing businesses, and are expanding our retail
network in rapidly growing markets such as Mexico, Indonesia and
China. We also provide products – such as fuels with ACTIVE technology
Safe, reliable A distinctive Value based, – and offers that help consumers lower their emissions – see page 28.
and efficient portfolio fit for a disciplined Through our well-established supply and trading function we generate
execution changing world investment and value by providing the link between our businesses and third-party
cost focus customers. In November BP and partners in banking and trading
launched VAKT, the world’s first blockchain platform for managing
post-trade oil and commodities commercially.
And we’re increasing our activity in renewables, building on our existing
solar, wind and biofuels businesses, and creating new business models.
For example Lightsource BP has doubled the number of countries
Growing sustainable free where it has a presence since December 2017 – see page 47.
cash flow and distributions Embedded within our strategy is our commitment to advance a low
to shareholders over the long term carbon future. We plan to deliver this across our entire business by
reducing emissions in our operations, improving our products and
services, and creating low carbon businesses.
See Our low carbon ambitions on page 46.

Our investor proposition is to grow sustainable free cash flow and
distributions to shareholders over the long term. We believe our strategy We are actively managing the portfolio to remain resilient in a
enables this, through a focus on safe, reliable and efficient execution, changing world and believe we have enough flexibility in our portfolio
leveraging our distinctive portfolio, and disciplined investment to support to reshape our business and balance sheet in around 10 years should
growing returns. we need to. This enables us to monitor changing trends and legislation,
and provides us with optionality to adjust our portfolio and adapt to
Safer the future.
Safety is one of our core values and our number one priority. We are Focused on returns
focused on being systematic, disciplined and process driven.
We have a disciplined financial framework that is central to our strategy,
A safe business doesn’t just protect people, it also helps improve and clear growth plans out to 2021 and beyond.
operating performance, leading to improved business and financial
performance. In recent years overall safety events have declined, and Recent portfolio additions and new long-term agreements – for example
we’ve increased upstream plant reliability and downstream refining our purchase of BHP’s unconventional onshore assets in the US and
availability . the new production-sharing agreement we signed with SOCAR in
Azerbaijan – have strengthened our position.
See Measuring our progress on page 16 and Safety on page 43.
We have held our capital frame of $15-17 billion a year for organic
Fit for the future expenditure for the past three years and expect to do so at least out to
2021. We believe we can continue to generate robust organic growth
As an integrated business, we benefit from having upstream, within this framework and that the strength of our balance sheet will
downstream, renewable energy businesses and an established trading allow us to deal with any near-term volatility.
function. Our balanced portfolio spans resource types and geographies
We remain confident in our guidance on returns of greater than 10%
with a strong and distinctive set of assets, brands and relationships.
by 2021 at an oil price of $55/bbl (based on real 2017 Brent oil prices).
In the Upstream we are growing ‘advantaged’ oil and gas – that
See Group performance on page 19.
means low cost or high margin. This improves the likelihood that
the hydrocarbons we produce are resilient and competitive in terms
2.5% $8.1bn
Distributions to shareholders
Our commitment to growing distributions to shareholders is underpinned
by our progressive dividend policy and share buyback programme. dividend increase total dividends distributed
in July to BP shareholders in 2018
In July 2018 we announced a 2.5% increase to our dividend, and over the year
distributed total dividends to shareholders of $8.1 billion. We have remained
active in our share buyback programme, buying back 50 million ordinary shares
in 2018 at a cost of $355 million including fees and stamp duty.

Our financial framework
We maintain a disciplined financial framework, which underpins our investment choices and supports growth in sustainable free cash flow,
returns and distributions to shareholders. Our balance sheet and cash cover metrics are strong, and during 2018 this enabled us to acquire the
BHP Lower 48 assets, funded using available cash. Alongside the real momentum across our businesses, and in line with growing free cash
flow and the receipt of divestment proceeds, we continue to expect to deliver the 2021 targets laid out two years ago.
2018 outcome Guidance 2019-2021
Capital expenditure Organic capital expenditure was $15.1 We expect organic capital expenditure to be
billion*, at the bottom end of our guidance. in the range of $15-17 billion per year.
Divestments Total divestment and other proceeds of We expect more than $10 billion of
$3.5 billiona achieved. This was in line with divestments over the next two years. This
guidance of more than $3 billion for the year. includes divestments announced as part of
the BHP transaction.
Gulf of Mexico oil spill 2018 payments totalled $3.2 billion, in line We expect payments of around $2 billion in
payments with our guidance of just over $3 billion. 2019, stepping down to around $1 billion per
year for the next 14 years.
Gearing Gearing at the end of 2018 was 30.3%**. We expect gearing to be in the range of
20-30%.
roup return on average

G ROACE was 11.2%***, almost double that We expect ROACE to be more than 10% by
capital employed (ROACE) in 2017. 2021 at $55/bbl (based on real 2017 Brent
oil prices).
Distributions We increased the quarterly dividend by 2.5% Progressive dividend and a continued share
in July and repurchased 50 million ordinary buyback programme, which is expected to
shares at a cost of $355 million in 2018. fully offset the impact of scrip dilution since
the third quarter of 2017 by the end of 2019.
Our published guidance will be updated for any impacts associated with the new lease accounting standard, IFRS 16 ‘Leases’, during 2019.
a
This includes a $0.6 billion loan repayment to BP relating to the refinancing of Trans Adriatic Pipeline AG. Divestment proceeds for 2018 were $2.9 billion.
Balancing our sources and uses of cashb Organic sources and uses of cash b
($ billion)
Following the rebalancing of organic sources and uses of cash in 2017, For the year ended 31 December
operating cash flow excluding the Gulf of Mexico oil spill payments 2018 2017
30 30
exceeded organic capital expenditure and dividends in 2018. After
25 25
adjusting for a working capital build in the year, BP’s free cash flow
20 20
surplus was $6.5 billion equivalent to an organic cash break even oil
15 15
price of $50 per barrel on a full dividend basis. We continue to
expect the cash break even to reduce over time in line with growing 10 10
operating cash flow across the businesses and organic capital 5 5
expenditure in the range of $15-17 billion per year. Sources Uses Sources Uses
Other sources and uses of cashb ($ billion)

For the year ended 31 December
Nearest equivalent GAAP measures
2018 2017
15 15
* Capital expenditure: $25.1 billion.
10 10
** Gross debt ratio: 39.3%.
***Numerator: Profit attributable to BP shareholders $9.4 billion; 5 5
Denominator: Average capital employed $165.5 billion.
Sources Uses Sources Uses
Organic sources Organic uses

Operating cash flow excluding Gulf of Organic capital expenditure
Mexico oil spill payments Cash dividends paid
This does not form part of BP’s Annual Report on Form 20-F as filed with the SEC.
b Others Share buyback
2018 includes a $0.6 billion loan repayment to BP relating to the refinancing of Trans Adriatic
c
Other sources Other uses
Pipeline AG. 2017 includes proceeds of $0.8 billion received relating to the initial public offering Divestment and other proceedsc Operating cash flow – Gulf of Mexico
of BP Midstream Partners LP’s common units, which are shown within financing activities in oil spill
the group cash flow statement. Inorganic capital expenditure

Major project start-ups
Atoll Phase 1, Egypt Thunder Horse Northwest

Expansion, US
We developed and delivered first gas from
Atoll Phase 1 less than three years after its
discovery. It supports our commitment to
help realize Egypt’s oil and gas potential
and meet the increasing demand from its
growing population.
Operator Pharaonic Petroleum
Company
Partners BP (100%)
Project type Conventional gas
16 months
from sanction to
first oil
Cairo
We started up the Thunder Horse

110km Northwest Expansion project 16 months
subsea tieback after it was sanctioned. The project is on
our largest platform in the deepwater
6,400 Gulf of Mexico.
metres <3 years

Operator BP
well depth, Partners BP (75%), ExxonMobil
more than Mount to deliver (25%)
Kilimanjaro Project type Deepwater oil
Suez
Clair Ridge, UK North Sea
Clair Ridge is the second phase

development of the Clair field –
the largest in the UK continental shelf.
Operator BP
Partners BP (45.1%), Shell (28%),
Chevron (19.4%), Conoco
Phillips (7.5%),
Project type Conventional oil

Western Flank B, Australia Taas-Yuryakh expansion, Russia
Led by our partner Rosneft, the Taas-Yuryakh expansion project

in Eastern Siberia is an example of successful collaboration in
the remote Russian region of Sakha (Yakutia).
Operator Taas
Partners Rosneft (50.1%), Oil India, Indian Oil, Bharat
PetroResources (29.9%), BP (20%)
Project type Conventional oil and gas
Located off the north-west coast of

Australia, the Western Flank B project
develops five fields via an eight subsea
well tieback to the Goodwyn A platform.
Operator Woodside
Partners BP, BHP, Chevron,
Shell, Woodside and
Japan Australia LNG
(16.67% each)
Project type LNG
Photo credit: Woodside Energy Ltd.
Shah Deniz Stage 2, Azerbaijan
26 Shah Deniz Stage 2 was our biggest major project start-up in

2018. It includes complex offshore and onshore projects with
subsea wells
pipeline developments across the Southern Gas Corridor.
500km Operator BP
of subsea flow lines Partners BP (28.8%), SOCAR (16.7%), PETRONAS (15.5%),
Lukoil (10%), NICO (10%), TPAO (19%)
Project type Conventional gas
Azerbaijan Georgia Turkey

2 new bridge- 2 new 2,760 metres
linked platforms compressor the highest point of the
constructed by 5,000+ stations 1,850km TANAP pipeline,
workers and installed in in eastern Turkey
each approximately the
the Caspian Sea size of 20 football pitches

Measuring our progress
We assess our performance

Safer
across a wide range of
measures and indicators that Tier 1 process safety eventsa Reported recordable injury frequencya
are consistent with our strategy REM REM REM REM
and investor proposition. 2018 16 2018 0.20

2017 18 2017 0.22
Our key performance indicators (KPIs) provide 2016 16 2016 0.21
a balanced set of metrics that give emphasis 2015 20 2015 0.24
to both financial and non-financial measures. 2014 28 2014 0.31
These help the board and executive 10 20 30 40 0.1 0.2 0.3 0.4
management assess performance against We report tier 1 process safety events which are losses of Reported recordable injury frequency (RIF) measures the number
primary containment of greatest consequence – causing harm of reported work-related employee and contractor incidents
our strategic priorities and business plans, to a member of the workforce, costly damage to equipment or that result in a fatality or injury per 200,000 hours worked.
with non-financial metrics playing a useful role exceeding defined quantities. 2018 performance We have seen a decrease in our RIF
as leading indicators of future performance. 2018 performance We have seen a slight decrease in tier 1 compared with 2017. Our goals stay the same – to have
BP management uses these measures to process safety events. However there is always more we can no accidents, no harm to people and no damage to the
do and we remain focused on achieving better results today environment.
evaluate operating performance and make and in the future.
financial, strategic and operating decisions.
More information Focused on returns

Strategy
Pages 10-13 Underlying replacement cost profit Operating cash flow ($ billion)
($ billion) REM REM REM REM
Changes to KPIs 9.4

2018
26.1
2018
12.7 22.9
In 2018 we introduced a target to achieve 3.4 24.1
3.5 million tonnes of sustainable GHG 2017 2017
6.2 18.9
emissions reductions in our operations 2016
0.1
2016
17.6
2.6 10.7
worldwide by 2025. Progress towards this
(6.5) 20.3
target has now been incorporated into the 2015
5.9
2015
19.1
assessment of the group’s performance that 3.8 32.8
2014 2014
is a factor in determining annual bonuses for 12.1 32.8
0
eligible BP employees worldwide. This will Operating cash flow excluding Gulf of Mexico oil
Profit (loss) for the year
apply to our performance assessment in Underlying RC profit for the year (non-GAAP)
spill payments (non-GAAP)b
2019 and beyond. We are also changing Operating cash flow
Underlying RC profit is a useful measure for investors
downstream refining availability to BP- because it is one of the profitability measures BP management Operating cash flow is net cash flow provided by operating
uses to assess performance. It assists management activities, as reported in the group cash flow statement.
operated downstream refining availability Operating activities are the principal revenue-generating
in understanding the underlying trends in operational
to more closely align with our BP-operated performance on a comparable year-on-year basis. activities of the group and other activities that are not investing
upstream plant reliability measure. or financing activities. We believe it is helpful to disclose net
It reflects the replacement cost of inventories sold in the cash provided by operating activities excluding amounts related
period and is arrived at by excluding inventory holding gains to the Gulf of Mexico oil spill because this measure allows for
and losses from profit or loss. Adjustments are also made
Remuneration for non-operating items and fair value accounting effects .
more meaningful comparisons between reporting periods.
2018 performance Operating cash flow was higher due to
To help align the focus of our board and 2018 performance The significant increase in both profit for improved business results, including the benefit of higher
executive management with the interests of the year and underlying RC profit was largely due to higher oil prices and lower Gulf of Mexico oil spill payments, which
profits in Upstream, reflecting major project start-ups and amounted to $3.2 billion in 2018, partly offset by higher
our shareholders, certain measures are used higher prices, partly offset by higher taxes. working capital.
for executive remuneration.
Measures used for the remuneration policy

REM Return on average capital employed (%) Total shareholder return (%)
approved by shareholders at the 2017 AGM.
REM REM REM
Measures for the annual bonus are focused 2018 11.2 (4.6)
2018
on safety, reliable operations and financial 2017 5.8 0.5
performance. Measures for performance 20.0
2016 2.8 2017
9.5
shares are focused on shareholder value, 2015 5.5 29.0
capital discipline and future growth. 2016
2014 9.6 55.5
(12.8)
2015 (8.3)
REM These measures were used for executive Return on average capital employed (non-GAAP) gives an
remuneration under the terms of our indication of a company’s capital efficiency, dividing the (16.5)
2014
discontinued 2014-16 policy. underlying RC profit after adding back net interest by average (11.6)
capital employed, excluding cash and goodwill. See page -20 0 20 40 60
321 for more information including the nearest equivalent
More information GAAP data.
ADS basis Ordinary share basis
Directors’ remuneration 2018 performance The increase reflects improved business Total shareholder return (TSR) represents the change in value
results, including the impact of higher prices and the benefit of of a BP shareholding over a calendar year. It assumes that
Page 87
further upstream major project start-ups in the year. dividends are reinvested to purchase additional shares at the
closing price on the ex-dividend date.
Footnotes key
We are committed to maintaining a progressive and
a
his represents reported incidents occurring within BP’s
T
sustainable dividend policy.
operational HSSE reporting boundary. That boundary
includes BP’s own operated facilities and certain other 2018 performance Reduced TSR reflects a reduction in the
locations or situations. share price in 2018 compared with share price growth in 2017,
These bars on the chart do not form part of BP’s
b largely offset by higher dividend in 2018.
Annual Report on Form 20-F as filed with the SEC.
c
elates to BP employees.
R

Strategic report – performance
Fit for the future
Reserves replacement ratio (%) Production (mboe/d) Upstream unit production costs ($/boe)
REM REM
2018 100 2018 3,683 2018 7.15

2017 143 2017 3,595 2017 7.11
2016 109 2016 3,268 2016 8.46
2015 61 2015 3,239 2015 10.46
2014 63 2014 3,141 2014 12.75
60 80 100 120 140 160 3,000 3,200 3,400 3,600
Proved reserves replacement ratio is the extent to which the Production is a useful measure for tracking how our major The upstream unit production cost indicator shows how
year’s production has been replaced by proved reserves added projects are helping to grow our business. We report supply chain, headcount and scope optimization impact cost
to our reserve base. production of crude oil, condensate, natural gas liquids (NGLs), efficiency.
The ratio is expressed in oil-equivalent terms and includes natural bitumen and natural gas on a volume per day basis for 2018 performance Higher unit production costs, compared
changes resulting from discoveries, improved recovery and our subsidiaries and equity-accounted entities. Natural gas is with 2017, were due to increased well-work activity and the
extensions and revisions to previous estimates, but excludes converted to barrels of oil equivalent at 5,800 standard cubic impact of higher prices on production entitlements.
changes resulting from acquisitions and disposals. The ratio feet of natural gas = 1 boe.
reflects both subsidiaries and equity-accounted entities. 2018 performance BP’s total reported production, including
This measure helps to demonstrate our success in accessing, Upstream and Rosneft segments, was 2.4% higher than in
exploring and extracting resources. 2017. This was due to major project ramp-ups and improved
2018 performance The ratio of 100.4% was in line with our plant reliability.
five-year average reserves replacement ratio, due to new
project investments and revisions in our existing projects.
Refining availability (%) Major project delivery Upstream plant reliability (%)
REM REM REM
2018 94.9 2018 6 2018 95.7

2017 95.3 2017 7 2017 94.7
2016 95.3 2016 6 2016 95.3
2015 94.7 2015 4 2015 95.0
2014 94.9 2014 7 2014 93.4
90 2 4 6 8 90
Refining availability represents Solomon Associates’ We monitor the progress of our major projects to gauge BP-operated upstream plant reliability is calculated as
operational availability. The measure shows the percentage of whether we are delivering our core pipeline of projects under 100% less the ratio of total unplanned plant deferrals divided
the year that a unit is available for processing after deducting construction on time. by installed production capacity.
the time spent on turnaround activity and all mechanical, Projects take many years to complete, requiring differing 2018 performance The result was a record, reflecting our
process and regulatory downtime. amounts of resource, so a smooth or increasing trend should focus on efficiency of execution, and use of advanced new
Refining availability is an important indicator of the operational not be anticipated. technologies and digital applications.
performance of our Downstream businesses. Major projects are defined as those with a BP net investment
2018 performance Refining availability remained strong, of at least $250 million, or considered to be of strategic
underpinned by our global reliability improvement programmes. importance to BP, or of a high degree of complexity.
The result was, however, lower than 2017 reflecting increased 2018 performance We started up six major projects in
maintenance, particularly at our Gelsenkirchen refinery. Australia, Azerbaijan, Egypt, Russia, the UK and US.
Greenhouse gas emissions Diversity and inclusionc (%) Employee engagement (%)
(million tonnes of CO2 equivalent)
2018 46.5 24 2018 66
2018
2017 49.4 24 2017 66
21
2016 50.1 2017 2016 73
24
2015 49.0 22 2015 71
2016
2014 48.7 23 2014 73
20 40 60 19
2015 21
We provide data on greenhouse gas (GHG) emissions material We conduct an annual employee survey to understand and
to our business on a carbon dioxide-equivalent basis. This 18 monitor levels of employee engagement and identify areas for
2014 21
comprises direct emissions of CO2 and methane. Our GHG improvement.
KPI comprises 100% emissions from subsidiaries and the 5 10 15 20 25 30 2018 performance We changed our survey questions in 2017
percentage of emissions equivalent to our share of joint to reflect the new priorities set out in our refreshed strategy.
arrangements and associates , other than BP’s share Women Non UK/US
The scores prior to 2017 are based on questions on priorities
of Rosneft. set out in 2012, so the numbers are not directly comparable.
Each year we report the percentage of women and individuals
2018 performance The primary reasons for the overall from countries other than the UK and the US among BP’s
decrease include actions taken by our businesses to reduce group leaders.
emissions in areas such as flaring, methane and energy
efficiency, and operational changes such as increased gas 2018 performance While the percentage of our group leaders
being captured and exported to the liquefied natural gas facility who are non-UK/US remained the same, the percentage
in Angola. of female group leaders rose. As a global business we are
committed to increasing the diversity of our workforce and
leadership.

Global energy markets
Average oil prices increased again in 2018, but remained

well below the prices seen in 2011-13. Co-ordinated OPEC
and non-OPEC production restraint early in the year and
robust global demand growth were countered by record
growth in US production.
The world economy grew at 3% in 2018, reflecting slower growth in year average for much of the year. But with the reversal of production
both advanced and emerging economies. This was slightly lower than restraint inventories began to rise, and by the end of December were
the 3.1% seen in 2017, but around the average of nearly 3% over the slightly above the five-year average, standing at 2,858 million barrels.
past 20 years. Growth in advanced economies slightly decelerated to
2.2% from 2.4% in 2017, reflecting temporary factors, such as natural Natural gas
disasters in Japan, slowing net exports in Europe and the ongoing trade
disputes. Emerging markets showed a similar broad-based deceleration, Natural gas prices ($/mmBtu – quarterly average) Henry Hub
growing by 4.2% in 2018, compared with 4.3% in 2017. The slowdown 12

in emerging markets activity reflects softening global trade and 10
tightening monetary conditions.
8
6
Oil
4
Crude oil prices ($/bbl – quarterly average) Brent dated
2
150
09 10 11 12 13 14 15 16 17 2018
120 Prices
Gas prices rebounded in all key markets in 2018. Asian and European
90 gas prices have increased to $9.76/mmBtu and 60.38 pence per therm
respectively, up from $7.13/mmBtu and 44.95 pence per therm in 2017.
60
This was driven by higher oil, coal, and CO2 prices (in Europe) as well
as a relatively tight liquefied natural gas (LNG) market. Asian prices
09 10 11 12 13 14 15 16 17 2018 were strong at above $10/mmBtu during summer due to high Asian
Prices LNG demand and a tight LNG market, but dropped below $9/mmBtu
Dated Brent crude oil prices averaged $71.31 per barrel in 2018 – a in late 2018 due to warm weather in Asia and growing LNG supplies.
second consecutive annual increase but still well below the average While LNG supply increased strongly, all of these incremental LNG
of over $110 seen in 2011-13. Prices drifted higher over the first half of supplies were absorbed by Asia – with China accounting for around half
the year as production restraint remained in place among OPEC and of that growth. US spot prices averaged $3.11/mmBtu – after being flat
co-operating non-OPEC countries, then rose more rapidly to reach their at $3/mmBtu for most of the year, they rebounded during the last
annual peak near $85 in October. In the face of rising prices, producers quarter due to low storage levels.
relaxed their restraint at mid-year and prices fell sharply late in the year,
Consumption
ending 2018 at their annual low point of about $50.
Global consumption is estimated to have increased more rapidly in
Consumptiona 2018 than in 2017, driven by strong growth in the US and China. US
Global consumption increased by 1.3 million barrels per day (mmb/d) to demand growth was largely driven by increasing gas use in the power
99.2mmb/d for the year (1.3%) – a fourth consecutive increase greater sector as power generation recovered and an estimated 14GW of coal
than the 10-year average – due to continued lower than average oil capacity was retired in 2018. Chinese gas demand continued to grow at
prices and stronger world economic growth. Demand once again grew a double-digit rate on the back of coal-to-gas switching in the industrial
most rapidly in Asia’s emerging economies (+0.8mmb/d), but OECD and buildings sectors.
demand also increased for a fourth consecutive year.
Production
Productiona Total gas production increased substantially in 2018. Significant
Global oil production grew by a robust 2.6mmb/d (2.7%) to average production increases were achieved in the US and Australia – supported
100.0mmb/d, with non-OPEC countries (+2.7mmb/d) accounting for all by the start of new LNG trains – and Russia. Global LNG supply
of the increase. The US saw record production growth of 2.2mmb/d. In capacity expanded slightly faster than in 2017, with around 28mtpa
contrast OPEC production declined by 0.1mmb/d – the second consecutive of LNG capacity starting commercial operations. Several trains came
annual decline – although it began to recover later in the year. online in Australia, Russia, the US and Cameroon.
Inventoriesa
These changes resulted in global supply significantly exceeding
demand in 2018, especially later in the year. In the face of production
restraint from OPEC and co-operating non-OPEC countries early in the a
rom IEA Oil Market Report, 13
F More information
year, commercial oil inventories in the OECD were below the five- February 2019 ©, OECD/IEA 2019
Prices and margins
Pages 25 and 30

Group performance

We saw significant growth in earnings, cash and returns. The
continued strong cash flow growth underpins the balance
sheet as we absorb the BHP acquisition and deliver more
than $10 billion of divestments over the next two years.
Dr Brian Gilvary
Group chief financial officer
$12.7bn $26.1bn Segment RC profit (loss) before interest and tax

($ billion)
underlying replacement cost (RC) operating cash flow 2018
profit excluding Gulf of Mexico
oil spill payments a
2017
(2017 $6.2 billion) (2017 $24.1 billion)
$9.4bn $22.9bn
2016
(15) (10) (5) 0 5 10 15 20 25

profit attributable to operating cash flow
BP shareholders Upstream Downstream Rosneft Group RC profit (loss) before interest and tax
Other businesses and corporate (includes
costs related to the Gulf of Mexico oil spill)
(2017 $3.4 billion) (2017 $18.9 billion) Consolidation adjustment – UPII
Financial and operating performance

$ million
except per share amounts
2018 2017 2016
Profit (loss) before interest and taxation 19,378 9,474 (430)
Finance costs and net finance expense relating to pensions
and other post-retirement benefits (2,655) (2,294) (1,865)
Taxation (7,145) (3,712) 2,467
Non-controlling interests (195) (79) (57)
Profit (loss) for the yearb 9,383 3,389 115
Inventory holding (gains) losses , before tax 801 (853) (1,597)
Taxation charge (credit) on inventory holding gains and losses (198) 225 483
RC profit (loss) 9,986 2,761 (999)
Net (favourable) adverse impact of non-operating items and fair value
accounting effects , before tax 3,380 3,730 6,746
Taxation charge (credit) on non-operating items and fair value
accounting effects (643) (325) (3,162)
Underlying RC profit 12,723 6,166 2,585
Dividends paid per share – cents 40.5 40.0 40.0
– pence 30.568 30.979 29.418
This does not form part of BP’s Annual Report on Form 20-F as filed with the SEC.
a
Profit (loss) attributable to BP shareholders.

b
More information
Upstream Other businesses
Page 22 and corporate
Downstream Page 37
Page 28 Oil and gas disclosures
Rosneft for the group
Page 34 Page 285

Results Adjusting for inventory holding impacts, non-operating items which
Profit for the year ended 31 December 2018 was $9.4 billion, compared include the impact of the US tax rate change, fair value accounting
with $3.4 billion in 2017. Including inventory holding losses, replacement effects and the deferred tax adjustments as a result of the reduction
cost (RC) profit was $10.0 billion, compared with $2.8 billion in 2017. in the UK North Sea supplementary charge in 2016, the adjusted ETR
After adjusting for a net charge for non-operating items of $2.8 billion on RC profit was 38% in 2018 (2017 38%, 2016 23%). The adjusted
and net favourable fair value accounting effects of $68 million (both on ETR for 2017 was higher than 2016, predominantly due to changes
a post-tax basis), underlying RC profit for the year ended 31 December in the geographical mix of profits, notably the impact of the renewal
2018 was $12.7 billion, an increase of $6.6 billion compared with 2017. of our interest in the Abu Dhabi onshore oil concession. In the current
The increase was predominantly due to higher results in Upstream, environment the adjusted ETR in 2019 is expected to be around 40%.
as well as Downstream and Rosneft segments, partly offset by
Cash flow and net debt information
higher taxes. The upstream result reflected higher oil prices, record
$ million
plant reliability and the benefit of new major projects start-ups. The
2018 2017 2016
downstream result reflected stronger refining margins and strong fuels
Operating cash flow excluding
marketing growth. The Rosneft segment result primarily reflected Gulf of Mexico oil spill
higher oil prices. paymentsa 26,091 24,098 17,583
Profit for the year ended 31 December 2017 was $3.4 billion, compared Operating cash flow 22,873 18,931 10,691
with $115 million in 2016. Excluding inventory holding gains, RC profit Net cash used in investing
was $2.8 billion, compared with a loss of $1.0 billion in 2016. After activities (21,571) (14,077) (14,753)
adjusting for a net charge for non-operating items of $3.3 billion and Net cash provided by (used in)
net adverse fair value accounting effects of $96 million (both on a financing activities (4,079) (3,296) 1,977
post-tax basis), underlying RC profit for the year ended 31 December Cash and cash equivalents at end
2017 was $6.2 billion, an increase of $3.6 billion compared with 2016. of year 22,468 25,586 23,484
The increase was predominantly due to higher results in both Upstream Capital expenditure
and Downstream segments. The upstream result reflected higher Organic capital expenditure (15,140) (16,501) (16,675)
oil and gas prices and increased production. The downstream result
Inorganic capital expenditure (9,948) (1,339) (777)
reflected strong refining performance, including an improved margin
(25,088) (17,840) (17,452)
environment and growth in fuels marketing.
Gross debt 65,799 63,230 58,300
Non-operating items Net debt 44,144 37,819 35,513
The net charge for non-operating items was $2.8 billion post-tax in
Gross debt ratio (%) 39.3% 38.6% 37.6%
2018, mainly related to additional charges for the Gulf of Mexico oil spill,
Net debt ratio (%) 30.3% 27.4% 26.8%
environmental and other provisions, and further restructuring costs.
The group restructuring programme originally announced in 2014 has This does not form part of BP’s Annual Report on Form 20-F as filed with the SEC.
a
now been completed.

Operating cash flow
The net charge for non-operating items was $3.3 billion post-tax in Net cash provided by operating activities for the year ended
2017. This includes a charge of $1.7 billion recognized in the fourth 31 December 2018 was $22.9 billion, $4.0 billion higher than the
quarter relating to business economic loss and other claims associated $18.9 billion reported in 2017. Operating cash flow in 2018 reflects
with the Gulf of Mexico oil spill and a $0.9 billion deferred tax charge $3.5 billion of pre-tax cash outflows related to the Gulf of Mexico
following the change in the US tax rate enacted in December 2017. oil spill (2017 $5.3 billion). Compared with 2017, operating cash flows in
In addition, the net charge also reflected an impairment charge in 2018 reflected improved business results, including a more favourable
relation to upstream assets. price environment and higher production, partly offset by working capital
More information on non-operating items and fair value accounting effects, and a $1.7 billion increase in income taxes paid.
effects can be found on pages 276 and 320. See Financial statements – Movements in working capital adversely impacted cash flow in the
Note 2 for further information on the impact of the Gulf of Mexico year by $4.8 billion. There was an adverse impact on working capital
oil spill on BP’s financial results. from the Gulf of Mexico oil spill of $3.1 billion. Other working capital
Taxation effects, principally an increase in other current and non-current assets
The charge for corporate income taxes was $7,145 million in 2018 partially offset by a decrease in inventory, had an adverse effect of
compared with $3,712 million in 2017. The increase mainly reflects the $1.7 billion. BP actively manages its working capital balances to
higher level of profit in 2018. In 2017 the charge for corporate income optimize and reduce volatility in cash flow.
taxes included a one-off deferred tax charge of $0.9 billion in respect There was an increase in net cash provided by operating activities of
of the revaluation of deferred tax assets and liabilities following the $8.2 billion in 2017 compared with 2016, of which $1.7 billion related
reduction in the US federal corporate income tax rate. A further credit of to lower pre-tax cash outflows related to the Gulf of Mexico oil spill.
$121 million following a clarification of the legislation has been included Compared with 2016, operating cash flows in 2017 were impacted
in 2018. The effective tax rate (ETR) on the profit or loss for the year was by improved business results, including a more favourable price
43% in 2018, 52% in 2017 and 107% in 2016. The ETR for all three years environment and higher production, working capital effects, and
was impacted by various one-off items. a $2.5-billion increase in income taxes paid.

Movements in working capital adversely impacted cash flow in 2017 Debt

by $3.4 billion. There was an adverse impact on working capital from Gross debt at the end of 2018 increased by $2.6 billion from the end of
the Gulf of Mexico oil spill of $5.2 billion. Other working capital effects, 2017. The gross debt ratio at the end of 2018 increased by 0.7%. Net
arising from a variety of different factors had a favourable effect of $1.8 debt at the end of 2018 increased by $6.3 billion from the 2017 year-end
billion. Receivables and inventories increased during the year principally position. The net debt ratio at the end of 2018 increased by 2.9%. At
due to higher oil prices. The effect of this on operating cash flow was current oil prices, and in line with growing free cash flow supported by
more than offset by a corresponding increase in payables. divestment proceeds, we expect gearing to move towards the middle
of our targeted range of 20-30% in 2020. Net debt and the net debt ratio
Net cash used in investing activities
are non-GAAP measures. See Financial statements – Note 27 for gross
Net cash used in investing activities for the year ended 31 December
debt, which is the nearest equivalent measure on an IFRS basis, and for
2018 increased by $7.5 billion compared with 2017.
further information on net debt. Cash and cash equivalents at the end of
The increase mainly reflected higher inorganic capital expenditure 2018 were $3.1 billion lower than 2017. For information on financing the
of $6.7 billion in relation to the BHP acquisition and a reduction of group’s activities, see Financial statements – Note 29 and Liquidity and
$0.6 billion in net disposal proceeds. capital resources on page 277.
The decrease of $0.7 billion in 2017 compared with 2016 mainly Group reserves and production (including Rosneft segment)a
reflected an increase of $0.8 billion in disposal proceeds. 2018 2017 2016
There were no significant cash flows in respect of acquisitions in 2017 Estimated net proved reserves
and 2016. (net of royalties)
Liquids (mmb) 11,456 10,672 10,333
Total capital expenditure for 2018 was $25.1 billion (2017 $17.8 billion),
of which organic capital expenditure was $15.1 billion (2017 $16.5 Natural gas (bcf) 49,239 45,060 43,368
billion). Sources of funding are fungible, but the majority of the group’s Total hydrocarbons (mmboe) 19,945 18,441 17,810
funding requirements for new investment comes from cash generated Of which:
by existing operations. We expect organic capital expenditure to be in Equity-accounted entitiesb 9,757 8,949 8,679
the range of $15-17 billion in 2019. Production (net of royalties)
Liquids (mb/d) 2,191 2,260 2,048
Divestment proceeds for 2018 were $2.9 billion (2017 $3.4 billion,
2016 $2.6 billion). In addition, we received a $0.6-billion loan repayment Natural gas (mmcf/d) 8,659 7,744 7,075
relating to the refinancing of Trans Adriatic Pipeline AG, and total Total hydrocarbons (mboe/d) 3,683 3,595 3,268
divestment and other proceeds for 2018 amounted to $3.5 billion. In Of which:
2017 divestment proceeds included amounts received for the disposal Subsidiaries 2,328 2,164 1,939
of our interest in the Shanghai SECCO Petrochemical Company Limited Equity-accounted entitiesc 1,355 1,431 1,329
joint venture . In addition, we received $0.8 billion in relation to the a
Because of rounding, some totals may not agree exactly with the sum of their component
initial public offering of BP Midstream Partners LP’s common units, parts.
shown within financing activities in the group cash flow statement, and b
Includes BP’s share of Rosneft. See Rosneft on page 34 and Supplementary information
on oil and natural gas on page 210 for further information.
total divestment and other proceeds for 2017 amounted to $4.3 billion. c
Includes BP’s share of Rosneft. See Rosneft on page 34 and Oil and gas disclosures for the
BP intends to complete more than $10 billion of divestments over the group on page 285 for further information.
next two years, which includes plans announced following the BHP
transaction. Total hydrocarbon proved reserves at 31 December 2018, on an
oil-equivalent basis including equity-accounted entities, increased
Net cash used in financing activities by 8% compared with 31 December 2017. The change includes a net
Net cash used in financing activities for the year ended 31 December increase from acquisitions and disposals of 1,498mmboe (increase
2018 was $4.1 billion, compared with $3.3 billion used in financing of 993mmboe within our subsidiaries, increase of 505mmboe within
activities in 2017. This was mainly the result of an increase of $0.9 billion our equity-accounted entities). Acquisition activity in our subsidiaries
in net proceeds from financing offset by a reduction of $1.1 billion occurred in the US and the UK, and divestment activity in our
in cash received in relation to non-controlling interests and an increase subsidiaries was in the US and the UK. In our equity-accounted
in dividend payments of $0.5 billion. entities, acquisitions occurred in Russia.
In 2017 the net cash used in financing activities reflected a reduction Total hydrocarbon production for the group was 2% higher compared
of $3.5 billion in net proceeds from financing. The total dividend paid with 2017. The increase comprised an 8% increase (1% decrease
in cash in 2017 was $1.5 billion higher than in 2016. for liquids and 17% increase for gas) for subsidiaries and a 5%
Total dividends distributed to shareholders in 2018 were 40.50 cents per decrease (5% decrease for liquids and 5% decrease for gas) for
share, 0.50 cents higher than 2017. This amounted to a total distribution equity-accounted entities.
to shareholders of $8.1 billion (2017 $7.9 billion, 2016 $7.5 billion), of
which shareholders elected to receive $1.4 billion (2017 $1.7 billion,
2016 $2.9 billion) in shares under the scrip dividend programme. The
total amount distributed in cash during the year amounted to $6.7 billion
(2017 $6.2 billion, 2016 $4.6 billion).

Upstream
2018 has been a good year for Upstream, where we

increased confidence in 2021 delivery and underpinned
our ability to continue growth well into the next decade.
Bernard Looney
Chief executive, Upstream
63,000km2 95.7% 7 Upstream profitability ($ billion)

14.3
new exploration access BP-operated upstream successful completion 2018 14.6
plant reliability of turnarounds 5.2
2017 5.9
(2017 28,000km2) (2017 94.7%) (2017 6)
0.6
2016 -0.5
9 6 2.5 2015
2014
-0.9
1.2
8.9
final investment decisions major project start-ups million barrels of oil equivalent 15.2
per day – hydrocarbon production
Replacement cost (RC) profit (loss) before interest and tax
(2017 3) (2017 7) (2017 2.5mmboe/d)
Underlying RC profit (loss) before interest and tax
Business model
The Upstream segment is responsible for our activities in oil and natural gas exploration, field
development and production. We do this through five global technical and operating functions.
Exploration Wells and projects Global operations organization
The exploration function is responsible The global wells organization and The global operations organization is
for renewing our resource base through the global projects organization are responsible for safe, reliable and compliant
access, exploration and appraisal, while responsible for the safe, reliable and operations, including upstream production
the reservoir development function is compliant execution of wells (drilling and assets and midstream transportation and
responsible for the stewardship of our completions) and major projects. processing activities.
resource portfolio over the life of each field.
Strategy
Our strategy has three parts and is enabled by:
Quality execution Growing advantaged oil and gas Returns-led growth

We want to be the best at what we do – We will manage our portfolio through We want to grow – but not at any cost. We
everywhere we work. This starts with disciplined investment in many of the world’s always look to grow returns and value. We
executing our activity safely. In every basin, great oil and gas basins. We plan to grow both believe this growth will come from many
we will benchmark against the competition oil and gas production. Natural gas is a big lever sources – production growth, expanding and
and aim to be the best – whether it be for reducing greenhouse gas emissions. This managing our margins, operational efficiency,
operating facilities reliably and cost effectively, means taking a leadership role in tackling the unit cost reduction, and capital efficiency with
with a focus on emissions, drilling wells, challenge of methane. Our gas portfolio will disciplined levels of capital reinvestment.
managing our reservoirs, exploring, building be complemented by advantaged oil assets –
projects, or deploying technology. Through oil we can produce at a lower cost or higher
the quality of our execution, scale and margin, creating a portfolio that is flexible for
infrastructure, we aim to be competitive in different price environments.
every basin, and as a business, get more
from a unit of capital than our peers.

Underpinning our business model and strategy is our transformation Financial performance

agenda. We have around 1,000 projects across the Upstream aimed
$ million
at sustainably improving both performance and how it feels to work
2018 2017 2016
in the Upstream. We believe in the potential of this agenda to transform
the efficiency of our business, and we are delivering real value today Sales and other operating
revenuesa 56,399 45,440 33,188
to the bottom line.
RC profit before interest and tax 14,328 5,221 574
In addition to our core Upstream exploration, development and Net (favourable) adverse impact
production activities, the segment is responsible for midstream of non-operating items and
transportation, storage and processing. We also market and trade fair value accounting effects 222 644 (1,116)
natural gas, including liquefied natural gas (LNG), power and natural
Underlying RC profit (loss) before
gas liquids (NGL). In 2018 our activities took place in 33 countries.
interest and tax 14,550 5,865 (542)
The US Lower 48 business continues to operate as a separate, Organic capital expenditure b 12,027 13,763 14,344
asset-focused, onshore business, and changed its name to BPX BP average realizationsc $ per barrel
Energy in October. Crude oild 67.81 51.71 39.99
With the exception of BPX Energy, we deliver our exploration, Natural gas liquids 29.42 26.00 17.31
development and production activities through five global technical Liquids 64.98 49.92 38.27
and operating functions. $ per thousand cubic feet
Natural gas 3.92 3.19 2.84
We optimize and integrate the delivery of our activities across
12 regions, with support provided by global functions in specialist US natural gas 2.43 2.36 1.90
$ per barrel of oil equivalent
areas of expertise: technology, finance, procurement and supply
Total hydrocarbons d 43.47 35.38 28.24
chain, human resources, information technology and legal.
Average oil marker pricese $ per barrel
In 2016 we identified a future growth target of 900,000 barrels of oil
Brent 71.31 54.19 43.73
equivalent per day of production from new major projects by 2021
West Texas Intermediate 65.20 50.79 43.34
and we remain on track to deliver that. We expect this production to
deliver 35% higher operating cash margins on average than our Average natural gas
marker prices $ per million British thermal units
2015 upstream assets, which supports our value over volume strategy.
Average Henry Hub gas pricef 3.09 3.11 2.46
We see our scale and long history in many of the great basins in the pence per therm
world as a differentiator for BP and believe in the strength of our Average UK National Balancing
incumbent positions. We believe we are balanced and flexible – in Point gas price e 60.38 44.95 34.63
terms of geography, hydrocarbon type and geology – and rather than a
Includes sales to other segments.
being restricted by a traditional way of working, we have and will b
A reconciliation to GAAP information at the group level is provided on page 275.
continue to use creative business models to generate value. c
Realizations are based on sales by consolidated subsidiaries only, which excludes
equity-accounted entities.
d
Includes condensate and bitumen.
e
All traded days average.
f
Henry Hub First of Month Index.

Growing
advantaged oil
and gas in the
upstream
470,000
acres of access
Transforming
US onshore United States
Oklahoma
194,000
~720
~85,000
BP is transforming its US New Mexico

onshore oil and gas business Texas
with our purchase of world-class Haynesville

Permian
unconventional assets from BHP. Houston
Louisiana
This acquisition gives us access
Eagle Ford
to some of the best basins in the 83,000 194,000
onshore US and positions BP as
~3,400 ~1,400
a top producer in the region.
The transaction includes 470,000 acres ~29,000 ~83,000
of licences across a new position in the
liquids-rich Permian-Delaware basin, and
two premium positions in the Eagle Ford and Size Number of Current production
Haynesville basins. Together these assets will (acres) drilling sites (boe/d)
significantly increase the liquid hydrocarbon
Permian • Delaware sub-basin of the Permian in
proportion of our production and resources –
West Texas.
helping to upgrade and reposition BPX Energy, • 83,000 acres with around 3,400 drilling sites.
which was previously known as the US Lower • Current production – around 29,000boe/d
48 business. (~70% liquids).
BPX Energy has operated as a separate Eagle Ford • Karnes Trough and Eagle Ford in South Texas.
business since 2015. Its innovative approach • 194,000 acres with 1,400 gross
to using new technology such as big-data drilling locations.
analytics, augmented reality, drones and • Current production – around 83,000boe/d
advanced drilling techniques, have helped (~70% liquids).
the business achieve significant improvements
Haynesville • East Texas and Louisiana.
in operational and financial performance. • 194,000 acres with 720 gross drilling locations.
We plan to apply this approach to operations • Current production – around 85,000boe/d,
at our newly acquired basins. all gas.
As at 31 December 2018.

Market prices following changes in reserves estimates, the decision to dispose of

Brent remains an integral marker to the production portfolio, from certain assets and the decision to relinquish a number of leases expiring
which a significant proportion of production is priced directly or in the near future, partially offset by reversals of prior year impairment
indirectly. charges. See Financial statements – Note 5 for further information.
Fair value accounting effects had an adverse impact of $39 million
Brent ($/bbl) relative to management’s view of performance.
150 The 2017 result included a net non-operating charge of $671 million,
primarily related to impairment charges associated with a number of
120
assets, following changes in reserves estimates, and the decision to
dispose of certain assets. Fair value accounting effects had a favourable
90
impact of $27 million relative to management’s view of performance.
The 2016 result included a net non-operating gain of $1,753 million,
60
primarily related to the reversal of impairment charges associated with
30
a number of assets, following a reduction in the discount rate applied
2018 2017 2016 Five-year range and changes to future price assumptions. Fair value accounting effects
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
had an adverse impact of $637 million.
After adjusting for non-operating items and fair value accounting
Dated Brent crude oil prices averaged $71.31 per barrel in 2018 – a effects, the underlying replacement cost result before interest and
second consecutive annual increase but still well below the average tax was significantly higher in 2018 compared with 2017. This primarily
of more than $110 seen in 2011-13. Prices drifted higher over the first reflected higher liquids and gas realizations, higher production and
half of the year, then rose more rapidly to reach an annual peak near lower exploration write-offs.
$85 in October, before falling sharply and ending the year at an annual Compared with 2016 the 2017 result reflected higher liquids realizations,
low point of about $50. Oil demand recorded a fourth consecutive and higher production including the impact of the Abu Dhabi onshore
above-average increase, growing by 1.3mmb/d. Global production concession renewal and major projects start-ups, partly offset by higher
increased by an even more robust 2.6mmb/d, with all of the increase depreciation, depletion and amortization, and higher exploration
coming from non-OPEC countries (2.7mmb/d); the US recorded record write-offs.
production growth of 2.2mmb/d. OPEC production fell slightly
Organic capital expenditure was $12.0 billion.
(-0.1mmb/d) for a second consecutive year as the group engaged with
co-operating non-OPEC countries in production restraint early in the In total, disposal transactions generated $2.1 billion in proceeds in 2018,
year, although OPEC production began to recover in the second half with a corresponding reduction in net proved reserves of 229mmboe
of the year as production restraint was eased. within our subsidiaries. The major disposal transactions during 2018
were the disposal of our interests in the Bruce, Keith and Rhum fields in
Henry Hub ($/mmBtu) the UK North Sea and our interest in the Greater Kuparuk Area in the US,
9 the consideration for which was a 16.5% interest in the Clair field in
North Sea. More information on disposals is provided in Upstream
analysis by region on page 279 and Financial statements – Note 4.
6
Outlook for 2019
• Five new major projects expected to start up in 2019.
3
• We expect underlying production to be higher than 2018 due to
major projects. The actual reported outcome will depend on the
2018 2017 2016 Five-year range exact timing of project start-ups, acquisitions and divestments,
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec OPEC quotas and entitlement impacts in our production-sharing
agreements .
Henry Hub prices decreased to $3.09/mmBtu in 2018 from $3.11/ • Upstream capital investment is expected to increase, largely as a
mmBtu in 2017. The UK National Balancing Point hub price was 60.38 result of our increased presence in the onshore US.
pence per therm in 2018, 34% higher than in 2017 (44.95), on the back • We expect oil prices will continue to be volatile in the near term.
of increasing coal, oil and CO2 prices. Asian spot prices rose to $9.76/
mmBtu in 2018, up from $7.13/mmBtu supported by higher coal, and oil
Exploration
prices as well as a relatively tight LNG market – except in the later part of
2018, where ample LNG supplies combined with warm weather caused The group explores for oil and natural gas under a wide range
Asian spot prices to drop to below $9/mmBtu. of licensing, joint arrangement and other contractual agreements.
We may do this alone or, more frequently, with partners.
For more information on global energy markets in 2018 see page 18.
Our exploration and new access teams work to optimize our resource
Financial results base and provide us with a greater number of options.
Sales and other operating revenues for 2018 increased compared with
2017, primarily reflecting higher liquids realizations, higher production In the current environment, we are spending less on exploration and
and higher gas marketing and trading revenues. The increase in 2017 we will spend a material part of our exploration budget on lower-risk,
compared with 2016 primarily reflected higher liquids realizations, shorter-cycle-time opportunities around our incumbent positions.
higher production and higher gas marketing and trading revenues.
Replacement cost profit before interest and tax for the segment
included a net non-operating charge of $183 million. This primarily
relates to impairment charges associated with a number of assets,

New access in 2018 Estimated net proved reservesa (net of royalties)
We gained access to new acreage covering around 63,000km2 in 2018 2017 2016
10 countries – Australia, Azerbaijan, Brazil, Canada, Egypt, Madagascar, Liquids million barrels
Mexico, São Tomé and Príncipe, the UK North Sea and the US Gulf
Crude oilb
of Mexico.
Subsidiaries 4,378 4,129 3,778
Exploration success Equity-accounted entitiesc 794 674 771
We participated in three potentially commercial discoveries in 2018 –
5,172 4,803 4,549
Manuel and Nearly Headless Nick in the US Gulf of Mexico and Bongos
Natural gas liquids
in Trinidad.
Subsidiaries 576 318 373
Exploration and appraisal costs Equity-accounted entitiesc 15 18 16
Excluding lease acquisitions, the costs for exploration and appraisal
590 336 389
were $1,298 million (2017 $1,655 million, 2016 $1,402 million).
Total liquids
These costs included exploration and appraisal activities, which were
capitalized within intangible fixed assets, and geological and geophysical Subsidiariesd 4,954 4,447 4,151
exploration costs, which were charged to income as incurred. Equity-accounted entitiesc 808 692 787
5,762 5,139 4,938
Approximately 5% of exploration and appraisal costs were directed
Natural gas billion cubic feet
towards appraisal activity. We participated in 29 gross (19 net)
exploration and appraisal wells in eight countries. Subsidiariese 30,355 29,263 28,888
Equity-accounted entitiesc 4,559 2,274 2,580
Exploration expense
34,914 31,537 31,468
Total exploration expense of $1,445 million (2017 $2,080 million,
Total hydrocarbons million barrels of oil equivalent
2016 $1,721 million) included the write-off of expenses related to
Subsidiaries 10,188 9,492 9,131
unsuccessful drilling activities, lease expiration or uncertainties around
development in the Gulf of Mexico ($450 million), Egypt ($236 million), Equity-accounted entitiesc 1,594 1,085 1,232
and others ($759 million), as well as geological and geophysical 11,782 10,577 10,363
exploration costs (see Financial statements – Note 8). a
Reserves booking parts.
b
Reserves bookings from new discoveries will depend on the results c
BP’s share of reserves of equity-accounted entities in the Upstream segment. During 2018
of ongoing technical and commercial evaluations, including appraisal upstream operations in Argentina, Bolivia, Mexico, Russia and Norway as well as some of
drilling. The segment’s total hydrocarbon reserves on an oil-equivalent our operations in Angola were conducted through equity-accounted entities.
d
Includes 12 million barrels (14 million barrels at 31 December 2017 and 16 million barrels
basis, including the segment’s equity-accounted entities at 31
at 31 December 2016) in respect of the 30% non-controlling interest in BP Trinidad &
December 2018, increased by 11% (an increase of 7% for subsidiaries Tobago LLC.
and an increase of 47% for equity-accounted entities) compared with e
Includes 1,573 billion cubic feet of natural gas (1,860 billion cubic feet at 31 December 2017
and 2,026 billion cubic feet at 31 December 2016) in respect of the 30% non-controlling
proved reserves at 31 December 2017.
interest in BP Trinidad & Tobago LLC.
Proved reserves replacement ratio
The proved reserves replacement ratio for the segment in 2018 was Developments
69% for subsidiaries and equity-accounted entities (2017 127%), 66% We achieved six major project start-ups in 2018 – in Azerbaijan,
for subsidiaries alone (2017 133%) and 106% for equity-accounted Australia, the Gulf of Mexico, Egypt, Russia and the UK North Sea.
entities alone (2017 78%). For more information on proved reserves In addition to these, we made good progress on projects in Trinidad,
replacement for the group see page 285. Egypt and the UK North Sea.
• Trinidad – Work on the Angelin project progressed well after we
Upstream proved reserves (mmboe)
started the drilling programme in late 2018, and we announced first
gas production in February 2019.
Liquids • Egypt – Raven, the third phase of the West Nile Delta development
1. Subsidiaries 4,954 4 project is on target to achieve first gas in second half of 2019 with well
2. Equity-accounted entities 808 commissioning activities underway.
Total 5,762 1 • UK North Sea – At Culzean, perforation of wells on the Total-operated
project is about to get underway after completion of trees installation.
Gas
Production is expected in the first half of 2019.
3. Subsidiaries 5,234 3
4. Equity-accounted entities 786 Subsidiaries’ development expenditure incurred, excluding midstream
Total 6,020 2 activities, was $9.9 billion (2017 $10.7 billion, 2016 $11.1 billion).

Production (net of royalties)a

Our project pipeline Gas 2018 2017 2016
Oil Liquids thousand barrels per day
*BP operated Crude oilb
Project Location Type
Subsidiaries 1,051 1,064 943
2018 start-ups Equity-accounted entitiesc 121 199 179
Shah Deniz Stage 2* Azerbaijan 1,172 1,263 1,122
Western Flank B Australia Natural gas liquids
Atoll Phase 1* Egypt Subsidiaries 88 85 82
Clair Ridge* UK North Sea Equity-accounted entitiesc 8 8 4
Taas Expansion Russia 96 93 86
Thunder Horse North West Expansion* US Gulf of Mexico Total liquids
Expected start-ups 2019-2021 Equity-accounted entitiesc 129 207 184
Projects currently under construction 1,268 1,356 1,208
Angelin*a Trinidad Natural gas million cubic feet per day
Cassia Compression* Trinidad Subsidiaries 6,900 5,889 5,302

Culzean UK North Sea Equity-accounted entitiesc 474 547 494
KG D6 R-Series India 7,374 6,436 5,796
KG D6 Satellites India Total hydrocarbons thousand barrels of oil equivalent per day
Khazzan Phase 2* Oman
Equity-accounted entitiesc 211 302 269
Tangguh Expansion* Indonesia
2,539 2,466 2,208
West Nile Delta Giza and Fayoum*a Egypt
West Nile Delta Raven* Egypt
a
parts.
Alligin* UK North Sea b
Atlantis Phase 3 US Gulf of Mexico
c
Includes BP’s share of production of equity-accounted entities in the Upstream segment.
Constellationa US Gulf of Mexico Our total hydrocarbon production for the segment in 2018 was 3.0%
Mad Dog Phase 2* US Gulf of Mexico higher compared with 2017. The increase comprised a 7.6% increase
Manuel* US Gulf of Mexico (0.9% decrease for liquids and 17.2% increase for gas) for subsidiaries
and a 30.0% decrease (37.6% for liquids and 13.4% for gas) for
Vorlich* UK North Sea equity-accounted entities compared with 2017. For more information
Zinia 2 Angola on production see Oil and gas disclosures for the group on page 285.
a
Production commenced in early 2019.
In aggregate, underlying production increased versus 2017.
Beyond 2021
The group and its equity-accounted entities have numerous long-term
We have a deep hopper of projects that are currently under sales commitments in their various business activities, all of which are
appraisal. Our focus here is to ensure we maximize value and expected to be sourced from supplies available to the group that are not
select the optimum project concept before we move it forward subject to priorities, curtailments or other restrictions. No single contract
into design. We do not expect to progress all of the projects – only or group of related contracts is material to the group.
the best. This includes:
• a mix of resource types: split across conventional oil, Gas and power marketing and trading activities
deepwater oil, conventional gas and unconventionals . Our integrated supply and trading function markets and trades our
• geographic spread: across six of the seven continents. own and third-party natural gas (including LNG), biogas, power and
NGLs. This provides us with routes into liquid markets for the gas we
• a range of development types: from exploration to brownfield
produce and generates margins and fees from selling physical products
and near-field.
and derivatives to third parties, together with income from asset
optimization and trading. This means we have a single interface with
Production gas trading markets and one consistent set of trading compliance and
risk management processes, systems and controls. We are expanding
Our offshore and onshore oil and natural gas production assets include
our LNG portfolio, which includes global partnerships with utility
wells, gathering centres, in-field flow lines, processing facilities, storage
companies, gas distributors and national oil and gas companies.
facilities, offshore platforms, export systems (e.g. transit lines), pipelines
and LNG plant facilities. These include production from conventional The activity primarily takes place in North America, Europe and
and unconventional assets. Our principal areas of production are Angola, Asia, and supports group LNG activities, managing market price
Argentina, Australia, Azerbaijan, Egypt, Oman, Trinidad, the UAE, the risk and creating incremental trading opportunities through the use
UK and the US. With BP-operated plant reliability increasing from around of commodity derivative contracts. It also enhances margins and
86% in 2011 to 96% in 2018, efficient delivery of turnarounds and generates fee income from sources such as the management of
strong infill drilling performance, we have maintained base decline at price risk on behalf of third-party customers.
less than 3% on average over the last five years. Our long-term Our trading financial risk governance framework is described in Financial
expectation for managed base decline remains at the 3-5% per annum statements – Note 29 and the range of contracts used is described in
guidance we have previously given. Glossary – commodity trading contracts on page 315.

Downstream
In 2018 we have continued to demonstrate, through the

execution of our strategy, that we have a competitively
advantaged business. Our strategy is fit for now and
fit for the future.
Tufan Erginbilgic
Chief executive, Downstream
10% 1,400 46% Downstream profitability ($ billion)

6.9
fuels marketing earnings convenience of lubricant sales 2018 7.6
growth (17% on an partnership sites were premium grade 7.2
underlying RC profit basis) 2017 7.0
5.2
(2017 >10%) (2017 1,100) (2017 44%) 2016 5.6
7.1
94.9% 1.7 11.9

2015 7.5
3.7
2014 4.4
refining availability million barrels of oil million tonnes of
refined per day petrochemicals produced Replacement cost (RC) profit before interest and tax
Underlying RC profit before interest and tax
(2017 95.3%) (2017 1.7mmb/d) (2017 15.3mmte)
Business model
The Downstream segment has global marketing and manufacturing operations.
It is the product and service-led arm of BP, made up of three businesses
Fuels Lubricants Petrochemicals
Includes refineries, logistic networks and Manufactures and markets lubricants and Manufactures and markets products that are
fuels marketing businesses, which together related products and services to the produced using industry-leading proprietary
with global oil supply and trading activities, automotive, industrial, marine and energy BP technology, and are then used by others
make up our integrated fuels value chains markets globally. We add value through to make essential consumer products such
(FVCs). We sell refined petroleum products brand, technology and relationships, such as food packaging, textiles and building
including gasoline, diesel and aviation fuel, as collaboration with original equipment materials. We also license our technologies
and have a significant presence in the manufacturing partners. to third parties.
convenience retail sector and a growing
presence in the advanced mobility and
low carbon sectors.
Strategy
We aim to run safe and reliable operations across all our businesses, supported by leading brands and technologies, to deliver high-quality
products and services that meet our customers’ needs. Our strategy is to deliver underlying earnings growth and build competitively advantaged
businesses. It is fit for now and fit for the future. The execution of our strategy in 2018 has continued to deliver, with underlying replacement cost
profit growing to $7.6 billion in the year.
Safe and reliable operations Advantaged manufacturing Simplification and efficiency

This remains our core value and first priority We aim to have a competitively advantaged This remains central to what we do to support
and we continue to drive improvements in refining and petrochemicals portfolio performance improvement and make our
personal and process safety performance. underpinned by operational excellence and businesses even more competitive.
to grow earnings potential, making the
businesses more resilient to margin volatility. Transition to a lower carbon
Profitable marketing growth
We invest in higher-returning fuels marketing and digitally enabled future
and lubricants businesses with growth We are delivering and developing new
potential and reliable cash flows. products, offers and business models that
support the transition to a lower carbon and
digitally enabled future.

Market-led
growth in the
downstream

Convenience
partnerships
Throughout 2018 BP continued We increased the number of convenience
to transform its global retail partnership sites by over 25% in 2018 – taking
the total to around 1,400 sites across our
business. We’ve refreshed our network. Much of this growth was in Germany,
forecourts, rolled out more BP We have rolled out our
where our strategic partnership with REWE
fuels with ACTIVE technology and to Go® is expanding rapidly. Since opening Ultimate fuel to forecourts
further enhanced our customer our first site in 2014, we now have over 460 in China.
offers. And that’s not all, we’re in the country, and around half of those
opened in 2018. Our REWE to Go® sites
also rapidly expanding our deliver substantially higher returns than
convenience partnerships. an industry average site, driven by our Global markets
differentiated customer offer including fresh, Our footprint in Mexico is growing and we
quality food and drink. now have 440 BP-operated sites, more than
>25%
We also continue to grow our convenience 300 of which were opened in 2018. We are
partnership model in established markets also continuing to progress our plans for
such as the UK with M&S Simply Food® and growth in China, and in Indonesia we opened
increase in convenience in October we opened our first partnership our first sites at the end of the year.
partnership sites site in Luxembourg with MyAuchan®.

Financial performance Our fuels business
$ million Our fuels strategy focuses primarily on fuels value chains (FVCs). This
2018 2017 2016 includes building an advantaged refining portfolio through operating
Sale of crude oil through spot reliability and efficiency, location advantage and feedstock flexibility, as
and term contracts 62,484 47,702 31,569 well as commercial optimization opportunities. We believe that having
Marketing, spot and term sales a quality refining portfolio connected to strong marketing positions is
of refined products 195,020 159,475 126,419 core to our integrated FVC businesses as this provides optimization
Other sales and operating opportunities in highly competitive markets.
revenues 13,185 12,676 9,695
Our fuels marketing business comprises retail, business-to-business
Sales and other operating and aviation fuels. It is a material part of Downstream with a strong
revenuesa 270,689 219,853 167,683
track record of growth. We have an advantaged portfolio of assets with
RC profit before interest and taxb good growth potential, attractive returns and reliable cash flows. We
Fuels 5,261 4,679 3,337 continue to grow our fuels marketing business through our differentiated
Lubricants 1,065 1,457 1,439 marketing offers and strategic convenience partnerships. We also
Petrochemicals 614 1,085 386 partner with leading retailers, creating distinctive retail offers that aim
6,940 7,221 5,162 to deliver good returns and reliable profit growth and cash generation.
Net (favourable) adverse impact Underlying RC profit before interest and tax for our fuels business
of non-operating items and was higher compared with 2017, reflecting continued growth in fuels
fair value accounting effects marketing and refining despite 2018 having one of the highest levels
Fuels 381 193 390 of turnaround activity in our history. This was partially offset by a weaker
Lubricants 227 22 84 contribution from supply and trading. Compared with 2016, the 2017
Petrochemicals 13 (469) (2) result was higher, reflecting stronger refining performance and growth
621 (254) 472 in fuels marketing, partially offset by a weaker contribution from supply
Underlying RC profit before and trading.
interest and taxb
Refining marker margin
Fuels 5,642 4,872 3,727
We track the refining margin environment using a global refining marker
Lubricants 1,292 1,479 1,523 margin (RMM). Refining margins are a measure of the difference
Petrochemicals 627 616 384 between the price a refinery pays for its inputs (crude oil) and the market
7,561 6,967 5,634 price of its products. Although refineries produce a variety of petroleum
Organic capital expenditure c
2,781 2,399 2,102 products, we track the margin environment using a simplified indicator
that reflects the margins achieved on gasoline and diesel only. The
a
b
Income from petrochemicals produced at our Gelsenkirchen and Mülheim sites in Germany RMM may not be representative of the margin achieved by BP in any
is reported in the fuels business. Segment-level overhead expenses are included in the fuels period because of BP’s particular refinery configurations and crude and
business result. product slates. In addition, the RMM does not include estimates of
c
energy or other variable costs.
Financial results
$ per barrel
Sales and other operating revenues in 2018 were higher due to higher
Region Crude marker 2018 2017 2016
crude and product prices. Sales and other operating revenues in 2017
Alaska North
were higher than 2016 due to higher crude and product prices as well
US North West Slope 16.2 18.8 16.9
as higher sales volumes.
West Texas
Replacement cost (RC) profit before interest and tax for 2018 included US Midwest Intermediate 16.0 16.9 13.2
a net non-operating charge of $716 million, primarily reflecting Northwest Europe Brent 11.1 11.7 10.0
restructuring costs. The 2017 result included a net non-operating gain Mediterranean Azeri Light 9.8 10.4 9.0
of $389 million, primarily reflecting the gain on disposal of our share in Australia Brent 11.5 12.9 10.9
the Shanghai SECCO Petrochemical Company Limited (SECCO) joint
BP RMM 13.1 14.1 11.8
venture in petrochemicals, while the 2016 result included a net
non-operating charge of $24 million, mainly relating to a gain on disposal
in our fuels business which was more than offset by restructuring and The global RMM averaged $13.1/bbl in 2018, $1/bbl lower than in 2017.
other charges. In addition fair value accounting effects had a favourable The RMM was lower mainly due to weaker gasoline margins as a result
impact of $95 million, compared with an adverse impact of $135 million of lower demand growth and higher inventory levels in the US.
in 2017 and $448 million in 2016. BP refining marker margin ($/bbl)
After adjusting for non-operating items and fair value accounting effects, 32
underlying RC profit before interest and tax in 2018 was $7,561 million.
24
Outlook for 2019
We anticipate lower industry refining margins, narrower North American
16
heavy crude oil discounts and a lower level of turnaround activity than
in 2018.
8
2018 2017 2016 Five-year range
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Refining
At 31 December 2018 we owned or had a share in 11 refineriesa
producing refined petroleum products that we supply to retail and
commercial customers. For a summary of our interests in refineries
and average daily crude distillation capacities see page 284.
Underlying growth in our refining business is underpinned by our
multi-year business improvement plans, which comprise globally
consistent programmes focused on operating reliability and efficiency,
advantaged feedstocks and commercial optimization. Operating
reliability is a core foundation of our refining business and in 2018
operations remained strong, with refining availability of 94.9% (2017
95.3%) and refinery utilization rates at 91% (2017 90%). As a result
we achieved record levels of refining throughput on a current portfolio
basis despite high turnaround activity.
Our refinery portfolio – along with our supply capability – enables us
to process advantaged crudes. For example, in the US, our three
refineries all have location-advantaged access to Canadian crudes
which are typically cheaper than other crudes. Our commercial
optimization programme aims to maximize value from our refineries
by capturing opportunities in every step of the value chain, from crude
selection through to yield optimization and utilization improvements.
In 2018 we delivered continued improvement in our net cash margin
per barrel , a measure of the competitiveness of our refinery portfolio,
and extended lower carbon bio-processing into more of our refineries.
The refining result was higher in 2018 compared with 2017, reflecting
increased commercial optimization and strong operations, which in Fuels marketing and logistics
North America allowed us to capture the benefits from higher North Across our fuels marketing businesses, we operate an advantaged
American heavy crude oil discounts, partially offset by lower industry infrastructure and logistics network that includes pipelines, storage
refining margins and a higher level of turnaround activity. Compared with terminals and tankers for road and rail. We seek to drive excellence
2016, refining performance continued to improve in 2017, capturing in operational and transactional processes and deliver compelling
higher industry refining margins and efficiency benefits as well as customer offers in the various markets where we operate. Through
increased commercial optimization including the benefits of higher our retail business, we supply fuel and convenience retail services
levels of advantaged feedstock. This was, however, partially offset by to consumers through company-owned and franchised retail sites,
a higher level of planned turnaround activity. as well as other channels, including dealers and jobbers. We also
supply commercial customers in the transport and industrial sectors.
2018 2017 2016
Retail is the most material part of our fuels marketing business and
Refinery throughputsab thousand barrels per day
a significant source of earnings growth through our strong market
US 703 713 646
positions, brands and distinctive customer offers. This is underpinned
Europe 781 773 803
by the strength of our retail convenience partnerships, technology
Rest of world 241 216 236 such as our advanced fuels and use of digital technology, as well as our
Total 1,725 1,702 1,685 customer relationships. This differentiation enables our growth in
%
existing markets and supports our growth plans in new material markets
Refining availability 94.9 95.3 95.3 such as Mexico, India, Indonesia and China. During 2018 we continued
This does not include BP’s interest in Pan American Energy Group, which is reported through
a our expansion in Mexico with 440 BP-branded sites operational at the
the Upstream segment. end of the year. In the fourth quarter of 2018 we also opened our first
Refinery throughputs reflect crude oil and other feedstock volumes.
b
retail sites in Indonesia.

We have a clear strategy and focused activity set for the transition to a Aviation
lower carbon and digitally enabled future. We are actively implementing Our Air BP business is one of the world’s largest suppliers of aviation
and developing new offers and business models centred around digital fuels and services, selling fuel to commercial airlines, the military
and advanced mobility trends. In 2018 we acquired Chargemaster, the and general aviation customers at around 800 locations across more
operator of the UK’s largest electric vehicle charging network and than 50 countries. We have marketing sales of more than 430,000
invested in StoreDot, a leading developer of ultra-fast charging battery barrels per day. Air BP’s services include the design, build and operation
technology and FreeWire, a manufacturer of mobile rapid charging of fuelling facilities, technical consultancy and training, supporting
systems for electric vehicles. Our ambition is to roll out more than 2,000 customers to meet their lower carbon goals and digital fuelling solutions
additional charging points in the UK, bringing the total to around 9,000 to increase efficiency and reduce risk. Our Air BP business is
by 2021, including more than 400 new ultra-fast chargers at our retail differentiated through its strong market positions, brand strength,
forecourts – see page 42. These investments and our differentiated partnerships, technology and customer relationships. Our strategy is
fuels and convenience offers support BP’s aim to become the leading to maintain a strong presence in our core geographies of Australia,
fuel provider for both conventional and electric vehicles. New Zealand, Europe, the Middle East and the US, while expanding
into major growth markets that offer long-term competitive advantages,
Fuels marketing performance in 2018 was significantly higher compared
such as Asia, Africa and Latin America.
with 2017, reflecting the benefits from our strategic improvement
programmes, enabling improved margin capture and supply chain In 2018 we continued to develop new offers and solutions in response
optimization. Our convenience partnership model is now in around to the needs of our customers. This included a collaboration with Neste,
1,400 sites across our network, with more than 460 sites in Germany a leading producer of renewable products, to advance the supply
with our REWE to Go® offer. Compared with 2016, fuels marketing of sustainable aviation fuels. We also launched the world’s first
performance in 2017 was higher, reflecting continued earnings growth commercially deployed airfield automation system that actively
supported by higher premium fuel volumes, and the continued roll out of helps prevent misfuelling. This digital platform for operators and airports
our convenience partnership model.. provides an integrated, real-time, global solution to strengthen safety
barriers and mitigate risks during the fuelling process.
thousand barrels per day
Sales volumes 2018 2017 2016 Oil supply and trading
Marketing salesa 2,736 2,799 2,825 Our integrated supply and trading function is responsible for delivering
Trading/supply salesb 3,194 3,149 2,775 value across the overall crude and oil products supply chain. This
Total refined product sales 5,930 5,948 5,600 structure enables our downstream businesses to maintain a single
interface with oil trading markets and operate with one set of trading
Crude oilc 2,624 2,616 2,169
compliance and risk management processes, systems and controls.
Total 8,554 8,564 7,769
It has a two-fold purpose:
a
Marketing sales include branded and unbranded sales of refined fuel products and lubricants
First, it seeks to identify the best markets and prices for our crude oil,
to both business-to-business and business-to-consumer customers, including service
station dealers, jobbers, airlines, small and large resellers such as hypermarkets as well source optimal raw materials for our refineries and provide competitive
as the military. supply for our marketing businesses. We will often sell our own crude
b
Trading/supply sales are fuel sales to large unbranded resellers and other oil companies.
and purchase alternative crudes from third parties for our refineries
c
Crude oil sales relate to transactions executed by our integrated supply and trading function,
primarily for optimizing crude oil supplies to our refineries and in other trading. 2018 includes where this will provide incremental margin.
102 thousand barrels per day relating to revenues reported by the Upstream segment.
Second, it aims to create and capture incremental trading opportunities
Number of BP-branded retail sites by entering into a full range of exchange-traded commodity derivatives,
Retail sitesd 2018 2017 2016 over-the-counter contracts and spot and term contracts. In combination
US 7,200 7,200 7,100 with rights to access storage and transportation capacity, it seeks to
Europe 8,200 8,100 8,100 access advantageous price differences between locations and time
periods, and to arbitrage between markets.
Rest of world 3,300 3,000 2,800
Total 18,700 18,300 18,000 The function has trading offices in Europe, North America and Asia. Our
presence in the more actively traded regions of the global oil markets
Reported to the nearest 100. Includes sites not operated by BP but instead operated by
d
dealers, jobbers, franchisees or brand licensees under a BP brand. These may move to
supports overall understanding of the supply and demand forces across
or from the BP brand as their fuel supply or brand licence agreements expire and are these markets.
renegotiated in the normal course of business. Retail sites are primarily branded BP,
ARCO and Aral. Our trading financial risk governance framework is described in Financial
statements – Note 29 and the range of contracts used is described in
Glossary – commodity trading contracts on page 315.

Our lubricants business Our petrochemicals business
We manufacture and market lubricants and related products and Our petrochemicals business manufactures and markets three main
services to the automotive, industrial, marine and energy markets product lines: purified terephthalic acid (PTA), paraxylene (PX) and acetic
across the world. Our key brands are Castrol, BP and Aral. Castrol is a acid. These have a large range of uses including polyester fibre, food
recognized brand worldwide that we believe provides us with significant packaging and building materials. We also produce a number of other
competitive advantage. We are one of the largest purchasers of base oil specialty petrochemicals products. In addition, we manufacture olefins
in the market but have chosen not to produce it or manufacture additives and derivatives at Gelsenkirchen and solvents at Mülheim in Germany,
at scale. Our participation choices in the value chain are focused on the income from which is reported in our fuels business.
areas where we can leverage competitive differentiation and strength.
Along with the assets we own and operate, we have also invested in
Our strategy is to focus on our premium lubricants and growth markets a number of joint arrangements in Asia, where our partners are leading
while leveraging our strong brands, technology and customer companies in their domestic market.
relationships – all of which are sources of differentiation for our business.
Our strategy is to grow our underlying earnings and ensure the business
With 65% of profit generated from growth markets and 46% of our
is resilient to margin volatility, positioning ourselves to capture growth
sales from premium grade lubricants, we have a strong base for further
and investment opportunities in an attractive and growing market.
expansion and sustained profit growth.
We do this through the execution of our business improvement
In 2018 we significantly strengthened our relationship with Renault programmes which include operational efficiency, deploying our
through the continuation of our Renault Formula 1 sponsorship with industry-leading proprietary technology, commercial optimization and
Renault Sport Racing, and are exploring new opportunities to work competitive feedstock sourcing. We also aim to grow our third-party
globally with the Renault-Nissan-Mitsubishi Alliance. This includes technology licensing income to create additional value.
collaborating in a number of areas including fuel and lubricants supply
We continue to work on reducing our carbon footprint through the
and the joint development of advanced mobility solutions and new
application of our proprietary technologies, and are assessing further
technologies.
opportunities to advance the circular economy in the chemicals and
We have a robust pipeline of technology development through which plastics sector.
we seek to respond to engine developments and evolving consumer
In 2018 the petrochemicals business delivered an underlying RC
needs and preferences, including lower carbon options. We apply
profit before interest and tax that was higher compared with 2017 –
our expertise to create differentiated, premium lubricants and high-
which in turn was higher than 2016. The 2018 result reflected an
performance fluids for customers in on-road, off-road, sea and industrial
improved margin environment, increased margin optimization and
applications. In 2018 we extended the roll out of Castrol EDGE
continued cost management focus, partially offset by a higher level of
BIO-SYNTHETIC into China, an engine oil that uses 25% plant-derived
turnaround activity and the divestment of our 50% shareholding in the
oil compounds while delivering a high level of performance.
SECCO joint venture, which completed in the fourth quarter of 2017.
The lubricants business delivered an underlying RC profit before interest Compared with 2016, the higher result in 2017 reflected an improved
and tax that was lower than 2017. The 2018 results reflected continued margin environment, higher margin optimization, the benefits from our
premium brand growth, more than offset by the adverse lag impact of efficiency programmes and a lower level of turnaround activity. This
increasing base oil prices, as well as adverse foreign exchange rate was partially offset by the impact of the divestment of our interest
movements. The 2017 results reflected growth in premium brands in the SECCO joint venture.
and growth markets, offset by the adverse lag impact of increasing
Our petrochemicals production of 11.9 million tonnes in 2018 was
base oil prices.
lower than 2017 and 2016 (2017 15.3mmte, 2016 14.2mmte) due to
higher levels of turnaround activity and the divestment of our interest
in the SECCO joint venture in 2017.
Our technology remains a significant source of competitive advantage.
In 2018 we secured six new licensing agreements out of the 10 PTA
and PX licences announced globally.
In 2018 we also signed a heads of agreement with SOCAR to evaluate
the creation of a joint venture to build and operate a world-scale
petrochemicals complex in Turkey. This facility would be the largest
and most competitive integrated PTA, PX and aromatics complex
in the western hemisphere.

Rosneft
Rosneft is the largest oil company in Russia, with

a strong portfolio of current and future opportunities.
Russia has one of the largest and lowest-cost
hydrocarbon resource bases in the world and
its resources play an important role in long-term
energy supply to the global economy.
19.75% 8,163 1.1 BP share of Rosneft dividend

($ million)*
BP’s shareholding in Rosneft million barrels of oil equivalent million barrels of oil equivalent
– BP share of Rosneft proved per day – BP share of Rosneft 2018 420 200
reserves hydrocarbon production

2017 124 190
(2017 7,864mmboe) (2017 1.1mmboe/d)
2016 332
18 2.33 >2,960 2015
2014
271
693
refineries – owned million barrels of oil retail service stations,
or hold a stake in refined per day in Russia and abroad Interim
Annual for previous year, less interim
(2017 18) (2017 2.29mmb/d) (2017 >2,960) *
Net of withholding taxes.
Rosneft is the largest oil company in Russia and the largest publicly
traded oil company in the world, based on hydrocarbon production
New fuels volume. Rosneft has a major resource base of hydrocarbons onshore
and offshore, with assets in all Russia’s key hydrocarbon regions.
Rosneft is the leading Russian refining company based on throughput.
It owns and operates 13 refineries in Russia, and also holds stakes in
three refineries in Germany, one in India and one in Belarus.
Downstream operations include jet fuel, bunkering, bitumen and
lubricants. Rosneft also owns and operates Rosneft-branded retail
service stations, as well as BP-branded sites operating under a licensing
agreement.
Rosneft’s largest shareholder is Rosneftegaz JSC (Rosneftegaz),
which is wholly owned by the Russian government. Rosneftegaz’s
shareholding in Rosneft is 50% plus one share.
2018 summary
• BP received $620 million, net of withholding taxes, (2017 $314 million,
2016 $332 million), representing its share of Rosneft’s dividends.
• Rosneft implemented a new dividend policy in 2017, which provides
for a target level of dividends of no less than 50% of IFRS net profit,
and a target frequency of dividend payments of at least twice a year.
• Rosneft and BP launched a new range of fuels featuring ACTIVE
technology at all BP retail service stations in Russia.
• BP remains committed to our strategic investment in Rosneft,
while complying with all relevant sanctions.

BP’s strategy in Russia

Our strategy is to work in co-operation with Rosneft to increase total
shareholder return. This comprises support for our shareholding and
partnering with Rosneft in building a material business in addition to
the shareholding. This strategy is implemented through our activities
in the following areas.
Rosneft Board of Directors Collaboration

BP has a 19.75% shareholding and two directors on the 11-person BP collaborates on the provision of technical, HSE and
board. Bob Dudley and Guillermo Quintero are currently elected to non-technical services on a contractual basis to improve
those roles. functional asset performance.
See Innovation in BP on page 41.
Taas – one of BP’s

Joint ventures 6 major project
start-ups in 2018
BP partners with Rosneft to generate incremental value from
joint ventures and associates that are separate from BP’s core
19.75% shareholding.
• In December 2017 Rosneft and BP announced an

agreement to develop resources within the Kharampurskoe
and Festivalnoye licence areas in Yamalo-Nenets in
northern Russia. In the second quarter of 2018 BP acquired
a 49% stake in LLC Kharampurneftegaz and in December
2018 the licence transfer was completed. BP’s interest
is reported through the Upstream segment.
• BP holds a 20% interest in Taas-Yuryakh Neftegazodobycha
(Taas), together with Rosneft (50.1%) and a consortium
comprising Oil India Limited, Indian Oil Corporation Limited
and Bharat PetroResources Limited (29.9%). Taas
completed commissioning of the main project facilities for
the Srednebotuobinskoye oil and gas condensate field.
This was the second of six BP major projects started up
in 2018. The project was delivered under budget and on
schedule. In 2018 BP received the first dividends from
Taas of $48 million, net of withholding taxes. BP’s interest
in Taas is reported through the Upstream segment.
• Rosneft (51%) and BP (49%) jointly own Yermak Neftegaz
LLC (Yermak). This joint venture conducts onshore
exploration in the West Siberian and Yenisei-Khatanga
basins and currently holds seven exploration and production
licences. The venture has also carried out further appraisal
work on the Baikalovskoye field, an existing Rosneft
discovery in the Yenisei-Khatanga area of mutual interest.
In September Rosneft and BP also agreed to jointly explore
two additional oil and gas licence areas located in
Sakha (Yakutia) republic of the Russian Federation via
Yermak. Completion of the deal, subject to external
approvals, is expected in 2019. BP’s interest in Yermak
is reported through the Upstream segment.

Rosneft segment performance Balance sheet
$ million
BP’s investment in Rosneft is managed and reported as a separate 2018 2017 2016
segment under IFRS. The segment result includes equity-accounted Investments in associates c
earnings, representing BP’s 19.75% share of the profit or loss of (as at 31 December) 10,074 10,059 8,243
Rosneft, as adjusted for the accounting required under IFRS relating
to BP’s purchase of its interest in Rosneft and the amortization of the
Production and reserves
deferred gain relating to the disposal of BP’s interest in TNK-BP. 2018 2017 2016
See Financial statements – Note 17 for further information. Production (net of royalties) (BP share)
$ million Liquids (mb/d)
2018 2017 2016
Crude oild 919 900 836
Profit before interest and taxa b 2,288 923 643
Natural gas liquids 4 4 4
Inventory holding (gains) losses (67) (87) (53)
Total liquids 923 904 840
RC profit before interest and tax 2,221 836 590
Natural gas (mmcf/d) 1,285 1,308 1,279
Net charge (credit) for non-operating items 95 – (23)
Total hydrocarbons (mboe/d) 1,144 1,129 1,060
Underlying RC profit before interest and tax 2,316 836 567
Estimated net proved reservese
Average oil marker prices $ per barrel (net of royalties) (BP share)
Urals (Northwest Europe – CIF) 69.89 52.84 41.68 Liquids (million barrels)
BP’s share of Rosneft’s earnings after finance costs, taxation and non-controlling interests
a
Crude oild 5,539 5,402 5,330
is included in the BP group income statement within profit before interest and taxation.
Includes $(5) million (2017 $(2) million, 2016 $3 million) of foreign exchange (gain)/losses
b
Natural gas liquids 154 131 65
arising on the dividend received. Total liquidsf 5,693 5,533 5,395
Market price Natural gas (billion cubic feet)g 14,325 13,522 11,900
The price of Urals delivered in North West Europe (Rotterdam) averaged Total hydrocarbons (mmboe) 8,163 7,864 7,447
$69.89/bbl in 2018. The discount to dated Brent was $1.42/bbl, similar c
See Financial statements – Note 17 for further information.
to 2017 ($1.35/bbl). d
Includes condensate.
e
Because of rounding, some totals may not agree exactly with the sum of their
component parts.
f
Includes 356 million barrels of liquids (338 million barrels at 31 December 2017 and 347
Financial results million barrels at 31 December 2016) in respect of the 6.32% non-controlling interest
Replacement cost (RC) profit before interest and tax for the segment (6.31% at 31 December 2017 and 6.58% at 31 December 2016) in Rosneft held assets
in Russia including 24 million barrels (6 million barrels at 31 December 2017 and 6 million
included a non-operating charge of $95 million for 2018 and a non- barrels at 31 December 2016) held through BP’s interests in Russia other than Rosneft.
operating gain of $23 million for 2016, whereas the 2017 results did g
Includes 1,211 billion cubic feet of natural gas (306 billion cubic feet at 31 December 2017
not include any non-operating items. and 300 billion cubic feet at 31 December 2016) in respect of the 8.60% non-controlling
interest (2.30% at 31 December 2017 and 2.53% at 31 December 2016) in Rosneft held
After adjusting for non-operating items, the increase in the underlying assets in Russia including 480 billion cubic feet (2 billion cubic feet at 31 December 2017
and 1 billion cubic feet at 31 December 2016) held through BP’s interests in Russia other
RC profit before interest and tax compared with 2017 primarily reflected than Rosneft.
higher oil prices and favourable foreign exchange, partially offset by
adverse duty lag effects.
Compared with 2016, the 2017 result was affected by higher oil prices
partially offset by adverse foreign exchange effects. The 2017 result
also benefited from a $163-million gain representing the BP share of a
voluntary out-of-court settlement between Sistema, Sistema-Invest and
the Rosneft subsidiary, Bashneft. See also Financial statements – Notes
17 and 32 for other foreign exchange effects.

Other businesses and corporate

Comprises our alternative energy business, shipping,
treasury and corporate activities, including centralized
functions and the costs of the Gulf of Mexico oil spill.
$ million
2018 2017 2016
Sales and other operating revenuesa 1,678 1,469 1,667
RC profit (loss) before interest and tax
Gulf of Mexico oil spill (714) (2,687) (6,640)
Other (2,807) (1,758) (1,517)
RC profit (loss) before interest and tax (3,521) (4,445) (8,157)
Net adverse impact of non-operating items
Gulf of Mexico oil spill 714 2,687 6,640
Other 1,249 160 279
Net charge (credit) for non-operating items 1,963 2,847 6,919
Underlying RC profit (loss) before interest and tax (1,558) (1,598) (1,238)
Organic capital expenditure b 332 339 229
a

b
The replacement cost (RC) loss before interest and tax for the year Treasury
ended 31 December 2018 was $3,521 million (2017 $4,445 million, Treasury manages the financing of the group centrally, with
2016 $8,157 million). The 2018 result included a net charge for responsibility for managing the group’s debt profile, share buyback
non-operating items of $1,963 million, including Gulf of Mexico programmes and dividend payments, while ensuring liquidity is
oil spill related costs of $714 million (non-operating items in 2017 sufficient to meet group requirements. It also manages key financial
$2,847 million, 2016 $6,919 million). For further information, risks including interest rate, foreign exchange, pension funding and
see Financial statements – Note 2. investment, and financial institution credit risk. From locations in the
UK, US and Singapore, treasury provides the interface between BP and
After adjusting for these non-operating items, the underlying RC
the international financial markets and supports the financing of BP’s
loss before interest and tax for the year ended 31 December 2018
projects around the world. Treasury holds foreign exchange and interest
was $1,558 million, similar to prior year (2017 $1,598 million, 2016
rate products in the financial markets to hedge group exposures. In
$1,238 million).
addition, treasury generates incremental value through optimizing and
Outlook managing cash flows and the short-term investment of operational cash
Other businesses and corporate annual charges, excluding non- balances. For further information, see Financial statements – Note 29.
operating items, are expected to be around $1.4 billion in 2019.
Insurance
Shipping The group generally restricts its purchase of insurance to situations
BP’s shipping and chartering activities help to ensure the safe where this is required for legal or contractual reasons. Some risks are
transportation of our hydrocarbon products using a combination insured with third parties and reinsured by group insurance companies.
of BP-operated, time-chartered and spot-chartered vessels. At This approach is reviewed on a regular basis or if specific circumstances
31 December 2018 BP had three time-chartered vessels to support require such a review.
operations in Alaska and 34 BP-operated and 22 time-chartered
vessels for our international oil and gas shipping operations. In 2018
three new technically advanced LNG tankers were delivered into the
BP-operated fleet, with a further three to be delivered in 2019. All
vessels conducting BP shipping activities are required to meet BP
approved health, safety, security and environmental standards.

Alternative energy
2.8 million tonnes
of CO2 equivalent avoided in 2018.
BP has been in the renewable energy business for more than 20 years. Biofuels
We remain one of the largest operators among our peers and we’re We believe that biofuels offer one of the best large-scale solutions
expanding in areas where we see opportunities for growth. to reduce emissions in the transportation system.
Renewables are the fastest-growing energy source in the world today We produce ethanol from sugar cane in Brazil, which has life-cycle
and we estimate that they could provide at least 15% of the global greenhouse gas emissions around 70% lower than conventional
energy mix by 2040. transport fuels. In 2018 our three sites produced 765 million litres
of ethanol equivalent.
As part of our approach to building our alternative energy business,
we aim to grow our existing businesses and to develop new businesses Brazil is one of the world’s largest markets for ethanol fuel. In order
and partnerships to deliver competitive value in the fastest-growing to better connect our ethanol production with the country’s main fuels
energy sector. markets, we established a joint venture in 2018 with Copersucar – one
of the world’s leading ethanol and sugar traders. This includes operating
Solar energy
a major ethanol storage terminal in Brazil’s main fuels distribution hub.
Solar could generate 12% of total global power by 2040, in a scenario
based on recent trends. That could grow to 21% in a scenario consistent Our Tropical and Ituiutaba biofuels sites are certified to Bonsucro, an
with the Paris climate goals. independent standard for sustainable sugar cane production. We are
working towards certification for Itumbiara in 2019.
We have a 43% share in Lightsource BP and plan to invest $200 million
over a three-year period. Lightsource BP aims to play a vital role in Our strategy is enabled by:
shaping the future of global energy delivery by developing substantial • Safe and reliable operations – continuing to drive improvements
solar capacity around the world, and we are working with Lightsource in safety performance.
BP to expand its global presence.
• Driving quality and improved efficiency in our feedstock –
Lightsource BP has doubled the number of countries where it has concentrating our efforts in Brazil, which has one of the most
a presence since December 2017 – see Climate change on page 45. cost-competitive biofuel sources in the world.
• Domestic and international markets – selling ethanol and sugar
domestically in Brazil and to international markets such as the US.
Renewable products
Butamax®, our 50/50 joint venture with DuPont, has developed
technology that converts sugars from corn into bio-isobutanol,
an energy-rich bio product. Bio-isobutanol has a wide variety of
applications. For example, it can be used in the production of paints,
coatings and lubricant components. It can also be blended with gasoline
at higher concentrations than ethanol, which can be transported through
existing fuel pipelines and infrastructure. Butamax® has upgraded its
ethanol facility in Kansas to produce bio-isobutanol.

Biopower At our Titan 1 wind energy site in South Dakota, we’ve partnered
We create biopower from bagasse, the fibre that remains after with Tesla to test how effectively wind energy can be stored – see
crushing sugar cane stalks. In 2018 our three biofuels manufacturing Harnessing battery power on page 42.
facilities produced around 892GWh of electricity – enough renewable
In 2018 we divested three wind energy operations in Texas, as part
energy to power all of these sites, with the remaining 70% exported
of a broader restructuring programme designed to optimize our US
to the local electricity grid.
wind portfolio for long-term growth.
This is a low carbon power source, with part of the CO2 emitted from
burning bagasse offset by the CO2 absorbed by sugar cane during More information
its growth. Low carbon ambitions
Wind energy We have set targets and aims to reduce emissions in our operations, improve
our products to help customers reduce their emissions and create low carbon
BP has significant interests in onshore wind energy in the US. We businesses – see pages 46-48.
operate 10 sites in seven states and hold an interest in another facility
in Hawaii. Together they have a net generating capacity of just
over 1,000MW.
Using technology in biofuels

Our SmartLog programme is helping improve
performance across our three biofuels sites
45,000km
in Brazil. SmartLog is designed to increase travelled a day
efficiency across sugar cane cutting, loading
and transportation operations – and
consequently reduces the costs involved.
Every day across our sites we make around
800 trips covering 45,000 kilometres.
This takes place in remote locations with
poor network and communications coverage.
Using a combination of mobile satellite
technology, sensors and radios we can
connect our people and their vehicles to a
central control room. Here we receive 24-hour
real-time information about what’s happening
in the field to help manage activities remotely,
as well as monitoring and analysing
behaviours and giving advice or intervening
about safety or efficiency.
Automation guides workers on improvements
such as how to prioritize harvest activities and
indicates the optimum speed for harvesters
to run at based on prevailing conditions.
Since introducing SmartLog in 2018, we’ve
reduced equipment needed by 20% and our
remote monitoring is helping to reinforce our
safety culture in the field. It has also helped
to lower emissions as the reduction in
equipment means we use less diesel.

Innovation in BP
Across the business we face the dual

challenge of meeting society’s need for
more energy, while at the same time working
to reduce carbon emissions. Our industry is
changing rapidly, and the energy mix is
shifting towards lower carbon sources,
driven by technological advances and
growing environmental concerns.
Technology is ever-present in all that we
do – from safely discovering and recovering
oil and gas, to renewable energy and lower
carbon fuels and products. And digital, big
data and advanced technologies, as well BPme available in
as an innovative mindset, are driving rapid
development of new ways to tackle emissions
>6,000 retail sites
and improve efficiency at BP.
We also invest in high-tech companies A new way to pay
to help accelerate and commercialize new Customers in six countries now have the
technologies, products and business models. option to pay for fuel from their vehicle using
BPme. And since its launch our smartphone
app has been downloaded more than one
million times.
Using a phone’s GPS signal BPme locates the
nearest BP site and provides details of opening
times and facilities. Customers can use the app
to activate their fuel pump and pay from inside
their car.
BPme is designed to appeal to people who
don’t want to leave children, pets or valuables
8 major alone while they go to pay for fuel, and it saves
time queuing at the checkout. Over the coming
technology months we plan to roll it out to new markets
centres and introduce the option to order coffee and
in the US, UK, receive offers and discounts from the app.
Asia and Germany
Group highlights
$429 million
invested in research and development
~$200 million
used to develop options for new lower
carbon businesses
Collaborations
with innovative academic programmes
24 hours to 20 minutes
with APEX
>4,000
granted and pending patent applications
held by BP and its subsidiaries throughout 150 million+
the world data points a day with POA
bp.com/technology

A clearer view below
the earth
Below land and sea, in challenging terrains 01010101010101010101

and conditions, BP’s developments in seismic 01010101 10101010101
technology are allowing us to see deeper
into the earth with better accuracy than ever
01010101010101010101
before. And the better we can see, the easier 01010101010101010101
and safer it is to find oil and gas and unlock 0101010101010 10 1101
more of it from our existing assets.
01010101010101010101
One of the big challenges for conventional 0101010101 0101010101
seismic sources when surveying offshore in
the Gulf of Mexico is the ability to look deep
into the earth without the thick horizontal salt
layers above distorting the images captured.
Wolfspar
To help tackle this we designed and built
Wolfspar. The ultra-low-frequency system
works with our other advanced recording ~1,000km
technologies to help overcome the subsalt of data acquired in 143 hours
imaging challenge. We believe the clearer
view will help reduce uncertainty about where
the resources are, resulting in more drillable and Schlumberger. The project aims to move and vehicles needed as well as a simplified
targets in the region. Having completed a beyond the existing limitations of bulky, heavy derigging process – which is otherwise very
series of successful proof-of-concept tests, and expensive onshore seismic equipment, time consuming and challenging.
BP plans to move to industrialize the and at the same time provide better images of
technology with our strategic seismic partners, the reservoir. Following successful initial field The new node is the lightest, smallest and
so that it can be used across our global trials in Norway and Abu Dhabi in 2017, the lowest-cost system in the world, and the
subsurface portfolio. ‘nimble node‘ system was used to safely project is on course to help change how
acquire 3D seismic data in the challenging future seismic is acquired. Its development
We also reached a major milestone in the climate of West Siberia in 2018. Early images will be completed with a large-scale field trial
development of an innovative land seismic show better data quality compared to in early 2019. Soon after this we plan to begin
recording system, in partnership with Rosneft conventional equipment, with fewer people the first commercial survey.
Robot inspections
Intelligent operations And following our successful pilot in the
Atlantis field, we are now using Plant
Inspection robots are helping us deliver against
our strategic priority of modernizing and
Operations Advisor (POA), which was
transforming BP. At our Cherry Point refinery
New technologies are helping us build developed in partnership with BHGE, on
in the US we’ve adapted a robotic solution
intelligent operations throughout our business. all four BP-operated platforms in the US
that allows us to inspect equipment such
Gulf of Mexico.
as the hydrocracker reactor. The robot uses
Across all our upstream-operated assets, we ultrasound technology to spot microscopic
are creating ‘virtual copies’ of our production The cloud-based tool gives performance
information on around 1,200 important cracks in its walls by crawling along the reactor.
systems using APEX – our highly sophisticated This process would have previously taken
simulation, surveillance and optimization pieces of process equipment – with more
than 150 million data points analysed every more than 23 work hours, with engineers
toolkit. The technology recreates every working inside the hydrocracker unit during a
element of a well network in digital ‘twin’ day. If the system identifies an issue with
any of the equipment, it sends an alert to planned shutdown. Now they can gather the
form, and works in near real time to gather same information in just one hour with robots.
data about every well across our business. our engineers so they can respond quickly.
It can pinpoint where efficiency can be By pinpointing anomalies in operations
improved and helps our production engineers and identifying the causes, problems that
run simulations in seconds. With APEX, a might once have taken hours for engineers
full-field optimization that used to take hours to work through manually can be diagnosed
now takes a few minutes. Engineers from in minutes. Following its success in the Gulf
around the world are proactively sharing their of Mexico, we now plan to use the tool at
know-how and expertise across our global
operations, as they embed the use of APEX
more than 30 upstream locations worldwide
by the end of 2019. 23 hours to
and start benefiting from it.
1 hour

Venturing and
low carbon across
multiple fronts
>6,500
UK charging points
with BP Chargemaster in 2018
12 million
electric vehicles
projected on UK roads by 2040
in the BP Energy Outlook .
Harnessing
battery
power
As we support the transition to We also invested $20 million in StoreDot,
a lower carbon future and to help a company that develops ultra-fast charging
battery technology for mobile and industrial
meet our customers’ changing markets. We anticipate the technology will Storing wind energy
needs, we’re making investments be used in mobile devices by 2020 and BP We’ve partnered with Tesla to test
in electric vehicle technology and will be working with them to help transfer this how effectively wind energy can be
infrastructure. Our work aims to technology to electric vehicles. StoreDot aims stored at our Titan 1 wind energy site
support electric vehicle adoption to bring recharging times down to five minutes, in South Dakota. The electricity captured
making the time it takes to charge an electric
by tackling issues such as poor vehicle similar to that of filling a tank.
is then available for the site to use
battery life and slow charging whenever we need it – even when
BP now has more than 6,500 charging points the wind isn’t blowing.
times. in the UK, through BP Chargemaster. The The pilot will help develop valuable
To allow us to respond rapidly to demand business combines the complementary insights for energy storage applications
for charging facilities at our forecourts, we expertise, experience and assets of BP and across our diverse portfolio.
invested $5 million in FreeWire. The US-based Chargemaster and is an important step
company manufactures mobile rapid charging towards offering widened access to fast and
systems, which we successfully piloted at a ultra-fast charging at BP sites across the UK.
BP retail site in the UK, and are now exploring The chargers will start to become available
options to offer FreeWire’s innovative charging across our UK forecourts throughout 2019.
toreDot – aim to reduce
S
services across the retail networks. electric vehicle
recharging time
to five minutes.

Sustainability

BP Sustainability
Report 2018
We aim to create long-term value for our publishes April
shareholders, partners and society by helping

to meet growing energy demand in a safe and
responsible way.
> Safety and security > Value to society

Our 2018 sustainability focus areas
> Climate change > Ethical conduct
These sustainability issues are the ones that could impact
our business the most and that are of greatest interest to > Managing our impacts > Our people
our stakeholders.
Safety and security Process safety events

(number of incidents)
Safety is our number one priority and a core value. Our aim is to have
no accidents, no harm to people and no damage to the environment. 150
We are working to continuously embed and improve personal and

process safety and operational risk management across BP and to 100
strengthen our safety management.
Our approach builds on our experience, including learning from 50
incidents, operations audits, annual risk reviews and sharing lessons
learned with our industry peers. 2014 2015 2016 2017 2018
Tier 1 Tier 2
Managing safety
BP-operated businesses are responsible for identifying and managing
operating risks and bringing together people with the right skills and
competencies to address them. Our safety and operational risk team Recordable injury frequency
works alongside BP-operated businesses to provide oversight and (workforce incidents per 200,000 hours worked)
technical guidance, while our group audit team visits sites on a
risk-prioritized basis to check how they are managing risks. 0.8
Our operating management system 0.6

Our operating management system (OMS) is a group-wide framework
0.4
designed to help us manage risks in our operating activities and drive
performance improvements. It brings together BP requirements on
0.2
health, safety, security, the environment, social responsibility and
operational reliability, as well as related issues, such as maintenance, 2014 2015 2016 2017 2018
contractor relations and organizational learning, into a common Workforce 0.31 0.24 0.21 0.22 0.20
management system. Employees 0.27 0.20 0.19 0.20 0.15
Contractors 0.34 0.28 0.22 0.23 0.23
Our OMS also helps us improve the quality of our activities by setting American Petroleum Institute US benchmarka
a common framework that our operations must work to. We review International Association of Oil & Gas Producers benchmarka
and amend these requirements from time to time to reflect our a
API and IOGP 2018 data reports are not available until May 2019.
priorities. Any variations in the application of OMS, in order to meet
local regulations or circumstances, are subject to a governance process.
Recently acquired operations need to transition to our OMS. See page
44 for information about contractors and joint arrangements .
Preventing incidents
We carefully plan our operations, with the aim of identifying potential
hazards and having rigorous operating and maintenance practices
applied by capable people to manage risks at every stage. We design
our new facilities in line with process safety – the application of good
design and engineering principles.
We track our safety performance using industry metrics such as the
American Petroleum Institute recommended practice 754 and the
International Association of Oil & Gas Producers recommended
practice 456.

2018 2017 2016 Cyber threats
Tier 1 process safety events a 16 18 16 Cyber attacks are on the rise and our industry is subject to evolving risks
Tier 2 process safety eventsb 56 61 84 from a variety of cyber threat actors, including nation states, criminals,
Oil spills – numberc 124 139 149 terrorists, hacktivists and insiders. We have experienced threats to the
Oil spills contained 63 81 91 security of our digital infrastructure, but none of these had a significant
impact on our business in 2018.
Oil spills reaching land and water 57 58 58
Oil spilled – volume (thousand litres) 538 886 677 We have a range of measures to manage this risk, including the use
Oil unrecovered (thousand litres) 131 265 311 of cyber security policies and procedures, security protection tools,
ongoing detection and monitoring of threats, and testing of response
a
Tier 1 process safety events are losses of primary containment of greater consequence –
such as causing harm to a member of the workforce, costly damage to equipment or
and recovery procedures.
exceeding defined quantities.
To encourage vigilance among our employees, our cyber security
b
Tier 2 events are those of lesser consequence.
c
Number of spills greater than or equal to one barrel (159 litres, 42 US gallons). training programme covers topics such as email phishing and the correct
classification and handling of our information. We collaborate closely
In 2018 we saw a reduction in the number of tier 1 and tier 2 process
with governments, law enforcement and industry peers to understand
safety events. We investigate incidents including near misses. And we
and respond to new and emerging threats.
use leading indicators, such as inspections and equipment tests, to
monitor the strength of controls to prevent incidents. We also use Security and response
techniques that help teams to analyse and redesign tasks to reduce We monitor for hostile actions that could harm our people or disrupt
the chance of mistakes occurring. our operations, focusing on areas affected by political and social unrest,
Keeping people safe terrorism, armed conflict or criminal activity. We take steps to help
All our employees and contractors have the responsibility and the people stay safe when they are travelling on business. Our 24-hour
authority to stop unsafe work. Our safety rules guide our workers on response information centre monitors global events and related
staying safe while performing tasks with the potential to cause most developments which means we can assess the safety of our people
harm. The rules are aligned with our OMS and focus on areas such as and provide timely advice if there is an emergency.
working at heights, lifting operations and driving safety. We run exercises and drills to test our procedures to help ensure our
We monitor and report on key workforce personal safety metrics in line people are prepared in the event of an emergency. We conducted a
with industry standards. We include both employees and contractors in two-day oil spill response drill in the UK North Sea involving more than
our data. 200 people, including regulators. This was designed to test plans as part
of our annual crisis and continuity management programme. We also
Tragically we suffered one fatality in 2018. In our lubricants business a
held a number of large-scale exercises in the US.
heavy goods driver working for one of our contractors in the US was
struck by a passing vehicle while checking a tyre. We are deeply Working with contractors and partners
saddened by this loss and are working closely with our contractors to More than half of the hours worked by BP are carried out by contractors.
continue to improve safety and to seek to prevent injuries in our work Through bridging and other documents, we define the way our safety
together. management system co-exists with those of our contractors to manage
risk on a site. For our contractors facing the most serious risks, we
2018 2017 2016
conduct quality, technical, health, safety and security audits before
Recordable injury frequencyd 0.20 0.22 0.21
awarding contracts. Once they start work, we continue to monitor their
Day away from work case safety performance.
frequencye 0.048 0.055 0.051
Severe vehicle accident rate 0.04 0.03 0.05 Our OMS includes requirements and practices for working with
contractors. Our standard model contracts include health, safety and
Incidents that result in a fatality or injury per 200,000 hours worked.
d
security requirements. We expect and encourage our contractors and
Incidents that result in an injury where a person is unable to work for a day (shift) or more
e
per 200,000 hours worked. their employees to act in a way that is consistent with our code of
conduct and take appropriate action if those expectations, or their
We saw an overall decrease in our recordable injury frequency and day
contractual obligations, are not met.
away from work case frequency. Our goals stay the same – to have no
accidents, no harm to people and no damage to the environment. There Our partners in joint arrangements
is always more we can do and we remain focused on achieving better In joint arrangements where we are the operator, our OMS, code
results today and in the future. of conduct and other policies apply. We aim to report on aspects of
our business where we are the operator – as we directly manage the
Technology
performance of these operations. We monitor performance and how
New technologies are helping us increase the amount and quality of data
risk is managed in our joint arrangements, whether we are the operator
we gather from our operations and speed up our analysis, allowing us to
or not.
act more quickly. For example, our Brazilian biofuels business is spread
across geographically remote locations, so we introduced a digital Where we are not the operator, our OMS is available as a reference
platform to connect our people and vehicles to a central control room. point for BP businesses when engaging with operators and
This provides 24-hour, real-time information about what’s happening, co-venturers. We have a group framework to assess and manage
helps us monitor and analyse behaviour and aids improvements around BP’s exposure related to safety, operational and bribery and corruption
learning and safety. We also use in-vehicle monitoring systems and risk from our participation in these types of arrangements. Where
cameras to improve transportation safety. appropriate, we may seek to influence how risk is managed in
arrangements where we are not the operator.
Emergency preparedness
The scale and spread of BP’s operations means we must be prepared to
respond to a range of possible disruptions and emergency events. We
maintain disaster recovery, crisis and business continuity management
plans and work to build day-to-day response capabilities to support local
management of incidents.

consistent with the Paris goals. Subject to shareholder approval at our

annual general meeting, we will provide more information on this in
future reports.
Climate change
Risk management
The world needs more energy but with fewer carbon We recognize the significance of the energy transition and the risks and
emissions. BP is playing an active role in meeting opportunities it presents. As part of their review of BP’s strategy, the
this dual challenge. board and executive team considered risks and opportunities associated
with climate change and the energy transition, in the context of different
The Taskforce for Climate-related Financial Disclosures (TCFD) was paths expressed in the BP Energy Outlook – which looks at long-term
established by the Financial Stability Board with the aim of improving the trends and develops projections for world energy markets over the next
reporting of climate-related risks and opportunities. We support this aim. two decades.
Our reporting provides information supporting the principles of the Under BP’s risk management policy and the associated risk
TCFD recommended disclosures. management procedures, our operating businesses are responsible for
See bp.com/tcfd. identifying and managing their risks. Risks which may be identified
include potential effects on operations at the asset level, performance at
Strategy
the business level and developments at the regional level from extreme
Our strategy is designed to grow shareholder value while also helping
weather or the transition to a lower carbon economy.
to meet the dual challenge. We believe it is consistent with the climate
goals of the Paris Agreement, which calls for the world to rapidly reduce As part of our annual planning process we review the group’s principal
greenhouse gas emissions in the context of sustainable development risks and uncertainties. Climate change and the transition to a lower
and eradicating poverty. carbon economy has been identified as a principal risk (see page 55).
This covers various aspects of how risks associated with the energy
A key element of our strategy is our ‘reduce, improve, create’
transition could manifest such as in the policy, legal and regulatory
framework, where we have set measurable, near-term targets for
environment, technological developments and market changes.
reducing greenhouse gas emissions in our own operations and
Similarly, physical climate-related risks such as extreme weather
ambitions for improving products to help our customers and
are covered in our principal risks related to safety and operations.
consumers lower their emissions, and creating low carbon
businesses. See page 46. See page 53 for more information on how we manage risk.
In 2019 we are supporting a resolution from a group of institutional

investors to describe in our corporate reporting how our strategy is
Climate governance
BP’s governance framework applies equally to the management and committees in BP bring together cross-segment and
of the various aspects of climate change and the transition to a cross-functional expertise of relevance to this area, including
lower carbon economy. In addition to the oversight provided by the those set out below.
executive team, the board and relevant committees, various groups
BP governance framework
See page 69
Renewal committee
Reviews strategic, commercial and investment decisions outside of core activity and related to new lines of business.
Chaired by our deputy chief executive.
New energy frontiers steering committee

Oversees strategy and development of growth opportunities in low carbon business models that can be scaled up to create
new businesses for BP. Chaired by our deputy chief executive.
Carbon steering group

Focuses on strategy, policy, performance oversight and collaboration relating to carbon management
activities across the group. Chaired by our vice president of carbon management.
Upstream carbon Downstream advancing the

steering committee energy transition committee
Focuses on the delivery of lower carbon plans in the Upstream. Develops and drives the implementation of advancing the energy
Chaired by our chief operating officer of production, transformation transition in the Downstream. Chaired by our head of technology,
and carbon, Upstream. Downstream and BP chief scientist.
Key: Executive-level committee Cross-functional committee Business and segment committee

Our low carbon ambitions We have set targets and aims to reduce emissions in our operations,
improve our products to help customers reduce their emissions and
We aim to advance a low carbon future through what create low carbon businesses. We are already in action and have made
we call our ‘reduce, improve, create’ framework. good progress in 2018 against these ambitions.
See bp.com/sustainability for more information on the actions we are

taking and bp.com/targets for specifics on our goals.
Reducing Improving
emissions in our operations our products
We are targeting zero net growth in our operational emissions out We are continuing to innovate with fuels, lubricants and chemicals that
to 2025. We aim to deliver this through sustainable greenhouse gas can help our customers and consumers lower their emissions.
(GHG) emissions reductions totalling 3.5Mte by 2025, by targeting
a methane intensity of 0.2% and, as necessary, with offsets to keep
net emissions growth to zero.
2018 progress 2018 progress
•Z
ero net growth in operational emissions. •C
ollaborated with Neste to explore opportunities
• 2.5Mte of sustainable GHG emissions reductions to increase supply of sustainable aviation fuel.
since the beginning of 2016. This includes actions • Launched Castrol GTX ECO, made using a base oil
to improve energy efficiency and reduce methane blend of at least 50% re-refined base oil, in the US.
emissions and flaring. • Gave UK drivers the option to offset the CO2
• Methane intensity of 0.2%. emissions from the fuel they buy from us, through
our BPme fuel payment app.
From waste to fuel

We’ve invested in Fulcrum BioEnergy®, which is constructing the
first commercial scale waste-to-fuels plant in the US. The facility
aims to use technology, developed by BP and Johnson Matthey,
to help convert household rubbish that would otherwise be sent
to landfill, into fuel for transport. Fulcrum, in which BP owns an 8%
interest, estimates that when it begins commercial operations,
the plant will be able to convert around 175,000 tons of waste into
about 11 million gallons of fuel each year.
175,000
tons of waste to
11 million
gallons of fuel
Detecting methane
As a colourless and odourless gas – detecting leaks of methane
can be challenging. For several years we’ve used hand-held infrared
cameras to detect small leaks before they become larger ones.
Improvements in technology now make it possible to quantify the
emissions that these cameras detect, helping us to better target
and prioritize our responses. We piloted this technology in
Azerbaijan and the US in 2018 and plan to deploy the cameras
more widely in 2019.

2018 progress
Creating
low carbon businesses • Invested $500 million in low carbon activities, such
as FreeWire – which supports development of rapid
mobile electric vehicle charging.
We are building up our renewable energy portfolio – focusing on
biofuels, biopower, wind and solar. And together with our dynamic • Worked with OGCI to help progress the Clean Gas
venturing arm we are working on multiple fronts – through joint Project, see page 48.
ventures, creative collaborations and new business models.
As at 31 December 2018
Advancing solar
Lightsource BP has doubled the number of countries UK Australia

where it has a presence since December 2017. Completed the UK’s biggest- Awarded the project to provide
ever unsubsidized solar power 105MW of solar power to
Belfast
Lightsource BP sites deal to supply AB InBev, the Snowy Hydro, the country’s
Budweiser brewer, with fourth-largest national energy
Wales 100MW of solar power at its retailer, through a 15-year
UK operations in South Wales power purchase agreement.
Bath London
and Lancashire.
US
Agreed to bring 25MW
of locally generated solar
power to western US,
Dublin and
through new collaborations Limerick Amsterdam
in California and New Mexico Milan
San Francisco
over 20+ year terms. Philadelphia Madrid
Cairo
Brazil Mumbai
Announced plans to develop
solar and smart energy storage Chennai
solutions for Brazil’s domestic,
commercial and industrial sectors.
São Paulo
Sydney
Melbourne
India
Established EverSource Capital
5 new Egypt
Formed a joint venture with Everstone to manage the
countries Europe with Hassan Allam Green Growth Equity Fund
in 2018 Extended operations into
the Italian and Iberian
Utilities to develop and
operate utility scale
aiming to raise up to $700 million of
investment in low carbon energy
renewable energy sectors. solar projects in Egypt. infrastructure projects across India.

Metrics part of the project. This is currently $40 per tonne of CO2 equivalent,
We report direct and indirect greenhouse gas (GHG) emissions on a with a stress test at a carbon price of $80 per tonne. Until late January
carbon dioxide equivalent (CO2e) basis. Direct emissions include CO2 2019 we used these specific prices in industrialized countries, but have
and methane from the combustion of fuel and the operation of facilities, now expanded this to apply globally.
and indirect emissions include those resulting from the purchase of
Working with others
electricity and steam we import into our operations.
We work with peers, non-governmental organizations and academic
There was a decrease in our direct GHG emissions in 2018. The primary institutions to address the climate challenge.
reasons for this include actions taken by our businesses to reduce
The Oil and Gas Climate Initiative (OGCI) – currently chaired by our
emissions in areas such as flaring, methane and energy efficiency as
group chief executive Bob Dudley – brings together 13 oil and gas
well as operational changes, such as increased gas being captured and
companies to increase the ambition, speed and scale of the initiatives
exported to the liquefied natural gas facility in Angola.
undertaken by its individual companies to help reduce manmade GHG
Greenhouse gas emissions (MteCO2e)a emissions. OGCI announced a collective methane intensity target
2018 2017 2016 for member companies in 2018. The target aims to reduce the collective
Operational controlb average methane intensity of the group’s aggregated upstream oil and
gas operations to below 0.25% by 2025, compared with the baseline of
Direct emissions 48.8 50.5 51.4
0.32% in 2017. See page 46 for information on BP’s methane intensity.
Indirect emissions 5.4 6.1 6.2
BP equity sharec BP is working with OGCI Climate Investments to help progress the
Direct emissions 46.5 49.4 50.1 UK’s first commercial full-chain carbon capture, use and storage project.
Indirect emissions 5.7 6.8 6.2 The Clean Gas Project plans to capture CO2 from new efficient gas-fired
power generation and transport it by pipeline to be stored in a formation
a
Our approach to reporting GHG emissions broadly follows the IPIECA/API/IOGP Petroleum under the southern North Sea. The infrastructure would also allow other
Industry Guidelines for Reporting GHG Emissions. We calculate CO2 emissions based on the
fuel consumption and fuel properties for major sources. We report CO2 and methane. We do industries in Teesside to store CO2 captured from their processes. The
not include nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride as project, which is currently undergoing a feasibility study, could be in
they are not material to our operations and it is not practical to collect this data. operation by the mid-2020s.
b
Operational control data comprises 100% of emissions from activities that are operated by
BP, going beyond the IPIECA guidelines by including emissions from certain other activities
such as contracted drilling activities.
c
BP equity share data comprises 100% of emissions from subsidiaries and the percentage
of emissions equivalent to our share of joint arrangements and associates , other than BP’s
share of Rosneft. Managing our impacts
The ratio of our total GHG emissions reported on an operational control
We work hard to avoid, mitigate and manage our
basis to gross production was 0.22teCO2e/te production in 2018 (2017
0.24teCO2e/te, 2016 0.24teCO2e/te). Gross production comprises environmental and social impacts over the life of
upstream production, refining throughput and petrochemicals produced. our operations.
Accrediting our lower carbon activities The way our businesses around the world understand and manage
To reinforce our ambitions, we implemented our Advancing Low Carbon their environmental and social impacts is set out in our operating
accreditation programme, which aims to inspire every part of BP to management system. This includes requirements on engaging with
identify lower carbon opportunities. stakeholders who may be affected by our activities.
To gain accreditation by BP, each activity must meet certain criteria, In planning our projects, we identify potential impacts from our activities
including delivering what we call a better carbon outcome. This means in areas such as land rights, water use and protected areas. We use the
either reducing GHG emissions, producing less carbon than competitor results of this analysis to identify actions and mitigation measures and
or industry benchmarks, providing renewable energy, offsetting carbon implement these in project design, construction and operations. For
produced, furthering research and technology to advance low carbon or example, as part of our exploration activities in São Tomé and Príncipe,
enabling BP or others to meet their low carbon objectives. we are using underwater sound recorders and an autonomous vehicle
to help understand the distribution and movement of marine mammals.
Deloitte conducts independent assurance on the Advancing Low
The outcomes of this will inform our approach to planning for potential
Carbon activities, including assessing the application of BP’s process
future activities.
and criteria for accrediting activities, and GHG emissions offset and
saved within the programme. Every year our major operating sites review their performance and set
local improvement targets. These can include measures on flaring,
A total of 52 activities met the criteria for accreditation or reaccreditation
greenhouse gas emissions and the use of water.
in 2019, up from 33 in 2018. These include emission reductions in our
operations, carbon neutral products, more efficient ships, investments See page 44 for information on our oil spill performance.
in electrification and support for low carbon technologies.
Water
See bp.com/advancinglowcarbon for details on the programme We review risks related to management of water in our portfolio
and Deloitte’s assurance statement. each year, considering the local availability, quantity, quality and
Calling for a price on carbon regulatory requirements. In our gas operations in Oman – an area
BP believes that well-designed carbon pricing by governments provides where the availability of fresh water is extremely scarce – we withdraw
the right incentives for everyone – energy producers and consumers brackish water under permit from a local underground aquifer that is only
alike – to play their part in reducing emissions. It makes energy used for industrial purposes. We desalinate the water and use it for
efficiency more attractive and makes lower carbon solutions, such drilling and hydraulic fracturing. We completed a modelling study in 2018
as renewables and carbon capture, use and storage, more cost to assess the sustainability of this water supply. The results of the study
competitive. have been incorporated into a long-term water management plan to
reduce water demand.
We use a carbon price when evaluating our plans for certain large new
projects and also those for which emissions costs would be a material Air quality
We put measures in place to manage our air emissions, in line with
regulations and industry guidelines designed to protect the health
of local communities and the environment. In our shipping business, we We disclose information on payments to governments for our upstream

introduced three new liquefied natural gas carriers to our fleet in 2018. activities on a country-by-country and project basis under national
The carriers are designed to use approximately 25% less fuel and emit reporting regulations such as those in effect in the UK. We also make
less nitrogen oxides than our older ships. payments to governments in connection with other parts of our
business – such as the transporting, trading, manufacturing and
Hydraulic fracturing
marketing of oil and gas.
We aim to apply responsible practices to the design of our wells to
mitigate potential risks associated with hydraulic fracturing. For example, We support transparency in the flow of revenue from oil and gas
we install multiple layers of steel into each well and cement above and activities to governments. This helps citizens hold public authorities
below any freshwater aquifers. We then test the integrity of each well to account for the way they use funds received through taxes and
before we begin the fracturing process and again at completion. other agreements.
Hydraulic fracturing creates very small earth tremors that are rarely felt We are a founding member of the Extractive Industries Transparency
at the surface. Before we start work we assess the likelihood of our Initiative (EITI), which requires disclosure of payments made to and
operations causing such activity. For example, we work to identify received by governments in relation to oil, gas and mining activity.
natural faults in the rock. This analysis informs our development plans As part of the EITI, we work with governments, non-governmental
for drilling and hydraulic fracturing activity, and we seek to mitigate this organizations and international agencies to improve the transparency
risk through the design of our operations. of payments to governments. In 2018 we continued to support EITI
implementation in a number of countries where we operate, including
See bp.com/environment for more information.
Iraq and Trinidad & Tobago.
See bp.com/tax for our approach to tax and our payments
to governments report.
Value to society
We aim to have a positive and enduring impact
on the communities in which we operate. Human rights
In supplying energy, we contribute to economies around the world We are committed to respecting the rights and
by employing local staff, helping to develop national and local suppliers, dignity of all people when conducting our business.
and through the funds we pay to governments from taxes and other
agreements. We respect internationally recognized human rights as set out in
the International Bill of Human Rights and the International Labour
Additionally, our social investments support community efforts to Organization’s Declaration on Fundamental Principles and Rights at
increase incomes and improve standards of living. We contributed Work. These include the rights of our workforce and those living in
$114.2 million in social investment in 2018 (2017 $89.5 million, 2016 communities potentially affected by our activities.
$61.1 million). In India we developed a training programme to help
motorcycle mechanics working in small enterprises develop additional We set out our commitments in our human rights policy and our code
skills in business management and customer service. Since it began in of conduct. Our operating management system contains guidance
2009, the programme has trained more than 200,000 mechanics. on respecting the rights of workers and community members.
We aim to recruit our workforce from the community or country in We are incorporating the UN Guiding Principles on Business and
which we operate. We also run programmes to build the skills of Human Rights, which set out how companies should prevent, address
businesses and develop the local supply chain in a number of and remedy human rights impacts, into our business processes. Our
locations. For example, in 2018 we launched an initiative with oil focus areas include the ethical recruitment and working conditions of
and gas peers in Senegal to support local company efforts to achieve contracted workforces at our sites, responsible security, community
international standards and improve their ability to bid for work with health and livelihoods, and mechanisms for workers and communities
companies like BP. to raise their concerns.
Nationals employed In 2018 our actions included:
• Reviewing the risk of modern slavery in prioritized locations, including
on-site assessments in some cases and addressing findings.
• Working with a number of our peers to create an oil and gas industry
framework for human rights supplier assessments with a particular
Azerbaijan 91% focus on labour rights.
Trinidad Egypt 78% • Developing clear expectations on labour rights and a systematic
Oman 77%
& Tobago 96% approach to modern slavery risk management to build into business
Indonesia 96% systems and processes.
Angola 87%
• Continuing to develop capability on modern slavery and labour rights
for our employees and selected contractors, as well as taking steps
to raise worker awareness of their rights.
• Assessing the practices of private security contractors and the way
See bp.com/society for more information on how we generate
value to society. we work with public security forces in our operations in Georgia, in line
with our continued implementation of the Voluntary Principles on
Tax and transparency Security and Human Rights.
We are committed to complying with tax laws in a responsible manner
and having open and constructive relationships with tax authorities. See bp.com/humanrights for more information about our approach to
human rights.
We paid $7.5 billion in income and production taxes to governments
in 2018 (2017 $5.8 billion, 2016 $2.2 billion).

Anti-bribery and corruption
BP operates in parts of the world where bribery and corruption present
Ethical conduct a high risk. We have a responsibility to our employees, our shareholders
and to the countries and communities in which we do business to be
We are committed to conducting our business in an ethical and lawful in all our work. Our code of conduct explicitly prohibits
ethical, transparent way, using our values and code engaging in bribery or corruption in any form.
of conduct to guide us. Our group-wide anti-bribery and corruption policy and procedures
include measures and guidance to assess risks, understand relevant
Our values
laws and report concerns. They apply to all BP-operated businesses.
We provide training to employees appropriate to the nature or location
of their role. A total of 10,957 employees completed anti-bribery and
corruption training in 2018 (2017 12,500, 2016 13,000).
We assess any exposure to bribery and corruption risk when working
with suppliers and business partners. Where appropriate, we put in
place a risk mitigation plan or we reject them if we conclude that risks
are too high.
We also conduct anti-bribery compliance audits on selected suppliers
when contracts are in place. For example, our upstream business
conducts audits for a number of suppliers in higher-risk regions to
assess their conformance with our anti-bribery and corruption
Our values represent the qualities and actions we wish to see in BP. contractual requirements. Potential areas for improvement are shared
They inform the way we do business and the decisions we make. We with our suppliers and where necessary, this enables us to work with
use these values as part of our recruitment, promotion and individual them to find ways to strengthen their procedures. We issued a total of
performance management processes. 27 audit reports in 2018 (2017 36, 2016 25). We take corrective action
See bp.com/values for more information.
with suppliers and business partners who fail to meet our expectations,
which may include terminating contracts.
The BP code of conduct Lobbying and political donations
Our code of conduct is based on our values and sets clear expectations We prohibit the use of BP funds or resources to support any political
for how we work at BP. It applies to all BP employees and members of candidate or party.
the board.
We recognize the rights of our employees to participate in the political
Employees, contractors or other third parties who have a question process and these rights are governed by the applicable laws in the
about our code of conduct or see something that they feel is unethical or countries in which we operate. For example, in the US we provide
unsafe can discuss these with their managers, supporting teams, works administrative support for the BP employee political action committee
councils (where relevant) or through OpenTalk, a confidential helpline (PAC), which is a non-partisan committee that encourages voluntary
operated by an independent company. employee participation in the political process. All BP employee PAC
A total of 1,712 concerns or enquiries were recorded in 2018 (2017 contributions are reviewed for compliance with federal and state law
1,612, 2016 1,701) through these channels. The most commonly raised and are publicly reported in accordance with US election laws.
concerns were about fair treatment of people, workplace harassment We work with governments on a range of issues that are relevant
and protecting BP’s assets. to our business, from regulatory compliance, to understanding our tax
We take steps to identify and correct areas of non-conformance and liabilities, to collaborating on community initiatives. The way in which we
take disciplinary action where appropriate. In 2018 our businesses interact with those governments depends on the legal and regulatory
dismissed 50 employees for non-conformance with our code of conduct framework in each country.
or unethical behaviour (2017 70, 2016 109). This excludes dismissals of We are members of multiple industry associations that offer
staff employed at our retail service stations. opportunities to share good practices and collaborate on issues of
See bp.com/codeofconduct for more information. importance to our sector. We aim for alignment between our policies
and those of trade associations, but understand that associations’
positions reflect a compromise of the assorted views of the
Gulf of Mexico oil spill membership.
The term of appointment of the ethics monitor, who was appointed

under the administrative agreement with the US Environmental
Protection Agency, came to an end in March 2019. In his final report
the ethics monitor confirmed that BP had successfully completed
the recommendations he had made.

At the end of 2018 we had five female directors (2017 3, 2016 3) on our

board. Our nomination committee remains mindful of diversity when
considering potential candidates.
Our people
For more information on the composition of our board, see page 58.
BP’s success depends on the wholehearted
Workforce by gender
contribution of a talented and diverse workforce.
Members as at 31 December Male Female Female %
Board directors 9 5 36
Executive team 11 2 15
Group leaders 286 89 24
Subsidiary directors 1,161 233 17
All employees 47,171 25,824 35
A total of 24% of our group leaders came from countries other than the
UK and the US in 2018 (2017 24%, 2016 23%).
Inclusion
BP is committed to creating a positive and empowering workplace in
which all employees feel valued for the work they do and the impact
they make. Our goal is to create an environment of inclusion and
acceptance, where everyone is treated equally and without
BP employees discrimination.
Number of employees at 31 Decembera 2018 2017 2016 To promote an inclusive culture we provide leadership training and
Upstream 16,900 17,700 18,700 support employee-run advocacy groups in areas such as gender,
Downstream 42,700 42,100 41,800 ethnicity, sexual orientation and disability. As well as bringing employees
Other businesses and corporate 13,400 14,200 14,000 together, these groups support our recruitment programmes and
Total 73,000 74,000 74,500 provide feedback on the potential impact of policy changes. Each
group is sponsored by a senior executive.
Service station staff 17,400 16,800 16,200
Agricultural, operational and We made progress in a number of important areas in 2018. For example,
seasonal workers in Brazil 3,400 4,300 4,600 we worked with MyPlus, a disability consultancy, to increase our
Total excluding service station understanding of the needs of disabled candidates in our application and
staff and workers in Brazil 52,200 52,900 53,700 hiring processes. And we launched our gender transition guidelines to
support employees who are transitioning, or helping someone who is.
Reported to the nearest 100. For more information see Financial statements – Note 35.
a
We aim to ensure equal opportunity in recruitment, career development,

Our industry relies on creative and scientific thinking to solve some of
promotion, training and reward for all employees – regardless of
the world’s biggest energy problems. We focus on attracting and
ethnicity, national origin, religion, gender, age, sexual orientation, marital
developing innovative and capable individuals, while also maintaining
status, disability, or any other characteristic protected by applicable laws.
safe and reliable operations.
Where existing employees become disabled, our policy is to provide
The group people committee helps facilitate the group chief executive’s continued employment, training and occupational assistance
oversight of policies relating to employees. In 2018 the committee where needed.
discussed remuneration policy, progress in our diversity and inclusion
Employee engagement
programme, modernizing and strengthening our attractiveness as an
Managers hold regular team and one-to-one meetings with their staff,
employer, our talent and learning programmes and long-term people
complemented by formal processes through works councils in parts of
priorities.
Europe. We regularly communicate with employees on factors that
Attraction and retention affect BP’s performance, and seek to maintain constructive relationships
A total of 296 graduates joined BP in 2018 (2017 314, 2016 231). We with labour unions formally representing our employees.
were named the UK’s highest-ranking recruiter in the oil and gas sector
To better understand how employees feel about BP, we conduct an
in The Times newspaper’s Top 100 Graduate Employer rankings in 2018.
annual survey. The overall employee engagement score in 2018 was
We invest in employee development – with an average spend of around
66%. Pride in working for BP was at the highest level in a decade at
$3,200 per person. This includes online and classroom-based courses
76% in 2018.
and resources, supported by a wide range of on-the-job learning and
mentoring programmes. The area where our employees scored us as needing attention was in
the efficiency of our processes and ways of working. We know we still
Diversity
have work to do to streamline our processes and drive the benefits of
We are committed to making our workplaces reflect the communities
digitization throughout BP.
in which we are based.
Share ownership
The gender balance across BP as a whole is steadily improving, with
We encourage employee share ownership and have a number of
women representing 35% of BP’s total population (2017 34%, 2016
employee share plans in place. For example, we operate a ShareMatch
33%). We are working to improve these numbers further by, for
plan in more than 50 countries, matching BP shares purchased by our
example, developing mentoring, sponsorship and coaching programmes
employees. We also operate a group-wide discretionary share plan,
to help more women advance. But we still have work to do at the
which allows employee participation at different levels globally and is
executive and senior levels.
linked to the company’s performance.
See bp.com/ukgenderpaygap for data and more information on our gender
pay gap in the UK.

Modernizing
the whole
group
Smart glasses
used across BPX Energy
Using
wearable
technologies
New technologies are helping We are using augmented reality (AR)
to modernize our operations devices such as ‘smart glasses’ across
BPX Energy. Technicians can use the
and improve safety, performance glasses to transmit real-time video to experts
and efficiency right across our anywhere in the business and they can then
Digital vests
business. And we are testing a return AR-enabled instruction back to the
In Oman, where temperatures can reach
range of wearable technologies to technician – all while keeping their hands
free. We are now using the mobile platform 55°C, we are testing technologies such
understand how they can support as biometric vests to protect our people
to troubleshoot equipment, conduct safety
our people in a variety of roles. verifications and deliver remote training. working in high temperatures. Working
in extreme heat can trigger fatigue,
This is helping increase productivity and dehydration and stress – and this can
contributing to improvements in the safety affect safety and effective performance.
and efficiency of our operations. The lightweight vest is designed to prevent
this by monitoring location and core body
temperature and transmitting data about
heart and respiratory rates. It sends an
alert if there is a potential concern or a real
emergency. As technologies like these
evolve, we will continue to trial them in our
operations, so that we can roll out those
that are the best fit.
Temperatures in
Oman can reach
55°C

How we manage risk
BP manages, monitors and reports on the principal risks and uncertainties BP’s group risk team analyses the group’s risk profile and maintains

that can impact our ability to deliver our strategy. These risks are described the group risk management system. Our group audit team provides
in the Risk factors on page 55. independent assurance to the group chief executive and board as to
whether the group’s system of internal control is adequately designed
Our management systems, organizational structures, processes, and operating effectively to respond appropriately to the risks that are
standards, code of conduct and behaviours together form a system of significant to BP.
internal control that governs how we conduct the business of BP and
manage associated risks. Risk oversight and governance
Key risk oversight and governance committees include the following:
BP’s risk management system
BP’s risk management system and policy is designed to be a consistent
and clear framework for managing and reporting risks from the group’s Executive committees
operations to management and to the board. The system seeks to avoid
• Executive team meeting – for strategic and commercial risks.
incidents and maximize business outcomes by allowing us to:
• Group operations risk committee – for health, safety, security,
• Understand the risk environment, identify the specific risks and assess
environment and operations integrity risks.
the potential exposure for BP.
• Group financial risk committee – for finance, treasury, trading
• Determine how best to deal with these risks to manage overall
and cyber risks.
potential exposure.
• Group disclosure committee – for financial reporting risks.
• Manage the identified risks in appropriate ways.
• Group people committee – for employee risks.
• Monitor and seek assurance of the effectiveness of the management
of these risks and intervene for improvement where necessary. • Group ethics and compliance committee – for legal and regulatory
compliance and ethics risks.
• Report up the management chain and to the board on a periodic basis
on how significant risks are being managed, monitored, assured and • Resource commitment meeting – for investment decision risks.
the improvements that are being made.
• Renewal committee – for strategic, commercial and investment
decision risks related to new lines of business.
Our risk management activities
Day-to-day risk Business and Oversight and
management strategic risk governance Board and its committees
management • BP board.
• Audit committee.
Identify, Plan, manage Set policy and
manage and performance monitor principal • Safety, ethics and environment assurance committee.
report risks and assure risks
• Geopolitical committee.
See BP governance framework on page 69, Board activity in 2018 on

Facilities, Business Executive and Board page 70, committee reports on pages 75-86 and Risk management and
assets and segments and corporate
internal control on page 110.
operations functions functions
Risk management processes
We aim for a consistent basis of measuring risk to:
• Establish a common understanding of risks on a like-for-like basis,
Day-to-day risk management – management and staff at our facilities, taking into account potential impact and likelihood.
assets and functions seek to identify and manage risk, promoting safe,
• Report risks and their management to the appropriate levels
compliant and reliable operations. BP requirements, which take into of the organization.
account applicable laws and regulations, underpin the practical plans
developed to help reduce risk and deliver safe, compliant and reliable • Inform prioritization of specific risk management activities and
operations as well as greater efficiency and sustainable financial results. resource allocation.
Business and strategic risk management – our businesses and Businesses and functions review significant risks and associated risk
functions integrate risk management into key business processes such management activities in alignment with key business processes to help
as strategy, planning, performance management, resource and capital enable key decisions to be risk informed.
allocation, and project appraisal. We do this by using a standard As part of BP’s annual planning process, the executive team and
framework for collating risk data, assessing risk management activities, board review the group’s principal risks and uncertainties. These may
making further improvements and in connection with planning new be updated during the year in response to changes in internal and
activities. external circumstances.
Oversight and governance – throughout the year functional
leadership, the executive team, the board and relevant committees Our risk profile
provide oversight of how significant risks to BP are identified, assessed The nature of our business operations is long term, resulting in many of
and managed. They help to ensure that risks are governed by relevant our risks being enduring in nature. Nonetheless, risks can develop and
policies and are managed appropriately. evolve over time and their potential impact or likelihood may vary in
response to internal and external events.

We identify high priority risks for particular oversight by the board and We seek to manage this risk through a range of measures, which
its various committees in the coming year. Those identified for 2019 include cyber security standards, security protection tools, ongoing
are listed in this section. These may be updated throughout the year detection and monitoring of threats and testing of cyber response and
in response to changes in internal and external circumstances. The recovery procedures. We collaborate closely with governments, law
oversight and management of other risks, for example technological enforcement agencies and industry peers to understand and respond to
change or the transition to a lower carbon economy, is undertaken in new and emerging cyber threats. We build awareness with our staff,
the normal course of business and in the executive team, the board share information on incidents with leadership for continuous learning
and relevant committees. and conduct regular exercises including with the executive team to test
response and recovery procedures.
There can be no certainty that our risk management activities will
mitigate or prevent these, or other risks, from occurring.
Safety and operational risks
Further details of the principal risks and uncertainties we face are set
Process safety, personal safety and environmental risks
out in Risk factors on page 55.
The nature of the group’s operating activities exposes us to a wide range
of significant health, safety and environmental risks such as incidents
Risks for particular oversight by the board and its associated with releases of hydrocarbons when drilling wells, operating
committees in 2019 facilities and transporting hydrocarbons.
The risks for particular oversight by the board and its committees in Our operating management system helps us manage these risks and
2019 have been reviewed. These risks remain the same as for 2018. drive performance improvements. It sets out the rules and principles
which govern key risk management activities such as inspection,
Strategic and commercial risks maintenance, testing, business continuity and crisis response planning
Financial liquidity and competency development. In addition, we conduct our drilling
External market conditions can impact our financial performance. Supply activity through a global wells organization in order to promote a
and demand and the prices achieved for our products can be affected by consistent approach for designing, constructing and managing wells.
a wide range of factors including political developments, global
economic conditions and the influence of OPEC. Security
Hostile acts such as terrorism or piracy could harm our people and
We seek to manage this risk through BP’s diversified portfolio, our disrupt our operations. We monitor for emerging threats and
financial framework, liquidity stress testing, maintaining a significant vulnerabilities to manage our physical and information security.
cash buffer, regular reviews of market conditions and our planning
and investment processes. Our central security team provides guidance and support to our
businesses through a network of regional security advisers who advise
Geopolitical and conduct assurance activities with respect to the management of
The diverse locations of our operations around the world expose us to a security risks affecting our people and operations. We continue to
wide range of political developments and consequent changes to the monitor threats globally and maintain disaster recovery, crisis and
economic and operating environment. Geopolitical risk is inherent to many business continuity management plans.
regions in which we operate, and heightened political or social tensions
or changes in key relationships could adversely affect the group.
Compliance and control risks
We seek to manage this risk through development and maintenance Ethical misconduct and legal or regulatory non-compliance
of relationships with governments and stakeholders and by becoming Ethical misconduct or breaches of applicable laws or regulations could
trusted partners in each country and region. In addition, we closely damage our reputation, adversely affect operational results and
monitor events and implement risk mitigation plans where appropriate. shareholder value, and potentially affect our licence to operate.
Our code of conduct and our values and behaviours, applicable to all
employees, are central to managing this risk. Additionally, we have
The impact of the UK’s exit from the EU
various group requirements and training covering areas such as
Following the referendum in 2016, we have been assessing the anti-bribery and corruption, anti-money laundering, competition/
potential impact of Brexit on BP. We have been preparing for anti-trust law and international trade regulations. We seek to keep
different scenarios for the UK’s exit from the EU but do not believe abreast of new regulations and legislation and plan our response to
any of these scenarios will pose a significant risk to our business. them. We offer an independent confidential helpline, OpenTalk, for
The board’s geopolitical committee discussed this, most recently employees, contractors and other third parties.
in January 2019. Trading non-compliance
We continue to monitor developments in this area in line with our In the normal course of business, we are subject to risks around our
risk management processes and procedures. trading activities which could arise from shortcomings or failures in our
systems, risk management methodology, internal control processes or
employee conduct.
Cyber security
The targeted and indiscriminate threats to the security of our digital We have specific operating standards and control processes to manage
infrastructure continue to evolve rapidly and are increasingly prevalent these risks, including guidelines specific to trading, and seek to monitor
across industries worldwide. The oil and gas industry is subject to compliance through our dedicated compliance teams. We also seek to
evolving risks from a variety of cyber threat actors, including nation maintain a positive and collaborative relationship with regulators and the
states, criminals, terrorists, hacktivists and insiders. A cyber security industry at large.
breach could disrupt our business, injure people, harm the environment
or our assets, or result in legal or regulatory breaches.

Risk factors
The risks discussed below, separately or in combination, could have Liquidity, financial capacity and financial, including credit,

a material adverse effect on the implementation of our strategy, our exposure – failure to work within our financial framework could impact
business, financial performance, results of operations, cash flows, our ability to operate and result in financial loss.
liquidity, prospects, shareholder value and returns and reputation.
Failure to accurately forecast or work within our financial framework
could impact our ability to operate and result in financial loss. Trade
Strategic and commercial risks and other receivables, including overdue receivables, may not be
Prices and markets – our financial performance is impacted by recovered and a substantial and unexpected cash call or funding request
fluctuating prices of oil, gas and refined products, technological change, could disrupt our financial framework or overwhelm our ability to meet
exchange rate fluctuations, and the general macroeconomic outlook. our obligations.
Oil, gas and product prices are subject to international supply and An event such as a significant operational incident, legal proceedings or
demand and margins can be volatile. Political developments, increased a geopolitical event in an area where we have significant activities, could
supply from new oil and gas sources, technological change, global reduce our credit ratings. This could potentially increase financing costs
economic conditions and the influence of OPEC can impact supply and and limit access to financing or engagement in our trading activities on
demand and prices for our products. Decreases in oil, gas or product acceptable terms, which could put pressure on the group’s liquidity.
prices could have an adverse effect on revenue, margins, profitability Credit rating downgrades could also trigger a requirement for the
and cash flows. If significant or for a prolonged period, we may have to company to review its funding arrangements with the BP pension
write down assets and re-assess the viability of certain projects, which trustees and may cause other impacts on financial performance. In the
may impact future cash flows, profit, capital expenditure and ability to event of extended constraints on our ability to obtain financing, we could
maintain our long-term investment programme. Conversely, an increase be required to reduce capital expenditure or increase asset disposals in
in oil, gas and product prices may not improve margin performance as order to provide additional liquidity. See Liquidity and capital resources
there could be increased fiscal take, cost inflation and more onerous on page 277 and Financial statements – Note 29.
terms for access to resources. The profitability of our refining and Joint arrangements and contractors – varying levels of control
petrochemicals activities can be volatile, with periodic over-supply or over the standards, operations and compliance of our partners,
supply tightness in regional markets and fluctuations in demand. contractors and sub-contractors could result in legal liability and
Exchange rate fluctuations can create currency exposures and impact reputational damage.
underlying costs and revenues. Crude oil prices are generally set in US We conduct many of our activities through joint arrangements ,
dollars, while products vary in currency. Many of our major project associates or with contractors and sub-contractors where we may
development costs are denominated in local currencies, which may have limited influence and control over the performance of such
be subject to fluctuations against the US dollar. operations. Our partners and contractors are responsible for the
Access, renewal and reserves progression – inability to access, adequacy of the resources and capabilities they bring to a project. If
renew and progress upstream resources in a timely manner could these are found to be lacking, there may be financial, operational or
adversely affect our long-term replacement of reserves. safety risks for BP. Should an incident occur in an operation that BP
participates in, our partners and contractors may be unable or unwilling
Delivering our group strategy depends on our ability to continually to fully compensate us against costs we may incur on their behalf or on
replenish a strong exploration pipeline of future opportunities to access behalf of the arrangement. Where we do not have operational control
and produce oil and natural gas. Competition for access to investment of a venture, we may still be pursued by regulators or claimants in the
opportunities, heightened political and economic risks in certain event of an incident.
countries where significant hydrocarbon basins are located,
unsuccessful exploration activity and increasing technical challenges Digital infrastructure and cyber security – breach of our digital
and capital commitments may adversely affect our strategic progress. security or failure of our digital infrastructure including loss or misuse of
This, and our ability to progress upstream resources and sustain sensitive information could damage our operations, increase costs and
long-term reserves replacement, could impact our future production damage our reputation.
and financial performance. The oil and gas industry is subject to fast-evolving risks from cyber threat
Major project delivery – failure to invest in the best opportunities or actors, including nation states, criminals, terrorists, hacktivists and
deliver major projects successfully could adversely affect our financial insiders. A breach or failure of our digital infrastructure – including control
performance. systems – due to breaches of our cyber defences, or those of third
parties, negligence, intentional misconduct or other reasons, could
We face challenges in developing major projects, particularly in seriously disrupt our operations. This could result in the loss or misuse of
geographically and technically challenging areas. Poor investment data or sensitive information, injury to people, disruption to our business,
choice, efficiency or delivery, or operational challenges at any major harm to the environment or our assets, legal or regulatory breaches and
project that underpins production or production growth could adversely legal liability. Furthermore, the rapid detection of attempts to gain
affect our financial performance. unauthorized access to our digital infrastructure, often through the use
Geopolitical – exposure to a range of political developments and of sophisticated and co-ordinated means, is a challenge and any delay or
consequent changes to the operating and regulatory environment failure to detect could compound these potential harms. These could
could cause business disruption. result in significant costs including the cost of remediation or
reputational consequences.
We operate and may seek new opportunities in countries and regions
where political, economic and social transition may take place. Political Climate change and the transition to a lower carbon economy
instability, changes to the regulatory environment or taxation, – policy, legal, regulatory, technology and market change related to the
international sanctions, expropriation or nationalization of property, issue of climate change could increase costs, reduce demand for our
civil strife, strikes, insurrections, acts of terrorism and acts of war may products, reduce revenue and limit certain growth opportunities.
disrupt or curtail our operations or development activities. These may Changes in laws, regulations, policies, obligations, social attitudes and
in turn cause production to decline, limit our ability to pursue new customer preferences relating to the transition to a lower carbon
opportunities, affect the recoverability of our assets or cause us to incur economy could have a cost impact on our business, including increasing
additional costs, particularly due to the long-term nature of many of our compliance and litigation costs, and could impact our strategy. Such
projects and significant capital expenditure required. changes could lead to constraints on production and supply and access
Events in or relating to Russia, including trade restrictions and other to new reserves. Technological improvements or innovations that
sanctions, could adversely impact our income and investment in or support the transition to a lower carbon economy, and customer
relating to Russia. Our ability to pursue business objectives and to preferences or regulatory incentives related to such changes that alter
recognize production and reserves relating to these investments fuel or power choices, such as towards low emission energy sources,
could also be adversely impacted. could impact demand for oil and gas. Depending on the nature and
speed of any such changes and our response, this could adversely affect

the demand for our products, investor sentiment, our financial Security – hostile acts against our staff and activities could cause harm
performance and our competitiveness. See Climate change on page 45. to people and disrupt our operations.
Competition – inability to remain efficient, maintain a high quality Acts of terrorism, piracy, sabotage and similar activities directed against
portfolio of assets, innovate and retain an appropriately skilled our operations and facilities, pipelines, transportation or digital
workforce could negatively impact delivery of our strategy in a highly infrastructure could cause harm to people and severely disrupt
competitive market. operations. Our activities could also be severely affected by conflict,
civil strife or political unrest.
Our strategic progress and performance could be impeded if we are
unable to control our development and operating costs and margins, Product quality – supplying customers with off-specification products
or to sustain, develop and operate a high quality portfolio of assets could damage our reputation, lead to regulatory action and legal liability,
efficiently. We could be adversely affected if competitors offer superior and impact our financial performance.
terms for access rights or licences, or if our innovation in areas such as
Failure to meet product quality standards could cause harm to people
exploration, production, refining, manufacturing, renewable energy or
and the environment, damage our reputation, result in regulatory action
new technologies lags the industry. Our performance could also be
and legal liability, and impact financial performance.
negatively impacted if we fail to protect our intellectual property.
Our industry faces increasing challenge to recruit and retain diverse, Compliance and control risks
skilled and experienced people in the fields of science, technology,
engineering and mathematics. Successful recruitment, development Regulation – changes in the regulatory and legislative environment
and retention of specialist staff is essential to our plans. could increase the cost of compliance, affect our provisions and limit
our access to new growth opportunities.
Crisis management and business continuity – failure to address
an incident effectively could potentially disrupt our business. Governments that award exploration and production interests may
impose specific drilling obligations, environmental, health and safety
Our business activities could be disrupted if we do not respond, or are controls, controls over the development and decommissioning of a field
perceived not to respond, in an appropriate manner to any major crisis and possibly, nationalization, expropriation, cancellation or non-renewal
or if we are not able to restore or replace critical operational capacity. of contract rights. Royalties and taxes tend to be high compared
Insurance – our insurance strategy could expose the group to material with those imposed on similar commercial activities, and in certain
uninsured losses. jurisdictions there is a degree of uncertainty relating to tax law
interpretation and changes. Governments may change their fiscal and
BP generally purchases insurance only in situations where this is legally regulatory frameworks in response to public pressure on finances,
and contractually required. Some risks are insured with third parties and resulting in increased amounts payable to them or their agencies.
reinsured by group insurance companies. Uninsured losses could have
a material adverse effect on our financial position, particularly if they arise Such factors could increase the cost of compliance, reduce our
at a time when we are facing material costs as a result of a significant profitability in certain jurisdictions, limit our opportunities for new
operational event which could put pressure on our liquidity and cash flows. access, require us to divest or write down certain assets or curtail
or cease certain operations, or affect the adequacy of our provisions
for pensions, tax, decommissioning, environmental and legal liabilities.
Safety and operational risks Potential changes to pension or financial market regulation could also
Process safety, personal safety, and environmental risks – impact funding requirements of the group. Following the Gulf of Mexico
exposure to a wide range of health, safety, security and environmental oil spill, we may be subjected to a higher level of fines or penalties
risks could cause harm to people, the environment and our assets and imposed in relation to any alleged breaches of laws or regulations,
result in regulatory action, legal liability, business interruption, increased which could result in increased costs.
costs, damage to our reputation and potentially denial of our licence
Ethical misconduct and non-compliance – ethical misconduct or
to operate.
breaches of applicable laws by our businesses or our employees could
Technical integrity failure, natural disasters, extreme weather or a be damaging to our reputation, and could result in litigation, regulatory
change in its frequency or severity, human error and other adverse action and penalties.
events or conditions could lead to loss of containment of hydrocarbons
Incidents of ethical misconduct or non-compliance with applicable laws
or other hazardous materials or constrained availability of resources
and regulations, including anti-bribery and corruption and anti-fraud laws,
used in our operating activities, as well as fires, explosions or other
trade restrictions or other sanctions, could damage our reputation, result
personal and process safety incidents, including when drilling wells,
in litigation, regulatory action and penalties.
operating facilities and those associated with transportation by road,
sea or pipeline. Treasury and trading activities – ineffective oversight of treasury
and trading activities could lead to business disruption, financial loss,
There can be no certainty that our operating management system or
regulatory intervention or damage to our reputation.
other policies and procedures will adequately identify all process safety,
personal safety and environmental risks or that all our operating activities We are subject to operational risk around our treasury and trading
will be conducted in conformance with these systems. See Safety and activities in financial and commodity markets, some of which are
security on page 43. regulated. Failure to process, manage and monitor a large number
of complex transactions across many markets and currencies while
Such events or conditions, including a marine incident, or inability to
complying with all regulatory requirements could hinder profitable
provide safe environments for our workforce and the public while at our
trading opportunities. There is a risk that a single trader or a group
facilities, premises or during transportation, could lead to injuries, loss
of traders could act outside of our delegations and controls, leading
of life or environmental damage. As a result we could face regulatory
to regulatory intervention and resulting in financial loss, fines and
action and legal liability, including penalties and remediation obligations,
potentially damaging our reputation. See Financial statements –
increased costs and potentially denial of our licence to operate.
Note 29.
Our activities are sometimes conducted in hazardous, remote or
environmentally sensitive locations, where the consequences of Reporting – failure to accurately report our data could lead to regulatory
such events or conditions could be greater than in other locations. action, legal liability and reputational damage.
Drilling and production – challenging operational environments and External reporting of financial and non-financial data, including reserves
other uncertainties could impact drilling and production activities. estimates, relies on the integrity of systems and people. Failure to report
data accurately and in compliance with applicable standards could result
Our activities require high levels of investment and are sometimes
in regulatory action, legal liability and damage to our reputation.
conducted in challenging environments such as those prone to natural
disasters and extreme weather, which heightens the risks of technical
integrity failure. The physical characteristics of an oil or natural gas field,
and cost of drilling, completing or operating wells is often uncertain. We
may be required to curtail, delay or cancel drilling operations or stop
production because of a variety of factors, including unexpected drilling
conditions, pressure or irregularities in geological formations, equipment
failures or accidents, adverse weather conditions and compliance with The Strategic report was approved by the board and signed on its behalf
governmental requirements.
by Jens Bertelsen, company secretary on 29 March 2019.

Corporate 58 Board of directors
governance 63 Executive team

66 Executive management teams
68 Introduction from the chairman

69 Governance framework
69 Board and committee attendance
70 Board activity in 2018

70 Role of the board
71 Skills and expertise
71 Diversity
71 Independence
71 Appointment and time commitment
72 Training and induction
72 Board evaluation
73 Site visits
74 Shareholder engagement
74 Institutional investors
74 Retail investors
74 AGM
74 UK Corporate Governance Code compliance
74 International advisory board
75 Committee reports
75 Audit committee
81 Safety, ethics and environment assurance committee
83 Remuneration committee
84 Geopolitical committee
85 Chairman’s committee
86 Nomination and governance committee
87 Directors’ remuneration report

90 2018 performance and pay outcomes
91 2018 annual bonus outcome
92 2016-18 performance share plan outcome
94 Alignment with strategy
95 Executive directors’ pay for 2018
97 Wider workforce in 2018
100 Stewardship and executive director interests
102 Non-executive director outcomes and interests
104 Other disclosures
105 Executive director remuneration policy and implementation for 2019
109 Non-executive director remuneration policy for 2019

110 Directors’ statements

110 Statement of directors’ responsibilities
110 Risk management and internal control
111 Longer-term viability
111 Going concern
111 Fair, balanced and understandable

Board of directors See BP’s board governance principles relating
to director independence on page 300.
As at 29 March 2019
Helge Lund Bob Dudley Brian Gilvary Nils Andersen Alan Boeckmann
Admiral Frank Dame Alison Pamela Daley Ian Davis Professor Dame
Bowman Carnwath Ann Dowling
Melody Meyer Brendan Nelson Paula Rosput Sir John Sawers Jens Bertelsen
Reynolds
Prior to Statoil, he was president and chief He has a degree in business economics from
Helge Lund executive officer of Aker Kvaerner, an industrial the Norwegian School of Economics and
Chairman conglomerate with operations in oil and gas, Business Administration in Bergen and a
engineering and construction, pulp and paper Master of Business Administration from
Tenure and shipbuilding. He has also held executive INSEAD business school in France.
Appointed 26 July 2018 positions in Aker RGI, a Norwegian industrial Relevant skills and experience
Board and committee activities holding company, and Hafslund Nycomed, an Helge Lund was appointed chair of the BP
industrial group with business activities in board following a detailed process involving
Chair of the chairman’s committee and
pharmaceuticals and energy. all members of the board. Helge has an
nomination and governance committee,
regularly attends the safety, ethics and He has worked as a consultant with McKinsey impressive track record of leadership in the
environment assurance, audit, remuneration & Company and has served as a political oil and gas industry. His open-minded and
and geopolitical committees adviser for the parliamentary group of the forward-looking approach will be vital as the
Conservative party in Norway. industry focuses on the transition to a lower
Outside interests
Helge is chairman of the board of Novo Nordisk carbon world. He has deep industry
• Chairman of Novo Nordisk AS
AS, a global healthcare company. Prior to knowledge and global business experience –
• Operating Advisor to Clayton Dubilier & Rice
joining BP, he was a non-executive director of not only in the oil and gas industry but also in
• Member of the Board of Trustees of the
the oil service group Schlumberger from 2016 pharmaceuticals, healthcare and construction.
International Crisis Group
to 2018, and Nokia from 2011 to 2014.
Age 56 Nationality Norwegian
He is an operating adviser to Clayton Dubilier &
Career Rice, a US investment firm. He is a member of
Helge Lund became a board director on the Board of Trustees of the International Crisis
26 July 2018 and chairman of the BP board Group and served as a member on the United
on 1 January 2019. Nations Secretary-General’s Advisory Group
on Sustainable Energy from 2011 to 2014.
Helge served as chief executive of BG Group
from 2015 to 2016, when the company
merged with Shell. He joined BG Group from
Statoil where he served as president and chief
executive officer for 10 years from 2004.

transition to a lower carbon economy. Under the Gulf of Mexico, and leading the 2015
Bob Dudley his leadership, BP successfully acquired the settlement negotiations with the US
Group chief executive lower 48 assets of BHP in 2018 and delivered government and states to resolve the
six major projects as planned. outstanding federal and state claims. Brian also
Tenure played a lead role in the negotiations around
Appointed to the board 6 April 2009 Bob Dudley’s performance has been
the exit of TNK-BP and investment into
considered and evaluated by the chairman’s
Outside interests Rosneft and led the recent acquisition of the
committee.
• Fellow of the Royal Academy of Engineering BHP onshore Lower 48 assets. Brian has also
• Non-executive director of Rosneft been at the centre of the group’s work on
• Member of the Tsinghua Management Brian Gilvary addressing cyber security risk.
University Advisory Board, Beijing, China Chief financial officer Brian Gilvary’s performance has been
• Member of the BritishAmerican Business evaluated by the group chief executive and
International Advisory Board Tenure
considered by the chairman’s committee.
• Member of the US Business Council Appointed to the board 1 January 2012
• Member of the US Business Roundtable Outside interests
• Member of the UAE/UK CEO Forum • Non-executive director of Air Liquide Nils Andersen
• Member of the Emirates Foundation • Non-executive director of (Royal) Navy Board Independent non-executive director
Board of Trustees • Non-executive director of The Francis Crick
• Member of the World Economic Forum Tenure
Institute
(WEF) International Business Council Appointed 31 October 2016
• Chairman of The 100 Group
• Chair of the Oil and Gas Climate Initiative • Member of Trilateral Commission Board and committee activities
(OGCI) • Honorary professor at Manchester University Member of the safety, ethics and environment
Age 63 Nationality American and British • Great Britain Age Group Triathlete assurance, geopolitical and chairman’s
Age 57 Nationality British committees
Career Outside interests
Bob Dudley became group chief executive on Career • Non-executive director of Unilever Plc and
1 October 2010. Brian Gilvary was appointed chief financial Unilever NV
Bob joined Amoco Corporation in 1979, officer on 1 January 2012. The role includes • Chairman of Salling Group A/S
working in a variety of engineering and responsibility for finance, tax, treasury, • Chairman of Færch Plast A/S
commercial posts. Between 1994 and 1997 he mergers and acquisitions, investor relations, • Chairman of Akzo Nobel N.V.
worked on corporate development in Russia. audit, global business services, information • Chairman of WWF Denmark
In 1997 he became general manager for technology and procurement. He also has
Age 60 Nationality Danish
strategy for Amoco and in 1999, following the accountability for both integrated supply and
merger between BP and Amoco, was trading, and the shipping division responsible
Career
appointed to a similar role in BP. for BP’s tanker fleet.
Nils Andersen was group chief executive of
Brian joined BP in 1986 after obtaining a PhD A.P. Møller-Mærsk from 2007 to June 2016.
Between 1999 and 2000 he was executive
in mathematics from the University of Prior to this he was executive vice president of
assistant to the group chief executive,
Manchester. Following a broad range of roles Carlsberg A/S and Carlsberg Breweries A/S
subsequently becoming group vice president
in upstream, downstream and trading in from 1999 to 2001, becoming president and
for BP’s renewables and alternative energy
Europe and the US, he became downstream’s chief executive officer from 2001 to 2007.
activities. In 2002 he became group vice
commercial director from 2002 to 2005. From Previous roles include non-executive director
president responsible for BP’s upstream
2005 until 2009 he was chief executive of the of Inditex S.A. and William Demant A/S. He
businesses in Russia, the Caspian region,
integrated supply and trading function, BP’s has also served as managing director of Union
Angola, Algeria and Egypt.
commodity trading arm. In 2010 he was Cervecera, Hannen Brauerei and chief
From 2003 to 2008 he was president and chief appointed deputy group chief financial officer executive officer of the drinks division of the
executive officer of TNK-BP. On his return to with responsibility for the finance function. Hero Group.
BP in 2009, he was appointed to the BP board
He was a director of TNK-BP over two periods, Nils was elected as a member and chairman
and oversaw the group’s activities in the
from 2003 to 2005 and from 2010 until the sale of the supervisory board of Akzo Nobel N.V.
Americas and Asia. During 2010 he served as
of the business and BP’s acquisition of Rosneft in April 2018 and was recently appointed as
the president and chief executive officer of
equity in 2013. He served on the HM Treasury chairman of WWF Denmark.
BP’s Gulf Coast Restoration Organization in
Financial Management Review Board from
the US. He was appointed a director of Rosneft Nils received his graduate degree from the
2014 to 2017.
in March 2013 following BP’s acquisition of a University of Aarhus.
stake in Rosneft. Since 2016, he has chaired Relevant skills and experience
Relevant skills and experience
the Oil and Gas Community of the World Brian Gilvary has spent his entire career with
Nils Andersen has extensive experience in
Economic Forum and is chair of the Oil and BP, with broad experience of working across all
consumer goods, retail and logistics, having
Gas Climate Initiative (OGCI). facets of the group. This has provided him with
led global corporations with integrated
deep insight into BP’s assets and businesses.
Relevant skills and experience operations worldwide. He has substantial skill,
Brian has been a key player as BP has
Bob Dudley has spent his whole career in the knowledge and experience in marketing, brand
implemented its strategy to transform into a
oil and gas industry. As group chief executive, and reputation issues. He has broad shipping
‘value over volume’ based business where
the board believes Bob has demonstrated and upstream energy industry experience
trading is a key creator of value throughout the
outstanding leadership and vision and has which aligns with BP’s shipping business.
integrated business.
transformed BP into a safer, stronger and His leadership earlier in his career focused
In addition to underpinning his role as chief on the transformation of businesses, leaner
simpler business. Over the past eight years,
financial officer, his deep understanding of organizations and increasing competitiveness,
Bob has based this transformation on a
finance and trading has been vital in adjusting as well as increasing transparency and
consistent set of values and behaviours. BP
capital structures and operational costs while communication with stakeholders. Nils has
is now more resilient and is able to continue
ensuring the group continues to be capable of recently moved from the audit committee to
delivering results in an uncertain economic
meeting new opportunities. the safety, ethics and environment assurance
environment. Bob continues to lead the
development of the group’s strategy, as BP He played a major role in overseeing the
adapts to the challenges of the advancing financial consequences of the 2010 oil spill in

committee where he will shortly take the chair.
His broad business experience and his Admiral Frank Bowman Dame Alison Carnwath
knowledge of safe operations in our industry Independent non-executive director Independent non-executive director
makes him very well qualified for that role.
Tenure Tenure
Appointed 8 November 2010 Appointed 21 May 2018
Alan Boeckmann
Board and committee activities Board and committee activities
Independent non-executive director
Member of the safety, ethics and environment Member of the audit and chairman’s
Tenure assurance, geopolitical and chairman’s committees
Appointed 24 July 2014 committees Outside interests
Board and committee activities Outside interests • Member of Supervisory Board and Audit
Chair of the safety, ethics and environment • President of Strategic Decisions, LLC Committee chair of BASF SE
assurance committee; member of the • Director of Morgan Stanley Mutual Funds • Director and Audit Committee chair of Zurich
remuneration, nomination and governance • Director of Naval and Nuclear Technologies, Insurance Group
and chairman’s committees LLP • Independent director of PACCAR Inc
Age 74 Nationality American • Member of UK Panel on Takeovers and
Outside interests
Mergers
• Non-executive director of Sempra Energy
Career • Trustee of The Economist Group
• Non-executive director of Archer Daniels
Midland Frank Bowman served for more than Age 66 Nationality British
38 years in the US Navy, rising to the rank
Age 70 Nationality American
of Admiral. He commanded the nuclear Career
submarine USS City of Corpus Christi and Dame Alison Carnwath qualified as a chartered
Career
the submarine tender USS Holland. After accountant before going on to hold a number
Alan Boeckmann retired as non-executive
promotion to flag officer, he served on the of senior financial advisory roles in London and
chairman of Fluor Corporation in February
joint staff as director of political-military affairs New York.
2012, ending a 35-year career with the
and as the chief of naval personnel. He served For more than 15 years, Dame Alison’s career,
company. Between 2002 and 2011 he held
over eight years as director of the Naval in her capacities as senior adviser, director and
the post of chairman and chief executive
Nuclear Propulsion Program where he was chairman, has enabled her to demonstrate her
officer, having previously been president
responsible for the operations of more than expertise on financial, strategic and good
and chief operating officer from 2001 to
100 reactors aboard the US Navy’s aircraft governance matters both in and outside of
2002. His tenure with the company included
carriers and submarines. the board room. Her current roles include
responsibility for global operations. As
chairman and chief executive officer, he After his retirement as an Admiral in 2004, independent director of PACCAR Inc, director
refocused the company on engineering, he was president and chief executive officer and audit committee chair of Zurich Insurance
procurement, construction and maintenance of the Nuclear Energy Institute until 2008. Group and supervisory board member
services. He served on the BP Independent Safety and audit committee chair BASF SE.
Review Panel and was a member of the BP Previous roles of note include chairmanship
After graduating from the University of
America External Advisory Council. He holds of Land Securities Group plc as well as
Arizona with a degree in electrical engineering,
two masters degrees in engineering from non-executive directorships of Barclays plc
he joined Fluor in 1974 as an engineer
the Massachusetts Institute of Technology. and Man Group plc.
and worked in a variety of domestic and
He was appointed Honorary Knight
international locations, including South Africa Dame Alison is a chartered accountant, holds
Commander of the British Empire in 2005.
and Venezuela. an undergraduate degree, has two honorary
He was elected to the US National Academy
Alan was previously a non-executive director degrees and in 2014 was appointed to the order
of Engineering in 2009.
of BHP Billiton and the Burlington Santa Fe of Dame Commander of the Most Excellent
Frank is a member of the US CNA military Order of the British Empire for her services
Corporation, and has served on the boards
advisory board and has participated in studies to business and diversity.
of the American Petroleum Institute, the
of climate change and its impact on national
National Petroleum Council, the Eisenhower Relevant skills and experience
security, and on future global energy solutions
Medical Center and the advisory board of Dame Alison has extensive financial
and water scarcity. Additionally, he was
Southern Methodist University’s Cox School experience both as an executive and non-
co-chair of a National Academies study
of Business. executive director. Dame Alison has chaired
investigating the implications of climate
He led the formation of the World Economic significant boards and has deep experience
change for naval forces.
Forum’s ‘Partnering Against Corruption’ of the workings of investors and the finance
Relevant skills and experience industry in the City of London. She has
initiative in 2004.
Frank Bowman’s exemplary safety record in worked with global organizations and brings
Relevant skills and experience running the US Navy’s nuclear submarine this broad range of skills to the BP board
Alan Boeckmann has worked in a wide range program indicates his deep understanding and to the audit committee.
of industries including engineering, of process safety and its implementation.
construction, chemicals and the energy sector. Frank makes a substantial contribution to the
He has been involved in delivering very large safety culture within BP. Combined with his
projects particularly in the energy industry. In specific knowledge of BP’s safety goals
his senior roles he directed the focus of global from his work on the BP Independent Safety
corporations towards the advanced technology Review Panel and his special interest in
needed to remain competitive in response to climate change, he brings an important
the growth of the internet, e-commerce and perspective to the board and the safety,
the globalization of the workforce. At the ethics and environment assurance committee.
same time, he actively promoted fairness, He has led the oversight of BP’s compliance
transparency, accountability and responsibility with the agreements with the US government
in business dealings through the ‘Partnering stemming from the Deepwater Horizon
Against Corruption’ initiative. oil spill.

• Non-executive director of Majid Al Futtaim Dame Ann is a fellow of the Royal Society
Pamela Daley Holding LLC and the Royal Academy of Engineering and a
Independent non-executive director • Non-executive director of Johnson & foreign associate of the US National Academy
Johnson, Inc. of Engineering, the Chinese Academy of
Tenure • Non-executive director of Teach for All Engineering and the French Academy of
Appointed 26 July 2018 Sciences. She has honorary degrees from 18
Age 68 Nationality British
Board and committee activities universities, including the University of Oxford,
Member of the audit, remuneration and Career Imperial College London and the KTH Royal
chairman’s committees Ian Davis is senior partner emeritus of McKinsey Institute of Technology, Stockholm.
Outside interests & Company. He was a partner at McKinsey for She was elected President of the Royal
• Director of BlackRock, Inc 31 years until 2010 and served as chairman and Academy of Engineering in September 2014 and
• Director of SecureWorks, Inc managing director between 2003 and 2009. Ian in December 2015 was appointed to the Order
Age 66 Nationality American has a MA in Politics, Philosophy and Economics of Merit.
from Balliol College, University of Oxford. Relevant skills and experience
Career Relevant skills and experience Dame Ann is an internationally respected
Pamela Daley spent most of her career with Ian Davis brings global financial and strategic leader in engineering research and the practical
the General Electric Company. She joined GE experience to the board. He has worked with application of new technology in industry. Her
in 1989 as tax counsel and held a number of and advised global organizations and contribution in these fields has been widely
companies in a wide variety of sectors recognized by universities around the world.
senior executive roles in the company, serving
most recently as senior vice president and including oil and gas and the public sector. Her academic background provides balance to
senior advisor to the chairman from April to He is able to draw on knowledge of diverse the board and brings a different perspective to
December 2013, when she retired from GE. issues and outcomes to assist the board and the safety, ethics and environment assurance
Between 2004 and 2013 she was senior vice its committees. committee, particularly as developments in
president of corporate business development Ian led the board’s oversight of the response technology accelerate. Her work in this area is
at GE, where she was responsible for GE’s in the Gulf of Mexico and chaired the Gulf of supplemented by her chairing the company’s
mergers, acquisitions and divestiture activities Mexico committee from its formation in 2010 technology advisory council.
worldwide, and prior to that, from 1991 to 2004, until it was stood down in 2016. He was Dame Ann was chair of the remuneration
served as vice president and senior counsel previously a non-executive director in the committee from 2015 and stood down from
for transactions. Cabinet Office, giving him an important that committee after the 2018 AGM.
Pamela Daley has served as a director of perspective on government affairs which is an
BlackRock since 2014 and of SecureWorks asset to both the board and the geopolitical Melody Meyer
since 2016. She was a director of BG Group plc committee.
from 2014 to 2016 until its acquisition by Shell, In his role as the senior independent director,
a director of Patheon N.V. from 2016 to 2017 Ian is responsible for the annual evaluation of Tenure
until its acquisition by Thermo Fisher, and the chairman’s performance and led the search Appointed 17 May 2017
was previously a partner at Morgan, Lewis & for a successor to Carl-Henric Svanberg as Board and committee activities
Bockius, a major US law firm, where she chairman, resulting in the appointment of Member of the safety, ethics and environment
specialized in domestic and cross-border Helge Lund. assurance, geopolitical and chairman’s
tax-oriented financings and commercial
committees.
transactions.
Professor Dame Ann Dowling Outside interests
Pamela Daley is a qualified lawyer, she worked
Independent non-executive director • President of Melody Meyer Energy LLC
in highly regulated industries, holding senior
• Director of the National Bureau of Asian
roles on other boards including chair of the Tenure Research
governance and nominating committee at Appointed 3 February 2012 • Trustee of Trinity University
SecureWorks and chair of the audit committee
Board and committee activities • Non-executive director of AbbVie Inc.
at BlackRock.
Member of the safety, ethics and environment • Senior Advisor to Cairn India Limited
Relevant skills and experience assurance and chairman’s committees • Director of National Oilwell Varco, Inc.
Pamela Daley has deep experience of global
Outside interests Age 61 Nationality American
business through her executive role at GE. She
• President of the Royal Academy of
has also served on a UK board in the oil and
Engineering Career
gas industry which gave her further insight into
• Deputy vice-chancellor and professor of Melody Meyer started her career with Gulf Oil
that sector. Pamela has joined the audit
Mechanical Engineering at the University in Houston. Gulf Oil later merged with Chevron
committee to which she brings deep financial
of Cambridge where Melody remained until her retirement
experience and expertise. She has also joined
• Member of the Prime Minister’s Council for in 2016.
the remuneration committee, where her
Science and Technology During her career with Chevron, Melody had
understanding of employee and investor points
• Non-executive director of Smiths Group plc key leadership roles in global exploration and
of view will provide important input.
Age 66 Nationality British production, working on international projects
and operational assignments. In 2004 Melody
Ian Davis Career became vice president for the Gulf of Mexico
Senior independent director Dame Ann Dowling is a deputy vice-chancellor business unit, and in 2008 became president of
at the University of Cambridge where she was the Chevron Energy Technology Company.
Tenure
appointed a professor of mechanical engineering From 2011 Melody was president of Asia Pacific
Appointed 2 April 2010
in the department of engineering in 1993. She Exploration and Production, responsible for the
Board and committee activities was head of the department of engineering at financial and operating performance of the
Member of the remuneration, geopolitical, the university from 2009 to 2014. Her research upstream assets in nine countries in Chevron’s
nomination and governance and chairman’s is in fluid mechanics, acoustics and combustion, Asia Pacific region. Melody was the executive
committees and she has held visiting posts at MIT and at sponsor of the Chevron Women’s Network and
Outside interests Caltech. She chairs BP’s technical advisory continues as a mentor and advocate for the
• Chairman of Rolls-Royce Holdings plc council. advancement of women in the industry. She

was recognized as a 2009 Trinity Distinguished insight into the challenges faced by global
Alumni, with the BioHouston Women in Science businesses by regulatory frameworks. He Sir John Sawers
Award, was the ASME Rhodes Petroleum recently joined the remuneration committee. Independent non-executive director
Industry Leadership Award recipient and in 2018
as an Influential Woman in Energy. Tenure
Paula Rosput Reynolds Appointed 14 May 2015
Relevant skills and experience Independent non-executive director
Melody Meyer has spent her entire career in Board and committee activities
the oil and gas industry. The breadth, variety Tenure Chair of the geopolitical committee; member of
and geographic scope of her experience is Appointed 14 May 2015 the safety, ethics and environment assurance,
distinctive. Her career has been marked by a nomination and governance and chairman’s
Board and committee activities
focus on excellence, safety and performance committees
Chair of the remuneration committee; member
improvement. She has expertise in the of the audit, nomination and governance and Outside interests
execution of major capital projects, creation chairman’s committees • Chairman and partner of Macro Advisory
of businesses in new countries, strategic and Partners LLP
Outside interests
business planning, merger integration and • Visiting professor at King’s College London
• Non-executive director of BAE Systems plc
safe and reliable operations. • Governor of the Ditchley Foundation
• Non-executive director of TransCanada
Melody brings a world-class operational • Trustee of the Bilderberg Association, UK
Corporation (until May 2019)
perspective to the board, with a deep • Non-executive director of CBRE Group (until Age 63 Nationality British
understanding of the factors influencing safe, May 2019)
efficient and commercially high-performing • Non-executive director of General Electric Career
projects in a global organization. Company Sir John Sawers spent 36 years in public service
in the UK, working on foreign policy, international
Age 62 Nationality American
security and intelligence.
Brendan Nelson
Career Sir John was chief of the Secret Intelligence
Paula Rosput Reynolds is the former chairman, Service, MI6, from 2009 to 2014 – a period of
Tenure president and chief executive officer of Safeco international upheaval and growing security
Appointed 8 November 2010 Corporation, a Fortune 500 property and threats, as well as closer public scrutiny of the
Board and committee activities casualty insurance company that was acquired intelligence agencies. Prior to that, the bulk of his
Chair of the audit committee; member of the by Liberty Mutual Insurance Group in 2008. She career was in diplomacy, representing the British
chairman’s, nomination and governance and also served as vice chair and chief restructuring government around the world and leading
remuneration committees officer for American International Group (AIG) for negotiations at the UN, in the European Union
a period after the US government became the and in the G8. He was the UK ambassador to
Outside interests
financial sponsor from 2008 to 2009. the United Nations from 2007 to 2009, political
• Non-executive director and chairman of the
director and main board member of the Foreign
group audit committee of The Royal Bank of Previously Paula was an executive in the energy
Office from 2003 to 2007, special representative
Scotland Group plc industry. She was chairman, president and chief
in Iraq during 2003, ambassador to Egypt from
• Member of the Financial Reporting Review executive officer of AGL Resources Inc., an
2001 to 2003 and foreign policy adviser to the
Panel operator of natural gas infrastructure in the US,
Prime Minister from 1999 to 2001. Earlier in his
now a subsidiary of Southern Company. Prior
Age 69 Nationality British career, he was posted to Washington, South
to this, she led a subsidiary of Duke Energy
Africa, Syria and Yemen.
Corporation that was a merchant operator of
Career
electricity generation. She commenced her Sir John is now chairman of Macro Advisory
Brendan Nelson is a chartered accountant.
energy career at PG&E Corp. Partners, a firm that advises clients on the
He was made a partner of KPMG in 1984. He
intersection of policy, politics and markets.
served as a member of the UK board of KPMG Paula was awarded the National Association of
from 2000 to 2006, subsequently being Corporate Directors (US) Lifetime Achievement Relevant skills and experience
appointed vice chairman until his retirement in Award in 2014. Sir John’s deep experience of international
2010. At KPMG International he held a number political and commercial matters is an asset to
Relevant skills and experience
of senior positions including global chairman, the board in navigating the geopolitical issues
Paula Rosput Reynolds has had a long career
banking and global chairman, financial services. faced by a modern global company. Sir John
leading global companies in the energy and
brings a unique perspective and broad
He served for six years as a member of the financial sectors. Her financial background and
experience which makes him ideal to lead the
Financial Services Practitioner Panel and in 2013 deep experience of trading makes her ideally
geopolitical committee. His knowledge and
was the president of the Institute of Chartered suited to serve on the audit committee.
skills gained in government, diplomacy and
Accountants of Scotland. Her experience with international and US policy analysis and advice are invaluable to
Relevant skills and experience companies, including several restructuring both the board and the safety, ethics and
Brendan Nelson has completed a wide variety processes and mergers, gives her insight into environment assurance committee.
of audit, regulatory and due-diligence strategic and regulatory issues, which is an
engagements over the course of his career. asset to the board.
He played a significant role in the development
Jens Bertelsen
Paula currently serves as the chair of the
of the profession’s approach to the audit of remuneration committee of BAE Systems plc. Company secretary
banks in the UK, with particular emphasis on Her experience there and her wider business Tenure
establishing auditing standards. He continues experience and understanding of the views of Appointed 1 January 2019
to contribute in his role as a member of the investors are well suited to her being the chair Jens Bertelsen is a solicitor and formerly
Financial Reporting Review Panel. of the BP remuneration committee. deputy secretary.
This wide experience makes him ideally suited
to chair the audit committee and to act as its
financial expert. He brings related input from
his role as the chair of the audit committee of
a major bank. His specialism in the financial
services industry allows him to contribute

Executive team
The executive team represents the principal executive leadership of the BP group.
Its members include BP’s executive directors (Bob Dudley and Brian Gilvary whose
As at 29 March 2019 biographies appear on pages 58-62) and the senior management listed on these
pages.
Susan Dio Tufan Erginbilgic David Eyton Bob Fryar Andy Hopwood Bernard Looney
Lamar McKay Eric Nitcher Dev Sanyal Helmut Schuster Dame Angela Strank
Outside BP, Susan is a member of the

Susan Dio American Petroleum Institute Board and David Eyton
Chairman and president of BP America Executive Committee, the Greater Houston Group head of technology
Partnership Executive Committee, and the
Executive team tenure Ford’s Theatre Board of Trustees Executive Executive team tenure
Appointed 1 September 2018 Committee. Appointed 1 September 2018
Outside interests Outside interests
• Member of the American Petroleum Institute Tufan Erginbilgic • Fellow of the UK Royal Academy of
Board and Executive Committee Engineering
Chief executive, Downstream
• Member of the Greater Houston Partnership • Fellow of the Institute of Materials, Minerals
Executive Committee Executive team tenure and Mining
• Member of the Ford’s Theatre Board of Appointed 1 October 2014 • Fellow of the Institute of Directors
Trustees Executive Committee • Trustee of the John Lyons Foundation
Outside interests
Age 58 Nationality American • Member of the Turkish-British Chamber of Age 58 Nationality British
Commerce & Industry Board of Directors
Career • Member of the Strategic Advisory Board of Career
Susan Dio is chairman and president of BP the University of Surrey As group head of technology, David Eyton is
America, providing leadership and oversight accountable for technology strategy and its
Age 59 Nationality British and Turkish
to BP’s US businesses, which employ around implementation across BP. This includes
14,000 people. These businesses include oil corporate venture capital investments and
Career
and gas exploration and production, refining, conducting research and development in areas
Tufan Erginbilgic was appointed chief
petrochemicals, supply and trading, pipeline of corporate renewal. In this role, David sits
executive, Downstream on 1 October 2014.
operations, shipping, retail, and alternative on the Oil & Gas Climate Initiative Climate
energy. Prior to this, Tufan was the chief operating Investments Board.
officer of the fuels business, accountable for
Since joining the company in 1984, she has David joined BP in 1982 from Cambridge
BP’s fuels value chains worldwide, the global
held key operational and executive positions University with an engineering degree.
fuels businesses and the refining, sales and
in the US, UK, and Australia. Before assuming
commercial optimization functions for fuels.
her current role, Susan served as chief
Tufan joined Mobil in 1990 and BP in 1997
executive officer of BP shipping, where
and has held a wide variety of roles in refining
she managed the fleet of BP-operated and
and marketing in Turkey, various European
chartered vessels that move more than 200
countries and the UK.
million tonnes of products across the globe
each year. He became head of the European fuels
business in 2004 and took up leadership of
She also previously served as head of audit for
BP’s lubricant business in 2006, before moving
BP’s downstream segment, as business unit
to head the group chief executive’s office. In
leader of the Bulwer Island refinery, and as
2009 he became chief operating officer for the
plant manager of Texas City chemicals.
eastern hemisphere fuels value chains and
lubricants businesses.

Most recently, Andy was appointed chief where he led BP’s efforts to restructure the
Bob Fryar operating officer, upstream strategy in April governance framework for TNK-BP. In 2009
Executive vice president, safety 2018. Lamar was appointed chairman and president
and operational risk of BP America, serving as BP’s chief
representative in the US. In January 2013, he
Executive team tenure Bernard Looney
became chief executive, upstream,
Appointed 1 October 2010 Chief executive, Upstream responsible for exploration, development and
Outside interests Executive team tenure production, serving in the role until April 2016.
No external appointments Appointed 1 November 2010
Age 55 Nationality American Outside interests Eric Nitcher
• Fellow of the Royal Academy of Engineering Group general counsel
Career • Fellow of the Energy Institute
Bob Fryar is responsible for strengthening Executive team tenure
Age 48 Nationality Irish
safety, operational risk management and the Appointed 1 January 2017
systematic management of operations across Outside interests
Career
the BP group. He is group head of safety and No external appointments
Bernard Looney is responsible for the
operational risk, with accountability for
Upstream segment which consists of Age 56 Nationality American
group-level disciplines including engineering,
exploration, development and production.
health, safety, security, remediation
Career
management and the environment. In this Bernard joined BP in 1991 as a drilling
Eric Nitcher is responsible for legal matters
capacity, he looks after the group-wide engineer, working in the North Sea, Vietnam
across the BP group.
operating management system and the Gulf of Mexico. In 2005 he became
implementation and capability programmes. senior vice president for BP Alaska before Eric began his career in the late 1980s working
becoming head of the group chief executive’s as a litigation and regulatory lawyer in Wichita,
Bob has over 30 years’ experience in the
office in 2007. Kansas. He joined Amoco in 1990 and over the
oil and gas industry, having joined Amoco
years has held a wide variety of roles, both
Production Company in 1985. Between 2010 In 2009 he became the managing director
within and outside the US.
and 2013 Bob was executive vice president of of BP’s North Sea business in the UK and
the production division, accountable for safe Norway. At the same time, Bernard became In 2000, Eric moved to London to work in the
and compliant exploration and production a member of the Oil & Gas UK Board. He mergers and acquisitions legal team where
operations and stewardship of resources became executive vice president, he played a key role in the formation of the
across all regions. developments in October 2010, and in Russian joint venture TNK-BP. Eric returned to
February 2013 became chief operating officer, Houston in 2007 where he served as special
Prior to this, Bob was chief executive of BP
production, serving in the role until April 2016. counsel and chief of staff to BP America’s
Angola and also held several management
chairman and president.
positions in Trinidad, including chief operating
officer for Atlantic LNG and vice president of Lamar McKay Most recently he played a leading role in
operations. Bob has also served in a variety Deputy group chief executive the settlement of the Deepwater Horizon US
of engineering and management positions in government claims and resolution of many of
onshore US and the deepwater Gulf of Mexico. Executive team tenure the remaining private claims.
Appointed 16 June 2008
Andy Hopwood Outside interests Dev Sanyal
No external appointments
Executive vice-president, chief operating hief executive, alternative energy and
C
officer, upstream strategy Age 60 Nationality American executive vice president, regions
Executive team tenure Career Executive team tenure

Appointed 1 November 2010 Lamar McKay is accountable for group Appointed 1 January 2012
Outside interests strategy and long-term planning, group Outside interests
No external appointments economics, safety and operational risk, group • Independent non-executive director
Age 61 Nationality British technology and the legal function. In addition of Man Group plc
to supporting the group chief executive, he • Member of the Accenture Global
Career also focuses on various corporate governance Energy Board
Andy Hopwood is responsible for BP’s upstream activities including ethics and compliance. • Member of the Board of Advisors of
strategy. Lamar started his career in 1980 with Amoco The Fletcher School of Law and Diplomacy,
and held a range of technical and leadership Tufts University
Andy joined BP in 1980, spending his first 10
roles. • Member, International Advisory Board of the
years in operations in the North Sea, Wytch Farm
Ministry of Petroleum and Natural Gas,
and Indonesia. In 1989 Andy joined the corporate During 1998 to 2000, he worked on the Government of India
planning team formulating BP’s upstream BP-Amoco merger and served as head of • Member of the Advisory Board of the Centre
strategy and subsequent portfolio rationalization. strategy and planning for the exploration and for European Reform
Andy held commercial leadership positions in production business. In 2000 he became
Mexico and Venezuela before becoming the Age 53 Nationality British and Indian
business unit leader for the central North Sea.
upstream’s planning manager. In 2001 he became chief of staff for
Career
Following the BP-Amoco merger, Andy spent exploration and production, and subsequently
Dev Sanyal is responsible for alternative
time leading BP’s businesses in Azerbaijan, for BP’s deputy group chief executive. Lamar
energy globally and for the group’s interests in
Trinidad & Tobago and onshore North America. In became group vice president, Russia and
the Europe and Asia regions.
2009 he joined the upstream executive team as Kazakhstan in 2003. He served as a member
head of portfolio and technology and in 2010 was of the board of directors of TNK-BP between Dev joined BP in 1989 and has held a variety of
appointed executive vice president, exploration February 2004 and May 2007. international roles in London, Athens, Istanbul,
and production. Vienna and Dubai. He was general manager,
In 2007 he was appointed executive vice
former Soviet Union and Eastern Europe, prior
president, BP America. In 2008 he became
to being appointed chief executive, BP Eastern
executive vice president, special projects

Mediterranean in 1999. In November 2003
he was appointed chief executive, Air BP Dame Angela Strank
International and in June 2006 was appointed BP chief scientist and head of
head of the group chief executive’s office. technology, downstream
In 2007, he assumed the role of group vice
president and group treasurer. During this Executive team tenure
period he was also chairman of BP investment Appointed 1 September 2018
management and was accountable for the Outside interests
group’s aluminium interests. Until April 2016, • Non-executive director of Severn Trent plc
Dev was executive vice president, strategy • Fellow of the Royal Society
and regions. • Fellow of the Royal Academy of Engineering
• Honorary Fellow of the Energy Institute
Helmut Schuster • Honorary Professor of Earth Sciences,
University of Manchester
Executive vice president, group human
resources director Age 66 Nationality British
Executive team tenure Career

Appointed 1 March 2011 Dame Angela Strank is responsible for
Outside interests technology across BP’s petrochemicals,
• Non-executive director of Ivoclar refining, fuels and lubricants businesses.
Vivadent AG, Germany As BP’s chief scientist she is accountable
for developing strategic insights from
Age 58 Nationality Austrian and British
advances in science and managing
technology capability in BP.
Career
Helmut Schuster became group human Dame Angela joined BP in 1982 as a geologist
resources (HR) director in March 2011. In this in exploration and has held various technical
role he is accountable for the BP human and commercial leadership roles across
resources function. upstream and downstream including: chief
financial officer lubricants (Americas), BP/
He completed his post graduate diploma in
Statoil alliance manager Nigeria, business
international relations and his PhD in
development manager Angola, technology
economics at the University of Vienna and
vice president, and head of the BP group chief
then began his career working for Henkel in a
executive’s office.
marketing capacity. Since joining BP in 1989
Helmut has held a number of leadership roles. In 2010 Dame Angela won the UK First
He has worked in BP in the US, UK and Women’s Award in Science and Technology,
continental Europe and within most parts of and in 2018 was the first woman to receive the
refining, marketing, trading and gas and power. UK Energy Institute’s Cadman Award.
Before taking on his current role, his portfolio In 2017 Dame Angela was awarded a Dame
of responsibilities as vice president, HR Commander of the Order of the British Empire
included the refining and marketing segment in Her Majesty the Queen’s Birthday Honours
of BP and corporate and functions. That role List for services to the oil industry and women
saw him leading the people agenda for roughly in science, technology, engineering and
60,000 people across the globe that included mathematics (STEM).
businesses such as petrochemicals, fuels
Dame Angela holds honorary degrees from
value chains, lubricants and functional experts
Royal Holloway University, London (DSc) and
across the group.
the University of Bradford.
Outside of his role, Helmut is a non-executive
director of Ivoclar Vivadent. Additionally, he is
an alumni and advocate of AFS, which is an
NGO that promotes intercultural learning.

Executive management teams
Upstream
1. David Campbell 3. Murray Auchincloss 6. Nigel Jones 9. Tony Brock
President, BP Russia Chief financial officer Associate general counsel Head of safety and
operational risk
2. William Lin 4. Gordon Birrell 7. Andy Hopwood
Chief operating officer, Chief operating officer, production, Chief operating officer, 10. James Dupree
upstream regions transformation and carbon upstream strategy Chief operating officer,
developments and technology
5. Kerry Dryburgh 8. Bernard Looney
Head of human resources Chief executive
8 10
1 6
3
5
7 9
Other business and functions leaders

1. Steve Fortune 4. Geoff Morrell 7. Nick Wayth 10. Joan Wales
Chief information officer, information Group head of communications Chief development officer, Head of safety and operational
technology and services and external affairs alternative energy risk, other businesses and corporate
2. Craig Marshall 5. David Anderson 8. David Jardine 11. Jan Lyons
Group head of investor relations Chief financial officer, Group head of audit Group head of tax
alternative energy
3. Camille Drummond 9. David Bucknall
Vice president of global 6. Trudi Charles Group controller and chief financial
business services Associate general counsel, officer, other businesses and corporate
integrated supply and trading
and BP shipping
3
7 9
2 4
8 11
5 10

Our diverse and talented leaders have a wide range of skills
and disciplines that support our executive team’s work. These
include experts in fields such as renewable energy, finance,
trading, technology and digital, and tax and treasury. Job titles
correct as at 1 January 2019.
Downstream
1. Mandhir Singh 3. Tufan Erginbilgic 6. Rita Griffin 9. Andy Holmes
Chief operating officer, Chief executive Chief operating officer, Chief operating officer,
lubricants petrochemicals fuels ASPAC and Air BP
4. Evelyn Gardiner
2. Guy Moeyens Head of human resources 7. Michael Sosso 10. Angela Strank
Chief operating officer, fuels, Associate general counsel, Head of technology and
5. Doug Sparkman
Europe and Southern Africa downstream and BP shipping BP chief scientist
Chief operating officer,
fuels, North America 8. Mike O’Sullivan
Chief financial officer
2
3 7
5 8 10
1
4 9
6
Other business and functions leaders

12. David Windle 15. Dominic Emery 18. Alan Haywood 21. Spencer Dale
Head of solar and renewable products, Vice president, group Chief executive officer, integrated Group chief economist
alternative energy strategic planning supply and trading
22. Rahul Saxena
13. Carol Howle 16. Mario Lindenhayn 19. Robert Lawson Group ethics and compliance officer
Chief executive officer, BP shipping and Chief executive officer, biofuels, Global head of mergers
23. Kate Thomson
chief operating officer, global oil, alternative energy and acquisitions
Group treasurer
17. Lucy Knight 20. Laura Folse
14. Ashok Pillai Human resources vice president, Chief executive officer,
Vice president, group reward corporate business activities wind, alternative energy
and functions
14 16 21
12 15 23
19
17 20
18 22
13

Introduction from the chairman
engagement it has with both our people and with our wider community
of stakeholders. As a board, we fully support this – it builds on the work
we already do, and we will continue to evolve and enhance this
engagement and provide more detail next year.
Our oversight of the significant risks (such as operational, compliance
and cyber security) facing BP continues. Both the audit committee and
the safety, ethics and environmental assurance committee (SEEAC)
continue to review these in depth and receive assurance from manage-
ment as to how they are understood and mitigated to the level of risk
acceptable to the board. In this regard, I want to once again pay tribute to
the exceptional service over many years of Alan Boeckmann and Admiral
Frank Bowman on the SEEAC and welcome Nils Andersen to the role of
SEEAC chair. Brendan Nelson continues to chair the audit committee
and brings enormous financial and regulatory experience and expertise
to the role. I also want to thank Sir John Sawers for all his work chairing
the geopolitical committee. John brings unique insight and experience to
BP’s culture is well grounded with the right his role and the committee does important work overseeing significant
values and behaviours embedded by the political and related risks in key geographies where BP operates.
board and the senior leadership. The nomination and governance committee continues to review the
skills that we need while always considering diversity and the need for
independent thinking and challenge. The committee will also continue to
review the size of the board to confirm that it is appropriate with a good
mix of skills, experience and knowledge and the ability to maintain
It is now nine months since I joined BP, initially as a non-executive
appropriate oversight of the executive team and provide constructive
director. In that time, my experience has confirmed the very positive
challenge and support.
impression of BP’s culture and values I arrived with. Based on my time
spent in the business, the values of safety, respect, excellence, courage Executive remuneration remains a significant issue and we appreciated
and one team are clearly embedded and genuinely lived. I see a culture the strong support that was given to our remuneration report at last
that is grounded, responsible and humble – by which I mean one where year’s AGM. This was the second year in which our three-year policy,
people have confidence in their capabilities and the strategy, but not developed following extensive engagement with shareholders, was in
complacency or arrogance, and with a strong desire to learn and develop. effect. Paula Reynolds is working with the remuneration committee in
I firmly believe that is the right combination for maintaining safe implementing that policy this year and to develop the new three-year
operations, earning the trust of stakeholders and embracing the policy for which shareholder approval will be sought in 2020. Paula is
challenges and opportunities the energy transition presents. A priority for currently in the process of reducing her directorship commitments
my chairmanship is to see that the board continues to help sustain and with other companies during 2019 to ensure that she can retain her
evolve this positive culture by having the right capability around the table strong focus on chairing the remuneration committee.
and the right engagement with stakeholders outside the boardroom. You will see from Paula’s report on page 83 that the committee
continues to exercise appropriate discretion in relation to executive
Board capability remuneration. From 2019 we are linking BP’s progress towards one
BP’s board has evolved considerably during Carl-Henric Svanberg’s of our emissions reduction targets to the remuneration of a significant
tenure. Together we will look to continue its development and find number of our employees, including executive directors.
the right balance of continuity and renewal. In my letter on page 6,
I mentioned Dame Alison Carnwath and Pamela Daley joining the board Engaging with stakeholders
in 2018, and that this year we are losing the distinguished services of Remuneration is just one issue where I believe dialogue is invaluable,
Admiral Frank Bowman and Alan Boeckmann. and I will continue to encourage the board to meet with a range of
Ian Davis is now in his 10th year as a director and continues as our senior stakeholders, including investors, partners, and our people, and gain
independent director, having held this role since 2017. I have huge first-hand experience of BP’s businesses and operations around the
respect and regard for Ian’s skills and experience and, to provide the world. Over the past year, board members visited BP operations in the
continuity that I believe is critical I have asked him to extend his service US, UK and Oman and individual members also took opportunities to
to at least the AGM in 2020. Ian continues to demonstrate constructive visit BP sites when travelling and pursuing their other interests and
challenge and engagement both in the board and with executive business activities. Personally, I have already visited our operations in
management. The board therefore retains complete confidence in Ian’s several countries including in the UK, the US, China, Oman and the
independence and supports his re-election in this capacity. Netherlands. I look forward to making many more visits this year and
sharing my observations and reflections in due course.
Governance and remuneration processes Finally, I am grateful to Bob, the executive team, our employees and my
We have spent considerable time evaluating the work of the board and colleagues on the board for all of their hard work, their commitment to
its committees, for which we also brought in external expertise to BP and for the way that they have so warmly welcomed me into the
facilitate our discussions. This was a very valuable exercise and resulted company. I am excited for our future.
in a number of recommendations that I am considering with the board,
and certain changes to our ways of working have already been made.
Details of these changes will be included in a revised set of board
governance principles to be published later this year.
Looking outwards, there were changes to UK legislation and
governance requirements during 2018 that have now come into effect. Helge Lund
In particular, the board is required to understand more deeply the Chairman

BP governance framework
The board operates within a system of governance that is set out in the BP board governance principles. More information
These principles define the role of the board, its processes and its relationship with executive management.
See bp.com/governance for the board
This system is reflected in the governance of the group’s subsidiaries. governance principles.
Owners/shareholders
BP board Monitoring, BP board

Delegation
information governance
and assurance principles:
Nomination Remuneration Chairman’s Safety, Geopolitical Audit • Group audit • BP goal

and governance committee committee ethics and committee committee • Finance • Governance
committee See page 87 See page 85 environment See page 84 See page 75 process
See page 86 assurance • Safety and
committee operational risk • Delegation
See page 81 • Group ethics model
and compliance • Executive
• Business limitations
integrity Delegation
Strategy/group risks/annual plan • External market Delegation of
and reputation authority through
research policy with
monitoring
Group chief executive • Independent
auditor Accountability
• Independent Assurance
adviser (if through
Group chief executive’s delegations relevant) monitoring and
• Independent reporting
advice (if
Executive management requested)
• Independent
Accountability
assurance (as
needed)
Group Group financial Group Group people Group ethics Resource Group renewal
operations risk committee disclosure committee and compliance commitments committee
risk committee (GFRC) committee (GPC) committee meeting (RCM)
(GORC) (GDC) (GECC)
Board and committee attendance
Nomination
Audit Joint audit/ Remuneration Geopolitical and governance Chairman’s
Board committee SEEAC SEEAC committee committee committee committee
Non-executive directors A B A B A B A B A B A B A B A B
Carl-Heneric Svanberg 9 9 3 3 6 6
Nils Andersen 9 8 7 6 1 1 4 4 2 2 6 4
Paul Anderson 4 4 2 2 1 1 1 1 4 4
Alan Boeckmann+ 9 7 6 4 4 2 7 5 3 3 6 4
Frank Bowman 9 9 6 6 4 3 4 4 6 6
Alison Carnwath 5 5 5 4 3 2 2 2
Pamela Daley 4 3 2 2 1 1 1 1
Ian Davis 9 9 7 7 4 4 3 3 6 6
Ann Dowling 9 9 6 6 4 4 3 3 6 6
Helge Lund+ 4 4 3 3 1 1
Melody Meyer 9 8 6 6 4 4 4 4 6 6
Brendan Nelson+ 9 9 9 9 4 4 7 7 2 2 6 6
Paula Reynolds+ 9 8 9 8 4 3 7 7 3 1 6 6
John Sawers+ 9 8 6 6 4 4 4 4 3 3 6 6
Executive directors A B
Bob Dudley 9 9
Brian Gilvary 9 9
A = Total number of meetings the director was eligible to attend.
B = Total number of meetings the director did attend.
+ Committee chair.
Nils Andersen missed a board meeting due to a pre-existing external commitment. Paula Reynolds missed a board meeting due to a pre-existing external commitment.
Alan Boeckmann missed meetings of the board due to unforeseen personal circumstances. John Sawers missed a board meeting due to other commitments.
Pamela Daley missed a board meeting due to a pre-existing external commitment.
Melody Meyer missed a board meeting due to other commitments.

Board activity in 2018
Role of the board

The board is responsible for the overall conduct of the group’s business. Directors have duties under both UK company law and BP’s Articles of
Association. The primary tasks of the board in 2018 included:
1Active consideration and direction Monitoring of BP’s Ensuring that the principal risks and Board and executive
of long-term strategy and approval performance against the uncertainties to BP are identified and that management
of the annual plan strategy and plan systems of risk management and control succession
are in place
Strategy Performance and monitoring
During the year the board It received regular reports on The board reviews financial • Quarterly and full-year results.
provided input on the group’s the progress and implementation and operational performance • Shareholder distributions.
strategy to senior management. of the strategy – through updates at each meeting. It receives
This included a two-day strategy from management and by means The board reviews the quarterly
regular updates on the group’s
session in September where it of a strategic performance and full-year results, including
performance for the year across
examined developments in the scorecard which is discussed the shareholder distribution
a range of metrics as well as the
wider environment and debated at each board meeting. policy. The 2018 annual report
latest view on expected full-year
strategic themes relating to was assessed in terms of the
The board monitored the delivery against external
BP’s segments, key functions directors’ obligations and
company’s performance against scorecard measures. Updates
and the impact of the lower appropriate regulatory
the annual plan for 2018 and are also given on various
carbon transition on the group’s requirements.
approved the forward framework components of value delivery for
business model. The board
discussed the transition to a for the annual plan for 2019. BP’s business. Regular reports The board monitors employee
lower carbon world frequently presented to the board include: opinion via an annual ‘pulse’
The board reviewed the BP survey which includes
during the year. • Chief executive’s report.
Energy Outlook, updated measurement of how the BP
The board also held several in February 2018, which looks • Group performance report.
values are incorporated into
long-term strategy sessions at long-term energy trends and • Group financial outlook. culture around our global
covering upstream, downstream projections for world energy • Effectiveness of investment operations.
and the future plans for the markets. review.
function that supports them.
Risk Succession
The board, either directly The board reviewed the group The board, in conjunction with • Paul Anderson stood down
or through its monitoring risk of cyber security in 2017 – the nomination and governance from the board at the 2018
committees, regularly reviews with the audit committee and and chairman’s committees, AGM.
the processes whereby risks SEEAC assessing elements of reviews succession plans for
• Alison Carnwath was elected
are identified, evaluated and cyber security risk in their work executive and non-executive
as a director at the 2018 AGM.
managed. programme for the year. The directors on a regular basis.
allocation of the group cyber The board needs to ensure • Helge Lund and Pamela
Activities include:
security risk to the board (with that potential candidates are Daley joined the board in
• Assessing the effectiveness of July 2018 as non-executive
additional monitoring by the audit identified and evaluated as
the group’s system of internal director and chairman
and SEEA committees) remains current directors reach the
control and risk management designate, and non-executive
unchanged for 2019. The group end of their recommended
as part of the review of the director, respectively.
risks allocated to the committees term of office, including in the
BP Annual Report and Form
for review over the year are event of a director leaving • Carl-Henric Svanberg stepped
20-F 2017.
outlined in the reports of the unexpectedly. down as non-executive
• Identification and subsequent committees on pages 75-86. director and chairman of the
The board employs executive
allocation of risks to the board Further information on BP’s board effective 31 December
search firms when it concludes
and monitoring committees system of risk management is 2018, succeeded by Helge
that this is an effective way of
(the audit, SEEA and outlined in How we manage risk Lund with effect from
finding suitable candidates. In
geopolitical committees) for on page 53. Information about 1 January 2019.
2018 Egon Zehnder assisted
2018, and confirmation of the BP’s system of internal control is in the search for non-executive • Alan Boeckmann and
schedule for oversight. on page 110. directors. Egon Zehnder has Frank Bowman will stand
no other connection with the down from the board at
company or individual directors. the 2019 AGM.

Skills and expertise
In order to carry out its duties on behalf of shareholders, the board needs to manage its overall membership and continuously maintain its knowledge
and expertise to benefit the business. It does this through four activity sets:
Succession planning to Diversity including skills, Training including Evaluation

ensure future diversity experience, gender, ethnicity site visits and induction
and balance and tenure of new directors
Background and diversity
Non-executive director Background Diversity
Oil and gas/ Engineering/ Financial Safety Brand/ Regulatory/ Female Non Tenure
extractives/ technology expertise marketing/ government UK/US (years)
energy reputation affairs
Nils Andersen 3
Alan Boeckmann 5
Frank Bowman 8
Alison Carnwath 1
Pamela Daley 1
Ian Davis 9
Ann Dowling 6
Helge Lund 1
Melody Meyer 2
Brendan Nelson 8
Paula Reynolds 4
John Sawers 4
Diversity The board is satisfied that there is no compromise to the independence

BP recognizes the importance of diversity, including gender, at the of, and nothing to give rise to conflicts of interest for, those directors
board and all levels of the group. We are committed to increasing who serve together as directors on the boards of other entities or who
diversity across our operations and have a wide range of activities hold other external appointments. The nomination and governance
to support the development and promotion of talented individuals, committee keeps the other interests of the NEDs under review to
regardless of gender and social and ethnic background. ensure that the effectiveness of the board is not compromised.
The board operates a policy that aims to promote diversity in its Ian Davis is proposed for re-election notwithstanding he will be in his
composition. Under this policy, director appointments are evaluated tenth year as a non-executive director. Following careful consideration,
against the existing balance of skills, knowledge and experience on the the board believes that Ian continues to provide constructive challenge
board, with directors asked to be mindful of diversity, inclusiveness and and robust scrutiny of matters that come before the board. Accordingly,
meritocracy considerations when examining nominations to the board. the board is satisfied that Ian continues to demonstrate the qualities of
Implementation of this policy is monitored through agreed metrics. independence in carrying out his role as senior independent director.
During its annual evaluation, the board considered diversity as part of
Appointment and time commitment
the review of its performance and effectiveness.
The chairman and NEDs have letters of appointment. There is no
At the end of 2018, there were five female directors (2017 3, 2016 3) term limit on a director’s service, as BP proposes all directors for
on our board of 14. Our nomination and governance committee actively annual re-election by shareholders.
considers diversity in seeking potential candidates for appointment to
While the chairman’s letter of appointment sets out the time
the board.
commitment expected of him, those for NEDs do not set a fixed-time
The board looked at gender and wider diversity across the group as commitment, but instead set a general guide of between 30-40 days
part of its annual review of HR, capability and talent management. per year. The time required of directors may fluctuate depending on
demands of BP business and other events. They are expected to
BP continues to take action to address the broader issue of diversity
allocate sufficient time to BP to perform their duties effectively and
within the group.
make themselves available for all regular and ad hoc meetings. The
Independence board believes that, notwithstanding the NEDs’ other appointments,
Non-executive directors (NEDs) are expected to be independent they have sufficient time to fulfil their BP duties.
in character and judgement and free from any business or other
Executive directors are permitted to take up one board appointment
relationship that could materially interfere with exercising that
at an external listed company, subject to the agreement of the chairman.
judgement. It is the board’s view that all NEDs are independent.

Fees received for an external appointment may be retained by the Board evaluation
executive director and are reported in the directors’ remuneration report
BP undertakes an annual review of the board, its committees and
(see page 87). Neither the chairman nor the senior independent director
individual directors. The chairman’s performance is evaluated by
are employed as an executive of the group.
the chairman’s committee and his evaluation is led by the senior
independent director. The evaluation operates on a three-year cycle,
Training and induction with one externally led evaluation followed by two subsequent years
To help develop an understanding of BP’s business, the board continues of internal evaluations carried out using a questionnaire prepared by
to build its knowledge through briefings and site visits. In 2018, the an external facilitator.
board continued to receive training on ethics and compliance.
Activity following prior year evaluation
NEDs are expected to visit at least one business a year as part of their Actions arising from the 2017 evaluation and how these were
learning programme. In 2018, the board as a whole visited operations addressed included:
at the Khazzan gas field in Oman. Members of the SEEAC and other
• Ongoing focus on capital allocation: the board continued to develop
directors also visited the Cooper River petrochemicals plant in the US
and deepen its understanding of the capital allocation process and
and the Thunder Horse platform in the Gulf of Mexico.
the way in which investment decisions were taken.
Newly appointed NEDs follow a structured induction process. In 2018,
• Longer term vision and strategy: the board held three ‘deep dive’
Helge Lund, Alison Carnwath and Pamela Daley all participated in the
discussions to explore the group’s longer-term vision and strategy,
induction programme, which includes one-to-one meetings with
including challenges in BP’s core businesses as well as the transition
management and the external auditors and other management who
to a lower carbon economy.
support the board and committees. Pamela Daley’s induction is set out
below as an example. • Employee views on safety and culture: the board developed a greater
understanding of employee views within the group, particularly
through review of more detailed data from the annual Pulse Survey,
by using the Technology Advisory Council (TAC) reports and through
site visits, town halls and employee engagement forums.
• International advisory board: the board reviewed the relationship
Director induction programme between the board, the geopolitical committee and the international
advisory board (IAB). Directors were invited to IAB dinners to hear the
debate on broader issues.
I deeply appreciate the 2018 evaluation
quality of the BP induction The evaluation was undertaken through a questionnaire facilitated by
programme and the BP an external consultant (Independent Audit) and individual interviews
team’s dedication to between the consultant and the chairman and each director and other
executives. The results of the evaluation and feedback from the
educating me. interviews were collectively discussed by the board and will be
incorporated into a revised version of the board governance principles
that will be published later this year.
Pamela Daley
Non-executive director
Pamela Daley, appointed in 2018, followed a

tailored induction process. The programme
of topics included:
Board and governance Functional input

• BP’s board governance • Communications and
model, directors’ duties, corporate reporting
interests and potential • Ethics and compliance
conflicts. • External audit
• Finance
Business introduction
• Human resources, including
• Alternative energy
capability and reward
• BP’s business
• Legal, including litigation
• BP’s performance relative
• Safety
to competitors
• Treasury
• Downstream (refining,
• Tax
marketing and lubricants)
• Integrated supply and
Audit committee specific
trading (IST)
• Reporting and disclosure
• Lower carbon transition
• Business ‘deep dives’
• Strategy
including IST risks and
• Financial planning
compliance and procurement
• Upstream (exploration,
• Cyber security and trading
development, production,
regulations.
overview of our operations)

Site visits
NEDs visit at least one business every year to help deepen their operational understanding.
In 2018, the board visited the Khazzan gas field in Oman and the International Centre for
Advanced Materials (ICAM), of which BP is a significant sponsor, at the University of
Manchester. Members of the SEEAC and other directors visited upstream and downstream
operations in the Gulf of Mexico and South Carolina respectively. The board met local
management and were briefed at each visit and subsequently provided their feedback to the
appropriate committee and to the board.
A number of non-executives took the opportunity to engage directly with the local workforce
as described below.
Cooper River, US
In September members of the SEEAC and
other directors visited Cooper River, BP’s
petrochemicals plant in South Carolina.
Board members met with site leaders and
discussed business emergency continuity
planning, safety, risk and operating culture
at the plant. They also heard about new
sustainability-related technologies.
Khazzan, Oman offices and accommodation, and spent time Workforce engagement
in the central processing facility control room.
The board visited the Khazzan gas field in Melody Meyer visited the Muscat office in
They met site staff over lunch and concluded
Oman, touring the facility and meeting with March to meet with women from BP Oman,
their visit by meeting a local tribal leader who
local staff. They experienced the scale of the as part of an empowering women in business
had been instrumental in securing community
field first hand following start-up of the project. event. She advocated helping and supporting
support for the Khazzan development.
They also visited the new residential camp women saying, “we all have a part to play
in this, we can help ensure our female
colleagues’ voices are heard.” Melody
Manchester, UK highlighted the need to focus on driving value,
In May the board attended the ICAM, where creating advantage from change, showing
they met with leading academics to better respect and valuing contribution.
understand how investment in research is
Melody also conducted a town hall at our
helping advance fundamental understanding
Houston office in July and Paula Reynolds led
and use of materials across a variety of energy
a BP woman’s international network event at
and industrial applications.
BP’s London head office in December.
Houston, US
Alongside the SEEAC visit in July, members
Thunder Horse, US of the board also spent time in the Houston
SEEAC and the audit committee chair visited office, following the damage caused by
Thunder Horse in July. Their trip included a Hurricane Harvey in 2017. They spent time
half-day session with the Gulf of Mexico with BP’s US-based integrated supply and
upstream leadership team followed by a day trading team and learned about the execution
offshore. The regional president led the site of business continuity planning following
visit and facilitated thorough discussion of Harvey. They visited key group monitoring,
working practices, the risks and challenges communication and response centres across
faced on site and management of those risks. multiple businesses.
The visit demonstrated the safety culture on
board the rig.

Shareholder engagement
Institutional investors Retail investors

The company operates an active investor relations programme. The BP held a further event for retail investors in conjunction with the UK
board receives feedback on shareholder views through results of an Shareholders’ Association (UKSA) in 2018. The chairman and head of
anonymous investor audit and reports from management and those investor relations gave presentations on BP’s annual results, strategy
directors who meet with shareholders each year. In 2018 the chair of and the work of the board. Shareholders’ questions were focused on
the remuneration committee undertook extensive engagement on BP’s activities and performance.
the application of the remuneration policy prior to the AGM in May
(see the remuneration committee report on page 83). Helge Lund also AGM
held one-to-one meetings with 14 major institutional investors during
Voting levels increased in 2018 to 67.3% (of issued share capital,
the last quarter of the year prior to him becoming the chairman.
including votes cast as withheld), compared to 50.8% in 2017 and
Senior management regularly meets with institutional investors 64.3% in 2016.
through road shows, group and one-to-one meetings, events for
All resolutions were passed at the meeting. Each year the board
socially responsible investors (SRIs) and oil and gas sector
receives a report after the AGM giving a breakdown of the votes
conferences throughout the year.
and investor feedback on their voting decisions to inform them on
In April, the chairman and all board committee chairs held an annual any issues arising.
investor event. This meeting enabled BP’s largest shareholders to
hear about the work of the board and its committees and for investors UK Corporate Governance Code compliance
to share their views directly with NEDs. BP complied throughout 2018 with the provisions of the 2016 UK
Corporate Governance Code except in the following aspects:
More information
B.3.2 Letters of appointment do not set out fixed-time commitments
See bp.com/investors for investor since the schedule of board and committee meetings is subject to
and strategy presentations, including
the group’s financial results and
change according to the demands of business and other events.
information on the work of the board Our letters of appointment set a general guide of a time
and its committees. commitment of between 30-40 days per year. All directors are
expected to demonstrate their commitment to the work of the
board on an ongoing basis. This is reviewed by the nomination
Shareholder engagement cycle 2018 and governance committee in recommending candidates for
annual re-election.
• Fourth quarter and full year 2017 results and D.2.2 The remuneration of the chairman is not set by the remuneration
strategy update committee. Instead, the chairman’s remuneration is reviewed by
• Investor roadshows with executive management the remuneration committee which makes a recommendation to
– fourth quarter and full year 2017 results the board as a whole for final approval, within the limits set by
• BP Energy Outlook presentation shareholders. This wider process enables all board members to
discuss and approve the chairman’s remuneration, rather than
Q1 • US SRI meetings on remuneration solely the members of the remuneration committee.
• Investor meetings on remuneration, continuing
BP remains cognizant of the new UK Corporate Governance Code and
into Q2
will report accordingly in our 2019 Annual Report and Form 20-F. A copy
• BP Annual Report 2017 launch of the UK Corporate Governance Code is available at frc.org.uk.
• BP Sustainability Report 2017 launch
• BP Technology Outlook launch
• Chairman and board committee chairs meetings

• UKSA (retail shareholders’) meeting with
International advisory board
the chairman BP’s international advisory board (IAB) advises the chairman, group chief
Q2 • First quarter 2018 results presentation executive and the board on geopolitical and strategic issues relating to
the company. This group meets once or twice a year and between
• Annual general meeting
meetings IAB members remain available to provide advice and counsel
• Advancing the Energy Transition launch when needed.
• BP Statistical Review of World Energy launch Membership of the IAB in 2018 comprised Lord Patten of Barnes, Josh
Bolten, President Romano Prodi, Dr Ernesto Zedillo, John Key and Dr
Javier Solana. The chairman, chief executive and Sir John Sawers
• Second quarter 2018 results presentation
attend meetings of the IAB. Issues discussed in 2018 included the
Q3 • Investor roadshows with executive management global economy, developments in the Middle East, political events in
following 2Q results Latin America and the political and economic outlook in the US. The
IAB discussed the UK’s potential exit from the European Union at both
of its meetings during 2018.
• Third quarter 2018 results presentation
Q4 • Upstream investor day in Oman

Committee reports
Role of the committee

The committee monitors the effectiveness of the group’s financial
reporting, systems of internal control and risk management and the
integrity of the group’s external and internal audit processes.
Key responsibilities
• Monitoring and obtaining assurance that the management or
mitigation of financial risks is appropriately addressed by the group
chief executive and that the system of internal control is designed
and implemented effectively in support of the limits imposed by
the board (‘executive limitations’), as set out in the BP board
governance principles.
• Reviewing financial statements and other financial disclosures and
monitoring compliance with relevant legal and listing requirements.
Audit committee • Reviewing the effectiveness of the group audit function, BP’s
internal financial controls and systems of internal control and risk
management.
The committee continued to monitor the • Overseeing the appointment, remuneration, independence and
group’s system of internal control, risk performance of the external auditor and the integrity of the audit
management and work of key functions process as a whole, including the engagement of the external auditor
to supply non-audit services to BP.
as well as reviewing and challenging as
• Reviewing the systems in place to enable those who work for BP to
appropriate the disclosures and key raise concerns about possible improprieties in financial reporting or
judgements made by management. other issues and for those matters to be investigated.
Members
Brendan Nelson Member since November 2010 and chair
since April 2011
Chairman’s introduction Nils Andersen Member since October 2016; resigned
As in previous years, the committee has continued to review the September 2018
integrity of the group’s financial reporting by challenging and debating Alison Carnwath Member since May 2018
the judgements made by management, including the estimates which
are made. We receive reports from management and the external Pamela Daley Member since October 2018
auditor each quarter highlighting significant accounting issues and Paula Reynolds Member since May 2015
judgements and have used these to inform our debate on whether
BP’s financial reporting is ‘fair, balanced and understandable’. Brendan Nelson is chair of the audit committee. He was formerly
vice chairman of KPMG and president of the Institute of Chartered
In 2018 the committee focused on the effectiveness of a number of
Accountants of Scotland. Currently he is chairman of the group audit
group functions including integrated supply and trading, procurement,
committee of The Royal Bank of Scotland Group plc and a member of
tax, information technology and security, and shipping. We also received
the Financial Reporting Review Panel. The board is satisfied that he is
presentations regarding, and reviewed performance of, the Upstream
the audit committee member with recent and relevant financial
segment and the lubricants business. These reviews were valuable in
experience as outlined in the UK Corporate Governance Code and
not only informing the committee of the work and future plans of those
competence in accounting and auditing as required by the FCA’s
functions and businesses but also examining the key risks (and
Corporate Governance Rules in DTR7. It considers that the committee
associated mitigations) faced by each of them. In addition, the
as a whole has an appropriate and experienced blend of commercial,
committee carried out reviews into the group risks of financial liquidity,
financial and audit expertise to assess the issues it is required to
cyber security and compliance with business regulations.
address, as well as competence in the oil and gas sector. The board also
The transition to Deloitte from EY was completed in 2018. We met with determined that the audit committee meets the independence criteria
both EY and Deloitte during 2018 as the transition occurred and oversaw provisions of Rule 10A-3 of the US Securities Exchange Act of 1934 and
and monitored Deloitte’s work as they settled into their role. We meet that Brendan may be regarded as an audit committee financial expert as
regularly with the lead audit partner. defined in Item 16A of Form 20-F.
Nils Andersen retired from the committee in September 2018 as he
joined the SEEAC. I would like to thank Nils for his service to the Meetings and attendance
committee, and for the challenge and perspective he provided as a There were nine committee meetings in 2018, of which three were by
member. We were very pleased to welcome Dame Alison Carnwath teleconference. All directors attended every meeting during the period
to the committee in May 2018 with Pamela Daley also joining in October in which they were committee members, except for Nils Andersen,
2018. Each of them bring excellent financial and other relevant skills to Alison Carnwath and Paula Reynolds who all missed a meeting each
the committee. due to pre-existing external commitments. Regular attendees at the
Brendan Nelson meetings include the chief financial officer, group controller, chief
Committee chair accounting officer, group head of audit, group general counsel and
external auditor.

Activities during the year
Financial disclosure and compliance functions, Financial liquidity: including the

development of the anti-bribery risk associated with external
The committee reviewed the considered whether the period and corruption elements of market conditions, supply and
quarterly, half-year and annual covered by the company’s viability the programme, enhanced demand and prices achieved for
financial statements with statement was appropriate. policies, tools and training and BP’s products which could impact
management, focusing on the: strengthening of counter-party risk financial performance.
The committee considered the
• Integrity of the group’s BP Annual Report and Form 20-F measures, including due diligence.
The committee reviewed the key
financial reporting process. 2017 and assessed whether the The committee also reviewed key
price assumptions used by the
• Clarity of disclosure. report was fair, balanced and areas of BP’s legal function that
group for investment appraisal and
• Compliance with relevant legal understandable and provided advise on compliance matters.
the judgements underlying those
and financial reporting standards. the information necessary for Cyber security risk: including proposals, the cost of capital and its
• Application of accounting shareholders to assess the inappropriate access to or misuse application as a discount rate to
policies and judgements. group’s position and performance, of information and systems and evaluate long-term BP business
business model and strategy. In disruption of business activity. projects, liquidity (including credit
As part of its review, the
making this assessment, the rating, hedging, long-term
committee received quarterly The committee reviewed ongoing
committee examined disclosures commercial commitments and
updates from management and developments in the cyber
during the year, discussed the credit risk) and the effectiveness
the external auditor in relation to security landscape, including
requirement with senior and efficiency of the capital
accounting judgements and events in the oil and gas industry
management, confirmed that investment into major projects .
estimates including those relating and within BP itself. The review
representations to the external These assumptions also impacted
to the Gulf of Mexico oil spill, focused on the improvements
auditors had been evidenced and financial reporting (see page 79).
recoverability of asset carrying made in managing cyber risk,
reviewed reports relating to
values and other matters. including the application of the BP’s principal risks are listed on
internal control over financial
The committee keeps under reporting. The committee made three lines of defence model and page 55.
review the frequency of results a recommendation to the board, examining the indicators
For 2019, the board has agreed
reporting during the year. who in turn reviewed the report associated with risk management
that the committee will continue
as a whole, confirmed the and barrier performance.
The committee reviewed the to monitor the same four group
assessment and reporting of assessment and approved the risks as for 2018.
longer-term viability, risk report’s publication.
management and the system of Other disclosures reviewed
internal control, including the included: Other reviews
reporting and categorization of risk
• Oil and gas reserves. Other reviews undertaken in 2018 performance, risk management
across the group and the
• Pensions and post-retirement by the committee included: and controls, audit findings, key
examination of what might
benefits assumptions. litigation and ethics and
constitute a significant failing or • Lubricants: including strategy
• Risk factors. compliance findings.
weakness in the system of and strategic progress, financial
• Legal liabilities.
internal control. It also examined performance, risk management • Capability and succession in
• Tax strategy.
the group’s modelling for stress and controls, audit findings, key BP’s finance function, including
• Going concern.
testing different financial and litigation and ethics and the group’s finance
• IFRS 16 (lease accounting).
operational events, and compliance findings. modernization programme.
• Upstream: including vision and • Assessment of financial metrics
Risk reviews priorities, structure and for executive remuneration:
portfolio, financial controls and consideration of financial
The principal risks allocated to the integrated supply and trading the balance sheet, an overview performance for the group’s
audit committee for monitoring in function’s risk management of tangible and intangible assets 2018 annual cash bonus
2018 included those associated programme, including and a review of the segment’s scorecard and performance
with: compliance with regulatory finance organization. share plan, including
developments and activities in adjustments to plan conditions
Trading activities: including risks • Shipping: including an overview
response to cyber threats. and NOIs.
arising from shortcomings or failures of BP shipping’s role and
in systems, risk management Compliance with applicable operating model, financial • Auditor transition: regular
methodology, internal control laws and regulations: including performance, strategy, risk reports from the external
processes or employees. ethical misconduct or breaches of management and controls and auditor regarding its transition
applicable laws or regulations that the impact of IFRS 16 (lease into the role including detailed
In reviewing this risk, the
could damage BP’s reputation, accounting standard). updates on issues identified by
committee focused on external
adversely affect operational results the external auditor.
market developments and how • Tax: including strategy and
and/or shareholder value and strategic progress, key • Internal controls: assessments
BP’s trading function had
potentially affect BP’s licence drivers of the group’s effective of management’s plans to
responded – including new areas
to operate. tax rate, the global indirect tax remediate the external auditors
of activity, such as emissions
trading and impacts on the The committee reviewed the environment and the tax findings in relation to IT access
control environment. group’s ethics and compliance modernization programme. risks.
programme, including the work of • Procurement: including strategy
The committee further
the business integrity and ethics and strategic progress, financial
considered updates in the

Internal control and risk management Training
The committee held a review on reserves and pensions. It received
The committee received The committee reviewed the technical updates from the chief accounting officer on developments
quarterly reports on the findings effectiveness of internal audit. in financial reporting and accounting policy, in particular regarding the
of group audit in 2018. The introduction of IFRS 16 ‘Leases’ accounting from the start of 2019.
The audit committee also held
committee met privately with
private meetings with the group
the group head of audit and key Integrated supply and trading visit
ethics and compliance officer
members of his leadership team.
during the year. In October, the committee held its meeting at BP’s integrated supply
and trading (IST) business in London and conducted its annual tour
of the business which covered oil and gas market fundamentals,
finance and risk, IST’s strategy, and presentations on oil products
and LNG trading.
Accounting judgements and estimates

Areas of significant judgement considered by the committee in 2018 and how these were addressed included:
Key judgements and estimates Audit committee activity Conclusions/outcomes

in financial reporting
Gulf of Mexico oil spill
BP uses judgement in relation to the A
review of the provisioning for and T
he group income statement includes a
recognition of provisions relating to the Gulf disclosure of uncertainties relating to the pre-tax charge of $1.2 billion in relation to the
of Mexico oil spill. The timing and amounts of Gulf of Mexico oil spill was undertaken each Gulf of Mexico oil spill.
the remaining cash flows are subject to quarter as part of the review of the stock
D
isclosure includes information on
uncertainty and estimation is required to exchange announcement.
remaining uncertainties.
determine the amounts provided for.
P
articular focus was given to updates to the
T
he audit committee noted that following
provision related to business economic loss
the significant number of BEL claim
(BEL) and other claims related to the Gulf of
settlements in the year, the degree of
Mexico oil spill, including the continuing
judgement necessary to determine the
effect of the Fifth Circuit May 2017 opinion
year-end provision had reduced significantly.
on the matching of revenues with expenses
when evaluating BEL claims.
Oil and natural gas accounting, including reserves

BP uses technical and commercial judgements H
eld an in-depth review of BP’s policy and E
xploration write-offs totalling $1.1 billion
when accounting for oil and gas exploration, guidelines for compliance with oil and gas were recognized during the year.
appraisal and development expenditure and in reserves disclosure regulation, including the
B
P remains committed to developing the
determining the group’s estimated oil and gas group’s reserves governance framework
Gulf of Mexico licences and believes it is
reserves. and controls.
appropriate to continue to capitalize the
Reserves estimates based on management’s R
eviewed exploration write-offs as part of costs.
assumptions for future commodity prices have the group’s quarterly due diligence process.
E
xploration intangibles totalled $16.0 billion
a direct impact on the assessment of the
R
eceived briefings on the status of at 31 December 2018.
recoverability of asset carrying values reported
upstream intangible assets, including the
in the financial statements.
status of items on the intangibles assets
Judgement is required to determine whether it ‘watch-list’, including certain Gulf of Mexico
is appropriate to continue to carry intangible licences which expired in 2013 and 2014.
assets related to exploration costs on the
R
eceived the output of management’s
balance sheet.
annual intangible asset certification process
used to ensure accounting criteria to
continue to carry the exploration intangible
balance are met.

Recoverability of asset carrying values
Determination as to whether and how much R
eviewed the group’s oil and gas price T
he group’s long-term price assumptions for
an asset, cash generating unit (CGU) or group assumptions. Brent oil, and Henry Hub gas were
of CGUs containing goodwill is impaired unchanged from 2017.
R
eviewed the group’s discount rates for
involves management judgement and
impairment testing purposes. T
he group’s discount rates used for
estimates on uncertain matters such as future
impairment testing were also unchanged.
commodity pricing, discount rates, production pstream impairment charges, reversals
U
profiles, reserves and the impact of inflation on and ‘watch-list’ items were reviewed as Impairments of $0.1 billion were recorded in
operating expenses. part of the quarterly due diligence process. the year, net of impairment reversals.
Investment in Rosneft
Judgement is required in assessing the level of eviewed the judgement on whether the
R B
P has retained significant influence over
control or influence over another entity in group continues to have significant Rosneft throughout 2018 as defined by
which the group holds an interest. influence over Rosneft. IFRS.
BP uses the equity method of accounting for onsidered IFRS guidance on evidence
C
its investment in Rosneft and BP’s share of participation in policy-making processes.
Rosneft’s oil and natural gas reserves is
R
eceived reports from management which
included in the group’s estimated net proved
assessed the extent of significant influence,
reserves of equity-accounted entities.
including BP’s participation in decision
The equity-accounting treatment of BP’s making.
19.75% interest in Rosneft continues to be
dependent on the judgement that BP has
significant influence over Rosneft.
Derivative financial instruments

For its level 3 derivative financial instruments, R
eceived a briefing on the group’s trading P has assets and liabilities of $3.6 billion and
B
BP estimates their fair value using internal risks and reviewed the system of risk $3.1 billion respectively recognized on the
models due to the absence of quoted market management and controls in place, balance sheet for level 3 derivative financial
pricing or other observable, market- including those covering the valuation of instruments at 31 December 2018, mainly
corroborated data. level 3 derivative financial instruments, relating to the activities of the integrated
Judgement may also be required to determine using models where observable market supply and trading function (IST).
whether contracts to buy or sell commodities pricing is not available.
P’s use of internal models to value certain
B
meet the definition of a derivative. T
he committee annually reviews the control of these contracts has been disclosed in
process and risks relating to the trading Note 30 in the financial statements.
business.

Provisions
BP’s most significant provisions relate to R
eceived briefings on decommissioning, D
ecommissioning provisions of $13.6 billion
decommissioning, environmental remediation environmental, asbestos and litigation were recognized on the balance sheet at
and litigation. provisions, including the requirements, 31 December 2018.
The group holds provisions for the future governance and controls for the
T
he discount rate used by BP to determine
decommissioning of oil and natural gas development and approval of cost
the balance sheet obligation at the end of
production facilities and pipelines at the end of estimates and provisions in the financial
2018 was a nominal rate of 3% – based on
their economic lives. Most of these statements.
long-dated US government bonds.
decommissioning events are many years in R
eviewed the group’s discount rates for
T
he impact of this revised rate has been
the future and the exact requirements that will calculating provisions, including the change
disclosed.
have to be met when a removal event occurs to use the nominal discount rate (i.e. taking
are uncertain. Assumptions are made by BP in account of expected inflation) from the
relation to settlement dates, technology, legal second quarter of 2018.
requirements and discount rates. The timing
and amounts of future cash flows are subject
to significant uncertainty and estimation is
required in determining the amounts of
provisions to be recognized.
Following a regular review of decommissioning
cost estimates, from 30 June 2018 the present
value of the decommissioning provision was
determined by discounting the estimated cash
flows expressed in expected future prices, i.e.
taking account of expected inflation. Prior to
30 June 2018, the group estimated future cash
flows in real terms.
Pensions and other post-retirement benefits

Accounting for pensions and other post- R
eviewed the group’s assumptions used to he method for determining the group’s
T
retirement benefits involves making estimates determine the projected benefit obligation assumptions remained largely unchanged from
when measuring the group’s pension plan at the year end, including the discount rate, 2017. The values of these assumptions and a
surpluses and deficits. These estimates rate of inflation, salary growth and mortality sensitivity analysis of the impact of possible
require assumptions to be made about levels. changes on the benefit expense and obligation
uncertain events, including discount rates, are provided in Note 24.
inflation and life expectancy.
t 31 December 2018, surpluses of $6.0 billion
A
and deficits of $8.4 billion were recognized on
the balance sheet in relation to pensions and
other post-retirement benefits.
External audit The committee received updates during the year on the audit process,
including how the auditor had challenged the group’s assumptions on
Audit risk
these issues.
The external auditor set out its audit strategy for 2018, identifying
significant audit risks to be addressed during the course of the audit. Audit fees
These included: The audit committee reviews the fee structure, resourcing and terms
of engagement for the external auditor annually; in addition it reviews
• The risk of impairment in certain cash-generating units which are
the non-audit services that the auditor provides to the group on a
particularly sensitive to changes in the key assumptions, in particular
quarterly basis.
the long-term oil and gas price assumptions.
Fees paid to the external auditor for the year were $42 million (2017 $47
• The carrying value of certain exploration and appraisal assets where
million), of which 5% was for non-audit assurance work (see Financial
there could be potential indicators of impairment through licence
statements – Note 36). The audit committee is satisfied that this level of
expiry and/or partner withdrawal.
fee is appropriate in respect of the audit services provided and that an
• Accounting for structured commodity transactions in the integrated effective audit can be conducted for this fee. Non-audit or non-audit
supply and trading function. related assurance fees were $2 million (2017 $3 million). Non-audit or
• Level 3 of derivative financial instruments valuations within the non-audit related services consisted of other assurance services.
integrated supply and trading function which involve using bespoke
valuation models and/or unobservable inputs.
• Management override of controls.

Audit effectiveness Auditor appointment and independence
The effectiveness, performance and integrity of the external audit The committee considers the reappointment of the external auditor
process was evaluated through separate surveys completed by each year before making a recommendation to the board. The
committee members and those BP personnel impacted by the audit, committee assesses the independence of the external auditor on an
including chief financial officers, controllers, finance managers and ongoing basis and the external auditor is required to rotate the lead audit
individuals responsible for accounting policy and internal controls over partner every five years and other senior audit staff every seven years.
financial reporting. No partners or senior staff associated with the BP audit may transfer to
the group.
The survey sent to management comprised questions across five main
criteria to measure the auditor’s performance: Non-audit services
The audit committee is responsible for BP’s policy on non-audit
• Robustness of the audit process.
services and the approval of non-audit services. Audit objectivity and
• Independence and objectivity. independence is safeguarded through the prohibition of non-audit tax
• Quality of delivery. services and the limitation of audit-related work which falls within
defined categories. BP’s policy on non-audit services states that the
• Quality of people and service. auditor may not perform non-audit services that are prohibited by the
• Value added advice. SEC, Public Company Accounting Oversight Board (PCAOB), UK
Auditing Practices Board (APB) and the UK Financial Reporting
The 2018 evaluation was the last of EY as the outgoing auditor. It also
Council (FRC).
included certain questions about the effectiveness of the transition to
the incoming auditor, Deloitte. The results of the survey indicated that The audit committee approves the terms of all audit services as well as
the external auditor’s performance had remained largely consistent in permitted audit-related and non-audit services in advance. The external
key areas compared with the previous year. Areas with high scores and auditor is considered for permitted non-audit services only when its
favourable comments included quality of accounting and auditing expertise and experience of the company is important.
judgement and the working relationship with management. Areas for Approvals for individual engagements of pre-approved permitted
improvement were identified but none impacted on the effectiveness services below certain thresholds are delegated to the group controller
of the audit. The results of the questions regarding auditor transition or the chief financial officer. Any proposed service not included in the
indicated that management were confident that Deloitte would be permitted services categories must be approved in advance either by
effective in their role. The results of the survey were discussed with the audit committee chairman or the audit committee before
Deloitte for consideration in their 2018 audit approach. engagement commences. The audit committee, chief financial officer
The committee held private meetings with the external auditor during and group controller monitor overall compliance with BP’s policy on
the year and the committee chair met separately with the external audit-related and non-audit services, including whether the necessary
auditor and group head of audit at least quarterly. pre-approvals have been obtained. The categories of permitted and
pre-approved services are outlined in Principal accountant’s fees and
The effectiveness of the external auditor is evaluated by the audit
services on page 301. The committee’s policies were updated in 2018
committee. The committee assessed the new auditor’s approach to
to clarify the engagement of the incoming auditor, Deloitte, and the
providing audit services as the team undertook its first audit. On the
outgoing auditor (and auditor of Rosneft) EY.
basis of such assessment, the committee concluded that the audit team
was providing the required quality in relation to the provision of the
services. The audit team had shown the necessary commitment and
Committee evaluation
ability to provide the services together with a demonstrable depth of The audit committee undertakes an annual evaluation of its performance
knowledge, robustness, independence and objectivity as well as an and effectiveness.
appreciation of complex issues. The team had posed constructive 2018 evaluation
challenge to management where appropriate. For 2018, an external assessment was used to evaluate the work of the
Audit transition committee as part of a wider review of the operation of the board as a
Deloitte was appointed for the statutory audit, with effect from 2018 whole. The review concluded that it had performed effectively.
following a tender process in 2016. The committee monitored the Areas of focus for 2019 include succession planning for membership of
transition of BP’s statutory auditor from EY to Deloitte. This included: the committee, a site visit to global business services Kuala Lumpur and
• Receiving reports from the audit transition team, including an integrated supply and trading Singapore and a further review of capital
overview of operational activities and the termination of non-audit spending.
services being provided by Deloitte to BP – which would be prohibited
when Deloitte became the group’s statutory auditor. This included
Deloitte stepping down as independent adviser to BP’s remuneration
committee.
• Requiring management to report to the committee on any services
undertaken by the statutory auditor in line with the group’s policies
relating to non-audit services.
• Requiring confirmation of Deloitte’s compliance with BP’s
independence and ethics and compliance rules.
Deloitte confirmed its independence to the committee in October 2017.
EY resigned on 29 March 2018 following completion of the 2017 audit.
The committee also received reports from the external auditor’s
transition team in April, May and July 2018 and an update to their plan
in December 2018.

The role of the SEEAC is to look at the processes adopted by BP’s
executive management to identify and mitigate significant non-financial
risk. This includes monitoring the management of personal and process
safety and receiving assurance that processes to identify and mitigate
such non-financial risks are appropriate in their design and effective in
their implementation.
The committee receives specific reports from the business segments
as well as cross-business information from the functions. These include,
but are not limited to, the safety and operational risk function, group
audit, group ethics and compliance, business integrity and group
security. The SEEAC can access any other independent advice and
Safety, ethics and environment counsel it requires on an unrestricted basis.
assurance committee (SEEAC) The SEEAC and audit committee worked together, through their chairs
and secretaries, to ensure that agendas did not overlap or omit coverage
of any key risks during the year.
At every site visit, we engage with the local Members

leadership who help to embed a culture Alan Boeckmann Member since September 2014 and chair
focused on operational risk mitigation. since May 2016
Nils Andersen Member since December 2018
Paul Anderson Member since February 2010; resigned May
2018
Frank Bowman Member since November 2010
Chairman’s introduction
Ann Dowling Member since February 2012
The committee’s focus continued to be on working with executive
management to drive safe, ethical and reliable operations. It Melody Meyer Member since May 2017
continued to provide constructive challenge as part of its review of John Sawers Member since July 2015
the executives’ management of the highest priority non-financial
group risks assigned to SEEAC. The risks under our remit remained
the same as for 2017: marine, wells, pipelines, explosion or release at
Meetings and attendance
facilities, major security incidents and cyber security in the process There were six committee meetings in 2018. All directors attended
control network. The committee receives reports on each of these every meeting for which they were eligible, apart from Alan
risks and monitors their management and mitigation. Boeckmann who missed two meetings due to unforeseen personal
circumstances.
Following publication of the company’s second Modern Slavery
Act (MSA) statement in 2018, the committee again reviewed In addition to the committee members, all SEEAC meetings were
related work practices in BP and will continue to review progress in attended by the group chief executive, the executive vice president for
developing and embedding those practices. In 2018 it also reviewed safety and operational risk (S&OR) and the head of group audit or his
the BP Sustainability Report 2017. delegate. The external auditor attended some of the meetings and has
access to the chair and secretary to the committee as required. The
The committee made two site visits in the year (see page 73). In July
group general counsel and group ethics and compliance officer also
members of the committee visited the Thunder Horse platform in the
attended some of the meetings. At the conclusion of each meeting the
Gulf of Mexico, and in September members visited Cooper River
committee scheduled private sessions for the committee members
petrochemicals plant in South Carolina. The level of access into the
only, without the presence of executive management, to discuss any
operations on such visits gives the directors first hand and direct
issues arising and the quality of the meeting. The group chief executive
insight. This framework provides an opportunity for meaningful and
receives invitations to join the private meetings on an ad hoc basis and
open dialogue with the local site teams, allowing the committee to
at least once a year the head of group audit and at least twice a year the
better fulfil its obligations.
group ethics and compliance officer are invited to a private meeting
In May 2018, Paul Anderson retired from the board and the with the committee.
committee. In preparation for my stepping down from the BP board
at the annual general meeting in May 2019, Nils Andersen, who was
appointed to the committee in December 2018, will assume the role
of the chair of SEEAC from April 2019.
Alan Boeckmann
Committee chair

Activities during the year Committee evaluation
In 2018, the committee examined its performance and effectiveness
System of internal control and risk management through an externally facilitated evaluation which included individual
interviews. Discussion focused on the responsibilities of the committee,
The review of operational risk and compliance officer and the group the balance of skills and experience among its members, the quality and
performance forms a large part of auditor met in private with the timeliness of information the committee receives, the level of challenge
the committee’s agenda. chairman and other members of between committee members and management and how well the
the committee over the course of committee communicates its activities and findings to the board to both
Group audit provided quarterly
the year. During the year the inform and drive discussion.
reports on their assurance work
committee received separate
and their annual review of the The evaluation results continued to be positive. Committee members
reports on the company’s
system of internal control and risk considered that they continued to possess the right mix of skills and
management of risks relating to:
management. background, had an appropriate level of support and received open and
• Marine. transparent briefings from management. The committee agreed to
The committee also received
• Wells. review its remit in 2019.
regular reports from the group
• Pipelines.
chief executive and vice president Site visits remained an important element of the committee’s work,
• Explosion or release
for S&OR on operational risk, acknowledged through the responses in the evaluation process. These
at our facilities.
including regular reports prepared gave members the opportunity to examine and witness risk
• Major security incidents.
on the group’s health, safety and management processes embedded in businesses and facilities,
• Cyber security (process
environmental performance and including the right management culture. Joint meetings between the
control networks).
operational integrity. These SEEAC and the audit committee were considered important in
included meeting-by-meeting The committee reviewed these reviewing and gaining assurance around financial and operational risks
measures of personal and process risks and their management and where there was overlap between the committees, particularly in
safety, environmental and mitigation in depth with relevant relation to ethics and compliance (see below).
regulatory compliance, security executive management.
and cyber risk analysis, as well as
quarterly reports from group audit.
In addition, the group ethics and
Site visits
In July members of the visited the petrochemicals plant,

committee, and other directors, Cooper River, in South Carolina.
visited the Houston office and During the visit, directors were
went offshore to Thunder Horse able to discuss business
in the Gulf of Mexico. The continuity planning and
Houston visit included time with emergency response which had
various teams understanding the been in effect just prior to the
effects of Hurricane Harvey, how visit as a result of Hurricane
central office-based functions Florence. For all visits, committee
support the offshore community members and other directors
and other group monitoring received briefings on operations,
teams. In preparation for the the status of conformance with
offshore visit to Thunder Horse BP’s operating management
the directors met with the Gulf of system, key business and
Mexico leadership. Offshore, operational risks and risk Joint meetings of the audit and safety, ethics and
there was a full tour of the asset management and mitigation. environment assurance committees
including control room, topsides Committee members reported The audit committee and SEEAC hold joint meetings on a quarterly
and drilling rig and plenty of back in detail about each visit to basis to simplify reporting of key issues that are within the remit
opportunity was provided to the committee and subsequently of both committees and to make more effective use of the
converse with employees on the to the board. See page 73 for committees’ time. Each committee retains full discretion to require
rig. In September, committee further details. a full presentation and discussion on any joint meeting topic at their
members, and other directors, respective meeting if deemed appropriate. The committees jointly
met four times in 2018, with the chairmanship of the meetings
alternating between the chairman of the audit committee and
Corporate reporting
chairman of the SEEAC. Topics discussed at the joint meetings
The committee was responsible worked with the external auditor were the quarterly ethics and compliance reports (including
for the overview of the BP with respect to their assurance significant investigations and allegations) and the 2019 forward
Sustainability Report 2017. The of the report. programmes for the group audit and ethics and compliance
committee reviewed content and functions.

The role of the committee is to determine and recommend to the board
the remuneration policy for the chairman and executive directors. In
determining the policy, the committee takes into account various
factors, including structuring the policy to promote the long-term
success of the company and linking reward to business performance.
The committee recognizes the remuneration principles applicable to all
employees below board level.
• Recommend to the board the remuneration principles and policy for
the chairman and the executive directors while considering policies
for employees below the board.
• Determine the terms of engagement, remuneration, benefits and
Remuneration committee termination of employment for the chairman and the executive
directors, executive team and the company secretary in accordance
with the policy.
• Review the relevant remuneration principles and policies for
Chair’s introduction employees below the executive team.
As the new committee chair, I took the opportunity in the autumn to
engage with some of our institutional shareholders. In a changing • Prepare the annual remuneration report to shareholders to show how
governance landscape, it has been important to ensure our stakeholders the policy has been implemented.
continue to be heard. • Approve the principles of any equity plan that requires shareholder
We have reviewed the responsibilities of the committee and have approval.
extended the scope to include oversight of remuneration below board • Ensure termination terms and payments to executive directors and
level. the executive team are fair.
We have continued to operate under the policy approved by • Approve changes to the design of remuneration for BP group leaders,
shareholders in 2017. Our focus for 2019 will of course be the as proposed by the group chief executive.
preparation of a new policy for approval by shareholders at the 2020
• Receive, and take into account as appropriate, regular updates on
AGM. Pamela Daley has joined the remuneration committee from
workforce views and engagement initiatives related to remuneration.
1 January 2019. We welcome Pamela to the committee and look
forward to her valuable contribution. • Ensure insight from data sources on pay ratio, gender pay gap and
other workforce remuneration outcomes are considered as
PricewaterhouseCoopers LLP has continued as our independent
appropriate.
adviser following their appointment in 2017. PwC has other
engagements with the company to provide certain services none of • Maintain appropriate dialogue with shareholders on remuneration
which are deemed material in this context. matters.
Paula Rosput Reynolds • Monitor the alignment of incentives and remuneration for all
Committee chair employees below the executive team with the expected values and
behaviours.
• Engage independent consultants or other advisers as the committee
may from time to time deem necessary, at the expense of the
company.
Members
Paula Reynolds Member since September 2017 and chair
since May 2018
Alan Boeckmann Member since May 2015
Pamela Daley Member since January 2019
Ian Davis Member since July 2010
Ann Dowling Member since July 2012 and chair since May
2015; resigned May 2018
Brendan Nelson Member since May 2017

The chairman and the group chief executive attend meetings of the
committee except for matters relating to their own remuneration.
The group chief executive is consulted on the remuneration of the chief
financial officer, the executive team and more broadly on remuneration
across the wider employee population. Both the group chief executive
and chief financial officer are consulted on matters relating to the
group’s performance.
The group human resources director attends meetings and other
executives may attend where necessary. The committee consults other
board committees on the group’s performance and on issues relating
to the exercise of judgement or discretion.
The committee met seven times during the year. All directors attended
each meeting that they were eligible to attend, either in person or by
telephone, except Alan Boeckmann who was not able to attend two Geopolitical committee
meetings due to unforeseen personal circumstances.

In the period before the 2018 AGM, the committee focused on the
Chairman’s introduction
outcomes for 2017. This involved reviewing directors’ salaries and the I am pleased to report on the work of the geopolitical committee in
group’s performance outcome which in turn determined the annual 2018, which continued to develop and evolve during the year. During
bonus and the performance share plan. 2018 I also joined discussions of the international advisory board.
PwC has continued as independent adviser during 2018. The committee Paul Anderson stood down in May 2018. I want to thank Paul for
continued to monitor developments in potential regulation and legislation his valuable contribution. We welcomed Nils Andersen to the
and resulting implications. It also considered the company’s disclosure committee in August 2018 and his experience is invaluable given
on the UK gender pay gap. he was CEO of major companies, such as Carlsberg and Mærsk,
which had operations in many jurisdictions with significant political
In each of its meetings, the committee focused on the overall quantum risk considerations. Other board members joined our meetings from
of executive director remuneration and its alignment to the broader time to time.
group of employees in BP. It has sought to reflect the views of
shareholders and the broader societal context in its decisions. Sir John Sawers
Committee chair
Shareholder engagement
There was engagement with shareholders and proxy voting agencies
ahead of the 2018 AGM, carried out by the chair of the committee, the Role of the committee
chairman and company secretary as required. The new committee chair The committee monitors the company’s identification and management
continued engagement throughout the year, primarily with larger of geopolitical risk.
shareholders and representative bodies, in light of evolving regulation
and related remuneration issues.
Committee evaluation • Monitor the company’s identification and management of major and
correlated geopolitical risk and consider reputational as well as
An externally facilitated evaluation was undertaken to examine the financial consequences:
committee’s performance in 2018. The evaluation concluded that the
committee had worked well and had responded to the previous – Major geopolitical risks are those brought about by social,
evaluation by increasing its remit to take on oversight of remuneration economic or political events that occur in countries where BP has
below board level. material investments.
Focus areas for 2019 include responding to regulation and – Correlated geopolitical risks are those brought about by social,
governance reform and planning for the new remuneration policy economic or political events that occur in countries where BP may
to be brought to shareholders for approval in 2020. The commitment or may not have a presence but that can lead to global political
to stay focused on external developments and emerging ‘best instability.
practice’ and improving remuneration reporting remained. See • Review BP’s activities in the context of political and economic
page 87 for the Directors’ remuneration report. developments on a regional basis and advise the board on these
elements in its consideration of BP’s strategy and the annual plan.

Members
John Sawers Member since September 2015 and chair
since April 2016
Nils Andersen Member since August 2018
Paul Anderson Member since September 2015; resigned
May 2018
Frank Bowman Member since September 2015
Ian Davis Member since September 2016
Melody Meyer Member since May 2017
The chairman and group chief executive regularly attend committee
meetings. The executive vice president, regions and the vice president,
Chairman’s and nomination
government and political affairs attend meetings as required. and governance committees
The committee met four times during the year. All directors attended
each meeting that they were eligible to attend.
Activities during the year Chairman’s introduction

The committee developed and broadened its work over the year. It The chairman’s and the nomination and governance committees were
discussed BP’s involvement in the key countries where it has existing actively involved in the evolution of the board in 2018. In October,
investments or is considering investment in detail. These included the Carl-Henric Svanberg stood down as chairman of both committees
US, Russia, Mexico, Brazil, India and China. and I pay tribute to his exceptional service since 2010. The board
expanded the nomination committee’s remit in September 2018 to
It considered broader policy issues such as the US domestic and foreign
help fulfil requirements provided in the new UK Corporate Governance
policy and the political and economic impact of a low oil price on
Code and it was re-named the nomination and governance committee.
producing countries.
It also continues to focus on board renewal and diversity as well as the
We reviewed the geopolitical background to BP’s global investments talent in the senior levels of executive management and development
and the politics around climate change. of future leaders.
Helge Lund
Committee evaluation Chair of the committees
The committee reviewed its performance through feedback from the
external evaluation of its work and of the work of the board as a whole.
The evaluation concluded that the committee was working well and
considering the right issues. The committee currently meets four times
Chairman’s committee
a year and is considering additional meetings. Role of the committee
The committee and board felt that there should be greater integration To provide a forum for matters to be discussed by the non-executive
between the work of the board, the committee and the international directors.
advisory board. This is being further considered during 2019.
• Evaluate the performance and the effectiveness of the group chief
executive.
• Review the structure and effectiveness of the business organization.
• Review the systems for senior executive development and determine
succession plans for the group chief executive, executive directors
and other senior members of executive management.
• Determine any other matter that is appropriate to be considered by
non-executive directors.
• Opine on any matter referred to it by the chairman of any committees
comprised solely of non-executive directors.
Members
The committee comprises all non-executive directors. Directors join the
committee immediately on their appointment to the board. The group
chief executive attends meetings of the committee when requested.

Meetings and attendance Nomination and governance committee
The committee met six times in 2018. All directors attended all the Role of the committee
meetings for which they were eligible, except that Nils Andersen was
excused from two meetings due to a potential conflict of interest and The committee ensures an orderly succession of candidates for
Alan Boeckmann missed two meetings due to unforeseen personal directors and the company secretary and oversees corporate
circumstances. governance matters for the group.
Bob Dudley and Brian Gilvary joined meetings where the chairman’s Key responsibilities
succession was discussed. Matters relating to the business of the
nomination and governance committee were also discussed at some • Identify, evaluate and recommend candidates for appointment or
meetings. reappointment as directors.
• Review the outside directorships/commitments of the NEDs.
Activities during the year • Review the mix of knowledge, skills experience and diversity of the
• Evaluated the performance of the chairman and the group chief board to ensure the orderly succession of directors.
executive.
• Identify, evaluate and recommend candidates for appointment as
• Considered the composition of and the succession plans for the company secretary.
executive team.
• Review developments in law, regulation and best practice relating to
• Discussed the strategy options for the company, including the corporate governance and make recommendations to the board on
transition to a lower carbon future. appropriate actions to allow compliance.
Members
The committee continues to work well. The balance of skills and
experience amongst its non-executive director membership ensures Helge Lund Member since July 2018 and chair since
it is best able to support and challenge the company as it implements September 2018
its strategy.
Carl-Henric Member since September 2009 and chair
Svanberg since January 2010; resigned as chair
September 2018 and from committee
December 2018
Alan Boeckmann Member since April 2016
Ian Davis Member since August 2010
Ann Dowling Member since May 2015 and resigned May
2018
Brendan Nelson Member since September 2018
Paula Reynolds Member since May 2018

John Sawers Member since April 2016

The committee met three times in 2018. During the second half of
the year, matters relating to the appointment of new directors were
considered jointly with the chairman’s committee. All directors attended
each meeting that they were eligible to attend, except Paula Reynolds
due to pre-existing external commitments.

The committee continued to monitor the composition and skills of the
board. The committee will continue to focus on ensuring that the board’s
composition is strong and diverse. During the year, it was agreed that
the committee would assume oversight of governance.
Following the board evaluation, it was agreed that the committee would
also focus on governance requirements arising from the new UK
Corporate Governance Code.

Directors’ remuneration report
Targets are strongly aligned with

the company’s strategic priorities,
they are ambitious and require
material effort to achieve outcomes.
Paula Rosput Reynolds

Chair of the remuneration committee
Contents Dear shareholder, Results and progress in 2018
Following extensive shareholder consultation BP delivered another year of disciplined
2018 performance and
90 led by my board colleague Professor Dame execution in 2018, alongside further progress
pay outcomes Ann Dowling, BP introduced our current against our five-year strategy to 2021.
91 2018 annual bonus outcome remuneration policy in 2017. Thus 2018 Strong operating performance across all
2016-18 performance share
92 was our second year using this policy. The our businesses has more than doubled
plan outcome remuneration committee believes the our underlying replacement cost profit to
structure remains fit for purpose, the targets $12.7 billion, with operating cash flow
94 Alignment with strategy
are strongly aligned with the company’s excluding Gulf of Mexico oil spill payments
Executive directors’ pay
95 strategic priorities, they are ambitious and of $26.1 billion. BP distributed $8.1 billion in
for 2018 require material effort to achieve outcomes, dividends in 2018, and continued the share
97 Wider workforce in 2018 and the rewards conferred to date align with buyback programme started in 2017 to offset
Stewardship and executive
100 our financial results and strategic progress. the dilutive effects of the scrip shares.
director interests Please refer to the ‘Remuneration at a glance’
BP continues to play an active role in relation
table for an overview.
102 to the energy transition. We are carefully
outcomes and interests The policy delivers remuneration in three parts: considering our mix of natural gas and oil, while
a market-aligned foundation of base salary, investing in new technology and businesses
104 Other disclosures
benefits and retirement provision; annual that have the potential to contribute to a lower
Executive director
105 incentives based on measures that reflect our carbon world through our ‘reduce, improve,
remuneration policy and strategy, assessed against targets that require create’ framework.
implementation for 2019 progressive improvement year-on-year; and a
Our acquisition of Chargemaster, the UK’s
109 material opportunity to earn shares at the end
largest electric vehicle charging company (see
remuneration policy for 2019 of a three-year performance period, which is
page 42), and further expansion of the solar
accompanied by a shareholding requirement
company Lightsource BP (see page 47),
to ensure our executive directors’ interests
are among the most promising investments
align with your own. Of course it is not enough
consistent with our commitment to advancing
to rely on a purely formulaic application of
a lower carbon future.
policy. Therefore the committee engages in
a dialogue with Bob Dudley, Brian Gilvary and At the same time we continue to sustain our
our board colleagues, particularly those on traditional business. Our organic reserves
the safety, ethics and environment assurance replacement ratio for the year was 100%, and
committee (SEEAC) and the main board audit our acquisition of BHP assets provides us with
committee (MBAC) to test the reasonableness significant new reserves and opportunities
of the outcomes. This dialogue ensures we are for growth. We delivered a further six major
well equipped to apply and explain discretion projects in 2018, bringing the total to 19 over
and judgement as needed. the 2016-18 cycle.

Remuneration at a glance
Key features Purpose and link to strategy Outcomes for 2018 Implementation in 2019
• Salary is reviewed annually and, if • Fixed remuneration reflecting • Bob Dudley’s salary unchanged • Bob Dudley’s salary
appropriate, increased following the scale and complexity of our at $1,854,000. to remain at $1,854,000.
Salary and
benefits
the AGM. business, enabling us to attract

• Brian Gilvary’s salary increased • Brian Gilvary’s salary increased
and keep the highest calibre
• Relates to market and our wider by 2% to £775,000. by 2% to £790,500.
global talent.
workforce.
• Benefits remain unchanged. • Benefits remain unchanged.
• Bob is a member of both US • To recognize competitive • Bob’s defined benefit pension • Arrangements for Bob will
pension (defined benefit) and practice in home country. did not increase in 2018. His continue unchanged.
retirement savings (defined actual and notional company
• Brian has offered to accelerate
contribution) plans. contributions were more than
the scheduled reductions in
offset by investment losses
• Brian is a member of a UK final his cash allowance. These will
within his retirement savings
salary defined benefit pension now reduce by 5% of salary at
plans, hence he received no
plan, and receives a cash each of 1 June 2019, 2020 and
net benefit in 2018.
allowance in lieu of further 2021, and a further 5% of
Retirement
service accrual. • Brian’s accrued defined benefit salary at 1 June 2023, taking
benefits
pension increase was below his cash allowance to 15%

inflation. He received a cash of salary.
allowance at 35% of salary,
• These proposed changes
which is included in the single
reduce Brian’s cash
figure table.
supplement sooner than the
transition for other members
of the BP UK defined benefits
plan. He will not receive any
form of compensation related
to the reductions.
• 112.5% of salary at target, and • To incentivize delivery of our • Against our scorecard of safety • We will include an
225% at maximum. annual and strategic goals. and operational risk (20%), environmental target, weighted
reliable operations (30%) and at 10%, in our performance
Annual
bonus
• 50% of the bonus is paid in cash • The 50% deferral reinforces

financial performance (50%), scorecard for 2019.
and 50% is mandatorily deferred the long-term nature of our
our performance score is 81%
and held in BP shares for three business and the importance
of target (40.5% of maximum).
years. of sustainability.
• Annual grant of performance • To link the largest part of • Against our balanced scorecard • Awards granted in 2017 at
shares, representing the remuneration opportunity with of financial measures (67%), 500% (group chief executive)
maximum outcome. the long-term performance of and strategic imperatives (33%), and 450% (chief financial
the business. The outcome our 2016-18 performance score officer) of salary will vest in
–– 500% of salary for group chief
varies with performance against is 90.5% of maximum. proportion to success against
executive.
measures linked directly to the measures of our 2017-19
• The committee has exercised
–– 450% of salary for chief financial returns and strategic scorecard.
Performance
discretion to reduce the actual

financial officer. priorities.
vesting outcome to 80%. • Awards granted in 2019 will be
shares
• Shares only vest to the extent granted at 500% (group chief

performance conditions are met. executive) and 450% (chief
financial officer) of salary.
• For awards granted in 2019,
strategic priorities will be
weighted at 30% (previously
20%) with return on average
capital employed reducing
to 20%.
• Executive directors are required • To provide alignment between • Both executive directors • In 2019 we will engage with
to maintain a shareholding the interests of executive materially exceed the share stakeholders to review and
Shareholding
equivalent to at least five times directors and our shareholders. ownership requirements. revise, as appropriate, our post
requirement
their salary. employment shareholding

• The executive directors maintain
policy for 2020 onwards.
• Additionally, they are expected to their commitment to retain
maintain shareholdings of at least shareholdings of at least two
two and a half times salary for two and a half times salary for two
years post employment. years post employment.

Performance and remuneration outcomes in 2018 Looking ahead to 2019

As we seek to incentivize year-on-year improvement, the committee We recently announced our support for a shareholder resolution at
set stretching targets for the 2018 annual bonus scorecard. Therefore, the 2019 annual general meeting that would broaden our corporate
despite the strong business results for the year, we assessed 2018 reporting to describe how our strategy is consistent with the goals of
performance as below plan, at 81% of target (40.5% of maximum). the Paris Agreement. We welcome this resolution as an opportunity
Following our discussions with SEEAC and MBAC, we found no reason to provide further detail on our strategy and on our attractiveness as
to adjust this formulaic scorecard outcome. Half of the bonus for the an investment proposition in the energy transition, and for continued
executive directors will be delivered as shares and held for three years. investor engagement. We believe that all constituencies will be well
served by our increasing the target financial rewards relating to how
2018 was the final year of the 2016-18 performance share award, the
we navigate the low-carbon transition. To this end, we have introduced
last grant under our 2014 policy, with financial and strategic measures
a greenhouse gas emissions reduction measure for our 2019 bonus
as shown in the table on page 93. BP again ranked first place on relative
scorecard. This means that 10% of the outcome will now reflect our
TSR, delivered robust operating cash flow, and exceeded maximum
progress in emissions reduction (consequently reducing slightly the
expectations for major project delivery. These strong results across the
relative weighting of other customary measures in our bonus plan).
range of measures led to a formulaic vesting outcome of 90.5% of
maximum. The 2019-21 performance share plan scorecard will continue to focus
on relative total shareholder return, absolute returns on average capital
The foregoing results, including TSR, cash flow, and project execution,
employed over the three years, and a focused suite of strategic progress
were delivered alongside an almost 50% return to shareholders over the
measures. To better reflect the importance of strategic progress,
same three-year period. Thus, there is directional alignment between
which includes BP’s role in the energy transition, we are increasing
executives and shareholders. However, the formula from which the
the weighting of this measure from 20% to 30%, while reducing the
outcome was calculated originated in the 2014 plan which we
returns measure from 30% to 20%.
substantially revised in 2017. The committee recognized that merely
applying a dated formula might not best serve the interests of the Following our review of their total remuneration, we have decided to
stakeholders. Therefore, despite the clear value delivered to keep Bob’s salary unchanged, and propose to increase Brian’s salary
shareholders and the relatively muted annual bonus outcome, we by 2% from the date of the AGM. We have also agreed to accelerate
concluded we should apply downward discretion on the executive the reductions to the cash supplement Brian receives in lieu of further
directors’ long term award outcomes. We will vest the 2016-18 defined benefit pension service accrual, which will now start from
performance shares at 80% rather than at the 90.5% formulaic 1 June 2019.
scorecard outcome.
More broadly, our committee activity in 2019 has included a review of
In exercising our judgement we have opted to apply the more the committee charter, approving remuneration decisions in respect of
challenging scales of our 2017 policy in measuring performance the executive team, deepening our understanding of wider workforce
outcomes relating to operating cash flow, major project delivery and remuneration and adopting other measures as appropriate under the
safety and operational risk. This adjustment brings the 2016 vintage revised UK Corporate Governance Code, including an examination of
EDIP outcome into harmony with the policy that was approved by the implications of pay and benefits differences across the workforce.
shareholders in 2017. This adjustment reduced 2018 incentive pay by We will be reviewing BP’s strategic progress in the context of share
$1.45 million for Bob and £0.54 million for Brian. programmes approved under the 2017 policy, in particular progress
related to the challenges of a lower carbon world. These evaluations
In addition, the committee has again acted on Bob’s request to re-base
will take time and thoughtful discussion and will lead in to the important
his 2016-18 award from its original 550% grant level to the 500% of
business of engaging with our major shareholders and representative
salary grant level established in the 2017 policy. This adjustment
bodies ahead of our new policy approval in 2020. In that regard, we will
reduces Bob’s vesting outcome by a further $1.10 million, thus reducing
be consulting widely on the ways in which we reflect the strategic
his incentive pay by $2.70 million overall.
imperatives of the company within a competitive global remuneration
The single figures of total remuneration for Bob and Brian are $14.67 structure.
million and £7.98 million respectively, as reported on page 95. This
represents a 3% decrease for Bob, reflecting significant reductions
in both his annual bonus and the investment return on his retirement
savings, partly offset by an increase attributable to share price growth.
For Brian, this represents a 12% increase, largely due to vesting of
deferred awards from his 2015 bonus, and the increase attributable to Paula Rosput Reynolds
share price growth. In our committee deliberations, we considered Chair of the remuneration committee
these outcomes and believe they are appropriate given the operational 29 March 2019
and financial performance of BP this year and the tremendous recovery
that BP has made over the past three years.
In this Directors’ remuneration report RC profit (loss), underlying

RC profit, return on average capital employed, operating cash
flow excluding Gulf of Mexico oil spill payments are non-GAAP
measures. These measures and upstream plant reliability, refining
availability, major projects and underlying production and reserves
replacement ratio are defined in the Glossary on page 315.

2018 performance and pay outcomes
2018
A year of exceptional operational performance, with record plant reliability in the Upstream and refining throughput in
Business the Downstream. Improvement across virtually all safety measures, growth in our retail business and delivery of six
performance major projects. Profits have more than doubled, with an 11.2% return on capital, and strong foundations for continuing
returns over the near and long term.
Key strategic highlights

• $12.7 billion underlying replacement cost profit.
1st $26.1bn $8.1bn
Among peers for total Operating cash flow Dividends paid,
• Transformation of our US onshore business.
shareholder return for excluding Gulf of Mexico including scrip.
• Six new major projects delivered. 2016-18. oil spill payments.
Performance outcomes Robust results for the year fell short of our stretching targets, particularly on cash flow. On a three-year basis,
2018 concluded a remarkable period of delivery and preparation for the future.
Annual bonus Performance shares
40.5% 0% 40.5% 90.5% -10.5% 80%

Formulaic outcome Committee judgement, Final outcome Formulaic outcome Committee judgement Expected outcome after
(% of maximum) no adjustment (% of maximum) (% of maximum) to reduce vesting committee discretiona
(% of maximum)
Performance measures Nil Maximum Performance measures Nil Maximum

(% weighting) (% weighting)
Safety Financial
Tier 1 process safety events (10%) KPI Relative TSR (33.3%) KPI
Recordable injury frequency (10%) KPI Cumulative operating cash flow (33.3%) KPI
Reliability Strategic imperatives

Downstream refining availability (15%) KPI Reserves replacement ratioa (11.1%) KPI
BP-operated upstream plant KPI Major project delivery (11.1%) KPI

reliability (15%)
Safety and operational risk
Financial – Tier 1 process safety events KPI
(11.1%)
Operating cash flow (excluding Gulf – Recordable injury frequency KPI
of Mexico oil spill payments) (20%) KPI
Underlying replacement cost profit (20%) KPI a

he final outcome for part of this award is based on BP’s relative RRR ranking. This is forecast
T
at second place but cannot be confirmed until after publication of our peers’ reports. This final
Upstream unit production costs (10%) KPI outcome will be reported in our 2019 report.
KPI This symbol denotes remuneration measures that directly relate to the key performance indicators of our investor proposition – see page 16.
Remuneration outcomes Reduced annual bonus and pension, partly offset by increases in performance share vesting, lead to a reduction
for Bob. The increase for Brian reflects increases in the values of performance and deferred share vesting.
Bob Dudley, group chief executive Brian Gilvary, chief financial officer
Total remuneration Total remuneration
2018 $14.7m 2018 £8.0m
2017 $15.1m 2017 £7.1m
2016 $11.9m 2016 £4.2m
2015 $19.4m 2015 £5.1m
2014 $16.4m 2014 £3.6m
Salary and benefits Retirement benefits Annual bonus Performance shares Discontinued plans (see page 96 for descriptions)
Share ownership This is a key means by which the interests of executive directors are aligned with those of shareholders. Both directors
have holdings in BP which significantly exceeded our shareholding policy requirement of five times salary.
Bob Dudley, group chief executive

14.66 times salary, 3,718,074 sharesa, as at 15 March 2019
Brian Gilvary, chief financial officer
15.80 times salary, 2,248,905 shares, as at 15 March 2019
Policy requirements (5x) Actual
a
Held as ADSs

2018 annual bonus outcome
For 2018 the committee established a bonus scorecard of seven To avoid windfall outcomes in our financial measures, and drive genuine
measures across three areas of focus: safety and operational risk, year-on-year improvement, we adjust our financial targets to reflect any
reliable operations and financial performance. These measures align pricing impacts, i.e. the stronger oil price environment of 2018 led to a
with our strategy and, in particular, reflect the annual plan. Six of the proportional increase in our profit and cash flow targets. This is the
seven measures are identical to our 2017 scorecard. The seventh fourth occasion in the last seven years in which we have adjusted our
measure, ‘BP-operated upstream plant reliability’, replaces ‘Upstream performance measurement to strip out positive price environments and
operating efficiency’ from 2017, bringing unplanned downtime into better reflect financial improvement in underlying terms. Unadjusted,
account which provides a closer comparison with the equivalent the scores would all have been significantly higher, leading to
measure for the Downstream. remuneration outcomes greater than we would have intended.
In order to build on the strong results of 2017, the committee set notably Consequently, and despite another strong year of results and delivery
stretching targets for each of these measures. For instance, our 2018 for shareholders, our bonus outcome for 2018 is 81% of target, or
threshold outcomes for safety performance were set at the level of our 40.5% of maximum, compared with 143% of target, or 71.5% of
2017 outcomes, meaning we had to exceed 2017 results to achieve maximum, in 2017.
even a minimum contribution to the 2018 bonus.
Annual bonus
Scorecard
2018 annual bonus
REM Measures used for the 2017 remuneration policy. indicators on page 16.
Safety Reliable Financial Formulaic score

operations performance
0.81 out of 2.0
a
0.21 0.21 0.40
Measures Weighting Threshold (0) Target (1) Maximum (2) Outcome
Safety (20% weight)
Tier 1 process safety events 10% 19 events 16 events 12 events 16 events
(defined by API) KPI 0 0.1 0.2 0.10
Recordable injury 10% 0.219/200k hrs 0.200/200k hrs 0.164/200k hrs 0.198/200k hrs
frequency KPI 0 0.1 0.2 0.11
Safety outcome 0.21
Reliable operations (30% weight)

Downstream refining availability 15% 94.8% 95.3% 95.8% 94.9%
(Solomon Associates’ 0 0.15 0.3 0.03
operational availability) KPI
BP-operated upstream 15% 93.3% 95.3% 97.3% 95.7%
plant reliability KPI 0 0.15 0.3 0.18
Reliable operations outcome 0.21
Financial performance (50% weight)
Operating cash flow 20% $26.4bn $28.9bn $31.4bn $26.1bn

(excluding Gulf of Mexico 0 0.2 0.4 0
0.00
oil spill payments) KPI
Underlying replacement 20% $11.4bn $12.2bn $13.0bn $12.7bn
cost profit KPI 0 0.2 0.4 0.33
Upstream unit production 10% $7.41/bbl $7.01/bbl $6.61/bbl $7.15/bbl
costs KPI 0 0.1 0.2 0.07
Financial performance outcome 0.40
Formulaic score 0.81a out of 2.0
Formulaic SEEAC MBAC Final

scorecard discretion discretion scorecard Outcome 40.5% of
outcome outcome maximum bonus
0.81a out of 2.0 No adjustment No adjustment 0.81a out of 2.0
a
Due to rounding, the total does not agree exactly with the sum of its component parts.

Shareholders will note that the most significant divergence from our Notwithstanding this outcome, we discussed and agreed Bob’s decision
2018 targets is in operating cash flow. Even though the 2018 outcome to adjust the group performance element of annual bonus for the wider
of $26.1 billion is 8% higher than 2017, it fell marginally short of the workforce (employees below senior leadership level) and consequently
threshold level of $26.4 billion on an adjusted basis. This meant a score these 32,600 employees received 2018 annual bonus based on an
of zero on an element that contributes 20% of the overall bonus target. adjusted group performance score of 100%, rather than 81%, of target.
We feel this is a reflection of the rigor in our policy and target-setting
The annual bonus outcome is unrelated to the BP share price, and
process, delivering a nil outcome even in a year which saw underlying
therefore no part of the bonus is attributable to share price appreciation.
profit more than double, and returns almost double.
As shown below, half of the bonus is paid in cash after year end, and
As in previous years, in order to confirm the final bonus score we have
half is deferred into shares that will vest in three years, according to 2017
discussed the formulaic score with the chairs of the safety, ethics and
policy terms. The full value of the 2018 bonus, including the deferred
environment assurance committee (SEEAC) and the main board audit
shares, is included in the 2018 single figure table. This differs from
committee (MBAC). This year, neither of these committees raised
reporting in respect of the 2014 policy, under which deferred shares
issues for which we felt any need to adjust. On this basis, and in view
are included in the single figure for the year in which they vest.
of the demanding target levels we had set for 2018 performance, we
believe that the formulaic score, and the annual bonuses that result, Deferred
fairly reflect and reward 2018 performance for the executive directors Adjusted Paid into BP
and senior leadership of BP. Accordingly we have made no discretionary Name outcome in cash shares
adjustments to the formulaic scorecard outcome, which applies to the Bob Dudley $1,689,458 $844,729 $844,729
executive directors and BP’s senior leadership (approximately 4,400 Brian Gilvary £706,219a £353,109 £353,109
employees). Due to rounding, the total does not agree exactly with the sum of its component parts.
a
2016-18 performance share plan outcome
Vesting levels for the 2016-18 performance share awards we granted ratio over the period, which yields vesting at 80% of maximum for this
in 2016 are determined under the terms of the 2014 policy, in line with element. We will confirm our final outcome for this measure once
the performance measures and outcomes shown on the scorecard on competitor data is published in full later in the year.
page 93.
As before, we have assessed performance against the safety and
Assessed against these scorecard measures, the group’s performance for operational risk measure by looking back at tier 1 process safety
the three years from 2016 to 2018 is strong. Notably, we placed first on incidents and recordable injury frequency over the three-year period.
relative total shareholder return (with 49.3%) which measures us against This is a detailed assessment looking at year-on-year performance
our super-major peers, Chevron, ExxonMobil, Shell and Total. We also for which we sought input from the SEEAC. Based on continuing
placed first in the 2015-17 performance cycle. Total shareholder return reductions in tier 1 events and in recordable injury frequency, and the
represents the change in value of a shareholding over a three-year period, SEEAC overview, we assessed a score of 88% of maximum for this
assuming that dividends are re-invested to purchase additional shares. element of the performance shares scorecard.
BP’s standard practice is to calculate this change in value based on While the scorecard provides a balanced view of longer-term results,
the average US market prices over the fourth quarter immediately as a committee we wish to take a broader view of performance in order
before, and at the end of, the three-year performance cycle. Using to ensure reward outcomes are proportional and appropriate. Our first
a three-month period average helps to counter the impact of share concern is to ensure outcomes align with shareholders’ own experience
price volatility. of both returns, and of the company’s positioning to generate value into
the future. In this regard we believe the scorecard has worked well.
The choice of basis period for calculating share price growth can be
a material factor in the ranking result. This generally explains why our Clearly there are also broader societal views to consider, together with
peers who use relative TSR in their remuneration plans can arrive at the general experience of the wider workforce as a key stakeholder
a different result. For example, in the three year scorecard period just group. These broader considerations create a compelling case for
ended, BP and Shell showed different relative TSR rankings because restraint on quantum, even as they emphasize the need to align to
unlike BP’s average of the calendar quarter approach, Shell’s standard performance.
basis is to use a 90-day averaging period around the start and end of the
Therefore while we believe that 2016-18 performance has been
performance period.
exemplary, and that the business is both operationally and strategically
We have again made strong progress in major project delivery, well positioned for the future, the committee has nonetheless decided
exceeding the top of the measurement scale (13) with 19 major to reduce vesting of the performance share award from the formulaic
projects delivered over the three-year period, allowing maximum 90.5% to a discretionary 80% of maximum. In applying this judgement
vesting for this element. and making this reduction the committee decided to apply the more
challenging measurement scales of our 2017 policy. The committee
Our $68 billion cumulative operating cash flow excluding the Gulf
studied the impact of share price appreciation on pay outcomes and is
of Mexico oil spill payments for the period exceeds the threshold
satisfied that the gains arising are an appropriate and necessary design
performance level of $61.2 billion, following adjustments for oil price
feature of a long-term incentive. We believe there should be no routine
in line with the 2014 policy. For the purposes of this report, we have
adjustment, either for gains that in part reflect low grant prices, or for
forecast a second place outcome for our relative reserves replacement
shortfalls that reflect the opposite.

In addition, and in line with treatment last year, the committee has The value of vested shares reflects the share price appreciation all
agreed to Bob’s request to re-base his original grant from 550% of shareholders experienced over the three-year period. For this 2016-18
salary to 500% of salary, recognizing the change from the 2014 policy award cycle, the original grant was calculated based on ordinary share
to the 2017 policy. The impact these decisions have on pay outcomes and American depositary share (ADS) prices of £3.72 and $33.81
for Bob and Brian are detailed below. respectively, while the 2018 fourth-quarter average prices are £5.33 and
$41.48. Consequently, share price appreciation accounts for $2.04
Shares
vesting Value of Reduction in value
million (18.5%) of the value of Bob’s vested shares, and for £1.23 million
Shares including vested due to discretion (30.2%) of the value of Brian’s vested shares. The committee did not
Name awarded dividends shares and re-basing regard this as a direct reason to exercise discretion, although overall pay
Bob Dudleya 1,809,582b 1,597,374 $11,043,179 $2,698,677 outcomes have been a part of our consideration of downward discretion.
Brian Gilvary 786,559 765,998 £4,082,769 £535,863
a
Bob Dudley’s award is granted in respect of American depositary shares (ADSs). The
numbers in this table reflect calculated equivalents in ordinary shares. One ADS equates to
six ordinary shares.
b
This original award was based on 550% of salary, according to the terms of the 2014 policy.
Performance shares
Scorecard
2016-18 performance shares
REM Measures used for the 2014 remuneration policy. indicators on page 16.
Financial Strategic imperatives Formulaic vesting

60.7% 29.8% 90.5%
Weightinga Threshold Maximum
Measures performance performance Outcome
Financial
Relative total shareholder return KPI 33.3% Third First First
33.3%
Cumulative operating cash flow KPI 33.3% $61.2bn $73.2bn $67.8bn
27.3%
60.7%b
Strategic imperatives
Relative reserves replacement ratio KPI 11.1% Third First Secondc
8.9%
Major project delivery KPI 11.1% 9 13 19
11.1%
Safety and operational risk:
– Process safety tier 1 events KPI 5.0%
11.1% Assessment of improvement over the three years
– Recordable injury frequency KPI 4.8%

29.8%
Total formulaic vesting 90.5%
80%
Formulaic final vesting
vesting Committee review of stakeholder context and after committee
experience over three-year period of plan
90.5% discretion
a
Due to rounding, the sum of the weightings does not agree with the actual total, which is 100%.
b
c
Forecast position, to be confirmed after external data becomes available later in 2019.

Alignment with strategy
The strategy we set in 2017 commits us to a balance of short-term Our longer-term view is explicitly covered in the strategic progress
goals and long-term ambitions, encompassing both conventional element for our performance shares, alongside measures that focus
and emerging sources of energy. To help the board and executive on shareholder returns and return on average capital employed (ROACE)
management assess delivery against this strategy, we track progress over each three-year cycle. These are the measures we established two
against a number of key performance indicators (KPIs) – see page 16. years ago with our 2017 policy, and we will see the first cycle of results
This strategy and these KPIs represent the foundation of our investor under that policy when we report the 2017-19 performance shares
proposition. Importantly the majority of our KPIs translate directly into outcome in next year’s report. Looking ahead, the committee has
the measures we use to assess our annual bonus and performance decided to increase the weighting of the strategic progress measure
share awards. This helps us align the focus of our board and executive from 20% to 30% to better reflect its importance. This will apply for the
management with the interests of our shareholders. To maintain this performance shares we grant in 2019 as part of the 2019-21 cycle. As a
alignment over time, we will adjust our bonus and performance share result, we will reduce the weighting on ROACE from 30% to 20%.
measures as and when BP’s strategy evolves or finds new areas
To ensure we take a rounded view in our performance assessment, the
of focus.
performance share plan also features an underpin to bring absolute TSR,
The annual bonus rewards activities that assure our success in the near safety and environmental factors into account. This underpin allows the
term, with measures focused on safety, reliable operations, financial committee to embrace the energy transition in a way that enhances our
performance and, from 2019, a new emissions reduction target. investor proposition and allows us to be competitive at a time when
Ensuring our near-term health is a critical building block for the longer prices, policy, technology and customer preferences are volatile and
term, providing the funds for us to invest, innovate, pursue new evolving, while managing the alignment between remuneration
opportunities and enhance our productivity. For instance, the reliable outcomes and our strategic progress.
operations measure in our annual plan has a strong and direct bearing
on the financial measures for our three-year performance share Reducing our Improving Creating
outcomes. Our new sustainable emissions reduction measure, with a emissions in our low carbon
10% weighting for 2019, connects bonus outcomes directly with the our operations products businesses
progress we make under the reduce element of our ‘reduce, improve,
create’ (RIC) framework for a low carbon transition.
See our low carbon ambitions on page 46.
BP set out an update of its strategy in 2017, which was reinforced in the results announcements in February 2018 and 2019. The foundations for
strong performance are safe and reliable operations, a balanced portfolio, and a focus on returns.
How we align Safer Fit for Focused on Growing

our strategy and future returns sustainable free
remuneration cash flow and
measures distributions to
Safe, reliable A distinctive Value based,
shareholders over
and efficient portfolio fit for a disciplined
the long term
execution changing world investment and
cost focus
Annual bonus
Safety
Environment
Reliable operations
Financial performance
Performance shares
Total shareholder return
Return on average capital employed
Strategic priorities
Underpin: absolute TSR and safety/

environmental factors

Executive directors’ pay for 2018
Single figure table – executive directors (audited)
Remuneration is reported in the currency Bob Dudley Brian Gilvary

in which the individual is paid (thousand) (thousand)
2018 2017 2018 2017
Salary $1,854 $1,854 £769 £752

Salary and benefits
Benefits $79 $70 £67 £38
Pension and retirement
Retirement benefits savings – value increasea $0 $746 £0 £186
Cash in lieu of future accrual – – £269 £263
Cash bonus $845 $1,491 £353 £611

Annual bonus
Shares – deferred for three years $845 $1,491 £353 £611
Performance shares Performance shares $11,043b $9,455c £4,083b £3,595c
Deferred share awards from

Discontinued plans prior-year bonuses –d –d £2,083e £1,060e
Total remunerationf $14,666 $15,108 £7,977 £7,115

Value attributable to share price appreciation g
$2,042 $1,349 £1,876 £936
a
For Bob Dudley this represents the aggregate value of the company match and investment gains on the accumulating unfunded BP Excess
Compensation (Savings) Plan (ECSP) account under Bob’s US retirement savings arrangements. In 2018 Bob incurred investment losses
of $193,910 in this account, hence this aggregate value is negative and reported as zero per regulations. Full details are set out on page 96.
For Brian Gilvary this represents the annual increase in accrued pension, net of inflation, multiplied by 20. In 2018 Brian’s salary increased
by less than inflation, hence the net increase is reported as zero per regulations. Full details are set out on page 96.
b
Represents the assumed vesting of shares in 2019 following the end of the relevant performance period, based on a preliminary assessment of
performance achieved under the rules of the plan and includes accrued dividends on shares vested. In accordance with UK regulations, the vesting
price of the assumed vesting is the average market price for the fourth quarter of 2018 which was £5.33 for ordinary shares and $41.48 for ADSs.
The final vesting will be confirmed by the committee in the second quarter of 2019 and provided in the 2019 directors’ remuneration report.
c
In accordance with UK regulations, in the 2017 single figure table, the performance outcome values were based on fourth-quarter average prices
of £5.01 for ordinary shares and $39.85 for ADSs. In May 2018, after the external data became available, the committee reviewed the relative
reserves replacement ratio position, and this resulted in no adjustment to the final vesting of 70%. On 22 May 2018, 198,306 ADSs for Bob Dudley
and 603,831 ordinary shares for Brian Gilvary vested at prices of $47.09 and £5.88 respectively. On 31 July 2019 an additional 2,599 ADS and 7,795
ordinary shares vested, representing accrued dividends at prices of $45.09 and £5.73 for Bob and Brian respectively. The 2017 reported values for
the total vesting have therefore increased by $1,168 thousand for Bob and by £614 thousand for Brian.
d
Bob Dudley has voluntarily agreed to defer performance assessment and vesting of the awards related to his 2015 annual bonus until at least
one year after retirement, therefore the performance period is expected to exceed the minimum term of three years. As stated in the 2017
directors’ remuneration report, Bob voluntarily deferred performance assessment and vesting of the 2014 deferred and matching awards until
at least one year after retirement – see the Deferred shares table on page 101 for further details on these awards.
e
The amounts reported for 2018 relate to the 2015 annual bonus deferred over three years, which vested on 19 February 2019 at the market price
of £5.38 for ordinary shares and include accrued dividends on shares vested. Brian Gilvary has voluntarily agreed to defer performance assessment
and vesting of the matching awards related to his 2015 annual bonus for a further two years – see the Deferred shares table on page 101 for further
details on these awards. The amounts reported for 2017 relate to the 2014 annual bonus and have been adjusted from the number provided in the
2017 directors’ remuneration report to include the accrual and vesting of accrued dividends.
f
g
The values shown for performance shares and deferred share awards include the share price appreciation experienced over the three-year vesting
periods. This additional line shows the value of those awards that is directly attributable to share price appreciation, being the number of shares
vesting, including accrued dividends, multiplied by the increase in share price from grant date to vesting date.

Overview of single figure outcomes Bob has requested that the committee delay the performance
assessment and hence the vesting of his 2015 deferred and matching
The single figures of total remuneration for Bob Dudley and Brian Gilvary
awards. This reflects his commitment to the long-term success of BP
are $14.67 million and £7.98 million respectively. This is a 3% decrease
and adds to his alignment with shareholders’ interests. These awards
for Bob, and a 12% increase for Brian. In both cases 2018 remuneration
will now vest, subject to an assessment against the original safety and
includes material value from share price appreciation over the 2016 to
environmental sustainability conditions, after his retirement. Similarly,
2018 period. Both individuals pay a majority of their taxes in the UK. After
Brian has requested a two-year extension to the performance
these tax and social security liabilities on this BP income, the net values
assessment and vesting date of his 2015 matching award.
of 2018 total remuneration are approximately $7.77 million for Bob, and
approximately £4.23 million for Brian. For the 2015 deferred award for Brian, the committee considered
operational and financial performance and reviewed safety and
Salary and benefits
environmental sustainability performance over the 2016-18 period,
Bob Dudley’s salary remained at $1,854,000 throughout 2018. Brian
seeking input from the SEEAC on safety and sustainability measures.
Gilvary’s salary was increased by 2% to £775,000 with effect from
The committee concluded that safety performance continues to show
21 May 2018. Both executive directors received car-related benefits,
improvement, with safety embedded in the culture of the organization
assistance with tax return preparation, security assistance, insurance
and supporting strong operational and financial performance. The
and medical benefits. In 2018 BP reimbursed Brian for holiday
committee concluded that the deferred award should vest in full.
curtailment costs incurred due to BP commitments. Part of this
reimbursement is considered non-business related, hence is subject 2015 bonus – deferred and matching awards
to tax and included as a benefit in the single figure table. Total shares
vesting,
2018 annual bonus and 2016-18 performance shares Shares Vesting including Total value at
Please refer to pages 91-93 for details of the performance measures, Name granted agreed dividends vesting
targets, and outcomes, and the related reward outcomes Bob Dudleya
for annual bonus and performance shares. Deferred award 551,784 –a – –
Discontinued plans: deferral of 2015 bonus – deferred and Matching award 551,784 –a – –
matching awards of shares Brian Gilvaryb
In accordance with 2014 policy, Bob Dudley and Brian Gilvary deferred Deferred award 318,042 100% 387,160 £2,082,921c
two thirds of their 2015 annual bonus. As a result, they each received
Matching award 318,042 –b – –
an equivalent value deferred award of BP shares, together with a
a
Vesting of deferred and matching awards deferred until at least one year after retirement,
matching award of BP shares. Both the deferred and matching awards subject to conditions.
were subject to a three-year performance period which ended on b
Vesting of matching award deferred for two years, subject to conditions.
31 December 2018. c
Based on a vesting share price of £5.38.
Conclusions of the safety and sustainability assessment
No systemic No major incidents Safety culture and values Strong safety performance
issues identified embedded within the supports efficiency and financial
global organization results across the group
Retirement benefits This cash allowance is a feature of the UK pension arrangement, and
Bob Dudley is a member of the US pension and retirement savings plans will transition down to 15% of salary by 1 June 2023 – see page 105
described on page 108. His normal retirement age is 60. In 2018 Bob’s for more detail. The committee continues to review the value of pension
accrued defined benefit pension did not increase. In accordance with the benefits for individual directors and its alignment to the broader workforce.
requirements of the UK regulations, the amount included in the single
History of group chief executive remuneration
figure table on page 95 is therefore zero. In 2018 Bob made contributions
to the BP Employee Savings Plan (ESP) totalling $27,000 and BP made Total Annual bonus Performance
Group chief remuneration % of shares vesting
matching contributions to the ESP, and notional contributions to the BP Year executive thousanda maximum % of maximum
Excess Compensation (Savings) Plan (ECSP), totalling $129,780. 2009 Tony Hayward £6,753 88.9 b 17.5
However, investment losses of $193,910 in his unfunded ECSP account
2010c Tony Hayward £3,890 0 0
(aggregating the unfunded arrangements relating to his overall service
Bob Dudley $8,057 0 0
with BP and TNK-BP), exceeded the sum of these contributions, hence
the amount included in the single figure table is zero. 2011 Bob Dudley $8,439 66.7 16.7
2012 Bob Dudley $9,609 64.9 0
Brian Gilvary is a member of the UK pension arrangement described on
2013 Bob Dudley $15,086 88.0 45.5
page 108 in common with more than 3,800 UK employees employed
2014 Bob Dudley $16,390 73.3 63.8
prior to 2010 (or before 2014 in the North Sea). His normal retirement
age is 60, although benefits accrued before 1 December 2006 may be 2015 Bob Dudley $19,376 100.0 74.3
paid from age 55 with BP’s consent. Brian’s 2018 salary increase was 2016 Bob Dudley $11,904 61.0 40.0
below inflation, and his accrued defined benefit pension increase was 2017 Bob Dudley $15,108 71.5 70.0
therefore likewise below inflation. In accordance with the requirements 2018 Bob Dudley $14,666 40.5 80.0
of the UK regulations, the amount included in the single figure table is a
Total remuneration figures include pension. The total figure is also affected by share vesting
therefore zero. outcomes and these amounts represent the actual outcome for the periods up to 2011 or the
adjusted outcome in subsequent years where a preliminary assessment of the performance
Brian has exceeded the lifetime allowance under UK pension legislation for EDIP was made. For 2018 the preliminary assessment has been reflected.
and now receives a cash allowance of 35% of base salary in lieu of
b
2009 annual bonus did not have an absolute maximum and so is shown as a percentage of
the maximum established in 2010.
further service accrual. This amount has been separately identified c
2010 figures show full-year total remuneration for both Tony Hayward and Bob Dudley,
in the single figure table on page 95. although Bob Dudley did not become GCE until October 2010.

Wider workforce in 2018
Workforce experience Looking beyond pay, much of the workforce experience at BP is centred
on a disciplined approach to performance management, for which
Delivery of our strategy, both near and long term, depends upon BP’s
employees set annual priorities related to both safety and value creation,
success in attracting and engaging a highly talented workforce, and on
balanced with behavioural objectives that give focus to the importance
equipping our people with the skills for the future. While the board is
of good conduct. This deeply embedded programme has served to
currently considering ways to engage more deeply with the workforce,
develop the management skills of team leaders and drives quality
and about the workplace in its broadest sense, the remuneration
dialogue between employees and their managers. We agree with the
committee continues to receive and review information on pay
executive team’s view that the time invested in managing performance
outcomes and processes for our wider workforce.
both aligns individual effort to corporate goals and allows employees to
We are building insight into the remuneration models used in different understand the value of their own contribution. The benefit of this
BP entities and stay informed on the pay structures and typical salary approach is largely qualitative, through direction and feedback, but the
budgets for the core areas of the group’s business. For example, we individual contribution is also measured and then rewarded as part of
have looked at data from the organization’s gender pay reporting, at the annual bonus. For a more immediate impact, BP is also encouraging
progression of reward across the hierarchy of job levels, and reviewed more ‘in the moment’ feedback through our new global recognition
the reward structures and processes in BP’s trading business. programme ‘energize!’, introduced in 2018. Energize! has been well
Overall we observe a well-balanced and structured approach to reward received in all business areas and locations, with 77% of employees
(summarized in the table below), and to the ‘non-financial’ reward recognized at least once, at a frequency of around 1,500 recognition
elements that contribute to an engaged and productive environment. moments every day by year end.
This context has informed our decision making on executive director With strong emphasis on diversity and inclusion to create teams that
pay and our views on incentive outcomes across the group. In our reflect their communities, and with the enduring foundation of BP’s
consideration of the annual bonus scorecard for 2018, for instance, while values and behaviours to build respect, we believe BP employees work
we felt the formulaic result delivered appropriate outcomes for BP’s in a supportive, meritocratic and progressive environment. This positive
senior leadership, we agreed with Bob’s decision to apply a more environment is reflected in being the highest-ranked UK recruiter in the
generous outcome to the wider workforce on the basis that, individually, oil and gas sector in the Times newspaper’s Top 100 Graduate Employer
they have limited influence over financial outcomes such as cash flow. rankings 2018.
Summary of remuneration structure for employees below the board
Element Policy features for the wider workforce Comparison with executive director remuneration
Our salary is the basis for a competitive total reward package for all employees, The salaries of our executive directors and executive
and we conduct an annual salary review for all non-unionized employees. team form the basis of their total remuneration, and
As we determine salaries in this review, we take account of comparable pay rates we review these salaries annually.
at other relevant employers, the skills, knowledge and experience of each individual, The primary purpose of the review is to stay aligned
Salary
relativity to peers within BP, individual performance, and the overall budget we set with relevant market comparators, although we ensure
for each country. any increases are kept within the budgets
In setting the budget each year, we assess how employee pay is currently positioned set for our wider workforce salary review.
relative to market rates, forecasts of any further market increases, and business
context related to such things as growth plans, workforce turnover and affordability.
We offer market-aligned benefits packages reflecting normal practice in each country Other than the addition of security-related benefits,
Pensions and
in which we operate. Where appropriate, and subject to scale, we offer significant our executive director benefit packages are broadly
elements of personal benefit choice to our employees. aligned with other employees who joined BP in the
benefits
same country at the same time.
Approximately half of our global workforce participate in an annual cash bonus plan Annual bonus for executive directors is directly
that multiplies a target bonus amount by a performance factor in the range 0 to 2. The related to the same group performance measures
performance factor is an average of performance outcomes measured at a group, and outcomes as the wider workforce, but without
Annual bonus
business area and individual level. This structure places equal emphasis on the the business area and individual performance element.
importance of an employee’s personal contribution, the success of their broad team,
and the results achieved by BP.
We operate different bonus plans for those distinct parts of our business where
remuneration models in the market are markedly different, such as our trading and
marketing businesses.
We operate a performance share plan with three-year vesting for employees from our Performance shares for our executive directors
Performance
professional entry level and above. Operation varies based on seniority in three broad are assessed using the same group performance
tiers: group leaders (approximately 400); senior leaders (approximately 4,000); and all scorecard used for the group leader performance
shares
other professional employees (approximately 35,000 potential participants, of whom shares, with some adjustment to the weightings.
20% will participate). Vesting is subject to group performance outcomes for the group
leader population only.

Group chief executive-to-employee pay ratio Percentage change comparisons: GCE remuneration
versus professional workforce
In 2016 and 2017 we disclosed the ratio between our group chief
executive’s (GCE) total remuneration and the median (P50) Comparing
2018 to 2017 Salary Benefits Bonus
remuneration of a comparator group of our UK and US professional
workforce (representing 38% of our global professional workforce). % change in GCE
We believe this representation offers a valuable data point, highlighting remuneration 0% 8.0% -43.4%
relevant pay differentials within BP. On this basis, our 2018 GCE % change in comparator group
to median pay ratio is 106:1. remuneration 4.4% 0% -7.8%
GCE pay ratios The comparator group used here is the same as used in our voluntary
P50 pay pay ratio disclosures since 2017, i.e. our professional and managerial
ratio on total P50 total grade staff in the UK and US. This group is employed on readily
Year Method remuneration P50 salary remuneration comparable terms to the group chief executive, and represents
2017 BP voluntary 105:1a $112,100 $136,865 approximately one third of our total employee base.
2018 BP voluntary 106:1 $114,800 $138,101
Relative importance of spend on pay ($ million)
Re-based from original 92:1 to reflect final value at vesting of 2015-17 performance shares.
a
Distributions to Remuneration paid to Capital investment

With effect from year ending 31 December 2019, the UK government shareholders all employees
will require that we calculate the total remuneration of the three BP UK
employees whose remuneration represents the 25th, 50th and 75th
16,501
percentile of our entire UK workforce. We are then required to disclose 15,140
the ratio of our group chief executive’s total remuneration against each
of those three representative employees.
10,494 10,204
8,435a 8,210a
2018 2017 2018 2017 2018 2017
a
Distributions to shareholders comprise dividend payments of $8,080 million ($7,867 million
in 2017) and share buybacks at a cost of $355 million ($343 million in 2017). See page 275
for details.

Equal pay and UK gender pay gap reporting The illustration below, from our 2018 UK gender pay gap reporting,
highlights the representation issue and how it relates to the gender pay
As well as looking at pay structures, the committee has spent time
gap for each entity. For instance, our larger gender pay gaps relate to BP
understanding how effectively current pay policies and processes
Exploration and BP p.l.c. where we have the largest differential between
manage fairness and avoid bias in pay outcomes. We noted the
female representation in the top and bottom pay quartiles. By contrast,
February 2018 UK gender pay gap reporting for the five legal entities
we reported a negative pay gap in BP Chemicals, where male to female
covered by the regulations, and the explanations provided in the
representation is more consistent.
narrative that accompanied BP’s reporting.
Overall the committee feels assured that the anti-discrimination
controls written into pay policies, and the quality of processes behind
individual pay decision making, are effective in delivering an equal pay
environment (like pay for like work) for the wider workforce. While the
UK gender pay gap reporting showed pay gaps in favour of men for four
out of the five entities, we understand that these gaps result largely
from the relative under-representation of women in senior roles, and
that the group’s primary focus should therefore be on improving female
representation, rather than adjusting pay practices. Therefore we have
reviewed the various initiatives taken by management to address these
representation concerns and will continue to monitor progress in
addressing the underlying issues.
Proportion of females and males in each quartile band

These charts show how men and women are represented in each pay band.
An even distribution across the quartiles would tend to minimize the gender pay gap.
BP Chemicals Limited BP Exploration Operating Company Limited

Upper 85% 15% Upper 92% 8%
82% 18% 88% 12%
93% 7% 83% 17%
Lower 76% 24% Lower 63% 37%
BP Chemicals is our petrochemicals business BP Exploration covers upstream activities
in the UK, principally our operations in Hull. in the UK, principally North Sea operations.
BP Oil UK Limited BP Express Shopping Limited

Upper 69% 31% Upper 63% 37%
68% 32% 62% 38%
63% 37% 48% 52%
Lower 44% 56% Lower 42% 58%
BP Oil represents our downstream BP Express Shopping is our largest UK employing
fuels and lubricants businesses. business, concerned with retail operations
supporting our UK-wide network of forecourts.
BP p.l.c.
Upper 71% 29%
70% 30%
60% 40%
Lower 36% 64%
BP p.l.c. predominantly covers employees in corporate
business and functions, including our integrated
supply and trading and Air BP businesses. Men Women

Stewardship and executive director interests
We believe that our executive directors should have a material interest Multiple of
in the company, both during their tenure and after they leave BP. Our Value of salary achieved
shareholding policy therefore requires executive directors to build a Director Appointment date current shareholding (policy requires 5x)
personal shareholding of five times their salary within five years of their Bob Dudley October 2010 $27,185,318 14.66 x salary
appointment. They are expected to maintain personal shareholdings of Brian Gilvary January 2012 £12,256,532 15.80 x salary
at least two and a half times salary for two years post employment. The executive directors have interests in both performance shares and
deferred bonus shares under the executive directors’ incentive plan
Directors’ shareholdings (audited) (EDIP). The share interests are shown in aggregate and by plan in the
The tables below detail the personal shareholdings of each executive tables below. These figures show the maximum possible vesting levels.
director, and demonstrate that both significantly exceed the policy The actual number of shares/ADSs that vest will depend on the extent
requirement as at 15 March 2019. These figures include all beneficial and to which performance conditions are satisfied.
non-beneficial ownership of shares of BP (or calculated equivalents) that
have been disclosed to the company and exclude the anticipated vesting Unvested Unvested Unvested
ordinary shares ordinary shares Changes from ordinary shares
of the 2016-18 performance shares.
or equivalents or equivalents as 31 Dec 2018 to or equivalents at
Director at 1 Jan 2018 31 Dec 2018 15 Mar 2019 15 Mar 2019
Ordinary Ordinary shares
Ordinary shares shares or Changes from or equivalents Bob Dudleya 6,569,010 b 6,825,606 b 1,459,350 8,284,956
or equivalents equivalents at 31 Dec 2018 to total at
Director at 1 Jan 2018 31 Dec 2018 15 Mar 2019 15 Mar 2019
Brian Gilvary 3,329,274 3,291,614 400,709 3,692,323
Bob Dudleya 3,065,520 3,718,284 -210 b 3,718,074 a
Held as ADSs.
b
This shareholding has been re-based to reflect the 500% of salary grant level of the 2017
Brian Gilvary 1,709,243 2,043,899 205,006 2,248,905 policy, in place of the original 550% per the 2014 policy.
a
Held as ADSs.
b
This reflects change in the equivalent value of BP ADRs under the BP Employee Savings Plan
(‘ESP’), due to the BP ADR price movement. See page 108 for explanation of the ESP.
Performance shares (audited)

Share element interests Interests vested in 2018 and 2019
Date of award Potential maximum performance sharesa Number of
of performance At 1 Jan Awarded At 31 Dec ordinary shares Face value of
Performance period shares 2018 2018 2018 vested Vesting date the award, £
Bob Dudleyb 2015-17 11 Feb 2015 1,365,240 – – 1,205,430c 22 May 2018d –
2016-18 4 Mar 2016 1,645,074 – 1,645,074 e 1,597,374f 2019 f –
2017-19g 19 May 2017 1,571,628h – 1,571,628 – – 7,418,084
2018-20i 22 May 2018 – 1,395,600 1,395,600 – – 8,206,128
Brian Gilvary 2015-17 11 Feb 2015 685,246 – – 611,626 c 22 May 2018d –
2016-18 4 Mar 2016 786,559 – 786,559 765,998 f 2019 f –
2017-19g 19 May 2017 722,093 – 722,093 – – 3,408,279
2018-20 i 22 May 2018 – 696,705 696,705 – – 4,096,625
a
For awards under the 2015-17 and 2016-18 plans, performance conditions are measured one third on TSR relative to Chevron, ExxonMobil, Shell and Total (‘comparator companies’); one third
on operating cash flow; and one third on a balanced scorecard of strategic imperatives. There is no identified overall minimum vesting threshold level but to comply with UK regulations a value
of 44.4%, which is conditional on the TSR, operating cash flow, each of the strategic imperatives and strategic progress reaching the minimum threshold, has been calculated. For awards
under the 2017-19 plan, performance conditions are measured 50% on TSR relative to Chevron, ExxonMobil, Shell and Total over three years; 30% on ROACE based on performance in 2019
and 20% on strategic progress assessed over the performance period. For awards under the 2018-20 plan, performance conditions are measured on the same basis as the 2017-19 plan,
except ROACE which will be based on performance in the last two years of the performance period (i.e. 2019 and 2020). Each performance period ends on 31 December of the third year.
b
Bob Dudley received awards in the form of ADSs. The above numbers reflect calculated equivalents in ordinary shares. One ADS is equivalent to six ordinary shares.
c
Represents vestings of shares made at the end of the relevant performance period based on performance achieved under rules of the plan and includes reinvested dividends on the shares
vested. The market price of each share at the vesting date of 22 May 2018 was £5.88 and for ADSs was $47.09. These totals include the additional accrual of dividends which vested on
31 July 2018.
d
The 2015-17 award vested on 22 May 2018. Details can be found in the single figure table on page 95.
e
Bob Dudley has requested that the EDIP performance shares vesting in respect of the performance period 2016-18 is based on the 500% maximum annual award level which applies under
the 2017 directors’ remuneration policy, rather than the 550% maximum annual award level which applies under the 2014 directors’ remuneration policy. The number reported here has been
re-based to 500%.
f
For the assumed vestings in the second quarter of 2019 a price of £5.33 per ordinary share and $41.48 per ADS has been used. These are the average prices from the fourth quarter of 2018.
g
The face value has been calculated using the market price of ordinary shares on 19 May 2017 of £4.72.
h
In our 2017 report, the 31 December 2017 value for this award was incorrectly stated as 1,428,750.
i
The face value has been calculated using the market price of ordinary shares on 22 May 2018 of £5.88.

Deferred shares (audited)a

Share element interests Interests vested in 2018 and 2019
Potential maximum deferred shares Number of
Bonus Performance Date of award of At 1 Jan Awarded At 31 Dec ordinary shares Face value of
year Type period deferred shares 2018 2018 2018 vested Vesting date the award, £
Bob Dudleyb 2014 c Comp 2015-17d 11 Feb 2015 147,054 – 147,054 – – 655,861
Vol 2015-17d 11 Feb 2015 147,054 – 147,054 – – 655,861
Mat 2015-17d 11 Feb 2015 294,108 – 294,108 – – 1,311,722
2015 e Comp 2016-18d 4 Mar 2016 275,892 – 275,892 – – 1,015,283
Vol 2016-18d 4 Mar 2016 275,892 – 275,892 – – 1,015,283
Mat 2016-18d 4 Mar 2016 551,784 – 551,784 – – 2,030,565
2016 f Comp 2017-19 19 May 2017 147,642 – 147,642 – – 696,870
Mat 2017-19d 19 May 2017 147,642 – 147,642 – – 696,870
2017g Comp 2018-20 22 May 2018 – 226,236 226,236 – – 1,330,268
Brian Gilvary 2014 Comp 2015-17 11 Feb 2015 88,288 – – 111,161h 20 Feb 2018 –
Vol 2015-17 11 Feb 2015 88,288 – – 111,161h 20 Feb 2018 –
Mat 2015-17i 11 Feb 2015 176,576 – 176,576 – – 787,529
2015 Comp 2016-18 4 Mar 2016 159,021 – 159,021 193,580j 19 Feb 2019 –
Vol 2016-18 4 Mar 2016 159,021 – 159,021 193,580j 19 Feb 2019 –
Mat 2016-18i 4 Mar 2016 i 318,042 – 318,042 – – 1,170,395
2016 f Comp 2017-19 19 May 2017 73,070 – 73,070 – – 344,890
Mat 2017-19 k 19 May 2017 73,070 – 73,070 – – 344,890
2017g Comp 2018-20 22 May 2018 – 127,457 127,457 – – 749,447
a
Since 2010, vesting of the deferred shares has been subject to a safety and environmental sustainability hurdle, and this will continue. If the committee assesses that there has been a material
deterioration in safety and environmental performance, or there have been major incidents, either of which reveal underlying weaknesses in safety and environmental management, then it may
conclude that shares should vest only in part, or not at all. In reaching its conclusion, the committee will obtain advice from the SEEAC. There is no identified minimum vesting threshold level.
b
Bob Dudley received awards in the form of ADSs. The above numbers reflect calculated equivalents in ordinary shares. One ADS is equivalent to six ordinary shares.
c
The face value has been calculated using the market price of ordinary shares on 11 February 2015 of £4.46.
d
Bob Dudley has voluntarily agreed to defer the performance assessment and vesting of these awards until at least one year after retirement, therefore the performance period is expected to
exceed the minimum term of three years.
e
The face value has been calculated using the market price of ordinary shares on 4 March 2016 of £3.68.
f
The market price at closing of ordinary shares on 19 May 2017 was £4.72 and for ADSs was $36.94. The sterling value has been used to calculate the face value.
g
The market price at closing of ordinary shares on 22 May 2018 was £5.88 and for ADSs was $47.09. The sterling value has been used to calculate the face value.
h
Represents vestings of shares made at the end of the relevant performance period based on performance achieved under rules of the plan and includes reinvested dividends on the shares
vested. The market price of each share used to determine the total value at vesting on the vesting date of 20 February 2018 was £4.75. These totals include the additional accrual of dividends
which vested on 22 May 2018 and 31 July 2018.
i
Brian Gilvary has voluntarily agreed to defer the performance assessment and vesting of these matching awards for a total of five years with a further one-year retention period. The face values
have been calculated using the market prices of £4.46 per ordinary share on 11 February 2015 and £3.68 per ordinary share on 4 March 2016.
j
Represents vesting of shares at the end of the relevant performance period based on performance achieved under rules of the plan. Includes reinvested dividends on the shares vested.
The market price of each share used to determine the total value on the vesting date of 19 February 2019 was £5.38.
k
Brian Gilvary has voluntarily agreed to defer the performance assessment and vesting of these awards until the later of three years post award or one year post employment, therefore the
performance period is expected to exceed the minimum term of three years.
In common with many of our UK employees, Brian Gilvary holds options under the BP group save as you earn (SAYE) schemes as shown below.
These options are not subject to performance conditions.
Share interests in share options plans (audited)
At 31 Dec Market price at Date from which
Option type At 1 Jan 2018 Granted Exercised 2018 a Option price date of exercise first exercisable Expiry date
Brian Gilvary BP 2011b 500,000 – 100,000 400,000 £3.72 £5.27 07 Sep 2014 07 Sep 2021
SAYE 3,103 – – 3,103 £2.90 – 01 Sep 2019 28 Feb 2020
a
The closing market price of an ordinary share on 31 December 2018 was £4.96. During 2018 the highest market price was £5.98 and the lowest market price was £4.60.
b
‘BP 2011’ means the BP 2011 plan. These options were granted to Brian Gilvary prior to his appointment as a director and are not subject to performance conditions.
Neither Bob Dudley or Brian Gilvary have any interest in BP preference Post employment share ownership interests
shares, debentures or option plans (other than as listed above), and
As we reported last year, to maintain their alignment with shareholders
neither have interests in shares or loan stock of any subsidiary company.
and in keeping with the long-term nature of our business, our executive
No directors or other executive team members (see page 63) own more directors will retain significant interests in BP post employment. These
than 1% of the ordinary shares in issue. ongoing interests are centred on a) the personal commitment by each
executive director to maintain actual holdings equivalent to two and a
At 15 March 2019, our directors and other executive team members
half times salary for two years post employment, and b) their anticipated
collectively held interests of 17,436,602 ordinary shares or their
interests in share awards under group plans which remain subject to
calculated equivalents, 5,978,567 restricted share units (with or without
vesting and/or holding periods at the time they leave BP.
conditions) or their calculated equivalents, 11,977,279 performance
shares or their calculated equivalents and 4,417,149 options over
ordinary shares or their calculated equivalents, under BP group share
option schemes.

Non-executive director outcomes and interests
The board’s remuneration policy for the chairman and non-executive Non-executive directors fee structure
directors (NEDs) was approved at the 2017 AGM and implemented
The table below shows the fee structure for non-executive directors.
during 2017. There has been no variance of the fees or allowances for
the chairman and the NEDs since approval in 2017. Fees
£ thousand
Senior independent directora 120
Chairman
Board member 90
The fee structure for the chairman, which has been in place since May
Audit, geopolitical, remuneration and
2013, is £785,000 per year. The chairman is not eligible for committee
SEEA committees chairmanship feesb 30
chairmanship and membership fees or intercontinental travel allowance.
Committee membership feec 20
As chairman throughout 2018, Carl-Henric Svanberg had the use of a Intercontinental travel allowance 5
fully maintained office for company business, a car and driver, and a
The senior independent director is eligible for committee chairmanship fees and
security advice in London. He received a contribution to an office and intercontinental travel allowance plus any committee membership fees.
secretarial support as appropriate to his needs in Sweden. The table b
Committee chairmen do not receive an additional membership fee for the committee
they chair.
below shows the fees paid for the year ended 31 December 2018. c
For members of the audit, geopolitical, SEEA and remuneration committees.
2018 remuneration (audited) 2018 remuneration (audited)

£ thousand Fees Benefitsa Total
£ thousand Fees Benefitsa Totalb
2018 2017 2018 2017 2018 2017
2018 2017 2018 2017 2018 2017
Carl-Henric Svanberg 785 785 24 35 809 820 Nils Andersen 132 115 11 17 144 132
a
Benefits include travel and other expenses relating to attendance at board and other Paul Andersonc 69 155 6 27 76 182
meetings. Amounts disclosed have been grossed up using a tax rate of 45%, where relevant,
as an estimation of tax due. Alan Boeckmann 155 165 10 11 165 176
Admiral Frank Bowman 160 155 14 15 174 170
The figures below include all the beneficial and non-beneficial interests
Dame Alison Carnwathd 74 – 47 – 121 –
of the chairman in shares of BP (or calculated equivalents) that have
been disclosed according to the disclosure guidance and transparency Pamela Daleye 55 – 42 – 97 –
rules in the Financial Conduct Authority handbook (‘the DTRs’) as at the Ian Davis 170 154 2 2 172 156
applicable dates. The chairman’s holdings as at 31 December 2018, as a Professor Dame Ann
percentage of the shareholding policy, were 1,312%. Dowlingf 158 145 2 5 159 150
Helge Lunde 46 – 122g – 169 –
Ordinary
Ordinary Ordinary Change from shares or
Melody Meyerh 160 86 26 23 186 109
shares or shares or 31 Dec 2018 equivalents Brendan Nelson 150 138 12 14 162 152
equivalents at equivalents at to total at Paula Rosput Reynolds 166 146 i 33 8 200 154i
Chairman 1 Jan 2018 31 Dec 2018 15 Mar 2019 15 Mar 2019
Sir John Sawers 150 145 1 5 151 150
Carl-Henric
Svanberga 2,076,695 2,076,695 – –
a
Benefits include travel and other expenses relating to the attendance at board and other
meetings. Amounts disclosed have been grossed up using a tax rate of 45%, where relevant,
a
Resigned on 31 December 2018. as an estimation of tax due.
b
Due to rounding, the totals may not agree exactly with the sum of its component parts.
Helge Lund assumed the role of chairman with effect from 1 January
c
Resigned on 21 May 2018.
d
Appointed on 21 May 2018.
2019. His share interests are disclosed on page 103. e
Appointed on 26 July 2018.
f
Fee includes £25 thousand for chairing and being a member of the BP technology
advisory council.
g
Benefits include relocation expenses.
h
i
Amended from £140 thousand (fees) and £148 thousand (total) as originally disclosed in our
2017 report.

Non-executive directors’ interests (audited)

The figures below indicate and include all the beneficial and
non-beneficial interests of each non-executive director of the
company in shares of BP (or calculated equivalents) that have been
disclosed to the company under the DTRs as at the applicable dates.

Ordinary shares Ordinary shares Changes from Ordinary shares or
or equivalents at or equivalents at 31 Dec 2018 to equivalents at Value of current % of policy
1 Jan 2018 31 Dec 2018 15 Mar 2019 15 Mar 2019 shareholdinga achieved
Nils Andersen 125,000 125,000 – 125,000 £681,250 757%
Paul Andersonb 30,000c – – – – –
Alan Boeckmann 44,772c 44,772c – 44,772c $327,358 273%
Admiral Frank Bowman 24,864 c 24,864 c – 24,864 c $181,797 151%
Dame Alison Carnwathd – 17,700 – 17,700 £96,465 107%
Pamela Daleye – 17,592c – 17,592c $128,627 107%
Ian Davis 47,500 50,296 – 50,296 £274,113 305%
Professor Dame Ann Dowling 22,320 22,320 – 22,320 £121,644 135%
Helge Lundf – 600,000 – 600,000 £3,270,000 417%
Melody Meyer 20,646 c 20,646 c – 20,646 c $150,957 126%
Brendan Nelson 11,040 11,040 – 11,040 £60,168 67%
Paula Rosput Reynolds 58,200 c 73,200c – 73,200c $535,214 446%
Sir John Sawers 14,198 15,030 – 15,030 £81,914 91%
a
Based on share and ADS prices at 15 March 2019 of £5.45 and $43.87.
b
Resigned on 21 May 2018.
c
Held as ADSs.
d
e
Appointed on 26 July 2018.
f
Appointed 26 July 2018. Became chairman with effect from 1 January 2019. Percentage of
policy achieved based on annual equivalent fee for role of chairman.
Payments for loss of office and payments to past

directors (audited)
We made no payments for loss of office during or in respect of 2018 to
current or former directors.
Sir Ian Prosser (who retired as a non-executive director of BP in April
2010) was appointed as a director and non-executive chairman of BP
Pension Trustees Limited on 1 October 2010. During 2018, he received
£100,000 for this role. Other than this, we made no payment to any past
director of BP during 2018 (we have no de minimis threshold for such
disclosures).

Other disclosures
Historical TSR performance Shareholder engagement

FTSE 100 BP Throughout 2018 we continued to discuss remuneration policy and
approach with many of our largest shareholders, as well as investor
£250 representative bodies. We plan to continue this dialogue in 2019, as we
consider updates to our remuneration and minimum shareholdings
policies for 2020.
Value of hypothetical £100 holding
£200
The table below shows the votes on the report for the last three years.
£150
AGM directors’ remuneration report vote results
Year % vote ‘for’ % vote ‘against’ Votes withheld
2018 96.42% 3.58% 42,741,541
£100 2017 97.05% 2.95% 63,453,383
2016 40.70% 59.30% 464,259,340
£50
The remuneration policy was approved by shareholders at the 2017
AGM on 17 May 2017. The votes on the policy are shown below.
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2017 AGM directors’ remuneration policy vote results
Year % vote ‘for’ % vote ‘against’ Votes withheld
This graph shows the growth in value of hypothetical £100 investments 2017 97.28% 2.72% 36,563,886
in BP p.l.c. ordinary shares, and in the FTSE 100 Index (of which
BP is a constituent), over 10 years from 31 December 2008 to External appointments
31 December 2018.
The board supports executive directors taking up appointments
Independence and advice outside the company to broaden their knowledge and experience.
Each executive director is permitted to retain any fee from their external
The board considers all committee members to be independent appointments. Such external appointments are subject to agreement by
with no personal financial interest, other than as shareholders, in the the chairman and reported to the board. Any external appointment must
committee’s decisions. Further detail on the activities of the committee, not conflict with a director’s duties and commitments to BP. Details of
advice received and shareholder engagement is set out in the appointments as non-executive directors of publicly listed companies
remuneration committee report on page 83. during 2018 are shown below.
During 2018 David Jackson, the then company secretary, and
Appointee Additional position
subsequently Hannah Ashdown, both of whom were employed by the Director company held at appointee company Total fees
company and reported to the chairman of the board, acted as secretary Bob Dudley Rosnefta Director 0
to the remuneration committee.
Brian Gilvary Air Liquide Non-executive director Euros 70,500
The committee also received advice on various matters relating to the a
Bob Dudley holds this appointment as a result of the company’s shareholding in Rosneft.
remuneration of executive directors’ and senior management from
Helmut Schuster, executive vice president, group human resources,
and Ashok Pillai, vice president, group reward. Committee membership
Please refer to the committee report on page 83 for details of
PricewaterhouseCoopers LLP (‘PwC’) continued to provide
membership of the remuneration committee during 2018.
independent advice to the committee in 2018, following its appointment
as independent adviser to the committee in September 2017, following
a competitive tender process. PwC is a member of the Remuneration
Consulting Group and, as such, operates under the code of conduct in
relation to executive remuneration consulting in the UK. The committee
is satisfied that the advice received is objective and independent.
Freshfields Bruckhaus Deringer LLP provided legal advice on specific
compliance matters to the committee.
PwC and Freshfields provide other advice in their respective areas to
the group. During the year, PwC provided BP with services including
subsidiary company secretarial support.
Total fees or other charges (based on an hourly rate) for the provision of
remuneration advice to the committee in 2018 (save in respect of legal
advice) were £179,200 to PwC.

Executive director remuneration policy

and implementation for 2019
2019
The table below shows how the remuneration policy approved by shareholders at the 2017 AGM
will be implemented in 2019. For the full remuneration policy, please go to bp.com/remuneration.
Salary and benefits Salary and benefits reflect the scale and complexity of the role, and competitive practice in the market.
Reflects role and home • Bob Dudley’s salary will remain at $1,854,000 for 2019. • Benefits will remain unchanged for 2019. These include
car-related benefits, assistance with tax return preparation,
country market • With effect from the AGM, Brian Gilvary’s salary will increase security assistance, insurance and medical benefits.
by 2% to £790,500.
• This compares to an average increase of over 3.5% to our UK
salaried staff, effective on our annual salary review date 1 April.
Retirement benefits • Since September 2016, Bob has had no further service • Starting from 1 June 2019, we agreed to reduce Brian’s cash
accrual under his defined benefit pension arrangements. supplement by 5% of salary each year to reach 20% of salary
Reflects home The 401(k) benefits have been partially capped for with effect from 1 June 2021, with a further 5% reduction,
future years. His normal retirement age is 60. to 15% of salary, with effect from 1 September 2023.
country market
• Brian is a member of the BP UK defined benefits pension • These changes reduce Brian’s cash supplement sooner
plan and he receives a cash supplement in lieu of further than the transition for other members of the BP UK defined
service accrual on the same terms as other participants in benefits plan, and Brian will not receive any form of
the plan, currently 35% of salary. compensation related to the reductions. His normal
retirement age is 60, although benefits accrued before
1 December 2006 may be paid from age 55 with BP’s
consent.
Annual bonus The bonus links variable pay to safety, environmental goals, reliable operations and financial performance
Up to 225% of salary for the year.
Aligned with annual • Maximum bonus requires performance at the top of the • For 2019, performance will be assessed against:
measurement scale on every measure – a scorecard – Safety – 20%
objectives outcome of 2.0.
– Environment – 10%
• A scorecard outcome of 1.0, reflecting target on each
measurement scale, delivers half of maximum bonus. – Reliable operations – 20%
• 50% of bonus earned is paid in cash, 50% is deferred into – Financial performance – 50%.
shares for three years. • The committee holds discretion to adjust outcomes to reflect
• The scorecard measures for the bonus are set annually to broader performance considerations.
reflect priorities. The committee sets measurement scales
(disclosed retrospectively) that require year-on-year Bonus is subject to malus and clawback provisions
improvement. following events such as misconduct, restatement or
misstatement of results, and miscalculation. Malus
may also be applied following a material failure
impacting safety or environmental sustainability,
or other exceptional circumstances as decided
by the committee.
Performance shares Directly linked to long-term performance and represents the largest part of total remuneration.
GCE – 500% • Three-year performance period, followed by further • Underpin – the committee will then review broader
CFO – 450% three-year holding period. performance, including absolute TSR, safety and
of salary environmental factors in order to determine the
• Measures aligned to BP strategy and shareholders’ interests.
final vesting outcome.
Vesting reflects • For the 2019-21 cycle, vesting level will first be assessed on
three-year performance performance over the three years in these areas: Performance shares are subject to malus and clawback
provisions following events such as misconduct,
– TSR relative to oil and gas majors – 50% weighting.
restatement or misstatement of results, and
– ROACE – averaged over the full period – 20% weighting. miscalculation. Malus may also be applied following
a material failure impacting safety or environmental
– Progress against our strategic objectives – 30% sustainability, or other exceptional circumstances as
weighting. decided by the committee.
Share ownership Reinforces alignment with shareholder interests, and stewardship of the enterprise.
Long-term shareholding • Continuing requirement for executive directors to maintain a • In addition, the executive directors have voluntarily elected to
holding of five times salary. defer the vesting date of certain other share awards, with
obligation associated performance conditions, which would otherwise
• Bob and Brian are expected to maintain a holding of at least
have been unrestricted.
two and a half times salary for two years post employment.

Salary and benefits

Bob’s annual salary will remain at $1,854,000 for 2019. Brian’s salary Salary increases over the last five years
will increase by 2% to £790,500 from the date of the 2019 AGM. For
Bob Dudley Brian Gilvary
reference, the April 2019 annual pay review of our salaried employees
in the UK was subject to a budget in excess of 3.5%. 2019 Nil 2019 2.0%
We expect to maintain benefits at the current level. 2018 Nil 2018 2.0%
2017 Nil 2017 3.75%
2016 Nil 2016 Nil
2015 Nil 2015 Nil
Salary with
effect from AGM Increase
Bob Dudley $1,854,000 Nil
Brian Gilvary £790,500 2.0%
Annual bonus
For 2019 we have amended our bonus measures to include an changes in plan conditions (including oil and gas prices and refining
environmental measure (10%) alongside safety (20%), reliable margins) when reviewing financial outcomes at year end, and retains
operations (20%) and financial performance (50%). This approach discretion to review outcomes in the context of overall performance.
will provide a balanced assessment of how the business has performed
Awards will be subject to malus and clawback provisions as described
over the course of the year and of our progress in addressing emissions
in the 2017 policy.
reduction. We are also changing downstream refining availability to
BP-operated downstream refining availability to more closely align to our The maximum bonus opportunity remains 225% of salary, for a
BP-operated upstream plant reliability measure. maximum bonus score of 2.0. In accordance with the 2017 policy,
the bonus payable for performance which meets the annual plan
The committee has set the 2019 targets after consultation on the safety
(i.e. a bonus score of 1.0 out of a maximum of 2.0) is half of maximum,
targets with the SEEAC and on the financial targets with the MBAC.
112.5% of salary.
Although the detail of these targets is currently commercially sensitive,
the committee will provide retrospective disclosure following the year For any bonus earned, 50% will be delivered in cash and 50% will be
end, as with previous cycles. As before, the committee will consider deferred into shares that will vest after three years.
Measures for 2019 annual bonus

Element
Safety Environment Financial performance Reliable operations
20% 10% 50% 20%

Measures Weighting Measures Weighting Measures Weighting Measures Weighting
include for 2019 include for 2019 include for 2019 include for 2019
Recordable injury 10% Sustainable emissions 10% Operating cash 20% BP-operated upstream 10%
frequency KPI reduction KPI flow excluding Gulf of plant reliability KPI
Tier 1 and tier 2 process 10% Mexico oil spill payments KPI BP-operated 10%
safety events KPI Underlying 20% downstream refining
replacement availability (Solomon
cost profit KPI Associates’ operational
Upstream unit 10% availability) KPI
production costs KPI

Performance shares
In line with our 2017 policy, the performance share awards for our Future growth
2019-21 cycle will be granted in 2019 at the level of 500% of salary for Measures for the strategic element are directly focused on delivery of
Bob and 450% of salary for Brian. Performance will then be measured the company’s long-term strategy, positioning the portfolio for resilience
over three years, with any vested shares being subject to a mandatory and future growth. We will be following the implementation of our
holding period of a further three years. These awards are subject to strategy through the four measures relating to the strategic priorities set
malus and clawback provisions as set out in the policy. out below. The committee has also sought input from the board
regarding the specific measures.
The measures for the 2019-21 cycle of performance shares focus on
shareholder value, capital discipline and future growth. Details of the strategic progress targets – which carry a 30% weighting
in the vesting calculation – are commercially sensitive and are not
Shareholder value
included in this report. However, the committee intends to provide
The TSR element is measured on a relative basis against the oil majors:
detailed retrospective disclosure after the end of the performance
Chevron, ExxonMobil, Shell and Total. We maintain our belief that the
period so that shareholders will be able to review the basis of our
current comparator group remains appropriate as it is used for
assessment. The board regularly reviews progress on the strategic
benchmarking across a range of activities in other parts of the group.
priorities throughout the year and BP’s quarterly results announcement
This measure carries a 50% weighting in the vesting calculation, with includes updates on the group’s strategic progress.
targets shown below.
Broader performance assessment – the underpin
Capital discipline Prior to approving vesting outcomes, the committee will also consider
ROACE is calculated by dividing the underlying replacement cost profit the broader performance of the business including absolute TSR
(after adding back net interest) by average capital employed excluding performance, together with safety and environmental factors (including
cash and goodwill (see Glossary on page 315 for full definition). ROACE consideration of issues around greenhouse gases) over the three-year
is measured based on the actual price environment for each of the years period. We refer to this as the underpin. The underpin will be applied
in question; there will be no adjustments for changes to plan conditions. after the formulaic outcome for the performance shares but before the
For the 2019-21 performance shares award, this assessment will be final vesting outcome has been determined.
averaged over the full three-year period.
In looking at environmental factors, the committee will consider the
This ROACE measure carries a 20% weighting in the vesting calculation, group’s progress on issues such as reducing emissions, improving
and targets are shown in the table below. our products and creating low carbon businesses – see page 46.
Measures for 2019-21 performance shares

Element
Relative TSR versus oil majorsa Return on average capital employedb Strategic progress
50% KPI 20% KPI 30%

Threshold 25% of element 0% of element • Growing gas and advantaged oil in the
vesting upstream
Third out of five 8.5% return on average capital employed
Maximum 100% of element 100% of element • Market-led growth in the downstream
vesting
First place 12.5% return on average capital employed • Venturing and low carbon across
multiple fronts
• Gas, power and renewables trading
and marketing growth
a
Nil vesting for fourth and fifth place. Vesting of 80% for second place.
b
Based on the average of performance over 2019, 2020 and 2021. There will be straight-line vesting for performance between the threshold and maximum vesting level. Adjustments may
be required in certain circumstances (e.g. to reflect changes in accounting standards).

Retirement benefits
Bob Dudley
Bob is provided with pension benefits and retirement savings through a provided directly by the company rather than through the BPPS. The
combination of tax-qualified and non-qualified benefit plans. His normal rules of this non-qualified arrangement are designed to mirror the design
retirement age is 60. of the approved BPPS.
The BP Supplemental Executive Retirement Benefit Plan (SERB) is a The BPPS is closed to new hires, but for existing participants the plan
non-qualified defined benefit pension plan which provides a pension of continues to provide a pension of one sixtieth of final base salary for
1.3% of final average earnings for each year of service, less benefits each year of service, up to a maximum of two thirds of final base salary,
paid under all other BP (US) tax-qualified and non-qualified pension and a dependant’s benefit of two thirds of the member’s pension.
plans. In 2016 Bob reached the SERB service limit of 37 years of service On 1 April 2011, Brian elected to stop future service accrual and instead
and therefore no longer builds up further service accrual under these receive a cash allowance. His accrued benefits in the approved and
pension plans. However the accrued benefit remains linked to highest unapproved plans remain linked to his final base pay.
average earnings within the final 10 years. The benefit payable under the
The rules of the BPPS were amended in 2006 to introduce a normal
SERB is unreduced at age 60 or older.
retirement age of 65, but in common with other BPPS participants in
The BP Employee Savings Plan (ESP) is a US tax-qualified defined service on 30 November 2006, Brian has a normal retirement age of 60.
contribution plan to which both Bob and BP contribute. BP matches Subject to the consent of the committee, Brian may retire between age
Bob’s salary contributions to a maximum of 7% of base salary, up 55 and 60 and be entitled to an immediate pension, with a reduction
to the IRS limit. The BP Excess Compensation (Savings) Plan (ECSP) (currently 3%) for each year before normal retirement age in respect of
is a non-qualified, unfunded, retirement savings plan to which BP the benefit that relates to service since 1 December 2006 and no
notionally contributes 7% of base salary above the annual IRS limit. reduction in respect of the remainder of his benefit.
In common with around 2,000 other participants, Bob does not
Irrespective of this, on leaving in circumstances of total incapacity, an
contribute to the ECSP.
immediate unreduced pension would be payable from his leaving date.
Under both savings plans, Bob is entitled to make investment elections,
BPPS members can elect to stop accrual and instead receive a cash
involving the actual investment holdings in the case of the ESP,
allowance of 35% of salary until March 2021, then progressively
and the notional investment holdings in the case of the ECSP. Benefits
reducing to 15% of salary by March 2024 (or such earlier date that they
payable under the ECSP are unfunded and will therefore be paid from
would have accrued a maximum two-thirds pension under the BPPS
corporate assets. Accordingly annual investment returns on the ECSP
had they not opted out). As noted above, on 1 April 2011 Brian elected
are recognized as income for the single figure table, in addition to the
to stop future service accrual and receive this cash allowance. Currently
notional contributions themselves. Conversely, annual investment
over 650 employees have elected to stop future service accrual under
losses are offset against the value of contributions and notional
the final salary plan and instead receive the 35% cash allowance. Brian
contributions by BP and therefore reduce the amount recognized as
has offered to accelerate the schedule of this progressive reduction.
income for the single figure table.
Accordingly reductions to 30%, 25% and 20% will be made with effect
Brian Gilvary from 1 June 2019, 2020 and 2021 respectively, and a final reduction to
15% with effect from 1 September 2023 being the date on which Brian
Brian is provided with pension benefits and retirement savings through would have reached a maximum two-thirds pension under the BPPS
a combination of tax-qualified and non-qualified benefit plans and a had he not opted out.
cash allowance. His normal retirement age is 60, although benefits
accrued before 1 December 2006 may be paid from age 55 with BP’s
consent.
Brian is a member of a UK final salary defined benefit pension plan,
the BP Pension Scheme (BPPS), along with over 3,800 other UK
employees. Pension benefits that have been accrued in the BPPS in
excess of the individual lifetime tax allowance set by legislation are
provided to Brian via a non-qualified, unfunded pension arrangement
Shareholding requirements
Both executive directors remain subject to the share ownership
requirement of five-times salary, which they currently exceed. Based on
the commitments each director has made to the committee, we expect
that Bob and Brian will each maintain shareholdings of at least 250% of
salary for two years post employment.

Non-executive director remuneration policy for 2019
The table below shows the remuneration policy approved by shareholders at

the 2017 AGM. For the full remuneration policy, please go to bp.com/remuneration.
Non-executive chairman
Fees
Approach Remuneration is in the form of cash fees, payable monthly. The level and structure of the chairman’s remuneration will
primarily be compared against UK best practice.
Operation and The quantum and structure of the non-executive chairman’s remuneration is reviewed annually by the remuneration
opportunity committee, which makes a recommendation to the board.
Benefits and expenses
Approach The chairman is provided with support and reasonable travelling expenses.
Operation and The chairman is provided with an office and full-time secretarial and administrative support in London and a
opportunity contribution to an office and secretarial support in his home country as appropriate. A car and the use of a driver is
provided in London, together with security assistance. All reasonable travelling and other expenses (including any
relevant tax) incurred in carrying out his duties is reimbursed.
Non-executive directors
Fees
Approach Remuneration is in the form of cash fees, payable monthly. Remuneration practice is consistent with recognized best
practice standards for non-executive directors’ remuneration and, as a UK-listed company, the level and structure of
non-executive directors’ remuneration will primarily be compared against UK best practice.
Additional fees may be payable to reflect additional board responsibilities, for example, committee chairmanship and
membership and for the role of senior independent director.
Operation and The level and structure of non-executive directors’ remuneration is reviewed by the chairman, the GCE and the
opportunity company secretary who make a recommendation to the board. Non-executive directors do not vote on their own
remuneration.
Remuneration for non-executive directors is reviewed annually.
Other fees and benefits

Intercontinental allowance
Approach Non-executive directors receive an allowance to reflect the global nature of the company’s business. The intercontinental
travel allowance is payable for the purpose of attending board or committee meetings or site visits.
Operation and The allowance is paid in cash following each event of intercontinental travel.
opportunity
Benefits and expenses
Approach Non-executive directors are provided with administrative support and reasonable travelling expenses.
Professional fees are reimbursed in the form of cash, payable following the provision of advice and assistance.
Operation and Non-executive directors are reimbursed for all reasonable travelling and subsistence expenses (including any relevant
opportunity tax) incurred in carrying out their duties.
The reimbursement of professional fees incurred by non-executive directors based outside the UK in connection with
advice and assistance on UK tax compliance matters.
The maximum fees for non-executive directors are set in accordance with the Articles of Association.
This directors’ remuneration report was approved by the board and signed on its behalf by Jens Bertelsen, company secretary on 29 March 2019.

Directors’ statements
Statement of directors’ responsibilities The directors confirm that to the best of their knowledge:
The directors are responsible for preparing the Annual Report and the • The consolidated financial statements, prepared in accordance with
financial statements in accordance with applicable law and regulations. IFRS as issued by the IASB, IFRS as adopted by the EU and in
The directors are required by the UK Companies Act 2006 to prepare accordance with the provisions of the Companies Act 2006, give a
financial statements for each financial year that give a true and fair view true and fair view of the assets, liabilities, financial position and profit
of the financial position of the group and the parent company and the or loss of the group.
financial performance and cash flows of the group and parent company • The parent company financial statements, prepared in accordance
for that period. Under that law they are required to prepare the with United Kingdom generally accepted accounting practice, give
consolidated financial statements in accordance with International a true and fair view of the assets, liabilities, financial position,
Financial Reporting Standards (IFRS) as adopted by the European Union performance and cash flows of the company.
(EU) and applicable law and have elected to prepare the parent company • The management report, which is incorporated in the strategic
financial statements in accordance with applicable United Kingdom law report and directors’ report, includes a fair review of the development
and United Kingdom accounting standards (United Kingdom generally and performance of the business and the position of the group,
accepted accounting practice), including FRS 101 ‘Reduced Disclosure together with a description of the principal risks and uncertainties
Framework’. In preparing the consolidated financial statements the that they face.
directors have also elected to comply with IFRS as issued by the
Helge Lund
International Accounting Standards Board (IASB).
Chairman
In preparing those financial statements, the directors are required to: 29 March 2019
• Select suitable accounting policies and then apply them consistently.
• Make judgements and estimates that are reasonable and prudent.
• Present information, including accounting policies, in a manner that Risk management and internal control
provides relevant, reliable, comparable and understandable Under the UK Corporate Governance Code (Code), the board is
information. responsible for the company’s risk management and internal control
• Provide additional disclosure when compliance with the specific systems. In discharging this responsibility the board, through its
requirements of IFRS is insufficient to enable users to understand the governance principles, requires the group chief executive to operate the
impact of particular transactions, other events and conditions on the company with a comprehensive system of controls and internal audit to
group’s financial position and financial performance. identify and manage the risks that are material to BP. In turn, the board,
through its monitoring processes, satisfies itself that these material risks
• State that applicable accounting standards have been followed,
are identified and understood by management and that systems of risk
subject to any material departures disclosed and explained in the
management and internal control are in place to mitigate them. These
parent company financial statements.
systems are reviewed periodically by the board, have been in place for
• Prepare the financial statements on the going concern basis unless it the year under review and up to the date of this report and are consistent
is inappropriate to presume that the company will continue in with the requirements of principle C.2 of the Code.
business.
The board has processes in place to:
The directors are responsible for keeping adequate accounting records
that disclose with reasonable accuracy at any time the financial position • Assess the principal risks facing the company.
of the group and company and enable them to ensure that the • Monitor the company’s system of internal control (which includes the
consolidated financial statements comply with the Companies Act 2006 ongoing process for identifying, evaluating and managing the principal
and Article 4 of the IAS Regulation and the parent company financial risks).
statements comply with the Companies Act 2006. They are also • Review the effectiveness of that system annually.
responsible for safeguarding the assets of the group and company and
hence for taking reasonable steps for the prevention and detection of Non-operated joint ventures and associates have not been dealt with as
fraud and other irregularities. part of this board process.
Having made the requisite enquiries, so far as the directors are aware, A description of the principal risks facing the company, including those
there is no relevant audit information (as defined by Section 418(3) of the that could potentially threaten its business model, future performance,
Companies Act 2006) of which the company’s auditors are unaware, solvency or liquidity, is set out in Risk factors on page 55. During the
and the directors have taken all the steps they ought to have taken to year, the board undertook a robust assessment of the principal risks
make themselves aware of any relevant audit information and to facing the company. The principal means by which these risks are
establish that the company’s auditors are aware of that information. managed or mitigated are set out in How we manage risk on page 53.
In assessing the risks faced by the company and monitoring the system
of internal control, the board and the audit, safety, ethics and
environment assurance and geopolitical committees requested,
received and reviewed reports from executive management, including
management of the business segments, corporate activities and
functions, at their regular meetings. A report by each of these
committees, including its activities during the year, is set out on
pages 75-86.
This page does not form part of BP’s Annual Report on Form 20-F as filed with the SEC.

During the year, the committees also met with management, the group Going concern
head of audit and other monitoring and assurance functions (including
In accordance with provision C.1.3 of the Code, the directors consider it
group ethics and compliance, safety and operational risk, group control,
appropriate to adopt the going concern basis of accounting in preparing
group legal and group risk) and the external auditor. Responses by
the financial statements.
management to incidents that occurred were considered by the
appropriate committee or the board.
Fair, balanced and understandable
An audit committee meeting in January 2019 carried out an annual
The board considers the Annual Report and financial statements, taken
review of the effectiveness of the system of internal control. In
as a whole, is fair, balanced and understandable and provides the
considering this system, the audit committee noted that it is designed
information necessary for shareholders to assess the company’s
to manage, rather than eliminate, the risk of failure to achieve business
position and performance, business model and strategy.
objectives and can only provide reasonable, and not absolute, assurance
against material misstatement or loss.
This review included a report from the group head of audit which
summarized group audit’s consideration of the design and operation of
elements of BP’s system of internal control over significant risks arising
in the categories of strategic and commercial, safety and operational and
compliance and control, in addition to considering the control
environment for the group. The report also highlighted the results of
internal audit work conducted during the year and the remedial actions
taken by management in response to failings and weaknesses
identified. Where failings or weaknesses were identified, the audit
committee was satisfied that these were or are being appropriately
addressed by the remedial actions proposed by management.
At its meeting in March 2019, the board considered the review
undertaken by the audit committee and the proposed disclosures
outlining the company’s risk management and internal control systems
prior to publication of the annual report and accounts.
A statement regarding the company’s internal controls over financial
reporting is set out on page 300.
Longer-term viability
In accordance with provision C.2.2 of the Code, the directors have
assessed the prospects of the company over a period significantly
longer than 12 months. The directors believe that a viability assessment
period of three years is appropriate based on management’s reasonable
expectations of the position and performance of the company over this
period, taking account of its short-term and longer-range plans, including
committed capital investment.
Taking into account the company’s current position and its principal risks
on page 55, the directors have a reasonable expectation that the
company will be able to continue in operation and meet its liabilities as
they fall due over three years.
The directors’ assessment included a review of the financial impact of
the most severe but plausible scenarios that could threaten the viability
of the company and the likely effectiveness of the potential mitigations
that management reasonably believes would be available to the
company over this period. These scenarios included a process safety
incident and a sustained oil price decline.
In assessing the prospects of the company, the directors noted that
such assessment is subject to a degree of uncertainty that can be
expected to increase looking out over time and, accordingly, that future
outcomes cannot be guaranteed or predicted with certainty.
This page does not form part of BP’s Annual Report on Form 20-F as filed with the SEC.

Financial 114 Consolidated financial statements of the BP group
statements
Independent auditor’s reports 114 Group statement of
Group income statement 129 changes in equity 131
Group statement of Group balance sheet 132
comprehensive income 130 Group cash flow statement 133
134 Notes on financial statements

1. Significant accounting 22. Trade and other payables 172
policies 134 23. Provisions 172
2. Significant event – Gulf of 24. Pensions and other post-
Mexico oil spill 151 retirement benefits 172
3. Business combinations and 25. Cash and cash equivalents 179
other significant transactions 153 26. Finance debt 179
4. Disposals and impairment 154 27. Capital disclosures and
5. Segmental analysis 156 analysis of changes in
6. Revenue from contracts net debt 180
with customers 159 28. Operating leases 180
7. Income statement analysis 159 29. Financial instruments and
8. Exploration expenditure 160 financial risk factors 181
9. Taxation 160 30. Derivative financial
10. Dividends 163 instruments 185
11. Earnings per share 163 31. Called-up share capital 192
12. Property, plant and 32. Capital and reserves 194
equipment 165 33. Contingent liabilities 197
13. Capital commitments 165 34. Remuneration of senior
14. Goodwill 166 management and non-
15. Intangible assets 167 executive directors 198
16. Investments in joint ventures 168 35. Employee costs and
17. Investments in associates 168 numbers 199
18. Other investments 170 36. Auditor’s remuneration 199
Financial statements
19. Inventories 170 37. Subsidiaries, joint
20. Trade and other arrangements and
receivables 171 associates 200
21. Valuation and qualifying 38. Condensed consolidating
accounts 171 information on certain US
subsidiaries 201
210 Supplementary information on oil and natural gas

(unaudited)
Oil and natural gas exploration Standardized measure of
and production activities 211 discounted future net cash
Movements in estimated flows and changes therein
net proved reserves 217 relating to proved oil and
gas reserves 232
Operational and statistical
information 235
238 Parent company financial statements of BP p.l.c.

Company balance sheet 238 6. Taxation 247
Company statement of 7. Called-up share capital 248
changes in equity 239 8. Capital and reserves 248
Notes on financial statements 240 9. Financial guarantees 249
10. Share-based payments 249
1. Significant accounting
11. Auditor’s remuneration 249
policies 240
12. Directors’ remuneration 249
2. Investments 243
13. Employee costs and
3. Receivables 243
numbers 250
4. Pensions 243
14. Related undertakings 251
5. Payables 247
BP Annual Report and

BPForm 20-F
Annual 2017and Form 20-F 2018
Report 115
113
Consolidated financial statements of the BP group
Independent auditor’s report on the Annual Report and Accounts to the members of BP
p.l.c.
Report on the audit of the financial statements
Opinion
In our opinion:
• The financial statements of BP p.l.c. (the ‘parent company’) and its subsidiaries (the ‘group’) give a true and fair view of the state of the
group’s and of the parent company’s affairs as at 31 December 2018 and of the group’s profit for the year then ended.
• The group financial statements have been properly prepared in accordance with International Financial Reporting Standards (IFRSs) as
adopted by the European Union (EU) and IFRSs as issued by the International Accounting Standards Board (IASB).
• The parent company financial statements have been properly prepared in accordance with United Kingdom generally accepted accounting
practice including FRS 101 ‘Reduced Disclosure Framework'.
• The financial statements have been prepared in accordance with the requirements of the Companies Act 2006 and, as regards the group
financial statements, Article 4 of the IAS Regulation.
We have audited the financial statements of BP p.l.c. which comprise:
• Group income statement;
• Group statement of comprehensive income;
• Group and parent company statements of changes in equity;
• Group and parent company balance sheets;
• Group cash flow statement;
• Group related Notes 1 to 38 to the financial statements, including a summary of significant policies; and
• Parent company related Notes 1 to 14 to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in the preparation of the group financial statements is applicable law and IFRSs as
adopted by the European Union and as issued by the IASB. The financial framework that has been applied in the preparation of the parent
company financial statements is applicable law and United Kingdom accounting standards including FRS 101 (United Kingdom generally
accepted accounting practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under
those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report.
We are independent of the group and the parent company in accordance with the ethical requirements that are relevant to our audit of the
financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard as applied to listed public interest
entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We confirm that the non-audit services
prohibited by the FRC’s Ethical Standard were not provided to the group or the parent company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Summary of our audit approach
Key audit matters The key audit matters that we identified in the current year were:
• Impairment of Upstream oil and gas property, plant and equipment (PP&E) assets;
• Accounting for acquisitions and disposals within the Upstream segment;
• Impairment of exploration and appraisal assets;
• Accounting for structured commodity transactions within the integrated supply and trading function, and the
valuation of other level 3 financial instruments, where fraud risks may arise in revenue recognition;
• User access management controls relating to financial systems; and
• Management override of controls.
Two key audit matters were identified by the previous auditor and described in their report for the year ended 31
December 2017 and are not included in our report for the year ended 31 December 2018. These were:
• The determination of the liabilities, contingent liabilities and disclosures arising from the Gulf of Mexico oil spill - the
provisions have substantially decreased from a quantitative perspective and the level of judgement in determining
BP’s liabilities has reduced significantly as legal settlements have been reached; and
• US Tax reform - the reform was signed into law in 2017 and gave rise to a one-off taxation charge. Whilst the impact
of the reform has continued to be assessed in 2018, the judgement required and quantitative impact in the current
year is considerably lower.
The previous auditor also included a key audit matter in respect of unauthorized trading activity in the integrated supply
and trading function. This is covered by the key audit matter set out above covering the accounting for structured
commodity transactions and valuation of certain level 3 financial instruments. They also identified a key audit matter in
respect of the estimation of oil and gas reserves and resources, which we have considered in the context of
impairment of Upstream oil and gas PP&E assets.
Materiality We have set materiality for the current year at $750 million based on profit before tax and underlying replacement cost
profit before interest and tax.
This page does not form part of BP's Annual Report on Form 20-F as filed with the SEC.

Scoping Our scope covered 136 components. Of these, 108 were full-scope audits, covering 71% of group revenue, and the
remaining 28 were subject to specific procedures on certain account balances by component audit teams or the group
audit team.
First year audit The year ended 31 December 2018 is our first as auditor of the group. We commenced transition activities after our
transition selection as auditor being announced in November 2016.
These activities included:
• Establishing independence from BP by exiting non-audit services which would be independence-impairing, as BP
transitioned these to new service providers;
• Establishing an appropriately resourced and skilled global audit team, including specialists, in all relevant locations;
• Developing and delivering a bespoke “BP Academy” training course for Deloitte personnel joining the BP audit
engagement; and
• Holding introductory meetings with BP management.
We commenced our audit planning procedures subsequent to us becoming independent on 16 October 2017. After
establishing independence, our work included:
• Shadowing the previous auditor through the 31 December 2017 audit, including attendance at key meetings,
including audit committee meetings;
• Reviewing the previous auditor’s 2016 and 2017 audit files;
• Reviewing historical accounting policies and accounting judgements through discussion with management and
review and challenge of management’s papers and supporting documentation; and
• Conducting group audit team visits to components.
These procedures built our understanding of the group which, together with our existing knowledge of the oil and gas
industry, informed our audit risk assessment, through which we identified the risks of material misstatement to the
group’s financial statements.
We presented our transition observations to the group’s audit committee in a transition report in April 2018, with an
update in May 2018. We presented further observations, together with our audit plan, in July 2018, and provided an
update to our plan in December 2018.
Conclusions relating to going concern, principal risks and viability statement

Going concern
We confirm that we have
We have reviewed the directors’ statement on page 111 about whether they considered it appropriate to
nothing material to report, add
adopt the going concern basis of accounting in preparing them and their identification of any material
or draw attention to in respect
uncertainties to the group’s and company’s ability to continue to do so over a period of at least twelve
of these matters.
months from the date of approval of the financial statements.
We considered as part of our risk assessment the nature of the group, its business model and related
risks including where relevant the impact of Brexit, the requirements of the applicable financial reporting
framework and the system of internal control. We evaluated the directors’ assessment of the group’s
ability to continue as a going concern, including challenging the underlying data and key assumptions
used to make the assessment, and evaluated the directors’ plans for future actions in relation to their
going concern assessment.
We are required to state whether we have anything material to add or draw attention to in relation to that
statement required by Listing Rule 9.8.6R(3) and report if the statement is materially inconsistent with
our knowledge obtained in the audit.
Principal risks and viability statement
Based solely on reading the directors’ statements and considering whether they were consistent with We confirm that we have
the knowledge we obtained in the course of the audit, including the knowledge obtained in the evaluation nothing material to report, add
of the directors’ assessment of the group’s and the company’s ability to continue as a going concern, we or draw attention to in respect
are required to state whether we have anything material to add or draw attention to in relation to: of these matters.
• the disclosures on pages 55-56 that describe the principal risks and explain how they are being
managed or mitigated;
• the directors' confirmation on page 110 that they have carried out a robust assessment of the principal
risks facing the group, including those that would threaten its business model, future performance,
solvency or liquidity; or
• the directors’ explanation on page 111 as to how they have assessed the prospects of the group, over
what period they have done so and why they consider that period to be appropriate, and their
statement as to whether they have a reasonable expectation that the group will be able to continue in
operation and meet its liabilities as they fall due over the period of their assessment, including any
related disclosures drawing attention to any necessary qualifications or assumptions.
We are also required to report whether the directors’ statement relating to the prospects of the group
required by Listing Rule 9.8.6R(3) is materially inconsistent with our knowledge obtained in the audit.
Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of
the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified.

These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing
the efforts of the engagement team.
Throughout the course of our audit we identify risks of material misstatement (‘risks’) and classify those risks according to their severity. In
assigning a category we consider both the likelihood of a risk of a material misstatement and the potential magnitude of a misstatement in
making the assessment. Certain risks are classified as ‘significant’ or ‘higher’ depending on their severity. The category of the risk determines
the level of evidence we seek in providing assurance that the associated financial statement item is not materially misstated.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.
Impairment of upstream oil and gas PP&E assets

Key audit matter description How the scope of our audit responded to the key audit matter
The group balance sheet includes property, plant and equipment We tested management’s internal controls over the setting of oil and
(PP&E) of $135 billion, of which $99 billion is oil and gas properties gas prices, discount rates and reserve estimates. In addition, we
within the Upstream segment. As required by IAS 36 'Impairment of conducted the following substantive procedures.
Assets', management performed a review of the upstream cash Long-term oil and gas prices
generating units (CGUs) for indicators of impairment and impairment
reversal as at 31 December 2018.
• We compared BP’s oil and gas price assumptions against third-
party forecasts, peer information and relevant market data to
Where such indicators were identified, management estimated the determine whether BP’s forecasts were within the range of such
recoverable amount of the CGU to determine if any impairment forecasts.
charges or reversals were required. For the year ended 31 December • In challenging management's forecasts, we considered the
2018, BP recorded $400 million of Upstream impairment charges and extent to which they reflected the energy transition due to
$580 million of impairment reversals. climate change.
Through our risk assessment procedures, we have determined that Discount rates
there are three key estimates in management’s review for indicators • We independently evaluated BP’s discount rates used in
of impairment/reversal and the level of impairment charge/reversal to impairment tests with input from Deloitte valuation specialists.
record where indicators are identified. These are:
• We assessed whether country risks were appropriately reflected
• Long-term oil and gas prices - BP’s long-term oil and gas price in BP’s discount rates.
assumptions have a significant impact on CGU impairment
assessments and valuations performed across the portfolio, and Reserves estimates
are inherently uncertain. There is a risk that management’s oil • We performed a look-back analysis to check for indications of
and gas price assumptions are not reasonable, leading to a bias over time.
material misstatement. • We reviewed BP’s reserves estimation methods and policies,
• Discount rates - Given the long timeframes involved, certain assisted by Deloitte reserves experts.
impairment assessments and valuations are sensitive to the • We assessed how these policies had been applied to seven
discount rate applied. There is a risk that discount rates do not internal reserves estimates.
reflect the return required by the market and the risks inherent in • We reviewed reports provided by external experts and assessed
the cash flows being discounted, leading to a material their scope of work and findings.
misstatement. Determination of the appropriate discount rate • We assessed the competence, capability and objectivity of BP’s
can be judgemental. internal and external reserve experts, through obtaining their
• Reserves estimates - A key input to impairment assessments relevant professional qualifications and experience.
and valuations is the production forecast, in turn closely related Other procedures
to the group’s reserves estimates and field development • We challenged management’s cash generating unit
assumptions. CGU-specific estimates are not generally material. determination, scrutinized the impairment and impairment
However, material misstatements could arise either from reversal indicator analysis and considered whether there was any
systematic flaws in reserves estimation policies, or due to flawed contradictory evidence present.
estimates in a particularly material individual impairment test. • Where such indicators were identified, we validated that BP’s
Whilst all CGUs must be assessed for indicators of impairment and asset impairment methodology was appropriate and tested the
impairment reversal annually, we focused on certain individual CGUs integrity of impairment models.
with a total carrying value of $21.8 billion which we determined would • We compared hydrocarbon production forecasts and proved and
be most at risk of a material impairment ($750 million) as a result of a probable reserves to reserve reports and our understanding of
reasonably possible change in the key assumptions, particularly the the life of fields.
long-term oil and gas price assumptions. Accordingly, we identified • We verified estimated future capital and operational costs by
these as a significant audit risk. We also focused on assets with a comparison to approved budgets and assessed them with
further $31.5 billion of combined CGU carrying value which were less reference to field production forecasts.
sensitive. We identified these as a higher audit risk as they would be • We also assessed these estimates against management’s
potentially at risk in aggregate to a material impairment by a change historical forecasting accuracy and whether the estimates had
in such assumptions. Further information regarding these sensitivities been determined and applied on a consistent basis across the
is given in Note 1. group where relevant.

Key observations Long-term oil and gas prices
We determined that BP’s Brent oil price forecasts are reasonable when compared against the range of
other third-party forecasts.
We challenged BP’s Henry Hub, NBP and Asian LNG price curves for periods when they were somewhat
higher than the range of other third-party forecasts. However, management ran additional tests using a
Henry Hub, NBP and Asian LNG price curve consistent with the range of third-party forecasts, which
demonstrated that the carrying values recorded in the balance sheet are not impacted.
Discount rates
Our Deloitte valuation specialists calculated a different range for weighted average cost of capital than
was determined by management. We also found that some simplifications are taken when making group-
wide assumptions for country and asset-specific risk premium adjustments, and for calculating pre-tax
discount rates, given the group's CGUs which operate in multiple tax jurisdictions.
Management reperformed impairment tests using higher discount rates and only one impairment test
was impacted, with a difference which was not significant. Accordingly we were satisfied with the results
of the testing.
We reviewed the disclosures included in Note 1 to the accounts in respect of price and discount rate
assumptions used and confirmed that they were the same as those used in the impairment tests.
Reserves estimates
Having involved Deloitte oil and gas reserves experts in our testing, we concluded that the assumptions
used to derive the estimates were reasonable.
Accounting for acquisitions and disposals within the Upstream segment

There were certain acquisition and disposal transactions within the We tested management’s internal key controls over the valuation
Upstream segment that required fair valuation of assets and liabilities assumptions and accounting approaches for each of these significant
acquired and disposed of, and consideration of complex accounting transactions. In addition, we conducted the following substantive
judgements, to which we devoted significant engagement team time procedures:
and resource. Accordingly, this had a significant effect on our audit
strategy. These transactions were:
• We reviewed the enacted sale and purchase agreements and
management’s accounting analysis to corroborate that the
• The $10.3 billion acquisition of onshore US assets from BHP, accounting treatment applied was consistent with the underlying
including the fair valuation of assets and liabilities acquired; commercial terms.
• The disposal of BP’s interest in the Greater Kuparuk Area in • With input from our valuations and reserves specialist teams, we
Alaska and simultaneous purchase of an incremental interest in reviewed and challenged management’s fair value estimates,
the BP-operated Clair field in the UK North Sea; and focusing on the key assumptions (including pricing, discount
• The disposal of BP’s interest in the Magnus field in the North rates and reserves risking estimates).
Sea, where the consideration included a level 3 financial asset, • We tested the mechanical accuracy of the valuation models.
the valuation of which depends on the future performance of • We assessed the independence, objectivity, competence and
Magnus. scope of work performed by BP’s third-party valuation specialist
used in the acquisition from BHP.
Key observations We noted that the assumptions underlying the fair value calculation for the onshore US assets acquired
from BHP were at the conservative end of the range but concurred that the purchase price represented
the fair value of the assets and liabilities acquired, in accordance with IFRS 3.
We observed that in some cases, the fair values of oil and gas assets from certain market transactions,
including the BHP acquisition, implied valuation assumptions that were more conservative than those
used in value-in-use impairment calculations. The latter, as defined in IAS 36, represents management’s
best estimate of the future cash flows of an asset, discounted at a market rate of return, whereas the
former, as defined in IFRS 13 'Fair Value Measurement', is determined by the prices at which oil and gas
assets are actually changing hands in orderly transactions under prevailing market conditions. We
concluded that in their respective IFRS contexts, and in the presence of valid evidence, the use of
different assumptions to estimate fair values and value in use was appropriate.
We reviewed the disclosures included by management in Note 3 to the accounts and concluded that
these are compliant with IFRS 3 requirements.

Impairment of exploration and appraisal assets
The group capitalizes exploration and appraisal (E&A) expenditure on We obtained an understanding of the group’s E&A impairment
a project-by-project basis in line with IFRS 6 'Exploration for and assessment processes and tested management’s controls. In
Evaluation of Mineral Resources'. At the end of 2018, $16.0 billion of addition, we conducted the following substantive procedures:
E&A expenditure was carried in the group balance sheet. E&A We reviewed and challenged management’s significant IFRS 6
activity is inherently risky and a significant proportion of projects fail, impairment judgements, guided by our risk assessment, having
requiring the write-off of the related capitalized costs when the regard to the impairment criteria of IFRS 6 and BP’s accounting policy.
relevant criteria in IFRS 6 and BP’s accounting policy are met. We verified key facts relevant to significant carrying amounts (e.g.
There is a risk that certain capitalized E&A costs are not written off obtaining evidence of future E&A plans and budgets, evidence of
promptly at the appropriate time, in line with information from, and active dialogue with partners and regulators including negotiations to
decisions about E&A activities, and the impairment requirements of renew licences or modify key terms).
IFRS 6. We performed a licence-by-licence risk assessment of the group’s
Through our detailed risk assessment, which is based on our analysis E&A balance through to year end, to identify significant carrying
of the portfolio of E&A assets held by BP, making reference to BP’s amounts with a significant current period risk of impairment (e.g. new
own analysis of the same assets, we identified a significant risk in information from exploration activities, or imminent licence expiry).
respect of certain specific assets in the Gulf of Mexico with a total We performed a look-back analysis of impairment charges recorded in
carrying value of $2.3 billion, as certain licences in question have the period, and assessed whether impairment charges were timely.
expired and a partner has recently withdrawn from other licences,
and three licences elsewhere ($1.6 billion) which are scheduled to We tested the completeness and accuracy of information used in
expire or require next phase decisions in 2019. BP is in negotiations management’s E&A impairment assessment, by reviewing and
to extend all these licences. Further details regarding the significant testing key controls over management’s register of E&A licences and
accounting judgement are given in Note 1 to the accounts. vouching key aspects of this to underlying support (e.g. licence
documentation); holding meetings and discussions with operational
and finance management; considering adverse changes in
management’s reserves and resource estimates associated with E&A
assets; reviewing correspondence with regulators and joint
arrangement partners; and considering the implications of capital
allocation decisions. When considering capital allocation decision
making, we considered whether any projects are unlikely to proceed
on the grounds that they are not currently consistent with BP’s
strategy or which would otherwise have a prohibitively high
environmental or social impact for the directors to sanction the
necessary investment.
Key observations We concluded that the key assumptions had been appropriately determined, the judgements
management had made were appropriately supported, and no additional impairments were identified
from the work we performed.
Where BP had concluded that E&A costs should continue to be carried in respect of projects where
licences had expired, we obtained appropriate evidence that there was ongoing correspondence with the
relevant regulatory bodies, as referred to in Note 1 to the financial statements, to support management’s
judgement. We also confirmed management's view that they did not consider that the development of
any of their assets is inconsistent with BP’s strategy and stated climate change ambitions.

Accounting for structured commodity transactions (SCTs) within the integrated supply and trading function (IST), and the valuation
of other level 3 financial instruments, where fraud risks may arise in revenue recognition
In the normal course of business, the integrated supply and trading Accounting for structured commodity transactions:
function (IST) enters into a variety of transactions for delivering value For structured commodity transactions, we performed audit
across the group’s supply chain. The nature of these transactions procedures to:
requires significant audit effort be directed towards challenging
management’s valuation estimates or the adopted accounting • Evaluate the design, implementation and operating effectiveness
treatment. of controls related to the review of such non-standard
transactions, including the:
Accounting for structured commodity transactions: IST may also
• New activity integration control, which is designed to
enter into a variety of transactions which we refer to as SCTs. We
evaluate and approve the appropriateness of the new
generally consider a SCT to be an arrangement having one of the
activity; and
following features:
• Accounting policy review, which is designed to evaluate the
a) two or more counterparties with non-standard contractual appropriateness of accounting treatment in line with
terms; published IFRS accounting literature.
b) multiple commodity-based transactions; and/or • Develop an understanding of the commercial rationale of the
c) contractual arrangements entered into in contemplation of each transactions through review of executed transaction documents
other. and discussions with management.
SCTs are often long-dated, can have a significant multi-year financial • Perform a detailed accounting analysis for a sample of structured
impact, and may require the use of complex valuation models or commodity transactions involving significant day 1 profits,
unobservable market inputs when determining their fair value, in working capital arrangements, offtake arrangements and/or
which case they will be classified as level 3 financial instruments commitments.
under IFRS 13, Fair Value Measurement.
To assess the appropriateness of the accounting treatment of SCTs,
There are inherent risks in the accounting for SCTs as these we embedded technical accounting specialists on the audit team to
contracts are often complex and the associated accounting assist in performing an assessment of the treatment applied by
considerations often feature multiple elements, which are subject to management.
management judgement, that will have a material impact on the Other level 3 financial instruments:
presentation and disclosure of these transactions on the primary
financial statements and key performance measures, including in To address the complexities associated with auditing the value of
particular whether finance debt should be recognized. We have level 3 financial instruments, our team included valuation specialists
identified the accounting for SCTs as a significant audit risk. having significant quantitative and modelling expertise to assist in
performing our audit procedures. Our valuation audit procedures
Level 3 financial instruments: Unlike other financial instruments included the following control and substantive procedures:
whose values or inputs are readily observable and therefore more We tested the design and operating effectiveness of the group’s
easily independently corroborated, there are certain transactions for valuation controls including the:
which the valuation is inherently more subjective due to the use of
• Model certification control, which is designed to review a
either bespoke valuation models and/or unobservable inputs. These
model’s theoretical soundness and the appropriateness of its
instruments are classified as level 3 financial assets or liabilities
valuation methodology; and
under IFRS 13. This degree of subjectivity also gives rise to potential
fraud through management incorporating bias in determining fair
• Independent price verification control, which is designed to
review the appropriateness of valuation inputs that are not
values. Accordingly, we have identified these as a significant audit
observable and are significant to the financial instrument’s
risk, and the area in which a fraud risk is most likely to arise in
valuation.
relation to revenue recognition.
We performed substantive valuation testing procedures at interim
As at 31 December 2018, the group’s total financial assets and
and year-end balance sheet dates, including:
liabilities measured at fair value were $12.8 billion and $8.9 billion, of
which level 3 derivative financial instruments were $3.6 billion and • Developing independent estimates, using externally sourced
$3.1 billion, respectively. inputs and challenger models to evaluate against management’s
fair value estimates by evaluating whether the differences
between our independent estimates and management’s
estimates were within a reasonable range;
• Evaluating management’s valuation methodologies against
standard valuation practice and analysing whether a consistent
framework is applied across the business period over period; and
• Benchmarking management’s input assumptions against the
expected assumptions of other market participants and
observable market data.
Key observations We reviewed the features of 10 SCTs and determined that the accounting adopted for each of these was
appropriate and in accordance with IFRS.
We concluded that management’s valuations relating to level 3 instruments were appropriate.
We did not identify any transactions, valuation estimates or accounting entries which were the result of
fraudulent misrepresentation of revenue recognition.

User access management controls relating to financial systems
The group’s financial systems environment is complex, with 107 We obtained an understanding of management’s processes and
separate systems scoped as being relevant for the group audit. In relevant financial systems and tested the associated general IT
addition, during the year, BP changed one of its key IT service controls. This testing led us to identify a number of deficiencies,
providers. notably in relation to user access.
Due to the reliance on financial systems within the group, controls In responding to the identified deficiencies in user access we have
over system user access are critical to maintaining an effective used our teams of IT and internal control specialists to:
control environment.
• Test the controls that management has implemented or re-
As a result of our procedures, we identified a number of deficiencies designed in order to remediate the deficiencies;
relating to user access management, both within the group and the • Assess and test the alternative or compensating controls that
group’s IT service organizations (together ‘access deficiencies’). The management has identified as mitigating access deficiencies,
access deficiencies identified increase the risk that individuals within including the direct assessment of those controls operated by
the group and at service organizations had inappropriate access the legacy and new IT service organizations and identified
during the period. The existence of deficiencies during the year and at business controls that do not rely on information that is
the year end, and the transition of the main IT service organization potentially affected by the access deficiencies; and
from one supplier to another during the year, result in an increased • Determine the impact that utilizing inappropriate levels of access
risk that data and reports from the affected systems are not reliable. could feasibly have had on the affected systems including
The issues identified impact all components within the scope of our assessing the likelihood of inappropriate user access impacting
group audit. the financial statements, and testing controls implemented by
The group put in place a programme of activities to remediate the management to identify instances of the use of inappropriate
deficiencies, which extends into 2019. Accordingly, management also access, working with both the legacy and new IT service
identified mitigating and compensating controls, and in particular organizations.
established controls to analyse, through exploitation analyses,
whether inappropriate access had been exploited during the year,
working with both the legacy and new IT service organizations.
The user access management controls are pervasive to the group’s
operations and accordingly the level of risk ascribed to our work in
this area is dependent on the nature and complexity of the control
itself and balances within the financial statements the control
addresses.
Key observations Our review of the analysis management performed to identify whether the access deficiencies were
exploited during the year did not identify instances where such access had been used inappropriately.
As a result, we were satisfied with the results of the remediation to date and mitigation activities such
that we continued to adopt an audit approach which places reliance on the effectiveness of financial
controls and which, under our methodology, enables us to apply lower sample sizes in our substantive
testing.
Management continues to work, with the support of the new IT service provider, to remediate fully the
access deficiencies identified.

Management override of controls
We conducted a risk assessment for management override fraud We tested the relevant primary and, where necessary, compensating
risks by considering: controls that management identified as responding to the risk of
• Potential areas where the group’s financial statements could be fraudulent journal entries.
manipulated; In addition, we have:
• Pressures or incentives to achieve certain IFRS or non-GAAP
measures due to the remuneration arrangements of people in • Made inquiries of individuals involved in the financial reporting
Financial Reporting Oversight Roles (FRORs), including process about inappropriate or unusual activity relating to the
management and senior executives; processing of journal entries and other adjustments.
• Potential for inappropriate accounting estimates and • Identified and tested relevant entity-level controls, in particular
judgements; and those related to the BP Code of Conduct, whistleblowing (BP
OpenTalk) and controls monitoring financial reporting processes
• Accounting for significant unusual transactions and estimates
and financial results.
arising from changes to the business.
• Used our data analytics tools to select journal entries and other
Our response to the risk of management override of controls adjustments made at the end of a reporting period or otherwise
included testing the appropriateness of journal entries recorded in the having characteristics which are associated with common fraud
general ledger. We identified control deficiencies at components schemes for testing.
where testing was performed and as a result, our audit approach • Tested journal entries and other adjustments recorded in the
required adjustment. Management remediated the control general ledger throughout the period, with a particular focus on
deficiencies identified where it was possible to do so. Some adjustments that occur late in the financial close process.
remediation activity will continue into 2019 and accordingly,
management also directed us to other compensating controls which We have reviewed accounting estimates for bias and evaluated
they considered to mitigate the risks, which we subsequently tested. whether the circumstances producing the bias, if any, represent a risk
This had a bearing on the allocation of resources in the audit, and the of material misstatement due to fraud. A number of the most
direction of effort of the audit team. Accordingly, we identified this as significant estimates are covered by the other Key Audit Matters set
a key audit matter. out above. This assessment included:
• Evaluating whether the judgements and decisions made by
management in making the accounting estimates included in the
financial statements, even if they are individually reasonable,
indicate a possible bias on the part of BP's management that
may represent a risk of material misstatement due to fraud; and
• Performing a retrospective review of management judgements
and assumptions related to significant accounting estimates
reflected in the financial statements of the prior year.
We considered whether there were any significant transactions that
are outside the normal course of business, or that otherwise appear
to be unusual due to their nature, timing or size.
The risks and responses to the revenue recognition risks within the
integrated supply and trading function are set out above.
Key observations The nature of the identified deficiencies over journal-entry controls varies from business to business, so
there is no single root cause. At the year end:
• In some businesses these operating effectiveness deficiencies were able to be remediated by
management and our testing of the remediation concluded it was effective.
• In other businesses the deficiencies could not be quickly remediated and management identified
direct and precise compensating controls to mitigate the design deficiencies identified. These
compensating controls included low-level analytical reviews (e.g. individual asset reviews), controls
over closing balances, period-end analytical review controls, and certain automated business
controls. Our testing of these compensating controls concluded that they were, in combination,
appropriately designed and implemented and that they were operating effectively for the period.
Our substantive testing of the journal entries and other adjustments, selected through the use of data
analytics tools, did not identify any inappropriate items, and accordingly we concluded that there was no
evidence of management override.
We did not identify any evidence of overall bias or any significant unusual transactions for which the
business rationale (or the lack thereof) of the transaction suggested that it may have been entered into to
engage in fraudulent financial reporting or to conceal misappropriation of assets.
Our application of materiality

We define materiality as the magnitude of misstatement in the financial statements that could reasonably be expected to influence the
economic decisions of a reasonably knowledgeable user. We use materiality both in planning the scope of our audit work and in evaluating the
results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:

Group financial statements Parent company financial statements
Materiality Materiality has been set at $750 million for the current Materiality has been set at $1,200 million for the
year. In 2017, the previous auditor used a materiality of current year. In 2017, the previous auditor used a
$500 million. This reflects BP’s financial performance in materiality of $1,300 million.
2018 and 2017.
Basis for determining We used a number of metrics to determine group We determined materiality for our audit of the
materiality materiality, most notably profit before taxation and standalone parent using 1% of net assets.
underlying replacement cost profit before interest and
taxation. Our selected materiality figure represents
4.5% of profit before taxation, and 3.2% of underlying
replacement cost profit before interest and taxation. In
2017, the previous auditor used 5% of underlying
replacement cost profit before interest and taxation to
determine materiality.
Rationale for the We conducted an assessment of which line items we The materiality determined for the standalone parent
benchmark applied understand to be the most important to investors and company financial statements exceeds the group
analysts by reviewing analyst reports and BP’s materiality as it is determined on a different basis given
communications to shareholders and lenders, as well the nature of the operations. As the company is non-
as the communications of peer companies. This trading and operates primarily as a holding company,
assessment resulted in us selecting the financial we believe the net asset position is the most
statement line items above. appropriate benchmark to use.
Profit before tax is the benchmark ordinarily considered Where there were balances and transactions within the
by us when auditing listed entities. It provides parent company accounts that were within the scope
comparability against other companies across all of the audit of the group financial statements, our
sectors, but has limitations when auditing companies procedures were undertaken using the lower
whose earnings are strongly correlated to commodity materiality level applying to the group audit
prices, which can be volatile from one period to the components. It was only for the purposes of testing
next, and therefore may not be representative of the balances not relevant to the group audit, such as
volume of transactions and the overall size of the intercompany investment balances, that the higher
business in the year. level of materiality applied in practice.
Whilst not a GAAP measure, underlying replacement
cost profit before interest and tax is one of the key
metrics communicated by management in BP's results
announcements. It excludes some of the volatility
arising from changes in crude oil, gas and product
prices as well as “non-operating items” and this was
also the key measure applied by the previous auditor
when determining materiality in 2017.
Group materiality
$750 million
Profit before tax Component

$16,723 million materiality range
$413 million to
$150 million
Profit before tax
Audit committee
Group materiality reporting threshold
$25 million
Performance materiality, which is the value that determines the extent of our audit sampling, has been set at $375 million which is 50% of
group materiality (2017 75%). Given overall group materiality is higher in 2018 reflecting the improved results of the business, performance
materiality could also be set at a higher level but we judged it to be appropriate to constrain this for 2018 given it is our first year as auditor,
which gives a potentially heightened risk of not identifying misstatements due to us having a lower level of knowledge of the business than a
recurring auditor would have.
We agreed with the Main Board Audit Committee that we would report to the committee all audit differences in excess of $25 million (2017
$25 million), as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We also report to the
audit committee on disclosure matters that we identified when assessing the overall presentation of the financial statements.
An overview of the scope of our audit
As a result of the highly disaggregated nature of the group, with operations in over 70 countries through approximately 1,000 components, a
significant portion of our audit planning effort was ensuring that the scope of our work is appropriate in addressing the identified risks of
material misstatement.

The factors that we considered when assessing the scope of the BP audit, and the level of work to be performed at the components that are
in scope for group reporting purposes, included the following:
• The financial significance of an operating unit to BP’s revenue and profit before tax, or PP&E, including consideration of the financial
significance of specific account balances or transactions.
• The significance of specific risks relating to an operating unit, history of unusual or complex transactions, identification of significant audit
issues or the potential for, or a history of, material misstatements.
• The effectiveness of the control environment and monitoring activities, including entity-level controls.
• The findings, observations and audit differences that we noted as a result of the previous auditor’s 2016 and 2017 audit engagements.
To ensure we were able to obtain sufficient, appropriate audit evidence for the purposes of our audit of the financial statements, we performed
full scope audit procedures for 108 reporting consolidation units ('cons units' or components) which were selected based on their size or risk
characteristics. Our full-scope audits are in the UK, US, Angola, Azerbaijan, Germany and Singapore. One of the full-scope cons units includes
the investment in Rosneft, a material associate not controlled by BP.
In addition, we performed audit procedures on specified account balances by local teams for 16 cons units also covering operations in Trinidad
& Tobago and Australia. We performed audit procedures on specified account balances by segment teams to component materiality, with
certain additional specific procedures performed by local teams, covering an additional 12 cons units.
In our assessment of the residual balances, we have considered in particular the risk that there could be a material misstatement within the
large number of geographically dispersed businesses, in particular within the Downstream segment. This assessment included use of our
analytic tools to interrogate data, preparation of trend analysis and comparison of business performance to market benchmark prices. We
concluded that through this additional risk assessment, we have reduced the audit risk of such a misstatement arising to a sufficiently low
level.
The remaining components are not significant individually and include many small, low risk components and balances. On average, they each
represent 0.06% of group revenue and 0.08% of property, plant and equipment. For these components, we performed other procedures,
including conducting analytical review procedures, making inquiries, and evaluating and testing management’s group-wide controls across a
range of locations and segments in order to address the risk of residual misstatement on a segment-wide and component basis.
Oversight of component auditors
The group audit team provides direct oversight, review, and coordination of our local audit teams. The group audit team interacted regularly
with the local Deloitte teams during each stage of the audit, were responsible for the scope and direction of the audit process and reviewed
key working papers. We maintained continuous and open dialogue with our local teams in addition to holding formal meetings quarterly to
ensure that we were fully aware of their progress and results of their procedures.
The senior statutory auditor and other group audit partners and staff visited local component teams in all of the locations named above. These
visits included attending planning meetings, discussing the audit approach and any issues arising from the component team's work, meetings
with local management, and reviewing key audit working papers on higher and significant-risk areas to drive a consistent and high-quality audit.
We were provided with direct access to Rosneft’s auditor in order to evaluate their audit work on the financial statements of Rosneft, used as
the basis for BP’s equity accounting. We held meetings with Rosneft’s auditor throughout the year, issued audit instructions to them, reviewed
their written clearance reports responding to these instructions and, through our direct access, were able to exercise appropriate supervision
and oversight of their audit work. We also tested directly BP’s procedures and controls over its accounting for the investment in Rosneft.
19% 20%
3% Sales and other

9% Property, plant 71%
and equipment 6% operating
revenues
64%
8%
Full audit scope Full audit scope

Specified account balances Specified account balances
Specific audit procedures Specific audit procedures
Review at group level Review at group level

Other information
The directors are responsible for the other information. The other information comprises the information included We have nothing to
in the annual report other than the financial statements and our auditor’s report thereon. report in respect of
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise these matters.
explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine
whether there is a material misstatement in the financial statements or a material misstatement of the other
information. If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact.
In this context, matters that we are specifically required to report to you as uncorrected material misstatements
of the other information include where we conclude that:
• Fair, balanced and understandable - the statement given by the directors that they consider the annual report
and financial statements taken as a whole is fair, balanced and understandable and provides the information
necessary for shareholders to assess the group’s position and performance, business model and strategy, is
materially inconsistent with our knowledge obtained in the audit; or
• Audit committee reporting - the section describing the work of the audit committee does not appropriately
address matters communicated by us to the audit committee; or
• Directors’ statement of compliance with the UK Corporate Governance Code - the parts of the directors’
statement required under the Listing Rules relating to the company’s compliance with the UK Corporate
Governance Code containing provisions specified for review by the auditor in accordance with Listing Rule
9.8.10R(2) do not properly disclose a departure from a relevant provision of the UK Corporate Governance
Code.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements
and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group’s and the parent company’s ability to continue as a
going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but
is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of a reasonably knowledgeable user, taken on the basis of these financial statements.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud are set out below.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: frc.org.uk/
auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and
perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for
our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and
regulations, our procedures included the following:
• Meeting throughout the year with the group head of ethics and compliance and reviewing BP’s internal ethics and compliance reporting
summaries, including concerning investigations;
• Enquiring of management, internal audit, and the audit committee, including obtaining and reviewing supporting documentation, concerning
the group’s policies and procedures relating to:
– identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance
– detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud
– the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
• Discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential
indicators of fraud. The engagement team includes audit partners and staff who have extensive experience of working with companies in the
same sectors as BP operates, and this experience was relevant to the discussion about where fraud risks may arise. The discussions also
involved fraud experts from Deloitte’s forensic accounting function in the Corporate Finance service line, who advised the engagement team
of fraud schemes that had arisen in similar sectors and industries and participated in the initial fraud risk assessment brainstorming
discussions; and
• Obtaining an understanding of the legal and regulatory frameworks that the group operates in, focusing on those laws and regulations that
we determined had a direct effect on the financial statements or that had a fundamental effect on the operations of the group. These include

the UK Companies Act, UK Corporate Governance Code, IFRS as issued by the IASB and adopted by the EU, FRS 101, US Securities
Exchange Act 1934 and relevant SEC regulations, as well as laws and regulations prevailing in each country in which we identified a full-
scope component. In addition, we considered compliance with terms of the group’s operating licence / regulatory solvency requirements /
environmental regulations when assessing the group’s ability to continue as a going concern.
Audit response to risks identified
As a result of performing the above, we did not identify any key audit matters related to the potential risk of non-compliance with laws and
regulations. We did identify two key audit matters relating to fraud risks, as described above.
Our procedures to respond to risks identified included the following:
• Reviewing the financial statement disclosures and testing supporting documentation to assess compliance with relevant laws and
regulations discussed above;
• Enquiring of management, the audit committee and legal counsel concerning actual and potential litigation and claims;
• Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to
fraud;
• Reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with
HMRC; and
• In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other
adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the
business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, including internal
specialists and significant component audit teams, and remained alert to any indications of fraud or non-compliance with laws and regulations
throughout the audit.
Report on other legal and regulatory requirements
Opinions on other matters prescribed by the Companies Act 2006
In our opinion the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act
2006.
In our opinion, based on the work undertaken in the course of the audit:
• The information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is
consistent with the financial statements; and
• The strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the
audit, we have not identified any material misstatements in the strategic report or the directors’ report.
Matters on which we are required to report by exception
Adequacy of explanations received and accounting records
Under the Companies Act 2006 we are required to report to you if, in our opinion: We have nothing to
• We have not received all the information and explanations we require for our audit; or report in respect of
• Adequate accounting records have not been kept by the parent company, or returns adequate for our audit these matters.
have not been received from branches not visited by us; or
• The parent company financial statements are not in agreement with the accounting records and returns.
Directors’ remuneration
Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of directors’ We have nothing to
remuneration have not been made or the part of the directors’ remuneration report to be audited is not in report in respect of
agreement with the accounting records and returns. these matters.
Other matters
Auditor tenure
The board appointed Deloitte as the company’s auditor with effect from 29 March 2018 to fill the vacancy arising from the resignation of the
previous auditor. On 21 May 2018, shareholders resolved at the annual general meeting to appoint Deloitte as auditor from the conclusion of
the meeting until the conclusion of the annual general meeting to be held in 2019 and authorized the directors to set the audit fees.
The first accounting period we audited was the 12 months ended 31 December 2018. In 2017, we commenced our audit planning procedures.
The period of total uninterrupted engagement including previous renewals and reappointments of the firm is accordingly one year.
Consistency of the audit report with the additional report to the audit committee
Our audit opinion is consistent with the additional report to the audit committee we are required to provide in accordance with ISAs (UK).
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our
audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an
auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other
than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Douglas King FCA (Senior statutory auditor)

For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
29 March 2019

Report of Independent Registered Public Accounting Firm
To the shareholders and board of directors of BP p.l.c.
Opinion on the financial statements

We have audited the accompanying group balance sheet of BP p.l.c. and subsidiaries (the Company) as at 31 December 2018, the related
group income statement, statements of comprehensive income and changes in equity, and group cash flow statement, for the year ended
31 December 2018, and the related notes (collectively referred to as the 'financial statements'). In our opinion, the financial statements present
fairly, in all material respects, the financial position of the Company as of 31 December 2018, and the results of its operations and its cash
flows for the year ended 31 December 2018, in conformity with International Financial Reporting Standards (IFRS) as adopted by the European
Union and IFRS as issued by the International Accounting Standards Board.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the
Company's internal control over financial reporting as of 31 December 2018, based on criteria established in the UK Financial Reporting
Council’s Guidance on Risk Management, Internal Control and Related Financial and Business Reporting relating to internal control over
financial reporting and our report dated 29 March 2019 expressed an unqualified opinion on the Company's internal control over financial
reporting.
Basis for opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's
financial statements based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with
respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit
included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and
disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis
for our opinion.
/s/ Deloitte LLP
London
United Kingdom
29 March 2019
The first accounting period we audited was the 12 months ended 31 December 2018. In 2017, we commenced our audit planning procedures.

Opinion on internal control over financial reporting

We have audited the internal control over financial reporting of BP p.l.c. and subsidiaries (the Company) as at 31 December 2018, based on the
criteria established in the UK Financial Reporting Council’s Guidance on Risk Management, Internal Control and Related Financial and Business
Reporting relating to internal control over financial reporting (UK FRC Guidance). In our opinion, the Company maintained, in all material
respects, effective internal control over financial reporting as of 31 December 2018, based on the criteria established in the UK FRC Guidance.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the
consolidated financial statements as at and for the year ended 31 December 2018, of the Company and our report dated 29 March 2019,
expressed an unqualified opinion on those financial statements.
As described in Management’s report on internal control over financial reporting on page 301, management excluded from its assessment the
internal control over financial reporting at Petrohawk Energy Corporation, which was acquired on 31 October 2018 and whose financial
statements constitute 10.3% and 4.0% of net and total assets, respectively, 0.2% of total revenues and other income, and 0.05% of profit for
the year of the consolidated financial statement amounts as at and for the year ended 31 December 2018. Accordingly, our audit did not include
the internal control over financial reporting at Petrohawk Energy Corporation.
Basis for opinion
The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the
effectiveness of internal control over financial reporting, included in the accompanying Management’s report on internal control over financial
reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a
public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the
U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit
included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and
evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and limitations of internal control over financial reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A
company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and
directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
/s/ Deloitte LLP

29 March 2019
Consent of independent registered public accounting firm

We consent to the incorporation by reference of our reports dated 29 March 2019, relating to the consolidated financial statements of BP p.l.c.
(the 'company'), and the effectiveness of the company's internal control over financial reporting, appearing in the Annual Report on Form 20-F
of the company for the year ended 31 December 2018, in the following Registration Statements:
Registration Statements on Form F-3 (File Nos. 333-226485, 333-226485-01 and 333-226485-02) of BP p.l.c., BP Capital Markets
p.l.c. and BP Capital Markets America Inc.; and
Registration Statements on Form S-8 (File Nos. 333-67206, 333-79399, 333-103924, 333-123482, 333-123483, 333-131583,
333-131584, 333-132619, 333-146868, 333-146870, 333-146873, 333-173136, 333-177423, 333-179406, 333-186462, 333-186463,
333-199015, 333-200794, 333-200795, 333-207188, 333-207189, 333-210316, 333-210318) of BP p.l.c.
/s/ Deloitte LLP

29 March 2019

Opinion on the financial statements

We have audited the accompanying group balance sheets of BP p.l.c. (the Company) as of 31 December 2017, and the related group income
statement, group statement of comprehensive income, group statement of changes in equity and group cash flow statement for each of the
two years in the period ended 31 December 2017, and the related notes (collectively referred to as the "group financial statements"). In our
opinion, the group financial statements present fairly, in all material respects, the financial position of BP p.l.c. at 31 December 2017 and the
results of its operations and its cash flows for each of the two years in the period ended 31 December 2017, in conformity with International
Financial Reporting Standards (IFRS) as adopted by the European Union and IFRS as issued by the International Accounting Standards Board.
Basis for opinion
These financial statements are the responsibility of BP p.l.c.'s management. Our responsibility is to express an opinion on these financial
statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect
to BP p.l.c. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud,
and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable
basis for our opinion.
/s/ Ernst & Young LLP

We served as the Company's auditor from 1909 to 2018.
29 March 2018
Note that the report set out above is included for the purposes of BP p.l.c.’s Annual Report on Form 20-F for 2018 only and does not form part
of BP p.l.c.’s Annual Report and Accounts for 2017.
1. The maintenance and integrity of the BP p.l.c. web site is the responsibility of BP p.l.c.; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to
the financial statements since they were initially presented on the web site.
2. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other
jurisdictions.

Group income statement
For the year ended 31 December $ million
Note 2018 2017 2016
Sales and other operating revenues 5 298,756 240,208 183,008
Earnings from joint ventures – after interest and tax 16 897 1,177 966
Earnings from associates – after interest and tax 17 2,856 1,330 994
Interest and other income 7 773 657 506
Gains on sale of businesses and fixed assets 4 456 1,210 1,132
Total revenues and other income 303,738 244,582 186,606
Purchases 19 229,878 179,716 132,219
Production and manufacturing expensesa 23,005 24,229 29,077
Production and similar taxes 5 1,536 1,775 683
Depreciation, depletion and amortization 5 15,457 15,584 14,505
Impairment and losses on sale of businesses and fixed assets 4 860 1,216 (1,664)
Exploration expense 8 1,445 2,080 1,721
Distribution and administration expenses 12,179 10,508 10,495
Profit (loss) before interest and taxation 19,378 9,474 (430)
Finance costsa 7 2,528 2,074 1,675
Net finance expense relating to pensions and other post-retirement benefits 24 127 220 190
Profit (loss) before taxation 16,723 7,180 (2,295)
Taxationa 9 7,145 3,712 (2,467)
Profit (loss) for the year 9,578 3,468 172
Attributable to
BP shareholders 9,383 3,389 115
Non-controlling interests 195 79 57
9,578 3,468 172
Earnings per share
Profit (loss) for the year attributable to BP shareholders
Per ordinary share (cents)
Basic 11 46.98 17.20 0.61
Diluted 11 46.67 17.10 0.60
Per ADS (dollars)
Basic 11 2.82 1.03 0.04
Diluted 11 2.80 1.03 0.04
a
See Note 2 for information on the impact of the Gulf of Mexico oil spill on these income statement line items.

Group statement of comprehensive incomea
Note 2018 2017 2016
Profit (loss) for the year 9,578 3,468 172
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Currency translation differences (3,771) 1,986 254
Exchange (gains) losses on translation of foreign operations reclassified to gain or loss
on sale of businesses and fixed assets — (120) 30
Available-for-sale investments — 14 1
Cash flow hedges marked to market 30 (126) 197 (639)
Cash flow hedges reclassified to the income statement 30 120 116 196
Cash flow hedges reclassified to the balance sheet 30 — 112 81
Costs of hedging marked to market 30 (244) — —
Costs of hedging reclassified to the income statement 30 58 — —
Share of items relating to equity-accounted entities, net of tax 16, 17 417 564 833
Income tax relating to items that may be reclassified 9 4 (196) 13
(3,542) 2,673 769
Items that will not be reclassified to profit or loss
Remeasurements of the net pension and other post-retirement benefit liability or asset 24 2,317 3,646 (2,496)
Cash flow hedges that will subsequently be transferred to the balance sheet 30 (37) — —
Income tax relating to items that will not be reclassified 9 (718) (1,303) 739
1,562 2,343 (1,757)
Other comprehensive income (1,980) 5,016 (988)
Total comprehensive income 7,598 8,484 (816)
Attributable to
BP shareholders 7,444 8,353 (846)
Non-controlling interests 154 131 30
7,598 8,484 (816)
a
See Note 32 for further information.

Group statement of changes in equitya
$ million
Share Foreign
capital and currency Profit and BP Non-
capital Treasury translation Fair value loss shareholders' controlling
reserves shares reserve reserves account equity interests Total equity
At 31 December 2017 46,122 (16,958) (5,156) (743) 75,226 98,491 1,913 100,404
Adjustment on adoption of IFRS 9, net of tax — — — (54) (126) (180) — (180)
At 1 January 2018 46,122 (16,958) (5,156) (797) 75,100 98,311 1,913 100,224
Profit (loss) for the year — — — — 9,383 9,383 195 9,578
Other comprehensive income — — (3,746) (216) 2,023 (1,939) (41) (1,980)
Total comprehensive income — — (3,746) (216) 11,406 7,444 154 7,598
Dividendsb — — — — (6,699) (6,699) (170) (6,869)
Cash flow hedges transferred to the balance
sheet, net of tax — — — 26 — 26 — 26
Repurchase of ordinary share capital — — — — (355) (355) — (355)
Share-based payments, net of tax 230 1,191 — — (718) 703 — 703
Share of equity-accounted entities’ changes in
equity, net of tax — — — — 14 14 — 14
Transactions involving non-controlling interests,
net of tax — — — — — — 207 207
At 31 December 2018 46,352 (15,767) (8,902) (987) 78,748 99,444 2,104 101,548
At 1 January 2017 46,122 (18,443) (6,878) (1,153) 75,638 95,286 1,557 96,843
Profit (loss) for the year — — — — 3,389 3,389 79 3,468
Other comprehensive income — — 1,722 410 2,832 4,964 52 5,016
Total comprehensive income — — 1,722 410 6,221 8,353 131 8,484
Dividendsb — — — — (6,153) (6,153) (141) (6,294)
Repurchase of ordinary share capital — — — — (343) (343) — (343)
Share-based payments, net of tax — 1,485 — — (798) 687 — 687
equity, net of tax — — — — 215 215 — 215
net of tax — — — — 446 446 366 812
At 31 December 2017 46,122 (16,958) (5,156) (743) 75,226 98,491 1,913 100,404
At 1 January 2016 43,902 (19,964) (7,267) (823) 81,368 97,216 1,171 98,387
Profit (loss) for the year — — — — 115 115 57 172
Other comprehensive income — — 389 (330) (1,020) (961) (27) (988)
Total comprehensive income — — 389 (330) (905) (846) 30 (816)
Dividendsb — — — — (4,611) (4,611) (107) (4,718)
Share-based payments, net of tax 2,220 1,521 — — (750) 2,991 — 2,991
equity, net of tax — — — — 106 106 — 106
net of tax — — — — 430 430 463 893
At 31 December 2016 46,122 (18,443) (6,878) (1,153) 75,638 95,286 1,557 96,843
a
b

Group balance sheet
At 31 December $ million
Note 2018 2017
Non-current assets
Property, plant and equipment 12 135,261 129,471
Goodwill 14 12,204 11,551
Intangible assets 15 17,284 18,355
Investments in joint ventures 16 8,647 7,994
Investments in associates 17 17,673 16,991
Other investments 18 1,341 1,245
Fixed assets 192,410 185,607
Loans 637 646
Trade and other receivables 20 1,834 1,434
Derivative financial instruments 30 5,145 4,110
Prepayments 1,179 1,112
Deferred tax assets 9 3,706 4,469
Defined benefit pension plan surpluses 24 5,955 4,169
210,866 201,547
Current assets
Loans 326 190
Inventories 19 17,988 19,011
Trade and other receivables 20 24,478 24,849
Prepayments 963 1,414
Current tax receivable 1,019 761
Other investments 18 222 125
Cash and cash equivalents 25 22,468 25,586
71,310 74,968
Total assets 282,176 276,515
Current liabilities
Trade and other payables 22 46,265 44,209
Accruals 4,626 4,960
Finance debt 26 9,373 7,739
Current tax payable 2,101 1,686
Provisions 23 2,564 3,324
68,237 64,726
Non-current liabilities
Other payables 22 13,830 13,889
Accruals 575 505
Finance debt 26 56,426 55,491
Deferred tax liabilities 9 9,812 7,982
Provisions 23 17,732 20,620
Defined benefit pension plan and other post-retirement benefit plan deficits 24 8,391 9,137
112,391 111,385
Total liabilities 180,628 176,111
Net assets 101,548 100,404
Equity
BP shareholders’ equity 32 99,444 98,491
Non-controlling interests 32 2,104 1,913
Total equity 32 101,548 100,404
Helge Lund Chairman

R W Dudley Group chief executive
29 March 2019

Group cash flow statement
Note 2018 2017 2016
Operating activities
Profit (loss) before taxation 16,723 7,180 (2,295)
Adjustments to reconcile profit (loss) before taxation to net cash provided by
operating activities
Exploration expenditure written off 8 1,085 1,603 1,274
Depreciation, depletion and amortization 5 15,457 15,584 14,505
Impairment and (gain) loss on sale of businesses and fixed assets 4 404 6 (2,796)
Earnings from joint ventures and associates (3,753) (2,507) (1,960)
Dividends received from joint ventures and associates 1,535 1,253 1,105
Interest receivable (468) (304) (200)
Interest received 348 375 267
Finance costs 7 2,528 2,074 1,675
Interest paid (1,928) (1,572) (1,137)
Net finance expense relating to pensions and other post-retirement benefits 24 127 220 190
Share-based payments 690 661 779
Net operating charge for pensions and other post-retirement benefits, less
contributions and benefit payments for unfunded plans 24 (386) (394) (467)
Net charge for provisions, less payments 986 2,106 4,487
(Increase) decrease in inventories 672 (848) (3,681)
(Increase) decrease in other current and non-current assets (2,858) (4,848) (1,172)
Increase (decrease) in other current and non-current liabilities (2,577) 2,344 1,655
Income taxes paid (5,712) (4,002) (1,538)
Net cash provided by operating activities 22,873 18,931 10,691
Investing activities
Expenditure on property, plant and equipment, intangible and other assets (16,707) (16,562) (16,701)
Acquisitions, net of cash acquired 3 (6,986) (327) (1)
Investment in joint ventures (382) (50) (50)
Investment in associates (1,013) (901) (700)
Total cash capital expenditure (25,088) (17,840) (17,452)
Proceeds from disposals of fixed assets 4 940 2,936 1,372
Proceeds from disposals of businesses, net of cash disposed 4 1,911 478 1,259
Proceeds from loan repayments 666 349 68
Net cash used in investing activities (21,571) (14,077) (14,753)
Financing activities
Repurchase of shares (355) (343) —
Proceeds from long-term financing 9,038 8,712 12,442
Repayments of long-term financing (7,210) (6,276) (6,685)
Net increase (decrease) in short-term debt 1,317 (158) 51
Net increase (decrease) in non-controlling interests — 1,063 887
Dividends paid
BP shareholders 10 (6,699) (6,153) (4,611)
Non-controlling interests (170) (141) (107)
Net cash provided by (used in) financing activities (4,079) (3,296) 1,977
Currency translation differences relating to cash and cash equivalents (330) 544 (820)
Increase (decrease) in cash and cash equivalents (3,107) 2,102 (2,905)
Cash and cash equivalents at beginning of yeara 25,575 23,484 26,389
Cash and cash equivalents at end of year 22,468 25,586 23,484
a

Notes on financial statements
1. Significant accounting policies, judgements, estimates and assumptions
Authorization of financial statements and statement of compliance with International Financial Reporting Standards
The consolidated financial statements of BP p.l.c and its subsidiaries (collectively referred to as BP or the group) for the year ended
31 December 2018 were approved and signed by the group chief executive and chairman on 29 March 2019 having been duly authorized to do
so by the board of directors. BP p.l.c. is a public limited company incorporated and domiciled in England and Wales. The consolidated financial
statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board (IASB), IFRS as adopted by the European Union (EU) and in accordance with the provisions of the UK Companies Act 2006 as
applicable to companies reporting under IFRS. IFRS as adopted by the EU differs in certain respects from IFRS as issued by the IASB. The
differences have no impact on the group’s consolidated financial statements for the years presented. The significant accounting policies and
accounting judgements, estimates and assumptions of the group are set out below.
Basis of preparation
The consolidated financial statements have been prepared on a going concern basis and in accordance with IFRS and IFRS Interpretations
Committee (IFRIC) interpretations issued and effective for the year ended 31 December 2018. The accounting policies that follow have been
consistently applied to all years presented, except where otherwise indicated.
The consolidated financial statements are presented in US dollars and all values are rounded to the nearest million dollars ($ million), except
where otherwise indicated.
Significant accounting policies: use of judgements, estimates and assumptions
Inherent in the application of many of the accounting policies used in preparing the consolidated financial statements is the need for BP
management to make judgements, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual outcomes could differ from the estimates and
assumptions used. The accounting judgements and estimates that have a significant impact on the results of the group are set out in boxed
text below, and should be read in conjunction with the information provided in the Notes on financial statements. The areas requiring the most
significant judgement and estimation in the preparation of the consolidated financial statements are: accounting for the investment in Rosneft;
oil and natural gas accounting, including the estimation of reserves; the recoverability of asset carrying values; derivative financial instruments;
provisions and contingencies; and pensions and other post-retirement benefits. Where an estimate has a significant risk of resulting in a
material adjustment to the carrying amounts of assets and liabilities within the next financial year this is specifically noted within the boxed
text. The group no longer considers the recoverability of trade receivables to represent one of its significant accounting judgements following
the adoption of IFRS 9 ‘Financial Instruments´ and resulting recognition of expected credit losses, see Impact of new International Financial
Reporting Standards for more information. The group does not consider income taxes to represent a significant estimate or judgement for
2018, see Income taxes for more information.
Basis of consolidation
The group financial statements consolidate the financial statements of BP p.l.c. and its subsidiaries drawn up to 31 December each year.
Subsidiaries are consolidated from the date of their acquisition, being the date on which the group obtains control, and continue to be
consolidated until the date that control ceases. The financial statements of subsidiaries are prepared for the same reporting year as the parent
company, using consistent accounting policies. Intra-group balances and transactions, including unrealized profits arising from intra-group
transactions, have been eliminated. Unrealized losses are eliminated unless the transaction provides evidence of an impairment of the asset
transferred. Non-controlling interests represent the equity in subsidiaries that is not attributable, directly or indirectly, to BP shareholders.
Interests in other entities
Business combinations and goodwill
Business combinations are accounted for using the acquisition method. The identifiable assets acquired and liabilities assumed are recognized
at their fair values at the acquisition date.
Goodwill is initially measured as the excess of the aggregate of the consideration transferred, the amount recognized for any non-controlling
interest and the acquisition-date fair values of any previously held interest in the acquiree over the fair value of the identifiable assets acquired
and liabilities assumed at the acquisition date. At the acquisition date, any goodwill acquired is allocated to each of the cash-generating units,
or groups of cash-generating units, expected to benefit from the combination’s synergies. Following initial recognition, goodwill is measured at
cost less any accumulated impairment losses. Goodwill arising on business combinations prior to 1 January 2003 is stated at the previous
carrying amount under UK generally accepted accounting practice, less subsequent impairments. See Note 14 for further information.
Goodwill may arise upon investments in joint ventures and associates, being the surplus of the cost of investment over the group’s share of
the net fair value of the identifiable assets and liabilities. Any such goodwill is recorded within the corresponding investment in joint ventures
and associates.
Goodwill may also arise upon acquisition of interests in joint operations that meet the definition of a business. The amount of goodwill
separately recognized is the excess of the consideration transferred over the group's share of the net fair value of the identifiable assets and
liabilities.
Interests in joint arrangements
The results, assets and liabilities of joint ventures are incorporated in these consolidated financial statements using the equity method of
accounting as described below.
Certain of the group’s activities, particularly in the Upstream segment, are conducted through joint operations. BP recognizes, on a line-by-line
basis in the consolidated financial statements, its share of the assets, liabilities and expenses of these joint operations incurred jointly with the
other partners, along with the group’s income from the sale of its share of the output and any liabilities and expenses that the group has
incurred in relation to the joint operation.
Interests in associates
The results, assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of
accounting as described below.

1. Significant accounting policies, judgements, estimates and assumptions – continued
Significant judgement: investment in Rosneft
Judgement is required in assessing the level of control or influence over another entity in which the group holds an interest. For BP, the
judgement that the group has significant influence over Rosneft Oil Company (Rosneft), a Russian oil and gas company is significant. As a
consequence of this judgement, BP uses the equity method of accounting for its investment and BP's share of Rosneft's oil and natural gas
reserves is included in the group's estimated net proved reserves of equity-accounted entities. If significant influence was not present, the
investment would be accounted for as an investment in an equity instrument measured at fair value as described under 'Financial assets'
below and no share of Rosneft's oil and natural gas reserves would be reported.
Significant influence is defined in IFRS as the power to participate in the financial and operating policy decisions of the investee but is not
control or joint control of those policies. Significant influence is presumed when an entity owns 20% or more of the voting power of the
investee. Significant influence is presumed not to be present when an entity owns less than 20% of the voting power of the investee.
BP owns 19.75% of the voting shares of Rosneft. The Russian federal government, through its investment company JSC Rosneftegaz,
owned 50% plus one share of the voting shares of Rosneft at 31 December 2018. IFRS identifies several indicators that may provide
evidence of significant influence, including representation on the board of directors of the investee and participation in policy-making
processes. BP’s group chief executive, Bob Dudley, has been a member of the board of directors of Rosneft since 2013 and he is chairman of
the Rosneft board’s Strategic Planning Committee. A second BP-nominated director, Guillermo Quintero, has been a member of the Rosneft
board and its HR and Remuneration Committee since 2015. BP also holds the voting rights at general meetings of shareholders conferred by
its 19.75% stake in Rosneft. BP's management consider, therefore, that the group has significant influence over Rosneft, as defined by IFRS.
The equity method of accounting

Under the equity method, an investment is carried on the balance sheet at cost plus post-acquisition changes in the group’s share of net
assets of the entity, less distributions received and less any impairment in value of the investment. Loans advanced to equity-accounted
entities that have the characteristics of equity financing are also included in the investment on the group balance sheet. The group income
statement reflects the group’s share of the results after tax of the equity-accounted entity, adjusted to account for depreciation, amortization
and any impairment of the equity-accounted entity’s assets based on their fair values at the date of acquisition. The group statement of
comprehensive income includes the group’s share of the equity-accounted entity’s other comprehensive income. The group’s share of amounts
recognized directly in equity by an equity-accounted entity is recognized directly in the group’s statement of changes in equity.
Financial statements of equity-accounted entities are prepared for the same reporting year as the group. Where material differences arise in the
accounting policies used by the equity-accounted entity and those used by BP, adjustments are made to those financial statements to bring the
accounting policies used into line with those of the group.
Unrealized gains on transactions between the group and its equity-accounted entities are eliminated to the extent of the group’s interest in the
equity-accounted entity.
The group assesses investments in equity-accounted entities for impairment whenever there is objective evidence that the investment is
impaired. If any such objective evidence of impairment exists, the carrying amount of the investment is compared with its recoverable amount,
being the higher of its fair value less costs of disposal and value in use. If the carrying amount exceeds the recoverable amount, the
investment is written down to its recoverable amount.
Segmental reporting
The group’s operating segments are established on the basis of those components of the group that are evaluated regularly by the group chief
executive, BP’s chief operating decision maker, in deciding how to allocate resources and in assessing performance.
The accounting policies of the operating segments are the same as the group’s accounting policies described in this note, except that IFRS
requires that the measure of profit or loss disclosed for each operating segment is the measure that is provided regularly to the chief operating
decision maker. For BP, this measure of profit or loss is replacement cost profit before interest and tax which reflects the replacement cost of
inventories sold in the period and is arrived at by excluding inventory holding gains and losses from profit. Replacement cost profit for the
group is not a recognized measure under IFRS. For further information see Note 5.
Foreign currency translation
In individual subsidiaries, joint ventures and associates, transactions in foreign currencies are initially recorded in the functional currency of
those entities at the spot exchange rate on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are
retranslated into the functional currency at the spot exchange rate on the balance sheet date. Any resulting exchange differences are included
in the income statement, unless hedge accounting is applied. Non-monetary assets and liabilities, other than those measured at fair value, are
not retranslated subsequent to initial recognition.
In the consolidated financial statements, the assets and liabilities of non-US dollar functional currency subsidiaries, joint ventures, associates,
and related goodwill, are translated into US dollars at the spot exchange rate on the balance sheet date. The results and cash flows of non-US
dollar functional currency subsidiaries, joint ventures and associates are translated into US dollars using average rates of exchange. In the
consolidated financial statements, exchange adjustments arising when the opening net assets and the profits for the year retained by non-US
dollar functional currency subsidiaries, joint ventures and associates are translated into US dollars are recognized in a separate component of
equity and reported in other comprehensive income. Exchange gains and losses arising on long-term intra-group foreign currency borrowings
used to finance the group’s non-US dollar investments are also reported in other comprehensive income if the borrowings form part of the net
investment in the subsidiary, joint venture or associate. On disposal or for certain partial disposals of a non-US dollar functional currency
subsidiary, joint venture or associate, the related accumulated exchange gains and losses recognized in equity are reclassified from equity to
the income statement.
Non-current assets held for sale
Non-current assets and disposal groups classified as held for sale are measured at the lower of carrying amount and fair value less costs to
sell.
Significant non-current assets and disposal groups are classified as held for sale if their carrying amounts will be recovered through a sale
transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset or
disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such
assets. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year
from the date of classification as held for sale, and actions required to complete the plan of sale should indicate that it is unlikely that
significant changes to the plan will be made or that the plan will be withdrawn.

Property, plant and equipment and intangible assets are not depreciated or amortized once classified as held for sale.
Intangible assets
Intangible assets, other than goodwill, include expenditure on the exploration for and evaluation of oil and natural gas resources, computer
software, patents, licences and trademarks and are stated at the amount initially recognized, less accumulated amortization and accumulated
impairment losses.
Intangible assets are carried initially at cost unless acquired as part of a business combination. Any such asset is measured at fair value at the
date of the business combination and is recognized separately from goodwill if the asset is separable or arises from contractual or other legal
rights.
Intangible assets with a finite life, other than capitalized exploration and appraisal costs as described below, are amortized on a straight-line
basis over their expected useful lives. For patents, licences and trademarks, expected useful life is the shorter of the duration of the legal
agreement and economic useful life, and can range from three to fifteen years. Computer software costs generally have a useful life of three to
five years.
The expected useful lives of assets and the amortization method are reviewed on an annual basis and, if necessary, changes in useful lives or
the amortization method are accounted for prospectively.
Oil and natural gas exploration, appraisal and development expenditure
Oil and natural gas exploration, appraisal and development expenditure is accounted for using the principles of the successful efforts method
of accounting as described below.
Licence and property acquisition costs
Exploration licence and leasehold property acquisition costs are capitalized within intangible assets and are reviewed at each reporting date to
confirm that there is no indication that the carrying amount exceeds the recoverable amount. This review includes confirming that exploration
drilling is still under way or planned or that it has been determined, or work is under way to determine, that the discovery is economically viable
based on a range of technical and commercial considerations, and sufficient progress is being made on establishing development plans and
timing. If no future activity is planned, the remaining balance of the licence and property acquisition costs is written off. Lower value licences
are pooled and amortized on a straight-line basis over the estimated period of exploration. Upon recognition of proved reserves and internal
approval for development, the relevant expenditure is transferred to property, plant and equipment.
Exploration and appraisal expenditure
Geological and geophysical exploration costs are recognized as an expense as incurred. Costs directly associated with an exploration well are
initially capitalized as an intangible asset until the drilling of the well is complete and the results have been evaluated. These costs include
employee remuneration, materials and fuel used, rig costs and payments made to contractors. If potentially commercial quantities of
hydrocarbons are not found, the exploration well costs are written off. If hydrocarbons are found and, subject to further appraisal activity, are
likely to be capable of commercial development, the costs continue to be carried as an asset. If it is determined that development will not
occur then the costs are expensed.
Costs directly associated with appraisal activity undertaken to determine the size, characteristics and commercial potential of a reservoir
following the initial discovery of hydrocarbons, including the costs of appraisal wells where hydrocarbons were not found, are initially
capitalized as an intangible asset. When proved reserves of oil and natural gas are determined and development is approved by management,
the relevant expenditure is transferred to property, plant and equipment.
The determination of whether potentially economic oil and natural gas reserves have been discovered by an exploration well is usually made
within one year of well completion, but can take longer, depending on the complexity of the geological structure. Exploration wells that
discover potentially economic quantities of oil and natural gas and are in areas where major capital expenditure (e.g. an offshore platform or a
pipeline) would be required before production could begin, and where the economic viability of that major capital expenditure depends on the
successful completion of further exploration or appraisal work in the area, remain capitalized on the balance sheet as long as such work is
under way or firmly planned.
Development expenditure
Expenditure on the construction, installation and completion of infrastructure facilities such as platforms, pipelines and the drilling of
development wells, including service and unsuccessful development or delineation wells, is capitalized within property, plant and equipment
and is depreciated from the commencement of production as described below in the accounting policy for property, plant and equipment.
Significant judgement: oil and natural gas accounting
Judgement is required to determine whether it is appropriate to continue to carry costs associated with exploration wells and exploratory-
type stratigraphic test wells on the balance sheet. This includes costs relating to exploration licences or leasehold property acquisitions. It is
not unusual to have such costs remaining suspended on the balance sheet for several years while additional appraisal drilling and seismic
work on the potential oil and natural gas field is performed or while the optimum development plans and timing are established. All such
carried costs are subject to regular technical, commercial and management review on at least an annual basis to confirm the continued intent
to develop, or otherwise extract value from, the discovery. Where this is no longer the case, the costs are immediately expensed.
One of the circumstances that indicate an entity should test such assets for impairment is that the period for which the entity has a right to
explore in the specific area has expired or will expire in the near future, and is not expected to be renewed. BP has leases in the Gulf of
Mexico making up a prospect, some with terms that were scheduled to expire at the end of 2013 and some with terms that were scheduled
to expire at the end of 2014. A significant proportion of our capitalized exploration and appraisal costs in the Gulf of Mexico relate to this
prospect. This prospect requires the development of subsea technology to ensure that the hydrocarbons can be extracted safely. BP is in
negotiation with the US Bureau of Safety and Environmental Enforcement in relation to seeking extension of these leases so that the
discovered hydrocarbons can be developed. BP remains committed to developing this prospect and expects that the leases will be renewed
and, therefore, continues to carry the capitalized costs on its balance sheet. The carrying amount of capitalized costs is included in Note 8.

Property, plant and equipment
Property, plant and equipment is stated at cost, less accumulated depreciation and accumulated impairment losses. The initial cost of an asset
comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into the location and condition necessary
for it to be capable of operating in the manner intended by management, the initial estimate of any decommissioning obligation, if any, and, for
assets that necessarily take a substantial period of time to get ready for their intended use, directly attributable general or specific finance
costs. The purchase price or construction cost is the aggregate amount paid and the fair value of any other consideration given to acquire the
asset. The capitalized value of a finance lease is also included within property, plant and equipment.
Expenditure on major maintenance refits or repairs comprises the cost of replacement assets or parts of assets, inspection costs and overhaul
costs. Where an asset or part of an asset that was separately depreciated is replaced and it is probable that future economic benefits
associated with the item will flow to the group, the expenditure is capitalized and the carrying amount of the replaced asset is derecognized.
Inspection costs associated with major maintenance programmes are capitalized and amortized over the period to the next inspection.
Overhaul costs for major maintenance programmes, and all other maintenance costs are expensed as incurred.
Oil and natural gas properties, including related pipelines, are depreciated using a unit-of-production method. The cost of producing wells is
amortized over proved developed reserves. Licence acquisition, common facilities and future decommissioning costs are amortized over total
proved reserves. The unit-of-production rate for the depreciation of common facilities takes into account expenditures incurred to date,
together with estimated future capital expenditure expected to be incurred relating to as yet undeveloped reserves expected to be processed
through these common facilities. Information on the carrying amounts of the group’s oil and natural gas properties, together with the amounts
recognized in the income statement as depreciation, depletion and amortization is contained in Note 12 and Note 5 respectively.
Estimates of oil and natural gas reserves determined by applying US Securities and Exchange Commission regulations including the
determination of prices using 12-month historical data are used to calculate depreciation, depletion and amortization charges for the group’s oil
and gas properties. The impact of changes in estimated proved reserves is dealt with prospectively by amortizing the remaining carrying value
of the asset over the expected future production.
The estimation of oil and natural gas reserves and BP’s process to manage reserves bookings is described in Supplementary information on oil
and natural gas on page 210, which is unaudited. Details on BP’s proved reserves and production compliance and governance processes are
provided on page 286. The 2018 movements in proved reserves are reflected in the tables showing movements in oil and natural gas reserves
by region in Supplementary information on oil and natural gas (unaudited) on page 210.
Other property, plant and equipment is depreciated on a straight-line basis over its expected useful life. The typical useful lives of the group’s
other property, plant and equipment are as follows:
Land improvements 15 to 25 years
Buildings 20 to 50 years
Refineries 20 to 30 years
Petrochemicals plants 20 to 30 years
Pipelines 10 to 50 years
Service stations 15 years
Office equipment 3 to 7 years
Fixtures and fittings 5 to 15 years
The expected useful lives and depreciation method of property, plant and equipment are reviewed on an annual basis and, if necessary,
changes in useful lives or the depreciation method are accounted for prospectively.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the
continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the item) is included in the income statement in the period in which the item is derecognized.
Impairment of property, plant and equipment, intangible assets, and goodwill
The group assesses assets or groups of assets, called cash-generating units (CGUs), for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset or CGU may not be recoverable; for example, changes in the group’s business
plans, changes in the group’s assumptions about commodity prices, low plant utilization, evidence of physical damage or, for oil and gas
assets, significant downward revisions of estimated reserves or increases in estimated future development expenditure or decommissioning
costs. If any such indication of impairment exists, the group makes an estimate of the asset’s or CGU’s recoverable amount. Individual assets
are grouped into CGUs for impairment assessment purposes at the lowest level at which there are identifiable cash flows that are largely
independent of the cash flows of other groups of assets. A CGU’s recoverable amount is the higher of its fair value less costs of disposal and
its value in use. Where the carrying amount of a CGU exceeds its recoverable amount, the CGU is considered impaired and is written down to
its recoverable amount.

The business segment plans, which are approved on an annual basis by senior management, are the primary source of information for the
determination of value in use. They contain forecasts for oil and natural gas production, refinery throughputs, sales volumes for various types of
refined products (e.g. gasoline and lubricants), revenues, costs and capital expenditure. As an initial step in the preparation of these plans,
various assumptions regarding market conditions, such as oil prices, natural gas prices, refining margins, refined product margins and cost
inflation rates are set by senior management. These assumptions take account of existing prices, global supply-demand equilibrium for oil and
natural gas, other macroeconomic factors and historical trends and variability. In assessing value in use, the estimated future cash flows are
adjusted for the risks specific to the asset group that are not reflected in the discount rate and are discounted to their present value typically
using a pre-tax discount rate that reflects current market assessments of the time value of money.
Fair value less costs of disposal is the price that would be received to sell the asset in an orderly transaction between market participants and
does not reflect the effects of factors that may be specific to the group and not applicable to entities in general.
An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no
longer exist or may have decreased. If such an indication exists, the recoverable amount is estimated. A previously recognized impairment loss
is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss
was recognized. If that is the case, the carrying amount of the asset is increased to the lower of its recoverable amount and the carrying
amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.
Impairment reversals are recognized in profit or loss. After a reversal, the depreciation charge is adjusted in future periods to allocate the
asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate the recoverable amount of the
group of CGUs to which the goodwill relates should be assessed. In assessing whether goodwill has been impaired, the carrying amount of
the group of CGUs to which goodwill has been allocated is compared with its recoverable amount. Where the recoverable amount of the group
of CGUs is less than the carrying amount (including goodwill), an impairment loss is recognized. An impairment loss recognized for goodwill is
not reversed in a subsequent period.
Significant judgements and estimates: recoverability of asset carrying values
Determination as to whether, and by how much, an asset, CGU, or group of CGUs containing goodwill is impaired involves management
estimates on highly uncertain matters such as the effects of inflation and deflation on operating expenses, discount rates, production
profiles, reserves and resources, and future commodity prices, including the outlook for global or regional market supply-and-demand
conditions for crude oil, natural gas and refined products. Judgement is required when determining the appropriate grouping of assets into a
CGU or the appropriate grouping of CGUs for impairment testing purposes. For example, certain oil and gas properties with shared
infrastructure may be grouped together to form a single CGU. Alternative groupings of assets or CGUs may result in a different outcome
from impairment testing. See Note 14 for details on how these groupings have been determined in relation to the impairment testing of
goodwill.
As disclosed above, the recoverable amount of an asset is the higher of its value in use and its fair value less costs of disposal. Fair value less
costs of disposal may be determined based on expected sales proceeds or similar recent market transaction data or, where recent market
transactions are not available for reference, using discounted cash flow techniques. Where discounted cash flow analyses are used to
calculate fair value less costs of disposal, estimates are made about the assumptions market participants would use when pricing the asset,
CGU or group of CGUs containing goodwill and the test is performed on a post-tax basis.
Details of impairment charges and reversals recognized in the income statement are provided in Note 4 and details on the carrying amounts
of assets are shown in Note 12, Note 14 and Note 15.
The estimates for assumptions made in impairment tests in 2018 relating to discount rates, oil and gas properties and oil and gas prices are
discussed below. Changes in the economic environment or other facts and circumstances may necessitate revisions to these assumptions
and could result in a material change to the carrying values of the group's assets within the next financial year.
Discount rates
For discounted cash flow calculations, future cash flows are adjusted for risks specific to the cash-generating unit. Value-in-use calculations
are typically discounted using a pre-tax discount rate based upon the cost of funding the group derived from an established model, adjusted
to a pre-tax basis. Fair value less costs of disposal calculations use the post-tax discount rate.
The discount rates applied in impairment tests are reassessed each year. In 2018 the post-tax discount rate was 6% (2017 6%) and the pre-
tax discount rate was 9% (2017 9%). Where the cash-generating unit is located in a country which is judged to be higher risk an additional
2% premium was added to the discount rate (2017 2%). The judgement of classifying a country as higher risk takes into account various
economic and geopolitical factors.
Oil and natural gas properties
For oil and natural gas properties, expected future cash flows are estimated using management’s best estimate of future oil and natural gas
prices and production and reserves volumes. The estimated future level of production in all impairment tests is based on assumptions about
future commodity prices, production and development costs, field decline rates, current fiscal regimes and other factors.
The recoverability of intangible exploration and appraisal expenditure is covered under Oil and natural gas exploration, appraisal and
development expenditure above.
Oil and gas prices
The long-term price assumptions used to determine recoverable amount based on value-in-use impairment tests from 2024 onwards are
derived from $75 per barrel for Brent and $4/mmBtu for Henry Hub, both in 2015 prices, inflated for the remaining life of the asset (2017 $75
per barrel and $4/mmBtu, both in 2015 prices, from 2023 onwards).
The price assumptions used for the five-year period to 2023 have been set such that there is a gradual transition from current market prices
to the long-term price assumptions as noted above, with the rate of increase reducing in the later years.

Oil prices rebounded in 2018 in the face of cooperative production restraint from OPEC and some non-OPEC producers, but weakened late in
the year as production restraint eased and US supply recorded record growth. BP's long-term assumption for oil prices is higher than recent
market prices, reflecting the judgement that recent prices are not consistent with the market being able to produce sufficient oil to meet
global demand sustainably in the longer term, especially given the financial requirements of key low-cost oil producing economies.
US gas prices remained relatively low for much of 2018, before increasing temporarily in the final quarter due to a combination of low storage
and cold weather. Strong growth of low-cost supply helped to moderate prices through much of the year. BP's long-term price assumption
for US gas is higher than recent market prices as US gas demand is expected to grow strongly, both domestic demand as well as exports of
liquefied natural gas, absorbing the lowest cost resources from the sweet spots, and forcing producers to go to more expensive/drier gas, as
well as requiring increased investment in infrastructure.
Oil and natural gas reserves
In addition to oil and gas prices, significant technical and commercial assessments are required to determine the group’s estimated oil and
natural gas reserves. Reserves estimates are regularly reviewed and updated. Factors such as the availability of geological and engineering
data, reservoir performance data, acquisition and divestment activity and drilling of new wells all impact on the determination of the group’s
estimates of its oil and natural gas reserves. BP bases its proved reserves estimates on the requirement of reasonable certainty with rigorous
technical and commercial assessments based on conventional industry practice and regulatory requirements.
Reserves assumptions for value-in-use and fair value tests reflect the reserves and resources that management currently intend to develop.
The recoverable amount of oil and gas properties is determined using a combination of inputs including reserves, resources and production
volumes. Risk factors may be applied to reserves and resources which do not meet the criteria to be treated as proved.
The interdependency of these inputs, risk factors and the wide diversity of our oil and gas properties limits the practicability of estimating the
probability or extent to which the overall recoverable amount is impacted by changes to one or more of the underlying assumptions. The
recoverable amount of oil and gas properties is primarily sensitive to changes in the long-term oil and gas price assumptions. Management do
not expect a change in these long-term price assumptions within the next financial year that would result in a material impairment charge.
However, sensitivity analysis may be performed if a specific oil and gas property is identified to have low headroom above its carrying amount.
In 2018, the group identified oil and gas properties with carrying amounts totalling $22,000 million where the headroom, as at the dates of the
last impairment test performed on those assets, was less than or equal to 20% of the carrying value, including $1,345 million in relation to
equity-accounted entities. A change in the discount rate, reserves, resources or the oil and gas price assumptions in the next financial year may
result in the recoverable amount of one or more of these assets falling below the current carrying amount.
Goodwill
Irrespective of whether there is any indication of impairment, BP is required to test annually for impairment of goodwill acquired in business
combinations. The group carries goodwill of approximately $12.2 billion on its balance sheet (2017 $11.6 billion), principally relating to the
Atlantic Richfield, Burmah Castrol, Devon Energy and Reliance transactions. If there are low oil or natural gas prices for an extended period or
the long-term price outlook weakens, the group may need to recognize goodwill impairment charges against its Upstream segment goodwill.
Sensitivities relating to impairment testing of goodwill in the Upstream segment are provided in Note 14.
Inventories
Inventories, other than inventories held for short-term trading purposes, are stated at the lower of cost and net realizable value. Cost is
determined by the first-in first-out method and comprises direct purchase costs, cost of production, transportation and manufacturing
expenses. Net realizable value is determined by reference to prices existing at the balance sheet date, adjusted where the sale of inventories
after the reporting period gives evidence about their net realizable value at the end of the period.
Inventories held for short-term trading purposes are stated at fair value less costs to sell and any changes in fair value are recognized in the
income statement.
Supplies are valued at the lower of cost on a weighted average basis and net realizable value.
Leases
Agreements under which payments are made to owners in return for the right to use a specific asset are accounted for as leases. Leases that
transfer substantially all the risks and rewards of ownership are recognized as finance leases. All other leases are accounted for as operating
leases.
Finance leases are capitalized at the commencement of the lease term at the fair value of the leased item or, if lower, at the present value of
the minimum lease payments. Finance charges are allocated to each period so as to achieve a constant rate of interest on the remaining
balance of the liability and are charged directly against income. Capitalized leased assets are depreciated over the shorter of the estimated
useful life of the asset or the lease term. Operating lease payments are recognized as an expense on a straight-line basis over the lease term
except where capitalized as exploration or appraisal expenditure. See significant accounting policy: Exploration and appraisal expenditure.
Financial assets
Financial assets are recognized initially at fair value, normally being the transaction price. In the case of financial assets not at fair value through
profit or loss, directly attributable transaction costs are also included. The subsequent measurement of financial assets depends on their
classification, as set out below. The group derecognizes financial assets when the contractual rights to the cash flows expire or the financial
asset is transferred to a third party. This includes the derecognition of receivables for which discounting arrangements are entered into.
From 1 January 2018, the group classifies its financial asset debt instruments as measured at amortized cost, fair value through other
comprehensive income or fair value through profit or loss. The classification depends on the business model for managing the financial assets
and the contractual cash flow characteristics of the financial asset.
Financial assets measured at amortized cost
Financial assets are classified as measured at amortized cost when they are held in a business model the objective of which is to collect
contractual cash flows and the contractual cash flows represent solely payments of principal and interest. Such assets are carried at amortized
cost using the effective interest method if the time value of money is significant. Gains and losses are recognized in profit or loss when the
assets are derecognized or impaired and when interest is recognized using the effective interest method. This category of financial assets
includes trade and other receivables.

Financial assets measured at fair value through other comprehensive income
Financial assets are classified as measured at fair value through other comprehensive income when they are held in a business model the
objective of which is both to collect contractual cash flows and sell the financial assets, and the contractual cash flows represent solely
payments of principal and interest. The group does not have any financial assets classified in this category.
Financial assets measured at fair value through profit or loss
Financial assets are classified as measured at fair value through profit or loss when the asset does not meet the criteria to be measured at
amortized cost or fair value through other comprehensive income. Such assets are carried on the balance sheet at fair value with gains or
losses recognized in the income statement. Derivatives, other than those designated as effective hedging instruments, are included in this
category.
Investments in equity instruments
Investments in equity instruments are subsequently measured at fair value through profit or loss unless an election is made on an instrument-
by-instrument basis to recognise fair value gains and losses in other comprehensive income.
Derivatives designated as hedging instruments in an effective hedge
These derivatives are carried on the balance sheet at fair value. The treatment of gains and losses arising from revaluation is described below in
the accounting policy for derivative financial instruments and hedging activities.
Cash equivalents
Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash, are subject to insignificant risk
of changes in value and generally have a maturity of three months or less from the date of acquisition. Cash equivalents are classified as
financial assets measured at amortized cost or fair value through profit or loss.
Impairment of financial assets measured at amortized cost
The group assesses on a forward looking basis the expected credit losses associated with financial assets classified as measured at amortized
cost at each balance sheet date. Expected credit losses are measured based on the maximum contractual period over which the group is
exposed to credit risk. Since this is typically less than 12 months there is no significant difference between the measurement of 12-month and
lifetime expected credit losses for the group's in-scope financial assets. The measurement of expected credit losses is a function of the
probability of default, loss given default and exposure at default. The expected credit loss is estimated as the difference between the asset’s
carrying amount and the present value of the future cash flows the group expects to receive discounted at the financial asset’s original
effective interest rate. The carrying amount of the asset is adjusted, with the amount of the impairment gain or loss recognized in the income
statement.
A financial asset or group of financial assets classified as measured at amortized cost is considered to be credit-impaired if there is reasonable
and supportable evidence that one or more events that have a detrimental impact on the estimated future cash flows of the financial asset (or
group of financial assets) have occurred. Financial assets are written off where the group has no reasonable expectation of recovering amounts
due.
Financial liabilities
The measurement of financial liabilities depends on their classification, as follows:
Financial liabilities measured at fair value through profit or loss
Financial liabilities that meet the definition of held for trading are classified as measured at fair value through profit or loss. Such liabilities are
carried on the balance sheet at fair value with gains or losses recognized in the income statement. Derivatives, other than those designated as
effective hedging instruments, are included in this category.
Derivatives designated as hedging instruments in an effective hedge
These derivatives are carried on the balance sheet at fair value. The treatment of gains and losses arising from revaluation is described below in
the accounting policy for derivative financial instruments and hedging activities.
Financial liabilities measured at amortized cost
All other financial liabilities are initially recognized at fair value, net of directly attributable transaction costs. For interest-bearing loans and
borrowings this is typically equivalent to the fair value of the proceeds received, net of issue costs associated with the borrowing.
After initial recognition, other financial liabilities are subsequently measured at amortized cost using the effective interest method. Amortized
cost is calculated by taking into account any issue costs and any discount or premium on settlement. Gains and losses arising on the
repurchase, settlement or cancellation of liabilities are recognized in interest and other income and finance costs respectively.
This category of financial liabilities includes trade and other payables and finance debt.
Derivative financial instruments and hedging activities
The group uses derivative financial instruments to manage certain exposures to fluctuations in foreign currency exchange rates, interest rates
and commodity prices, as well as for trading purposes. These derivative financial instruments are recognized initially at fair value on the date on
which a derivative contract is entered into and subsequently remeasured at fair value. Derivatives are carried as assets when the fair value is
positive and as liabilities when the fair value is negative.
Contracts to buy or sell a non-financial item (for example, oil, oil products, gas or power) that can be settled net in cash, with the exception of
contracts that were entered into and continue to be held for the purpose of the receipt or delivery of a non-financial item in accordance with
the group’s expected purchase, sale or usage requirements, are accounted for as financial instruments. Gains or losses arising from changes in
the fair value of derivatives that are not designated as effective hedging instruments are recognized in the income statement.
If, at inception of a contract, the valuation cannot be supported by observable market data, any gain or loss determined by the valuation
methodology is not recognized in the income statement but is deferred on the balance sheet and is commonly known as ‘day-one gain or loss’.
This deferred gain or loss is recognized in the income statement over the life of the contract until substantially all the remaining contract term
can be valued using observable market data at which point any remaining deferred gain or loss is recognized in the income statement.
Changes in valuation subsequent to the initial valuation at inception of a contract are recognized immediately in the income statement.

For the purpose of hedge accounting, hedges are classified as:
• Fair value hedges when hedging exposure to changes in the fair value of a recognized asset or liability.
• Cash flow hedges when hedging exposure to variability in cash flows that is attributable to either a particular risk associated with a
recognized asset or liability or a highly probable forecast transaction.
Hedge relationships are formally designated and documented at inception, together with the risk management objective and strategy for
undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the
risk being hedged, the existence at inception of an economic relationship and subsequent measurement of the hedging instrument's
effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk, the hedge
ratio and sources of hedge ineffectiveness. Hedges meeting the criteria for hedge accounting are accounted for as follows:
Fair value hedges
The change in fair value of a hedging derivative is recognized in profit or loss. The change in the fair value of the hedged item attributable to the
risk being hedged is recorded as part of the carrying value of the hedged item and is also recognized in profit or loss, where it offsets. The
group applies fair value hedge accounting when hedging interest rate risk and certain currency risks on fixed rate finance debt.
Fair value hedge accounting is discontinued only when the hedging relationship or a part thereof ceases to meet the qualifying criteria. This
includes when the risk management objective changes or when the hedging instrument is sold, terminated or exercised. The accumulated
adjustment to the carrying amount of a hedged item at such time is then amortized prospectively to profit or loss as finance interest expense
over the hedged item's remaining period to maturity.
Cash flow hedges
The effective portion of the gain or loss on a cash flow hedging instrument is reported in other comprehensive income, while the ineffective
portion is recognized in profit or loss. Amounts reported in other comprehensive income are reclassified to the income statement when the
hedged transaction affects profit or loss.
Where the hedged item is a highly probably forecast transaction that results in the recognition of a non-financial asset or liability, such as a
forecast foreign currency transaction for the purchase of property, plant and equipment, the amounts recognized within other comprehensive
income are transferred to the initial carrying amount of the non-financial asset or liability. Where the hedged item is an equity investment, the
amounts recognized in other comprehensive income remain in the separate component of equity until the hedged cash flows affect profit or
loss. Where the hedged item is recognized directly in profit or loss, the amounts recognized in other comprehensive income are reclassified to
production and manufacturing expenses.
Cash flow hedge accounting is discontinued only when the hedging relationship or a part thereof ceases to meet the qualifying criteria. This
includes when the designated hedged forecast transaction or part thereof is no longer considered to be highly probable to occur, or when the
hedging instrument is sold, terminated or exercised without replacement or rollover. When cash flow hedge accounting is discontinued
amounts previously recognized within other comprehensive income remain in equity until the forecast transaction occurs and are reclassified
to profit or loss or transferred to the initial carrying amount of a non-financial asset or liability as above. If the forecast transaction is no longer
expected to occur, amounts previously recognized within other comprehensive income will be immediately reclassified to profit or loss.
Costs of hedging
Time value of options and the foreign currency basis spread of cross-currency interest rate swaps are excluded from hedge designations and
accounted for as costs of hedging. Changes in fair value of the time-value component of option contracts and the foreign currency basis spread
of cross-currency interest rate swaps are recognized in other comprehensive income to the extent that they relate to the hedged item. For
transaction-related hedged items, the amount recognized in other comprehensive income is reclassified to profit or loss when the hedged
transaction affects profit or loss. For time-period related hedged items, the amount recognized in other comprehensive income is amortized to
profit or loss on a straight line over the term of the hedging relationship.
Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.
The group categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to observe inputs employed
in their measurement. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs that are
observable, either directly or indirectly, other than quoted prices included within level 1 for the asset or liability. Level 3 inputs are unobservable
inputs for the asset or liability reflecting significant modifications to observable related market data or BP’s assumptions about pricing by
market participants.
Significant judgement and estimate: derivative financial instruments
In some cases the fair values of derivatives are estimated using internal models due to the absence of quoted prices or other observable,
market-corroborated data. This applies to the group’s longer-term derivative contracts. The majority of these contracts are valued using
models with inputs that include price curves for each of the different products that are built up from available active market pricing data and
modelled using the maximum available external pricing information. Additionally, where limited data exists for certain products, prices are
determined using historical and long-term pricing relationships. Price volatility is also an input for options models. Changes in the key
assumptions, in particular price curves, could have a material impact on the carrying amounts of derivative assets and liabilities in the next
financial year. The impact on net assets and the Group income statement would be limited as a result of offsetting movements on derivative
assets and liabilities. For more information see Note 30.
In some cases, judgement is required to determine whether contracts to buy or sell commodities meet the definition of a derivative. In
particular longer -term contracts to buy and sell LNG are not considered to meet the definition as they are not considered capable of being
net settled due to a lack of liquidity in the LNG market and so are accounted for on an accruals basis.
Offsetting of financial assets and liabilities

Financial assets and liabilities are presented gross in the balance sheet unless both of the following criteria are met: the group currently has a
legally enforceable right to set off the recognized amounts; and the group intends to either settle on a net basis or realize the asset and settle
the liability simultaneously. A right of set off is the group’s legal right to settle an amount payable to a creditor by applying against it an amount
receivable from the same counterparty. The relevant legal jurisdiction and laws applicable to the relationships between the parties are
considered when assessing whether a current legally enforceable right to set off exists.

Provisions and contingencies
Provisions are recognized when the group has a present legal or constructive obligation as a result of a past event, it is probable that an
outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount
of the obligation. Where appropriate, the future cash flow estimates are adjusted to reflect risks specific to the liability.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax risk-
free rate that reflects current market assessments of the time value of money. Where discounting is used, the increase in the provision due to
the passage of time is recognized within finance costs. Provisions are discounted using a nominal discount rate of 3.0% (2017 2.5%).
Provisions are split between amounts expected to be settled within 12 months of the balance sheet date (current) and amounts expected to be
settled later (non-current).
Contingent liabilities are possible obligations whose existence will only be confirmed by future events not wholly within the control of the
group, or present obligations where it is not probable that an outflow of resources will be required or the amount of the obligation cannot be
measured with sufficient reliability. Contingent liabilities are not recognized in the consolidated financial statements but are disclosed unless
the possibility of an outflow of economic resources is considered remote.
Decommissioning
Liabilities for decommissioning costs are recognized when the group has an obligation to plug and abandon a well, dismantle and remove a
facility or an item of plant and to restore the site on which it is located, and when a reliable estimate of that liability can be made. Where an
obligation exists for a new facility or item of plant, such as oil and natural gas production or transportation facilities, this liability will be
recognized on construction or installation. Similarly, where an obligation exists for a well, this liability is recognized when it is drilled. An
obligation for decommissioning may also crystallize during the period of operation of a well, facility or item of plant through a change in
legislation or through a decision to terminate operations; an obligation may also arise in cases where an asset has been sold but the
subsequent owner is no longer able to fulfil its decommissioning obligations, for example due to bankruptcy. The amount recognized is the
present value of the estimated future expenditure determined in accordance with local conditions and requirements. The provision for the
costs of decommissioning wells, production facilities and pipelines at the end of their economic lives is estimated using existing technology, at
future prices, depending on the expected timing of the activity, and discounted using the nominal discount rate. The weighted average period
over which these costs are generally expected to be incurred is estimated to be approximately 18 years.
An amount equivalent to the decommissioning provision is recognized as part of the corresponding intangible asset (in the case of an
exploration or appraisal well) or property, plant and equipment. The decommissioning portion of the property, plant and equipment is
subsequently depreciated at the same rate as the rest of the asset. Other than the unwinding of discount on the provision, any change in the
present value of the estimated expenditure is reflected as an adjustment to the provision and the corresponding asset where that asset is
generating or is expected to generate future economic benefits.
Environmental expenditures and liabilities
Environmental expenditures that are required in order for the group to obtain future economic benefits from its assets are capitalized as part of
those assets. Expenditures that relate to an existing condition caused by past operations that do not contribute to future earnings are
expensed.
Liabilities for environmental costs are recognized when a clean-up is probable and the associated costs can be reliably estimated. Generally,
the timing of recognition of these provisions coincides with the commitment to a formal plan of action or, if earlier, on divestment or on closure
of inactive sites.
The amount recognized is the best estimate of the expenditure required to settle the obligation. Provisions for environmental liabilities have
been estimated using existing technology, at future prices and discounted using a nominal discount rate. The weighted-average period over
which these costs are generally expected to be incurred is estimated to be approximately six years.
Significant judgements and estimates: provisions
The group holds provisions for the future decommissioning of oil and natural gas production facilities and pipelines at the end of their
economic lives. The largest decommissioning obligations facing BP relate to the plugging and abandonment of wells and the removal and
disposal of oil and natural gas platforms and pipelines around the world. Most of these decommissioning events are many years in the future
and the precise requirements that will have to be met when the removal event occurs are uncertain. Decommissioning technologies and
costs are constantly changing, as are political, environmental, safety and public expectations. The timing and amounts of future cash flows
are subject to significant uncertainty and estimation is required in determining the amounts of provisions to be recognized. Any changes in
the expected future costs are reflected in both the provision and the asset.
If oil and natural gas production facilities and pipelines are sold to third parties, judgement is required to assess whether the new owner will
be unable to meet their decommissioning obligations, whether BP would then be responsible for decommissioning, and if so the extent of
that responsibility.
Decommissioning provisions associated with downstream and petrochemicals facilities are generally not recognized, as the potential
obligations cannot be measured, given their indeterminate settlement dates. The group performs periodic reviews of its downstream and
petrochemicals long-lived assets for any changes in facts and circumstances that might require the recognition of a decommissioning
provision.
The provision for environmental liabilities is estimated based on current legal and constructive requirements, technology, price levels and
expected plans for remediation. Actual costs and cash outflows can differ from current estimates because of changes in laws and
regulations, public expectations, prices, discovery and analysis of site conditions and changes in clean-up technology.
The timing and amount of future expenditures relating to decommissioning and environmental liabilities are reviewed annually, together with
the interest rate used in discounting the cash flows. The interest rate used to determine the balance sheet obligations at the end of 2018 was
a nominal rate of 3.0% (2017 a real rate of 0.5% and a nominal rate of 2.5%), which was based on long-dated US government bonds.

Further information about the group’s provisions is provided in Note 21. Changes in assumptions in relation to the group's provisions could
result in a material change in their carrying amounts within the next financial year. A 0.5% change in the nominal discount rate could have an
impact of approximately $1.3 billion on the value of the group’s provisions, excluding those relating to the Gulf of Mexico oil spill. The impact
on the group income statement would not be significant as the majority of the group’s provisions relate to decommissioning costs.
As described in Note 33, the group is subject to claims and actions for which no provisions have been recognized. The facts and
circumstances relating to particular cases are evaluated regularly in determining whether a provision relating to a specific litigation should be
recognized or revised. Accordingly, significant management judgement relating to provisions and contingent liabilities is required, since the
outcome of litigation is difficult to predict.
Change in significant estimate - decommissioning provision
Decommissioning provision cost estimates are reviewed regularly and such a review was undertaken in the second quarter of 2018. The
timing and amount of estimated future expenditures were re-assessed and discounted to determine the present value. From 30 June 2018
the present value of the decommissioning provision is determined by discounting the estimated cash flows expressed in expected future
prices, i.e. taking account of expected inflation, at a nominal discount rate of 2.5% as at 30 June 2018. Prior to 30 June 2018, the group
estimated future cash flows in real terms i.e. at current prices and discounted them using a real discount rate of 0.5% as at 31 December
2017.
The impact of the review was a reduction in the provision of $1.5 billion as at 30 June 2018, with a similar reduction in the carrying amount of
property, plant and equipment. There was no significant impact on the income statement for the first half of 2018. The impact on the income
statement for the second half of 2018 was a decrease in depreciation, depletion and amortization of approximately $80 million and an
increase in finance costs of approximately $80 million.
The nominal discount rate applied to provisions was revised at 31 December 2018 to 3.0%. The impact of this increase was a further $1.3-
billion reduction in the decommissioning provision, with a similar reduction in the carrying amount of property, plant and equipment.
Employee benefits
Wages, salaries, bonuses, social security contributions, paid annual leave and sick leave are accrued in the period in which the associated
services are rendered by employees of the group. Deferred bonus arrangements that have a vesting date more than 12 months after the
balance sheet date are valued on an actuarial basis using the projected unit credit method and amortized on a straight-line basis over the
service period until the award vests. The accounting policies for share-based payments and for pensions and other post-retirement benefits are
described below.
Share-based payments
Equity-settled transactions
The cost of equity-settled transactions with employees is measured by reference to the fair value of the equity instruments on the date on
which they are granted and is recognized as an expense over the vesting period, which ends on the date on which the employees become fully
entitled to the award. A corresponding credit is recognized within equity. Fair value is determined by using an appropriate, widely used,
valuation model. In valuing equity-settled transactions, no account is taken of any vesting conditions, other than conditions linked to the price of
the shares of the company (market conditions). Non-vesting conditions, such as the condition that employees contribute to a savings-related
plan, are taken into account in the grant-date fair value, and failure to meet a non-vesting condition, where this is within the control of the
employee is treated as a cancellation and any remaining unrecognized cost is expensed.
For other equity-settled share-based payment transactions, the goods or services received and the corresponding increase in equity are
measured at the fair value of the goods or services received unless their fair value cannot be reliably estimated. If the fair value of the goods
and services received cannot be reliably estimated, the transaction is measured by reference to the fair value of the equity instruments
granted.
Cash-settled transactions
The cost of cash-settled transactions is recognized as an expense over the vesting period, measured by reference to the fair value of the
corresponding liability which is recognized on the balance sheet. The liability is remeasured at fair value at each balance sheet date until
settlement, with changes in fair value recognized in the income statement.
Pensions and other post-retirement benefits
The cost of providing benefits under the group’s defined benefit plans is determined separately for each plan using the projected unit credit
method, which attributes entitlement to benefits to the current period to determine current service cost and to the current and prior periods to
determine the present value of the defined benefit obligation. Past service costs, resulting from either a plan amendment or a curtailment (a
reduction in future obligations as a result of a material reduction in the plan membership), are recognized immediately when the company
becomes committed to a change.
Net interest expense relating to pensions and other post-retirement benefits, which is recognized in the income statement, represents the net
change in present value of plan obligations and the value of plan assets resulting from the passage of time, and is determined by applying the
discount rate to the present value of the benefit obligation at the start of the year, and to the fair value of plan assets at the start of the year,
taking into account expected changes in the obligation or plan assets during the year.
Remeasurements of the defined benefit liability and asset, comprising actuarial gains and losses, and the return on plan assets (excluding
amounts included in net interest described above) are recognized within other comprehensive income in the period in which they occur and
are not subsequently reclassified to profit and loss.
The defined benefit pension plan surplus or deficit recognized on the balance sheet for each plan comprises the difference between the
present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds) and the fair value of plan assets
out of which the obligations are to be settled directly. Fair value is based on market price information and, in the case of quoted securities, is
the published bid price. Defined benefit pension plan surpluses are only recognized to the extent they are recoverable, either by way of a
refund from the plan or reductions in future contributions to the plan.
Contributions to defined contribution plans are recognized in the income statement in the period in which they become payable.

Significant estimate: pensions and other post-retirement benefits
Accounting for defined benefit pensions and other post-retirement benefits involves making significant estimates when measuring the
group's pension plan surpluses and deficits. These estimates require assumptions to be made about many uncertainties.
Pensions and other post-retirement benefit assumptions are reviewed by management at the end of each year. These assumptions are used
to determine the projected benefit obligation at the year end and hence the surpluses and deficits recorded on the group's balance sheet,
and pension and other post-retirement benefit expense for the following year.
The assumptions that are the most significant to the amounts reported are the discount rate, inflation rate, salary growth and mortality levels.
Assumptions about these variables are based on the environment in each country. The assumptions used vary from year to year, with
resultant effects on future net income and net assets. Changes to some of these assumptions, in particular the discount rate and inflation
rate, could result in material changes to the carrying amounts of the group's pension and other post-retirement benefit obligations within the
next financial year, in particular for the UK, US and Eurozone plans. Any differences between these assumptions and the actual outcome will
also affect future net income and net assets.
The values ascribed to these assumptions and a sensitivity analysis of the impact of changes in the assumptions on the benefit expense and
obligation used are provided in Note 24.
Income taxes
Income tax expense represents the sum of current tax and deferred tax.
Income tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or
directly in equity, in which case the related tax is recognized in other comprehensive income or directly in equity.
Current tax is based on the taxable profit for the period. Taxable profit differs from net profit as reported in the income statement because it is
determined in accordance with the rules established by the applicable taxation authorities. It therefore excludes items of income or expense
that are taxable or deductible in other periods as well as items that are never taxable or deductible. The group’s liability for current tax is
calculated using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is provided, using the liability method, on temporary differences at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary differences
except:
• Where the deferred tax liability arises on the initial recognition of goodwill.
• Where the deferred tax liability arises on the initial recognition of an asset or liability in a transaction that is not a business combination and,
at the time of the transaction, affects neither accounting profit nor taxable profit or loss.
• In respect of taxable temporary differences associated with investments in subsidiaries and associates and interests in joint arrangements,
where the group is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences
will not reverse in the foreseeable future.
Deferred tax assets are recognized for deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the
extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of
unused tax credits and unused tax losses can be utilized, except where the deferred tax asset relating to the deductible temporary difference
arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither accounting profit nor taxable profit or loss. In respect of deductible temporary differences associated with investments in
subsidiaries and associates and interests in joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the
temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be
utilized.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable or
increased to the extent that it is probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred tax
assets and liabilities are not discounted.
Deferred tax assets and liabilities are offset only when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same
taxable entity or different taxable entities where there is an intention to settle the current tax assets and liabilities on a net basis or to realize
the assets and settle the liabilities simultaneously.
Where tax treatments are uncertain, if it is considered probable that a taxation authority will accept the group's proposed tax treatment,
income taxes are recognized consistent with the group's income tax filings. If it is not considered probable, the uncertainty is reflected using
either the most likely amount or an expected value, depending on which method better predicts the resolution of the uncertainty.
The computation of the group’s income tax expense and liability involves the interpretation of applicable tax laws and regulations in many
jurisdictions throughout the world. The resolution of tax positions taken by the group, through negotiations with relevant tax authorities or
through litigation, can take several years to complete and in some cases it is difficult to predict the ultimate outcome. Therefore, judgement is
required to determine whether provisions for income taxes are required and, if so, estimation is required of the amounts that could be payable.
In addition, the group has carry-forward tax losses and tax credits in certain taxing jurisdictions that are available to offset against future taxable
profit. However, deferred tax assets are recognized only to the extent that it is probable that taxable profit will be available against which the
unused tax losses or tax credits can be utilized. Management judgement is exercised in assessing whether this is the case and estimates are
required to be made of the amount of future taxable profits that will be available.
Management do not assess there to be a significant risk of a material change to the group’s tax provisioning or recognition of deferred tax
assets within the next financial year, however the tax position remains inherently uncertain and therefore subject to change. To the extent that
actual outcomes differ from management’s estimates, income tax charges or credits, and changes in current and deferred tax assets or
liabilities, may arise in future periods. For more information see Note 9 and Note 33.

Judgement is also required when determining whether a particular tax is an income tax or another type of tax (for example a production tax).
Accounting for deferred tax is applied to income taxes as described above, but is not applied to other types of taxes; rather such taxes are
recognized in the income statement in accordance with the applicable accounting policy such as Provisions and contingencies. No new
significant judgements were made in 2018 in this regard.
Customs duties and sales taxes
Customs duties and sales taxes that are passed on or charged to customers are excluded from revenues and expenses. Assets and liabilities
are recognized net of the amount of customs duties or sales tax except:
• Customs duties or sales taxes incurred on the purchase of goods and services which are not recoverable from the taxation authority are
recognized as part of the cost of acquisition of the asset.
• Receivables and payables are stated with the amount of customs duty or sales tax included.
The net amount of sales tax recoverable from, or payable to, the taxation authority is included within receivables or payables in the balance
sheet.
Own equity instruments – treasury shares
The group’s holdings in its own equity instruments are shown as deductions from shareholders’ equity at cost. Treasury shares represent BP
shares repurchased and available for specific and limited purposes. For accounting purposes, shares held in Employee Share Ownership Plans
(ESOPs) to meet the future requirements of the employee share-based payment plans are treated in the same manner as treasury shares and
are, therefore, included in the consolidated financial statements as treasury shares. Consideration, if any, received for the sale of such shares
is also recognized in equity. No gain or loss is recognized in the income statement on the purchase, sale, issue or cancellation of equity shares.
Shares repurchased under the share buy-back programme which are immediately cancelled are not shown as treasury shares, but are shown
as a deduction from the profit and loss account reserve in the group statement of changes in equity.
Revenue and other income
Revenue from contracts with customers is recognized when or as the group satisfies a performance obligation by transferring control of a
promised good or service to a customer. The transfer of control of oil, natural gas, natural gas liquids, LNG, petroleum and chemical products,
and other items usually coincides with title passing to the customer and the customer taking physical possession. The group principally
satisfies its performance obligations at a point in time; the amounts of revenue recognized relating to performance obligations satisfied over
time are not significant.
When, or as, a performance obligation is satisfied, the group recognizes as revenue the amount of the transaction price that is allocated to that
performance obligation. The transaction price is the amount of consideration to which the group expects to be entitled. The transaction price is
allocated to the performance obligations in the contract based on standalone selling prices of the goods or services promised.
Contracts for the sale of commodities are typically priced by reference to quoted prices. Revenue from term commodity contracts is
recognized based on the contractual pricing provisions for each delivery. Certain of these contracts have pricing terms based on prices at a
point in time after delivery has been made. Revenue from such contracts is initially recognized based on relevant prices at the time of delivery
and subsequently adjusted as appropriate.
Physical exchanges with counterparties in the same line of business in order to facilitate sales to customers are reported net, as are sales and
purchases made with a common counterparty, as part of an arrangement similar to a physical exchange.
Where the group acts as agent on behalf of a third party to procure or market energy commodities, any associated fee income is recognized
but no purchase or sale is recorded.
Where forward sale and purchase contracts for oil, natural gas or power have been determined to be for short-term trading purposes, the
associated sales and purchases are reported net within sales and other operating revenues whether or not physical delivery has occurred.
Interest income is recognized as the interest accrues (using the effective interest rate, that is, the rate that exactly discounts estimated future
cash receipts through the expected life of the financial instrument to the net carrying amount of the financial asset).
Dividend income from investments is recognized when the shareholders’ right to receive the payment is established.
Finance costs
Finance costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use, are added to the cost of those assets until such time as the assets are
substantially ready for their intended use. All other finance costs are recognized in the income statement in the period in which they are
incurred.

Impact of new International Financial Reporting Standards
BP adopted two new accounting standards issued by the IASB with effect from 1 January 2018, IFRS 9 ‘Financial instruments’ and IFRS 15
‘Revenue from contracts with customers’. There are no other new or amended standards or interpretations adopted during the year that have a
significant impact on the consolidated financial statements.
IFRS 9 ‘Financial Instruments’
IFRS 9 ‘Financial Instruments’ was issued in July 2014 and replaced IAS 39 ‘Financial Instruments: Recognition and Measurement.’ BP adopted
IFRS 9 and the related consequential amendments to other IFRSs in the financial reporting period commencing 1 January 2018. The group has
applied the new standard in accordance with the transition provisions of IFRS 9. Comparatives have not been restated and adjustments on
transition have been reported in opening retained earnings at 1 January 2018.
The group’s revised accounting policies in relation to financial instruments are provided above.
The overall impact on transition to IFRS 9, including the impact upon the group's share of equity-accounted entities, was a reduction of $180
million in net assets, net of tax. This adjustment mainly related to an increase in the loss allowance for financial assets in the scope of IFRS 9's
impairment requirements. As comparatives have not been restated the closing balance at 31 December 2017 for certain line items in the
balance sheet differ from the opening balance at 1 January 2018 (as summarized below). Cash and cash equivalents at the beginning of 2018 in
the Group cash flow statement are the 1 January 2018 amounts included in the table below.
$ million
Adjustment on
31 December 2017 1 January 2018 adoption of IFRS 9
Non-current
Investments in equity-accounted entities 24,985 24,903 (82)
Loans, trade and other receivables 2,080 2,069 (11)
Deferred tax liabilities (7,982) (7,946) 36
Current
Loans, trade and other receivables 25,039 24,927 (112)
Cash and cash equivalents 25,586 25,575 (11)
Net assets 100,404 100,224 (180)
Reserves
Available-for-sale investments 17 — (17)
Costs of hedging — (37) (37)
Profit and loss account 75,226 75,100 (126)
75,243 75,063 (180)
Classification and measurement

IFRS 9 provides a single classification and measurement approach for financial assets that reflects the business model in which they are
managed and their cash flow characteristics. For financial liabilities the existing classification and measurement requirements of IAS 39 are
largely retained.
The table below illustrates the classification and carrying amounts of financial assets under IFRS 9 and IAS 39 at the date of initial application, 1
January 2018. There were no differences in classification or carrying amounts for financial liabilities and no differences in the measurement of
liabilities for financial guarantee contracts.
$ million
Measurement Measurement
Carrying category attribute Carrying
amount adjustment adjustment amount
At 1 January 2018 Classification under IAS 39 Classification under IFRS 9 under IAS 39 on transition on transition under IFRS 9
Financial assets
Other investments – equity shares Available-for-sale Fair value through
financial assets profit or loss 433 — — 433
– other Available-for-sale Fair value through
financial assets profit or loss 275 — — 275
– other At fair value through Fair value through
profit or loss profit or loss 662 — — 662
Loans Loans and receivables Amortized cost 836 (100) — 736
Loans Loans and receivables Fair value through
profit or loss — 100 (8) 92
Trade and other receivables Loans and receivables Amortized cost 24,361 — (115) 24,246
Derivative financial instruments At fair value through Fair value through
profit or loss profit or loss 6,454 — — 6,454
Derivative financial instruments Derivative hedging Derivative hedging
instruments instruments 688 — — 688
Cash and cash equivalents Loans and receivables Amortized cost 21,916 — (11) 21,905
Cash and cash equivalents Available-for-sale Amortized cost
financial assets 2,270 (2,058) — 212
Cash and cash equivalents Available-for-sale Fair value through
financial assets profit or loss — 2,058 — 2,058
Cash and cash equivalents Held-to-maturity Amortized cost
investments 1,400 — — 1,400
59,295 — (134) 59,161

Other investments existing on transition that were classified as available-for-sale financial assets under IAS 39 are classified as mandatorily
measured at fair value through profit or loss (FVTPL) under IFRS 9. The contractual terms of these assets do not give rise to cash flows that are
solely payments of principal and interest. Fair value gains and losses will be recognized in profit or loss rather than in other comprehensive
income as was the case under IAS 39. An adjustment to the 2018 opening balance sheet was made to transfer $17 million of fair value gains
net of related tax from the available-for-sale investments reserve to the profit and loss account reserve.
Certain loans that were classified as loans and receivables under IAS 39 have been classified as mandatorily measured at FVTPL under IFRS 9
as a result of the business model in which they are held. The adjustment of $8m to the carrying amount of these assets on transition reflects
the difference between amortized cost measurement under IAS 39 and fair value measurement under IFRS 9.
Cash and cash equivalents that were classified as available-for-sale and held-to-maturity financial assets under IAS 39 have been classified as
either measured at amortized cost or measured at FVTPL under IFRS 9. Cash and cash equivalents measured at FVTPL comprise money
market funds that do not give rise to cash flows that are solely payments of principal and interest. For cash and cash equivalents that have
been reclassified to measured at amortized cost, the carrying amount of those assets at the end of the reporting period approximate their fair
value. The fair value gain or loss that would have been recognized in other comprehensive income in the reporting period if those financial
assets had not been reclassified to amortized cost is immaterial.
Adjustments to the carrying amount of financial assets classified as measured at amortized cost under IFRS 9 relate entirely to the additional
loss allowance required by the new standard's expected credit loss model.
There were no financial assets or financial liabilities which the group had previously designated as at FVTPL under IAS 39 that were required to
be reclassified, or which the group has elected to reclassify upon the application of IFRS 9. The group did not elect to designate at FVTPL any
financial assets or financial liabilities at the date of initial application of IFRS 9.
Under IFRS 9 the group has elected to apply hedge accounting prospectively to certain of its commodity price risk management activities for
which hedge accounting was not possible under IAS 39. Certain derivatives that were previously classified as at FVTPL have therefore been
reclassified to derivative hedging instruments at 1 January 2018. As the hedging instruments are exchange traded derivatives, the value
transferred on transition was nil.
Impairment
The financial asset impairment requirements of IFRS 9 introduce a forward-looking expected credit loss model that results in earlier recognition
of credit losses than the incurred loss model of IAS 39. The adjustment to the 2018 opening balance sheet relating to expected credit loss
reduced both the carrying amounts of financial assets and the profit and loss account reserve.
The table below reconciles the ending impairment allowances in accordance with IAS 39 and the provisions in accordance with IAS 37 to the
opening loss allowances determined in accordance with IFRS 9.
$ million
Measurement Measurement
category attribute
IAS 39 loss effect on adjustment IFRS 9 loss
At 1 January 2018 Classification under IAS 39 Classification under IFRS 9 allowance transition on transition allowance
Financial assets
Other investments – equity shares Available-for-sale Fair value through
financial assets profit or loss 91 (91) — —
Trade and other receivables Loans and receivables Amortized cost 335 — 115 450
Cash and cash equivalents Loans and receivables Amortized cost — — 11 11
Total loss allowance on financial assets 426 (91) 126 461
Loans that form part of the net

investment in equity-accounted
entities 37 — 6 43
Total loss allowance 463 (91) 132 504
Impairment allowances on available-for-sale assets represent amounts provided against investments in equity instruments that were held at
cost under IAS 39. Under IFRS 9 these assets are classified as measured at fair value through profit or loss and therefore no loss allowance
exists on these assets under IFRS 9.
The increase in the loss allowances for financial assets classified as measured at amortized cost under IFRS 9 and loans that form part of the
net investment in equity-accounted entities represent the additional loss allowance required by the new standard's expected credit loss model.
Hedge accounting
Under IFRS 9 all existing hedging relationships qualified as continuing hedging relationships and the group has applied hedge accounting
prospectively to certain of its commodity price risk management activities for which hedge accounting was not possible under IAS 39.

IFRS 9 also introduces a new way of treating fair value movements on the time value and foreign currency basis spreads of certain hedging
instruments. Whereas under IAS 39 these movements were recognized in profit or loss, the group is either required, or has elected to initially
recognize these movements within equity to the extent that they relate to the hedged item. An adjustment to the 2018 opening balance sheet
was made to transfer $37 million of losses net of related tax from the profit and loss account reserve to the costs of hedging reserve for
relevant hedging instruments existing on transition.
Under IAS 39 the effective portion of the gain or loss on a cash flow hedging instrument is reported in other comprehensive income and is
reclassified to the balance sheet as part of the initial carrying amount of the corresponding non-financial asset or liability. Under IFRS 9 the
effective portion of the gain or loss continues to be reported in the statement of other comprehensive income but the transfer to the balance
sheet is shown in the statement of changes in equity.
IFRS 15 ‘Revenue from Contracts with Customers’
IFRS 15 ‘Revenue from Contracts with Customers’ was issued in May 2014 and replaced IAS 18 ‘Revenue’ and certain other standards and
interpretations. IFRS 15 provides a single model for accounting for revenue arising from contracts with customers, focusing on the
identification and satisfaction of performance obligations. BP adopted IFRS 15 from 1 January 2018 and applied the ‘modified retrospective’
transition approach to implementation.
The group’s revised accounting policy in relation to revenue is provided above. A disaggregation of revenue from contracts with customers is
provided in note 5.
The group identified certain minor changes in accounting relating to its revenue from contracts with customers but the new standard had no
material effect on the group’s net assets as at 1 January 2018 and so no transition adjustment is presented.
The most significant change identified is the accounting for revenues relating to oil and natural gas properties in which the group has an
interest with joint operation partners. From 1 January 2018, BP ceased using the entitlement method of accounting under which revenue was
recognized in relation to the group's entitlement to the production from oil and gas properties based on its working interest, irrespective of
whether the production was taken and sold to customers. In its 2018 consolidated financial statements the group has recognized revenue
when sales are made to customers; production costs have been accrued or deferred to reflect differences between volumes taken and sold to
customers and the group's ownership interest in total production volumes. Compared to the group’s previous accounting policy this may result
in timing differences in respect of revenues and profits recognized in each period, but there will be no change in the total revenues and profits
over the duration of the joint operation. The impact on the consolidated financial statements for the year ended 31 December 2018 was not
material.
In addition, BP has made determinations about presentation and disclosure relating to its revenue from contracts with customers as follows:
Derivative contracts resulting in physical delivery to a customer
Certain contracts entered into by the group that result in physical delivery to a counterparty of products such as crude oil, natural gas and
refined products are required by IFRS to be accounted for as financial instruments. These contracts are within the scope of IFRS 9 rather than
IFRS 15. The group’s counterparties in these transactions, however, may meet the IFRS 15 definition of a customer. Revenue recognized
relating to such contracts when physical delivery occurs is, therefore, presented together with revenue from contracts with customers in the
group’s consolidated financial statements. Changes in the fair value of derivative assets and liabilities prior to physical delivery are excluded
from revenue from contracts with customers and are presented as other operating revenues. Additionally, where forward sales and purchase
contracts for oil, natural gas or power have been determined to be for short-term trading purposes, the associated sales and purchases
continue to be reported net within other operating revenues consistent with the group’s practice prior to implementation of IFRS 15.
Contracts with post-delivery pricing terms
Contracts entered into by the group for the sale of oil, natural gas (including LNG), NGLs and refined products are typically priced by reference
to quoted prices. In line with market practice, certain of these contracts are based on average prices over a period that is partially or entirely
after delivery. Revenue relating to such contracts is recognized initially based on relevant prices at the time of delivery and subsequently
adjusted as prices are finalized, consistent with the group’s practice prior to implementation of IFRS 15. Whilst these post-delivery adjustments
are changes in the value of receivables within the scope of IFRS 9, not IFRS 15, the distinction between revenue recognized at the time of
delivery and revenue recognized as a result of post-delivery changes in quoted commodity prices relating to the same transaction is not
considered to be significant. All revenue from these contracts, both that recognized at the time of delivery and that from post-delivery price
adjustments, is disclosed as revenue from contracts with customers.
Disclosure of the amount of the transaction price allocated to unsatisfied performance obligations
The disclosures required by IFRS 15 include the amount of the contract transaction price allocated to performance obligations that are
unsatisfied at the balance sheet date. Many of BP’s commodity sales are made under term contracts in which sales are made based on quoted
prices at or near the time of delivery, meaning the consideration for future deliveries is entirely variable. In these arrangements, each delivery is
considered to be a separate performance obligation and the transaction price is the amount of revenue expected to be earned from all sales
that are contracted to be made in future periods, which can be up to 20 years from the balance sheet date.
BP does not consider the disclosure of the amount of the transaction price allocated to contracted future deliveries of commodities within the
scope of IFRS 15 to be relevant information. This disclosure has not, therefore, been provided in these consolidated financial statements. The
consideration in many such contracts is entirely variable so would be subject to the requirement of IFRS 15 relating to constraining estimates
of variable consideration. Applying the constraint for the purposes of this disclosure requirement would provide an indication only of contracted
revenues based on estimated future minimum market prices. Such commodities are regularly sold in liquid markets on a spot basis, using
similar pricing bases to sales made under term contracts, meaning that disclosure of contracted sales would have little predictive value.
Furthermore, as described above, a significant proportion of the group’s commodity sales contracts are within the scope of IFRS 9, not IFRS
15. Derivative assets or liabilities representing the difference between contracted price and forward price are recognized on the group balance
sheet for these contracts.
Contract assets and liabilities
The group does not have material contract asset or contract liability balances and so these amounts are included within amounts presented for
trade receivables and other payables.

Not yet adopted
The IASB has issued IFRS 16 'Leases' which will become effective from financial reporting periods beginning on or after 1 January 2019 and
has been adopted by the EU. The group has not adopted IFRS 16 in these consolidated financial statements and will adopt it from 1 January
2019. There are no other standards and interpretations in issue but not yet adopted that the directors anticipate will have a material effect on
the reported income or net assets of the group.
IFRS 16 ‘Leases’
IFRS 16 ‘Leases’ provides a new model for lessee accounting in which the majority of leases will be accounted for by the recognition on the
balance sheet of a right-of-use asset and a lease liability. The subsequent amortization of the right-of-use asset and the interest expense related
to the lease liability will be recognized in profit or loss over the lease term. IFRS 16 replaces IAS 17 ‘Leases’ and IFRIC 4 ‘Determining whether
an arrangement contains a lease’ and will be effective for financial reporting periods beginning on or after 1 January 2019.
BP will adopt IFRS 16 in the financial reporting period commencing 1 January 2019 and has elected to apply the modified retrospective
transition approach in which the cumulative effect of initial application is recognized in opening retained earnings at the date of initial
application with no restatement of comparative periods’ financial information.
IFRS 16 introduces a revised definition of a lease. As permitted by the standard, BP has elected not to reassess the existing population of
leases under the new definition and will only apply the new definition for the assessment of contracts entered into after the transition date. On
transition the standard permits, on a lease-by-lease basis, the right-of-use asset to be measured either at an amount equal to the lease liability
(as adjusted for prepaid or accrued lease payments), or on an historical basis as if the standard had always applied. BP has elected to use the
historical asset measurement for its more material leases and to use the asset equals liability approach for the remainder of the population. In
addition, BP has also elected the option to adjust the carrying amounts of the right-of-use assets as at 1 January 2019 for onerous lease
provisions that had been recognized on the group balance sheet as at 31 December 2018, rather than the alternative of performing impairment
tests on transition.
The group’s evaluation of the effect of adoption of the standard is substantially complete and a material effect on the group’s balance sheet is
expected, as set out further below. The presentation and timing of recognition of charges in the income statement will also change as the
operating lease expense currently reported under IAS 17, typically on a straight-line basis, will be replaced by depreciation of the right-of-use
asset and interest on the lease liability. In the cash flow statement operating lease payments are currently presented within cash flows from
operating activities but under IFRS 16 payments will be presented as financing cash flows, representing repayments of debt, and as operating
cash flows, representing payments of interest. Variable lease payments that do not depend on an index or rate are not included in the lease
liability and will continue to be presented as operating cash flows.
Information on the group’s leases classified as operating leases under IAS 17, which are not recognized on the balance sheet as at 31
December 2018, is presented in Note 28. The following table provides a reconciliation of the operating lease commitments disclosed in Note
28 to the total lease liability expected to be recognized on the group balance sheet in accordance with IFRS 16 as at 1 January 2019, with
explanations below.
$ million
Operating lease commitments at 31 December 2018 11,979
Leases not yet commenced (1,372)

Leases below materiality threshold (86)
Short-term leases (91)
Effect of discounting (1,512)
Impact on leases in joint operations 836
Variable lease payments (58)
Redetermination of lease term (252)
Other (22)
Total additional lease liabilities expected to be recognized on adoption of IFRS 16 9,422
Finance lease obligations at 31 December 2018 667
Adjustment for finance leases in joint operations (189)
Total expected lease liabilities at 1 January 2019 9,900
Leases not yet commenced: The operating lease commitments disclosed in Note 28 include amounts relating to leases entered into by the
group that had not yet commenced as at 31 December 2018. In accordance with IFRS 16 assets and liabilities will not be recognized on the
group balance sheet in relation to these leases until the dates of commencement of the leases. Such commitments will continue to be
disclosed in future under IFRS 16.
Short-term leases and leases below materiality threshold: As part of the transition to IFRS 16, BP has elected not to recognize assets and
liabilities relating to short-term leases i.e. leases with a term of less than 12 months and has also applied a materiality threshold for the
recognition of assets and liabilities related to leases. The disclosed operating lease commitments as at 31 December 2018 in Note 28 includes
amounts related to such leases.
Effect of discounting: The amount of the lease liability recognized in accordance with IFRS 16 will be on a discounted basis whereas the
operating lease commitments information in Note 28 is presented on an undiscounted basis. The discount rates used on transition are
incremental borrowing rates as appropriate for each lease based on factors such as the lessee legal entity, lease term and currency. The
weighted average discount rate to be used on transition is expected to be around 3.5%, with a weighted average remaining lease term of
around 9 years. For new leases commencing after 1 January 2019 the discount rate used will be the interest rate implicit in the lease, if this is
readily determinable, or the incremental borrowing rate if the implicit rate cannot be readily determined.

Impact on leases in joint operations: The operating lease commitments for leases within joint operations are included on the basis of BP’s net
working interest for the information provided in Note 28, irrespective of whether BP is the operator and whether the lease has been co-signed
by the joint operators or not. However, for transition to IFRS 16, the facts and circumstances of each lease in a joint operation have been
assessed to determine the group’s rights and obligations and to recognize assets and liabilities on the group balance sheet accordingly. This
relates mainly to leases of drilling rigs within joint operations in the Upstream segment. Where all parties to a joint operation jointly have the
right to control the use of the identified asset and all parties have a legal obligation to make lease payments to the lessor, the group’s share of
the right-of-use asset and its share of the lease liability will be recognized on the group balance sheet. This may arise in cases where the lease
is signed by all parties to the joint operation. However, in cases where BP is the only party with the legal obligation to make lease payments to
the lessor, the full lease liability will be recognized on the group balance sheet. This may be the case if for example BP, as operator of the joint
operation, is the sole signatory to the lease. If, however, the underlying asset is jointly controlled by all parties to the joint operation BP will
recognize its net share of the right-of-use asset on the group balance sheet along with a receivable representing the amounts to be recovered
from the other parties. If BP is not legally obliged to make lease payments to the lessor but jointly controls the asset, the net share of the right-
of-use asset will be recognized on the group balance sheet along with a payable representing amounts to be paid to the other parties.
Variable lease payments: Where there are lease payments that vary depending on an index or rate, the measurement of the operating lease
commitments in Note 28 is based on the variable factor as at inception of the lease and is not updated to reflect subsequent changes in the
variable factor. Such subsequent changes in the lease payments are currently treated as contingent rentals and charged to profit or loss as and
when paid. Under IFRS 16 the lease liability will be adjusted whenever the lease payments are changed in response to changes in the variable
factor, and for transition the liability is measured on the basis of the prevailing variable factor on 1 January 2019.
Redetermination of lease term: Under the transition provisions of IFRS 16, the remaining terms of certain leases have been redetermined with
the benefit of hindsight, on the basis that BP is now reasonably certain to exercise its option to terminate those leases before the full term.
Under IAS 17 finance leases are recognized on the group balance sheet and will continue to be recognized in accordance with IFRS 16. The
amounts recognized on the group balance sheet as at 1 January 2019 in relation to the right-of-use assets and liabilities for existing finance
leases within joint operations will be on a net or gross basis as appropriate as described above.
In addition to the lease liability, which will be presented within finance debt, other line items on the group balance sheet expected to be
adjusted on transition to IFRS 16 include property, plant and equipment, prepayments, receivables, accruals, payables, provisions and deferred
tax balances, as set out below.
$ million
Adjustment on
31 December 2018 1 January 2019 adoption of IFRS 16
Non-current assets
Property, plant and equipment 135,261 143,950 8,689
Trade and other receivables 1,834 2,159 325
Prepayments 1,179 849 (330)
Deferred tax assets 3,706 3,736 30
Current assets
Trade and other receivables 24,478 24,673 195
Prepayments 963 872 (91)
Current liabilities
Trade and other payables 46,265 46,209 (56)
Accruals 4,626 4,578 (48)
Finance debt and leases 9,373 11,525 2,152
Provisions 2,564 2,547 (17)
Other payables 13,830 14,013 183
Accruals 575 548 (27)
Finance debt and leases 56,426 63,507 7,081
Deferred tax liabilities 9,812 9,767 (45)
Provisions 17,732 17,657 (75)
Net assets 101,548 101,218 (330)
Equity
BP shareholders' equity 99,444 99,115 (329)
Non-controlling interests 2,104 2,103 (1)
101,548 101,218 (330)
The total expected adjustments to the group's lease liabilities at 1 January 2019 may be reconciled as follows:
$ million
Total additional lease liabilities expected to be recognized on adoption of IFRS 16 9,422

Less: adjustment for finance leases in joint operations (189)
Total expected adjustment to lease liabilities 9,233
Of which – current 2,152
– non-current 7,081

2. Significant event – Gulf of Mexico oil spill
As a consequence of the Gulf of Mexico oil spill in April 2010, BP continues to incur costs and has also recognized liabilities for certain future
costs.
The impacts of the Gulf of Mexico oil spill on the income statement, balance sheet and cash flow statement of the group are included within
the relevant line items in those statements and are shown in the table below.
$ million
2018 2017 2016
Income statement
Production and manufacturing expenses 714 2,687 6,640
Profit (loss) before interest and taxation (714) (2,687) (6,640)
Finance costs 479 493 494
Profit (loss) before taxation (1,193) (3,180) (7,134)
Less: Taxation 174 (2,222) 3,105
Profit (loss) for the period (1,019) (5,402) (4,029)
Balance sheet
Current assets
Trade and other receivables 214 252
Current liabilities
Trade and other payables (2,279) (2,089)
Provisions (333) (1,439)
Net current assets (liabilities) (2,398) (3,276)
Non-current assets
Deferred tax 1,563 2,067
Other payables (11,922) (12,253)
Provisions (12) (1,141)
Deferred tax 3,999 3,634
Net non-current assets (liabilities) (6,372) (7,693)
Net assets (liabilities) (8,770) (10,969)
Cash flow statement
Profit (loss) before taxation (1,193) (3,180) (7,134)
Net charge for interest and other finance expense, less net interest paid 479 493 494
Net charge for provisions, less payments 240 2,542 4,353
(Increase) decrease in other current and non-current assets (485) (1,738) (3,210)
Increase (decrease) in other current and non-current liabilities (2,572) (3,453) (1,608)
Pre-tax cash flows (3,531) (5,336) (7,105)
Income statement
The group income statement for 2018 includes a pre-tax charge of $1,193 million (2017 pre-tax charge of $3,180 million, 2016 pre-tax charge of
$7,134 million) in relation to the Gulf of Mexico oil spill. The charge within production and manufacturing expenses in 2018 of $714 million (2017
$2,687 million, 2016 $6,640 million) relates mainly to business economic loss (BEL) and other claims associated with the Deepwater Horizon
Court Supervised Settlement Program (DHCSSP). Finance costs of $479 million (2017 $493 million, 2016 $494 million) reflect the unwinding of
the discount on payables and, for 2016, provisions.
The cumulative amount charged to the income statement to date comprises spill response costs arising in the aftermath of the incident,
amounts charged for the 2012 agreement with the US government to resolve all federal criminal claims arising from the incident, amounts
charged for the 2016 consent decree and settlement agreement with the United States and the five Gulf coast states including amounts
payable for natural resource damages, state claims and Clean Water Act penalties, operating costs, amounts charged upon initial recognition of
the trust obligation, other litigation, claims, environmental and legal costs and estimated obligations for future costs, net of settlements agreed
with the co-owners of the Macondo well and other third parties.
The cumulative pre-tax income statement charge since the incident amounts to $67.0 billion and is analysed in the table below.
$ million
Cumulative since
2018 2017 2016 the incident
Environmental costs — — — 8,526
Spill response costs — — — 14,304
Litigation and claims costs 629 2,647 6,596 42,410
Clean Water Act penalties — — — 4,061
Other costs 85 40 44 1,394
Settlements credited to the income statement — — — (5,681)
(Profit) loss before interest and taxation 714 2,687 6,640 65,014
Finance costs 479 493 494 1,944
(Profit) loss before taxation 1,193 3,180 7,134 66,958

2. Significant event – Gulf of Mexico oil spill – continued
Provisions and contingent liabilities
Provisions
Movements during the year in the remaining provision, which relates to litigation and claims, are presented in the table below.
$ million
2018
Litigation and
claims
At 1 January 2,580
Increase in provision 629
Reclassified to other payables (2,045)
Utilization (819)
At 31 December 345
Of which – current 333
– non-current 12
Litigation and claims – PSC settlement

The Economic and Property Damages Settlement Agreement (EPD Settlement Agreement) with the Plaintiffs' Steering Committee (PSC)
provides for a court-supervised settlement programme, the DHCSSP, which commenced operation on 4 June 2012. A separate claims
administrator was appointed to pay medical claims and to implement other aspects of the Medical Benefits Class Action Settlement. For
further information on the PSC settlements, see Legal proceedings on page 296.
The litigation and claims provision reflects the latest estimate for the remaining costs associated with the PSC settlement. These costs relate
predominantly to BEL claims and associated administration costs. The amounts ultimately payable may differ from the amount provided and
the timing of payments is uncertain.
The DHCSSP’s determination of BEL claims was substantially completed by the end of 2017 and remaining claims continued to be processed
throughout 2018 with only a very small number of claims remaining to be determined by the end of 2018. However certain BEL claims
determined by the DHCSSP have been and continue to be appealed by BP and/or the claimants.
During 2018 settlement agreements were reached with claimants for a significant proportion of the provision existing at the beginning of the
year. Amounts payable under these settlement agreements have been reclassified from provisions to other payables. The remaining amount
provided for includes the latest estimate of the amounts that are expected ultimately to be paid to resolve outstanding BEL claims. Claims
under appeal will ultimately only be resolved once the full judicial appeals process has been concluded, including appeals to the Federal District
Court and Fifth Circuit, as may be the case, or when settlements are reached with individual claimants. Depending upon the ultimate
resolution of these claims, the amounts payable may differ from those currently provided.
Payments to resolve outstanding claims under the PSC settlement are expected to be made over a number of years. The timing of payments,
however, is uncertain, and, in particular, will be impacted by how long it takes to resolve claims that have been appealed and may be appealed
in the future.
Contingent liabilities
For information on legal proceedings relating to the Deepwater Horizon oil spill, see Legal proceedings on pages 296-298. Any further
outstanding Deepwater Horizon related claims are not expected to have a material impact on the group's financial performance.
Other payables
Other payables include amounts payable under the 2016 consent decree and settlement agreement with the United States and five Gulf coast
states, including amounts payable for natural resource damages, state claims and Clean Water Act penalties. On a discounted basis the
amounts included in other payables for these elements of the agreements are $5,485 million payable over 14 years, $2,897 million payable over
15 years and $4,010 million payable over 14 years respectively at 31 December 2018. For full details of these agreements, see BP Annual
Report and Form 20-F 2015.
In addition, other payables at 31 December 2018 also includes amounts payable for settled economic loss and property damage claims which
are payable over a period of up to nine years.
Cash flow statement
The impact on net cash provided by operating activities on a pre-tax basis amounted to an outflow of $3,531 million (2017 outflow of $5,336
million, 2016 outflow of $7,105 million). On a post-tax basis, the amounts were an outflow of $3,218 million (2017 outflow of $5,167 million and
2016 outflow of $6,892 million).
Cash outflows in 2018, 2017 and 2016 include payments made under the 2012 agreement with the US government to resolve all federal
criminal claims arising from the incident and the 2016 consent decree and settlement agreement with the United States and the five Gulf coast
states.

3. Business combinations and other significant transactions
Business combinations
BP undertook a number of business combinations in 2018. For the full year, total consideration paid in cash amounted to $7,100 million, offset
by cash acquired of $114 million.
On 31 October 2018, BP acquired from BHP Billiton Petroleum (North America) Inc. 100% of the issued share capital of Petrohawk Energy
Corporation, a wholly owned subsidiary of BHP that holds a portfolio of unconventional onshore US oil and gas assets.
The acquisition brings BP extensive oil and gas production and resources in the liquids-rich regions of the Permian and Eagle Ford basins in
Texas and in the Haynesville gas basin in Texas and Louisiana.
The total consideration for the transaction, after customary closing adjustments and the effect of discounting deferred payments, is $10,302
million, which will all be paid in cash. As at 31 December 2018, $6,788 million of the consideration had been paid. The remaining discounted
amount of $3,514 million is included within other payables on the group balance sheet and will be paid in four instalments, with the final
instalment being paid in April 2019.
The transaction has been accounted for as a business combination using the acquisition method. The provisional fair values of the identifiable
assets and liabilities acquired, as at the date of acquisition, are shown in the table below. No goodwill has been recognized on the acquisition.
$ million
2018
Assets
Property, plant and equipment 10,845
Intangible assets 21
Inventories 27
Trade and other receivables 493
Cash 104
Liabilities
Trade and other payables (659)
Provisions (323)
Non-controlling interest (206)
Total consideration 10,302
The acquisition-date fair values of the assets and liabilities acquired are provisional. As we gain further understanding of the acquired properties
and development options, these fair values may be adjusted.
An analysis of the cash flows relating to the acquisition included within the cash flow statement for 2018 is provided below.
$ million
2018
Transaction costs of the acquisition (included in cash flows from operating activities) 62
Interest on deferred payments (included in cash flows from operating activities) 21
Cash consideration paid, net of cash acquired (included in cash flows from investing activities) 6,684
Total net cash outflow for the acquisition 6,767
From the date of acquisition to 31 December 2018, the acquired activities generated revenues of $472 million and profit before tax of $49
million. If the business combination had taken place on 1 January 2018, it is estimated that the acquired activities would have generated
revenues of $2,798 million and profit before tax of $431 million.
In addition to the BHP transaction described above, BP undertook a number of other individually insignificant business combinations in 2018.
Other significant transactions
On 18 December 2018, BP purchased an additional 16.5% interest in the Clair field in the North Sea, as part of the agreements with
ConocoPhillips in which ConocoPhillips simultaneously purchased BP's entire 39.2% interest in the Greater Kuparuk Area on the North Slope
of Alaska. The purchase gives BP a 45.1% interest in Clair in total. Gross payments made and received of $1,739 million and $1,490 million are
included in Capital expenditure and Proceeds from disposals of businesses, net of cash acquired, respectively, in the group cash flow
statement. Goodwill of $804 million, resulting from the recognition of a deferred tax liability as part of the transaction accounting, has been
recognized on the purchase of the interest in the Clair field.

4. Disposals and impairment
The following amounts were recognized in the income statement in respect of disposals and impairments.
$ million
2018 2017 2016
Gains on sale of businesses and fixed assets
Upstream 437 526 557
Downstream 15 674 561
Other businesses and corporate 4 10 14
456 1,210 1,132
$ million
2018 2017 2016
Losses on sale of businesses and fixed assets
Upstream 707 127 169
Downstream 59 88 89
Other businesses and corporate 11 — 3
777 215 261
Impairment losses
Upstream 400 1,138 1,022
Downstream 12 69 84
666 1,239 1,117
Impairment reversals
Upstream (580) (176) (3,025)
Downstream (2) (62) (17)
Other businesses and corporate (1) — —
(583) (238) (3,042)
Impairment and losses on sale of businesses and fixed assets 860 1,216 (1,664)
Disposals
Disposal proceeds and principal gains and losses on disposals by segment are described below.
$ million
2018 2017 2016
Proceeds from disposals of fixed assets 940 2,936 1,372
Proceeds from disposals of businesses, net of cash disposed 1,911 478 1,259
2,851 3,414 2,631
By business
Upstream 2,145 1,183 839
Downstream 120 2,078 1,646
2,851 3,414 2,631
At 31 December 2018, deferred consideration relating to disposals amounted to $35 million receivable within one year (2017 $259 million and
2016 $255 million) and $304 million receivable after one year (2017 $268 million and 2016 $271 million). In addition, contingent consideration
receivable relating to disposals amounted to $893 million at 31 December 2018 (2017 $237 million and 2016 $131 million). These amounts of
contingent consideration are reported within Other investments on the group balance sheet - see Note 18 for further information.
Upstream
In 2018, gains principally resulted from the disposal of interests in the Bruce, Keith and Rhum fields in the UK North Sea, from the disposal of
certain properties in the US, and from adjustments to disposals in prior periods. Losses included $335 million resulting from the disposal of our
interest in the Magnus field and associated assets in the UK North Sea, $221 million from the disposal of our interest in the Greater Kuparuk
Area in the US (see Note 3 for further information), and adjustments to disposals in prior periods.
In 2017, gains principally resulted from the disposal of a portion of our interest in the Perdido offshore hub in the US, and further gains
associated with disposals in the UK.
In 2016, gains principally resulted from the contribution of BP’s Norwegian upstream business into Aker BP ASA and from the sale of certain
properties in the UK.
Downstream
In 2017, gains principally resulted from the disposal of our interest in the SECCO joint venture and the disposal of certain midstream assets in
Europe.
In 2016, gains principally resulted from the disposal of certain US and non-US midstream assets in our fuels business and the dissolution of our
German refining joint operation with Rosneft.
In 2018 proceeds from disposals were principally in respect of life insurance policies in the US and wind farms within our US wind business.

4. Disposals and impairment – continued
Summarized financial information relating to the sale of businesses is shown in the table below. The principal transaction categorized as a
business disposal in 2018 was the disposal of our interest in the Greater Kuparuk Area in the US - see Note 3 for further information. The
principal transaction categorized as a business disposal in 2017 was the disposal of our interest in the Forties Pipeline System in the North Sea.
The principal transactions categorized as business disposals in 2016 were the contribution of BP’s Norwegian upstream business into Aker BP
ASA and the dissolution of the group’s German refining joint operation with Rosneft.
$ million
2018 2017 2016
Non-current assets 3,274 735 4,794
Current assets 173 57 1,202
Non-current liabilities (250) (173) (2,558)
Current liabilities (97) (86) (532)
Total carrying amount of net assets disposed 3,100 533 2,906
Recycling of foreign exchange on disposal — — 25
Costs on disposala 3 3 229
3,103 536 3,160
Gains (losses) on sale of businessesb (221) 44 593
Total consideration 2,882 580 3,753
Non-cash considerationc (282) (216) (2,698)
Consideration received (receivable) (689) 114 204
Proceeds from the sale of businesses, net of cash disposedd 1,911 478 1,259
a
2016 includes amounts relating to the remeasurement to fair value of certain assets as a result of the dissolution of our German refining joint operation with Rosneft.
b
2016 gains on sale of businesses include deferred amounts not recognized in the income statement.
c
2016 non-cash consideration principally relates to the contribution of BP’s Norwegian upstream business into Aker BP ASA in exchange for 30% interest in Aker BP ASA and the dissolution
of the group’s German refining joint operation with Rosneft.
d
Proceeds are stated net of cash and cash equivalents disposed of $15 million (2017 $25 million and 2016 $676 million).
Impairments
Impairment losses and impairment reversals in each segment are described below. For information on significant estimates and judgements
made in relation to impairments see Impairment of property, plant and equipment, intangibles and goodwill within Note 1. See also Note 12,
Note 15 and Note 21 for further information on impairments by asset category.
Upstream
Impairment losses and reversals related primarily to producing and midstream assets.
The 2018 impairment losses of $400 million related to a number of different assets, with the most significant charges arising in Australia and
the US. Impairment losses arose primarily as a result of changes to project activity, asset obsolescence and the decision to dispose of certain
assets. The 2018 impairment reversals of $580 million related to a number of different assets, with the most significant reversals arising in the
North Sea and Angola following a change to decommissioning cost estimates.
The 2017 impairment losses of $1,138 million related to a number of different assets, with the most significant charges arising in BPX Energy
(previously known as the US Lower 48 business) and the North Sea. Impairment losses within Upstream arose primarily as a result of changes
in reserves estimates and the decision to dispose of certain assets, including the Forties Pipeline System business.
The 2017 impairment reversals of $176 million related to a number of different assets, with the most significant reversals arising in the North
Sea.
The 2016 impairment losses of $1,022 million related to a number of different assets, with the most significant charges arising in the North
Sea. Impairment losses within Upstream arose primarily as a result of revised cost estimates and decisions to dispose of certain assets.
The 2016 impairment reversals of $3,025 million primarily related to the North Sea and Angola. The largest impairment reversals related to the
Andrew area cash-generating unit (CGU) in the North Sea and the PSVM and Greater Plutonio CGUs in Angola but none of these were
individually significant. In addition an impairment reversal was recorded in relation to the Block KG D6 CGU in India; and exploration costs were
also written back during the period (see Note 8). The impairment reversals arose following a reduction in the discount rate applied, changes to
future price assumptions, and also increased confidence in the progress of the KG D6 projects in India.
Downstream
Impairment losses totalling $12 million, $69 million, and $84 million were recognized in 2018, 2017 and 2016 respectively.
Impairment losses totalling $254 million, $32 million, and $11 million were recognized in 2018, 2017 and 2016 respectively. The amount for 2018
is in respect of assets within our US wind business in advance of their disposal in December 2018.

5. Segmental analysis
The group’s organizational structure reflects the various activities in which BP is engaged. At 31 December 2018, BP had three reportable
segments: Upstream, Downstream and Rosneft.
Upstream’s activities include oil and natural gas exploration, field development and production; midstream transportation, storage and
processing; and the marketing and trading of natural gas, including liquefied natural gas (LNG), together with power and natural gas liquids
(NGLs).
Downstream’s activities include the refining, manufacturing, marketing, transportation, and supply and trading of crude oil, petroleum,
petrochemicals products and related services to wholesale and retail customers.
BP’s interest in Rosneft is accounted for using the equity method and is reported as a separate operating segment, reflecting the way in which
the investment is managed.
Other businesses and corporate comprises the biofuels and wind businesses, the group’s shipping and treasury functions, and corporate
activities worldwide.
The accounting policies of the operating segments are the same as the group’s accounting policies described in Note 1. However, IFRS
requires that the measure of profit or loss disclosed for each operating segment is the measure that is provided regularly to the chief operating
decision maker for the purposes of performance assessment and resource allocation. For BP, this measure of profit or loss is replacement cost
profit or loss before interest and tax which reflects the replacement cost of supplies by excluding from profit or loss inventory holding gains
and lossesa. Replacement cost profit or loss for the group is not a recognized measure under IFRS.
Sales between segments are made at prices that approximate market prices, taking into account the volumes involved. Segment revenues and
segment results include transactions between business segments. These transactions and any unrealized profits and losses are eliminated on
consolidation, unless unrealized losses provide evidence of an impairment of the asset transferred. Sales to external customers by region are
based on the location of the group subsidiary which made the sale. The UK region includes the UK-based international activities of
Downstream.
All surpluses and deficits recognized on the group balance sheet in respect of pension and other post-retirement benefit plans are allocated to
Other businesses and corporate. However, the periodic expense relating to these plans is allocated to the operating segments based upon the
business in which the employees work.
Certain financial information is provided separately for the US as this is an individually material country for BP, and for the UK as this is BP’s
country of domicile.

a
Inventory holding gains and losses represent the difference between the cost of sales calculated using the replacement cost of inventory and the cost of sales calculated on the first-in first-
out (FIFO) method after adjusting for any changes in provisions where the net realizable value of the inventory is lower than its cost. Under the FIFO method, which we use for IFRS
reporting, the cost of inventory charged to the income statement is based on its historical cost of purchase or manufacture, rather than its replacement cost. In volatile energy markets, this
can have a significant distorting effect on reported income. The amounts disclosed represent the difference between the charge to the income statement for inventory on a FIFO basis (after
adjusting for any related movements in net realizable value provisions) and the charge that would have arisen based on the replacement cost of inventory. For this purpose, the replacement
cost of inventory is calculated using data from each operation’s production and manufacturing system, either on a monthly basis, or separately for each transaction where the system allows
this approach. The amounts disclosed are not separately reflected in the financial statements as a gain or loss. No adjustment is made in respect of the cost of inventories held as part of a
trading position and certain other temporary inventory positions.

5. Segmental analysis – continued
$ million
2018
Other Consolidation
businesses adjustment
and and Total
By business Upstream Downstream Rosneft corporate eliminations group
Segment revenues
Sales and other operating revenues 56,399 270,689 — 1,678 (30,010) 298,756
Less: sales and other operating revenues between
segments (28,565) (574) — (871) 30,010 —
Third party sales and other operating revenues 27,834 270,115 — 807 — 298,756
Earnings from joint ventures and associates – after
interest and tax 951 589 2,283 (70) — 3,753
Segment results
Replacement cost profit (loss) before interest and
taxation 14,328 6,940 2,221 (3,521) 211 20,179
Inventory holding gains (losses)a (6) (862) 67 — — (801)
Profit (loss) before interest and taxation 14,322 6,078 2,288 (3,521) 211 19,378
Finance costs (2,528)

Net finance expense relating to pensions and other
post-retirement benefits (127)
Profit (loss) before taxation 16,723
Other income statement items
Depreciation, depletion and amortization
US 4,211 900 — 59 — 5,170
Non-US 8,907 1,177 — 203 — 10,287
Charges for provisions, net of write-back of unused
provisions, including change in discount rate 355 834 — 1,557 — 2,746
Segment assets
Investments in joint ventures and associates 12,785 2,772 10,074 689 — 26,320
Additions to non-current assetsb 11,533 2,862 — 245 — 14,640
a
See explanation of inventory holding gains and losses on page 156.
b
Includes additions to property, plant and equipment; goodwill; intangible assets; investments in joint ventures; and investments in associates.
$ million
2017
Other Consolidation
businesses and adjustment and Total
Segment revenues
segments (24,179) (1,800) — (575) 26,554 —
Third party sales and other operating revenues 21,261 218,053 — 894 — 240,208
interest and tax 930 674 922 (19) — 2,507
Segment results
taxation 5,221 7,221 836 (4,445) (212) 8,621
Inventory holding gains (losses)a 8 758 87 — — 853
Profit (loss) before interest and taxation 5,229 7,979 923 (4,445) (212) 9,474

Profit (loss) before taxation 7,180
US 4,631 875 — 65 — 5,571
Non-US 8,637 1,141 — 235 — 10,013
Segment assets
Investments in joint ventures and associates 12,093 2,349 10,059 484 — 24,985
Additions to non-current assetsb 14,500 2,677 — 275 — 17,452
a
b
Includes additions to property, plant and equipment; goodwill; intangible assets; investments in joint ventures; and investments in associates.

$ million
2016
Other Consolidation
businesses and adjustment and Total
Segment revenues
segments (17,581) (1,291) — (658) 19,530 —
Third party sales and other operating revenues 15,607 166,392 — 1,009 — 183,008
interest and tax 723 608 647 (18) — 1,960
Segment results
taxation 574 5,162 590 (8,157) (196) (2,027)
Inventory holding gains (losses)a 60 1,484 53 — — 1,597
Profit (loss) before interest and taxation 634 6,646 643 (8,157) (196) (430)

Profit (loss) before taxation (2,295)
US 4,396 856 — 71 — 5,323
Non-US 7,835 1,094 — 253 — 9,182
a
$ million
2018
By geographical area US Non-US Total
Revenues
Third party sales and other operating revenuesa 98,066 200,690 298,756
Production and similar taxes 369 1,167 1,536
Results
Replacement cost profit (loss) before interest and taxation 3,041 17,138 20,179
Non-current assets
Non-current assetsb c 68,188 124,060 192,248
a
Non-US region includes UK $65,630 million
b
Non-US region includes UK $19,426 million
c
Includes property, plant and equipment; goodwill; intangible assets; investments in joint ventures; investments in associates; and non-current prepayments.
$ million
2017
Revenues
Production and similar taxes 52 1,723 1,775
Results
Replacement cost profit (loss) before interest and taxation (266) 8,887 8,621
Non-current assets
Non-current assetsb c 61,828 123,646 185,474
a
Non-US region includes UK $48,837 million.
b
c
Includes property, plant and equipment; goodwill; intangible assets; investments in joint ventures; investments in associates; and non-current prepayments.

$ million
2016
Revenues
Production and similar taxes 155 528 683
Results
Replacement cost profit (loss) before interest and taxation (8,311) 6,284 (2,027)
a
6. Revenue from contracts with customers

The amounts shown in the table below are included in Sales and other operating revenues in the group income statement. An analysis of total
sales and other operating revenues by segment and region is provided in Note 5.
Revenue from contracts with customers, by product
$ million
2018 2017 2016
Crude oil 65,276 49,670 32,284
Oil products 195,466 159,821 126,465
Natural gas, LNG and NGLs 21,745 16,196 11,337
Non-oil products and other revenues from contracts with customers 13,768 12,538 11,487
Revenues from contracts with customers 296,255 238,225 181,573
The group’s sales to customers of crude oil and oil products were substantially all made by the Downstream segment. The group’s sales to
customers of natural gas, LNG and NGLs were made by the Upstream segment. A significant majority of the group’s sales of non-oil products
and other revenues from contracts with customers were made by the Downstream segment.
7. Income statement analysis

$ million
2018 2017 2016
Interest and other income
Interest income from
Financial assets measured at amortized cost 421 288 183
Financial assets measured at fair value through profit or loss 39 — —
Other income 313 369 323
773 657 506
Currency exchange losses charged to the income statementa 368 83 698
Expenditure on research and development 429 391 400
Finance costs
Interest payable on liabilities measured at amortized cost 2,198 1,718 1,221
Capitalized at 3.56% (2017 2.25% and 2016 1.81%)b (419) (297) (244)
Unwinding of discount on provisions 210 150 310
Unwinding of discount on other payables measured at amortized cost 539 503 388
2,528 2,074 1,675
a
Excludes exchange gains and losses arising on financial instruments measured at fair value through profit or loss.
b
Tax relief on capitalized interest is approximately $55 million (2017 $64 million and 2016 $56 million).

8. Exploration for and evaluation of oil and natural gas resources
The following financial information represents the amounts included within the group totals relating to activity associated with the exploration
for and evaluation of oil and natural gas resources. All such activity is recorded within the Upstream segment.
For information on significant judgements made in relation to oil and natural gas accounting see Intangible assets in Note 1.
$ million
2018 2017 2016
Exploration and evaluation costs
Exploration expenditure written offa 1,085 1,603 1,274
Other exploration costs 360 477 447
Exploration expense for the year 1,445 2,080 1,721
Impairment losses 137 — 62
Intangible assets – exploration and appraisal expenditureb 15,989 17,026 16,960
Liabilities 60 82 102
Net assets 15,929 16,944 16,858
Cash used in operating activities 360 477 447
Cash used in investing activities 1,119 1,901 2,920
a
2018 includes $447 million in the deepwater Gulf of Mexico principally relating to licence expiries. 2017 included a write-off in Angola of $574 million in relation to licence relinquishment, and
Egypt of $208 million following a determination that no commercial hydrocarbons had been found. 2017 also included a $145-million write-off in relation to the value ascribed to certain
licences in the deepwater Gulf of Mexico as part of the accounting for the acquisition of upstream assets from Devon Energy in 2011. 2016 included a $601-million write-off in Brazil relating
to the BM-C-34 licence and various write-offs in the Gulf of Mexico totalling $611 million and India totalling $216 million, partially offset by a write-back of $319 million in India relating to
block KG D6 as a result of increased confidence in the progress of the projects. An impairment reversal of $234 million was also recorded in 2016 in relation to KG D6 in India. For further
information see Upstream – Exploration on page 25.
b
2018 includes $2.3 billion relating to licences in the Gulf of Mexico that have expired and approximately $1.6 billion relating to certain licences elsewhere that are due to expire in the next
financial year. BP remains committed to developing these prospects. See Note 1 for further information.
The carrying amount, by location, of exploration and appraisal expenditure capitalized as intangible assets at 31 December 2018 is shown in the
table below.
Carrying amount Location
$1 - 2 billion Angola; India; Egypt; Middle East
$2 - 3 billion US - Gulf of Mexico; Canada; Brazil
9. Taxation
Tax on profit
$ million
2018 2017 2016
Current tax
Charge for the year 6,217 4,208 1,762
Adjustment in respect of prior yearsa (221) 58 (123)
5,996 4,266 1,639
Deferred taxb
Origination and reversal of temporary differences in the current year 907 (503) (3,709)
Adjustment in respect of prior years 242 (51) (397)
1,149 (554) (4,106)
Tax charge (credit) on profit or loss 7,145 3,712 (2,467)
a
The adjustments in respect of prior years reflect the reassessment of the current tax balances for prior years in light of changes in facts and circumstances during the year.
b
Origination and reversal of temporary differences in the current year include the impact of tax rate changes on deferred tax balances. 2018 includes a credit of $121 million (2017 $859 million
charge) in respect of the reduction in the US federal corporate income tax rate from 35% to 21%, effective from 1 January 2018. The adjustments in respect of prior years reflect the
reassessment of deferred tax balances for prior periods in light of all other changes in facts and circumstances during the year.
In 2018, the total tax charge recognized within other comprehensive income was $714 million (2017 $1,499 million charge and 2016 $752
million credit), primarily comprising the deferred tax impact of the remeasurements of the net pension and other post-retirement benefit
liability or asset. See Note 32 for further information.
The total tax charge recognized directly in equity was $17 million (2017 $263 million charge and 2016 $5 million credit).
For information on significant estimates and judgements made in relation to taxation see Income taxes in Note 1.
Reconciliation of the effective tax rate
The following table provides a reconciliation of the group weighted average statutory corporate income tax rate to the effective tax rate of the
group on profit or loss before taxation.
For 2016, the items presented in the reconciliation are affected as a result of the overall tax credit for the year and the loss before taxation. In
order to provide a more meaningful analysis of the effective tax rate, the table also presents separate reconciliations for the group excluding
the impacts of the Gulf of Mexico oil spill and impairment losses and reversals, and for the impacts of the Gulf of Mexico oil spill and
impairment losses and reversals in isolation.

9. Taxation – continued
$ million
2016 excluding
impacts of Gulf 2016 impacts of
of Mexico oil Gulf of Mexico
spill and oil spill and
2018 2017 impairments impairments 2016
Profit (loss) before taxation 16,723 7,180 2,914 (5,209) (2,295)

Tax charge (credit) on profit or loss 7,145 3,712 (117) (2,350) (2,467)
Effective tax rate 43% 52% (4)% 45% 107%
% of profit or loss before taxation

Tax rate computed at the weighted average statutory ratea 43 44 18 33 52
Increase (decrease) resulting from
Tax reported in equity-accounted entities (5) (7) (15) — 19
Adjustments in respect of prior years — — 5 13 23
Deferred tax not recognized 2 9 26 3 (27)
Tax incentives for investment (2) (6) (9) — 11
Gulf of Mexico oil spill non-deductible costs — 1 — (2) (4)
Disposal impactsb — (1) (24) — 30
Foreign exchange 3 (4) 1 — (2)
Items not deductible for tax purposes 1 5 8 — (11 )
Impact of US tax reformc (1) 12 — — —
Decrease in rate of UK supplementary charged — — (15) — 19
Other 2 (1) 1 (2) (3)
Effective tax rate 43 52 (4) 45 107
a
Calculated based on the statutory corporate income tax rate applicable in the countries in which the group operates, weighted by the profits and losses before tax in the respective
countries.
b
In 2016 this related primarily to the tax impact on the contribution of BP’s Norwegian upstream business into Aker BP ASA.
c
Relates to the deferred tax impact of the reduction in the US federal corporate income tax rate from 35% to 21%, effective from 1 January 2018.
d
Relates to the deferred tax impact of the reduction in the UK supplementary charge rate applicable to profits arising in the North Sea from 20% to 10% in 2016.
Deferred tax
$ million
Analysis of movements during the year in the net deferred tax liability 2018 2017
At 31 December 3,513 2,497
Adjustment on adoption of IFRS 9a (36) —
At 1 January 3,477 2,497
Exchange adjustments (68) 12
Charge (credit) for the year in the income statement 1,149 (554)
Charge for the year in other comprehensive income 734 1,503
Charge for the year in equity 17 1
Acquisitions and other additionsb 797 54
At 31 December 6,106 3,513
a
2018 reflects the deferred tax impact of adjustments recorded by the group on adoption of IFRS 9. See Note 1 for further information.
b
2018 relates primarily to the purchase of an additional 16.5% interest in the Clair field. See Note 3 - Other significant transactions for further information.

9. Taxation – continued
The following table provides an analysis of deferred tax in the income statement and the balance sheet by category of temporary difference:
$ million
Income statementa Balance sheeta
2018 2017 2016 2018 2017
Deferred tax liability
Depreciation (1,297) (3,971) 81 22,565 23,045
Pension plan surpluses 65 (12) (12) 1,956 1,319
Derivative financial instruments (36) (27) (230) — 623
Other taxable temporary differences (57) (64) (122) 1,224 1,317
(1,325) (4,074) (283) 25,745 26,304
Deferred tax asset
Pension plan and other post-retirement benefit plan deficits (6) 340 98 (1,319) (1,386)
Decommissioning, environmental and other provisions 1,505 3,503 591 (7,126) (8,618)
Derivative financial instruments (25) (50) (6) (144) (672)
Tax creditsb 123 1,476 (5,177) (3,626) (3,750)
Loss carry forward 559 (964) 249 (5,900) (6,493)
Other deductible temporary differences 318 (785) 422 (1,524) (1,872)
2,474 3,520 (3,823) (19,639) (22,791)
Net deferred tax charge (credit) and net deferred tax liability 1,149 (554) (4,106) 6,106 3,513
Of which – deferred tax liabilities 9,812 7,982
– deferred tax assets 3,706 4,469
a
The 2017 and 2018 income statement and balance sheet are impacted by the reduction in US federal corporate income tax rate from 35% to 21%, effective from 1 January 2018.
b
The 2016 income statement reflected the impact of a loss carry-back claim in the US, displacing foreign tax credits utilized in prior periods which are now carried forward.
The recognition of deferred tax assets of $2,758 million (2017 $3,503 million), in entities which have suffered a loss in either the current or
preceding period, is supported by forecasts which indicate that sufficient future taxable profits will be available to utilize such assets. For 2018,
$1,563 million relates to the US (2017 $2,067 million) and $1,108 million relates to India (2017 $1,336 million).
A summary of temporary differences, unused tax credits and unused tax losses for which deferred tax has not been recognized is shown in
the table below.
$ billion
At 31 December 2018 2017
Unused US state tax lossesa 6.6 6.8
Unused tax losses – other jurisdictionsb 4.3 4.5
Unused tax credits 22.5 20.1
of which – arising in the UKc 18.7 16.3
– arising in the USd 3.8 3.8
Deductible temporary differencese 37.3 31.4
Taxable temporary differences associated with investments in subsidiaries and equity-accounted entities 1.5 1.6
a
For 2018 these losses expire in the period 2019-2038 with applicable tax rates ranging from 3% to 12%.
b
The majority of the unused tax losses have no fixed expiry date.
c
The UK unused tax credits arise predominantly in overseas branches of UK entities based in jurisdictions with higher statutory corporate income tax rates than the UK. No deferred tax asset
has been recognized on these tax credits as they are unlikely to have value in the future; UK taxes on these overseas branches are largely mitigated by double tax relief in respect of
overseas tax. These tax credits have no fixed expiry date.
d
For 2018 the US unused tax credits expire in the period 2019-2028.
e
The majority comprises fixed asset temporary differences in the UK. Substantially all of the temporary differences have no expiry date.
$ million
Impact of previously unrecognized deferred tax or write-down of deferred tax assets on tax charge 2018 2017 2016
Current tax benefit relating to the utilization of previously unrecognized deferred tax assets 83 22 40
Deferred tax benefit arising from the reversal of a previous write-down of deferred tax assets — — 269
Deferred tax benefit relating to the recognition of previously unrecognized deferred tax assets 112 436 394
Deferred tax expense arising from the write-down of a previously recognized deferred tax asset 169 78 55

10. Dividends
The quarterly dividend paid on 29 March 2019 in respect of the fourth quarter 2018 was 10.25 cents per ordinary share ($0.615 per American
Depositary Share (ADS)). The corresponding amount in sterling was announced on 18 March 2019. A scrip dividend alternative is available,
allowing shareholders to elect to receive their dividend in the form of new ordinary shares and ADS holders in the form of new ADSs.
Pence per share Cents per share $ million
2018 2017 2016 2018 2017 2016 2018 2017 2016
Dividends announced and paid in cash
Preference shares 1 1 1
Ordinary shares
March 7.1691 8.1587 7.0125 10.00 10.00 10.00 1,828 1,303 1,099
June 7.4435 7.7563 6.9167 10.00 10.00 10.00 1,727 1,546 1,168
September 7.9296 7.6213 7.5578 10.25 10.00 10.00 1,409 1,676 1,161
December 8.0251 7.4435 7.9313 10.25 10.00 10.00 1,734 1,627 1,182
30.5673 30.9798 29.4183 40.50 40.00 40.00 6,699 6,153 4,611
Dividend announced, paid in March
2019 10.25 1,435
The details of the scrip dividends issued are shown in the table below.
2018 2017 2016
Number of shares issued (thousand) 195,305 289,789 548,005
Value of shares issued ($ million) 1,381 1,714 2,858
The financial statements for the year ended 31 December 2018 do not reflect the dividend announced on 5 February 2019 and paid in March
2019; this will be treated as an appropriation of profit in the year ending 31 December 2019.
11. Earnings per share

Cents per share
Per ordinary share 2018 2017 2016
Basic earnings per share 46.98 17.20 0.61
Diluted earnings per share 46.67 17.10 0.60
Dollars per share
Per American Depositary Share (ADS) 2018 2017 2016
Basic earnings per share 2.82 1.03 0.04
Diluted earnings per share 2.80 1.03 0.04
Basic earnings per ordinary share amounts are calculated by dividing the profit (loss) for the year attributable to BP ordinary shareholders by the
weighted average number of ordinary shares outstanding during the year.
The average number of shares outstanding includes certain shares that will be issuable in the future under employee share-based payment
plans and excludes treasury shares, which includes shares held by the Employee Share Ownership Plan trusts (ESOPs).
For the diluted earnings per share calculation, the weighted average number of shares outstanding during the year is adjusted for the average
number of shares that are potentially issuable in connection with employee share-based payment plans. If the inclusion of potentially issuable
shares would decrease loss per share, the potentially issuable shares are excluded from the weighted average number of shares outstanding
used to calculate diluted earnings per share.
$ million
2018 2017 2016
Profit (loss) attributable to BP shareholders 9,383 3,389 115
Less: dividend requirements on preference shares 1 1 1
Profit (loss) for the year attributable to BP ordinary shareholders 9,382 3,388 114
Shares thousand
2018 2017 2016
Basic weighted average number of ordinary shares 19,970,215 19,692,613 18,744,800
Potential dilutive effect of ordinary shares issuable under employee share-based payment
plans 132,278 123,829 110,519
Weighted average number of ordinary shares outstanding used to calculate diluted
earnings per share 20,102,493 19,816,442 18,855,319
Shares thousand
2018 2017 2016
Basic weighted average number of ordinary shares – ADS equivalent 3,328,369 3,282,102 3,124,133
Potential dilutive effect of ordinary shares (ADS equivalent) issuable under employee
share-based payment plans 22,046 20,638 18,420
Weighted average number of ordinary shares (ADS equivalent) outstanding used to
calculate diluted earnings per share 3,350,415 3,302,740 3,142,553

11. Earnings per share – continued
The number of ordinary shares outstanding at 31 December 2018, excluding treasury shares, and including certain shares that will be issuable
in the future under employee share-based payment plans was 20,101,658,664. Between 31 December 2018 and 11 March 2019, the latest
practicable date before the completion of these financial statements, there was a net increase of 143,038,241 in the number of ordinary shares
outstanding primarily as a result of share issues in relation to employee share-based payment plans.
Employee share-based payment plans
The group operates share and share option plans for directors and certain employees to obtain ordinary shares and ADSs in the company.
Information on these plans for directors is shown in the Directors remuneration report on pages 87-109.
The following table shows the number of shares potentially issuable under equity-settled employee share option plans, including the number of
options outstanding, the number of options exercisable at the end of each year, and the corresponding weighted average exercise prices. The
dilutive effect of these plans at 31 December is also shown.
Share options 2018 2017
Number of optionsab Weighted average Number of optionsab Weighted average
thousand exercise price $ thousand exercise price $
Outstanding 19,437 4.28 22,399 4.34
Exercisable 481 4.69 1,112 4.46
Dilutive effect 6,123 n/a 5,145 n/a
a
Numbers of options shown are ordinary share equivalents (one ADS is equivalent to six ordinary shares).
b
At 31 December 2018 the quoted market price of one BP ordinary share was £4.96 (2017 £5.23).
In addition, the group operates a number of equity-settled employee share plans under which share units are granted to the group’s senior
leaders and certain other employees. These plans typically have a three-year performance or restricted period during which the units accrue net
notional dividends which are treated as having been reinvested. Leaving employment will normally preclude the conversion of units into
shares, but special arrangements apply for participants that leave for qualifying reasons. The number of shares that are expected to vest each
year under employee share plans are shown in the table below. The dilutive effect of the employee share plans at 31 December is also shown.
Share plans 2018 2017
Number of sharesa Number of sharesa
Vesting thousand thousand
Within one year 108,934 101,550

1 to 2 years 106,337 108,373
2 to 3 years 71,407 85,878
3 to 4 years 588 413
Over 4 years 799 166
288,065 296,380
Dilutive effect 127,165 126,122
a
Numbers of shares shown are ordinary share equivalents (one ADS is equivalent to six ordinary shares).
There has been a net decrease of 56,796,490 in the number of potential ordinary shares relating to employee share-based payment plans
between 31 December 2018 and 11 March 2019.

12. Property, plant and equipment
$ million
Plant, Fittings, Oil depots,
machinery fixtures and storage tanks
Land and land Oil and gas and office and service
improvements Buildings propertiesa equipment equipment Transportationb stations Total
Cost
At 1 January 2018 3,474 1,573 226,054 46,662 2,853 10,774 8,748 300,138
Exchange adjustments (168) (58) — (892) (73) (43) (501) (1,735)
Additions 233 40 9,712 2,323 204 (112) 736 13,136
Acquisitions 163 4 10,882 9 1 2 36 11,097
Remeasurements — — 17 — — — — 17
Transfers from intangible assets — — 901 — — — — 901
Deletions (140) (45) (14,699) (1,810) (238) (128) (146) (17,206)
At 31 December 2018 3,562 1,514 232,867 46,292 2,747 10,493 8,873 306,348
Depreciation
At 1 January 2018 683 818 133,326 20,996 2,136 7,523 5,185 170,667
Exchange adjustments (25) (24) — (460) (52) (27) (279) (867)
Charge for the year 92 52 12,342 1,820 189 252 384 15,131
Impairment losses 2 — 86 253 — 178 2 521
Impairment reversals — — (564) (1) — (17) — (582)
Deletions (126) (139) (11,333) (1,733) (232) (75) (145) (13,783)
At 31 December 2018 626 707 133,857 20,875 2,041 7,834 5,147 171,087
Net book amount at 31
December 2018 2,936 807 99,010 25,417 706 2,659 3,726 135,261
Cost
At 1 January 2017 3,066 2,235 215,564 43,725 2,670 14,000 7,623 288,883
Exchange adjustments 264 42 — 1,251 91 28 772 2,448
Additions 264 94 12,366 1,890 240 347 575 15,776
Acquisitions — — — 41 — 228 1 270
Transfers from intangible assets — — 451 — — — — 451
Deletions (120) (798) (2,327) (245) (148) (3,829) (223) (7,690)
At 31 December 2017 3,474 1,573 226,054 46,662 2,853 10,774 8,748 300,138
Depreciation
At 1 January 2017 584 1,062 122,428 18,686 2,022 9,823 4,521 159,126
Exchange adjustments 33 27 — 647 67 19 466 1,259
Charge for the year 90 94 12,385 1,764 185 381 350 15,249
Impairment losses 3 35 624 35 — 479 17 1,193
Impairment reversals — — (135) — — (72) — (207)
Deletions (27) (400) (1,976) (136) (138) (3,107) (169) (5,953)
At 31 December 2017 683 818 133,326 20,996 2,136 7,523 5,185 170,667
Net book amount at 31
December 2017 2,791 755 92,728 25,666 717 3,251 3,563 129,471
Assets held under finance leases at net book

amount included above
At 31 December 2018 — 2 12 207 — 295 6 522
At 31 December 2017 — 2 16 238 — 233 7 496
Assets under construction included above
At 31 December 2018 22,522
At 31 December 2017 23,789
a
For information on significant estimates and judgements made in relation to the estimation of oil and natural reserves see Property, plant and equipment within Note 1.
b
Includes adjustments to decommissioning provisions see Note 1 for further information.
13. Capital commitments

Authorized future capital expenditure for property, plant and equipment by group companies for which contracts had been signed at
31 December 2018 amounted to $8,319 million (2017 $11,340 million). BP has capital commitments amounting to $1,227 million (2017 $1,451
million) in relation to associates. BP’s share of capital commitments of joint ventures amounted to $619 million (2017 $483 million).

14. Goodwill and impairment review of goodwill
$ million
2018 2017
Cost
At 1 January 12,163 11,805
Exchange adjustments (210) 336
Acquisitions and other additionsa 1,046 83
Deletions (184) (61)
At 31 December 12,815 12,163
Impairment losses
At 1 January 612 611
Exchange adjustments — 1
Deletions (1) —
Net book amount at 31 December 12,204 11,551
Net book amount at 1 January 11,551 11,194
a
2018 principally relates to the purchase of an additional 16.5% share in the Clair field in the North Sea. See Note 3 - Other significant transactions for further information.
Impairment review of goodwill

$ million
Goodwill at 31 December 2018 2017
Upstream 8,346 7,728
Downstream 3,802 3,758
Other businesses and corporate 56 65
12,204 11,551
Goodwill acquired through business combinations has been allocated to groups of cash-generating units that are expected to benefit from the
synergies of the acquisition. For Upstream, goodwill is allocated to all oil and gas assets in aggregate at the segment level. For Downstream,
goodwill has been allocated to Lubricants and Other.
For information on significant estimates and judgements made in relation to impairments see Impairment of property, plant and equipment,
intangible assets and goodwill in Note 1.
Upstream
$ million
2018 2017
Goodwill 8,346 7,728
Excess of recoverable amount over carrying amount 53,391 27,705
The table above shows the carrying amount of goodwill for the segment and the excess of the recoverable amount, based upon a post-tax
value-in-use calculation, over the carrying amount (headroom) at the date of the test. The increase in headroom principally arises from
acquisitions, new activity and changes in US tax. In the prior year, the recoverable amount was estimated using a fair value less costs of
disposal calculation and was based on cash flows estimated for the impairment test performed in 2016 as permitted by IAS 36.
The value in use is based on the cash flows expected to be generated by the projected oil or natural gas production profiles up to the expected
dates of cessation of production of each producing field, based on current estimates of reserves and resources, appropriately risked.
Midstream and supply and trading activities and equity-accounted entities are generally not included in the impairment review of goodwill,
because they are not part of the grouping of cash-generating units to which the goodwill relates and which is used to monitor the goodwill for
internal management purposes. Where such activities form part of a wider Upstream cash-generating unit, they are reflected in the test. As the
production profile and related cash flows can be estimated from BP’s past experience, management believes that the cash flows generated
over the estimated life of field is the appropriate basis upon which to assess goodwill and individual assets for impairment. The estimated date
of cessation of production depends on the interaction of a number of variables, such as the recoverable quantities of hydrocarbons, the
production profile of the hydrocarbons, the cost of the development of the infrastructure necessary to recover the hydrocarbons, production
costs, the contractual duration of the production concession and the selling price of the hydrocarbons produced. As each producing field has
specific reservoir characteristics and economic circumstances, the cash flows of the fields are computed using appropriate individual economic
models and key assumptions agreed by BP management. Capital expenditure, operating costs and expected hydrocarbon production profiles
are derived from the business segment plan adjusted for assumptions reflecting the price environment at the time that the test was
performed. Estimated production volumes and cash flows up to the date of cessation of production on a field-by-field basis are consistent with
this. The production profiles used are consistent with the reserve and resource volumes approved as part of BP’s centrally controlled process
for the estimation of proved and probable reserves and total resources.
The most recent review for impairment was carried out in the fourth quarter. The key assumptions used in the value-in-use calculation are oil
and natural gas prices, production volumes and the discount rate. Oil and gas price assumptions for the first five years are based on
management’s best estimate of prices over those five years, with the long-term price applied from year 6 onwards. Price assumptions and
discount rate assumptions used were as disclosed in Note 1. The value-in-use calculation has been prepared solely for the purposes of
determining whether the goodwill balance was impaired. Estimated future cash flows were prepared on the basis of certain assumptions
prevailing at the time of the test. The actual outcomes may differ from the assumptions made. For example, reserves and resources estimates
and production forecasts are subject to revision as further technical information becomes available and economic conditions change, and
future commodity prices may differ from the forecasts used in the calculations.
Sensitivities to different variables have been estimated using certain simplifying assumptions. For example, lower oil and gas price sensitivities
do not reflect the specific impacts for each contractual arrangement and will not capture fully any favourable impacts that may arise from cost
deflation. Therefore a detailed calculation at any given price or production profile may produce a different result.

14. Goodwill and impairment review of goodwill – continued
It is estimated that if the oil price assumption for all future years was approximately $14 per barrel lower in each year, this would cause the
recoverable amount to be equal to the carrying amount of goodwill and related net non-current assets of the segment. It is estimated that no
reasonable fall in the gas price assumption would cause the recoverable amount to be equal to the carrying amount of goodwill and related net
non-current assets of the segment.
Estimated production volumes are based on detailed data for each field and take into account development plans agreed by management as
part of the long-term planning process. The average production for the purposes of goodwill impairment testing over the next 15 years is
829mmboe per year (2017 889mmboe per year). It is estimated that if production volumes were to be reduced by approximately 13% for this
period, this would cause the recoverable amount to be equal to the carrying amount of goodwill and related net non-current assets of the
segment.
It is estimated that if the post-tax discount rate was approximately 11% for the entire portfolio, an increase of 5% for all countries not
considered ‘higher risk’ and 3% for countries considered 'higher risk', this would cause the recoverable amount to be equal to the carrying
amount of goodwill and related net non-current assets of the segment.
Downstream
$ million
2018 2017
Lubricants Other Total Lubricants Other Total
Goodwill 2,692 1,110 3,802 2,849 909 3,758
Cash flows for each cash-generating unit are derived from the business segment plans, which cover a period of up to five years. To determine
the value in use for each of the cash-generating units, cash flows for a period of 10 years are discounted and aggregated with a terminal value.
Lubricants
As permitted by IAS 36, the detailed calculations of Lubricants’ recoverable amount performed in the most recent detailed calculation in 2013
were used as the basis for the tests in 2014-2017 as the criteria of IAS 36 were considered satisfied: the headroom was substantial in 2013;
there have been no significant changes in the assets and liabilities; and the likelihood that the recoverable amount would be less than the
carrying amount is remote. IAS 36 does not specify for how many years such an approach is appropriate and management determined that a
re-performance of the test was appropriate in 2018 given the passage of time since 2013. There was no significant change in the outcome of
this test compared to that in 2013.
The key assumptions to which the calculation of value in use for the Lubricants unit is most sensitive are operating unit margins, sales
volumes, and discount rate. Operating margin and sales volumes assumptions used in the detailed impairment review of goodwill calculation
are consistent with the assumptions used in the Lubricants unit’s business plan and values assigned to these key assumptions reflect past
experience. No reasonably possible change in any of these key assumptions would cause the unit’s carrying amount to exceed its recoverable
amount. Cash flows beyond the plan period are extrapolated using a nominal 2.8% growth rate (2013 3%).
15. Intangible assets

$ million
2018 2017
Exploration Exploration and
and appraisal Other appraisal Other
expenditurea intangibles Total expenditurea intangibles Total
Cost
At 1 January 17,886 4,488 22,374 18,524 4,035 22,559
Exchange adjustments — (128) (128) — 197 197
Acquisitions — 25 25 — 41 41
Additions 1,095 318 1,413 2,128 310 2,438
Transfers to property, plant and equipment (901) — (901) (451) — (451)
Deletions (1,027) (199) (1,226) (2,315) (95) (2,410)
At 31 December 17,053 4,504 21,557 17,886 4,488 22,374
Amortization
At 1 January 860 3,159 4,019 1,564 2,812 4,376
Exchange adjustments — (77) (77) — 107 107
Charge for the year 1,085 326 1,411 1,603 335 1,938
Impairment losses 137 — 137 — — —
Deletions (1,018) (199) (1,217) (2,307) (95) (2,402)
At 31 December 1,064 3,209 4,273 860 3,159 4,019
Net book amount at 31 December 15,989 1,295 17,284 17,026 1,329 18,355
Net book amount at 1 January 17,026 1,329 18,355 16,960 1,223 18,183
a
For further information see Intangible assets within Note 1 and Note 8.

16. Investments in joint ventures
The following table provides aggregated summarized financial information relating to the group’s share of joint ventures.
$ million
2018 2017 2016
Sales and other operating revenues 13,258 11,380 10,081
Profit before interest and taxation 1,396 1,394 1,612
Finance costs 85 100 156
Profit before taxation 1,311 1,294 1,456
Taxation 414 117 490
Profit for the year 897 1,177 966
Other comprehensive income 6 8 5
Total comprehensive income 903 1,185 971
Non-current assets 10,399 10,139
Current assets 2,935 2,419
Total assets 13,334 12,558
Current liabilities 1,715 1,687
Non-current liabilities 3,017 2,927
Net assets 8,602 7,944
Group investment in joint ventures
Group share of net assets (as above) 8,602 7,944
Loans made by group companies to joint ventures 45 50
8,647 7,994
Transactions between the group and its joint ventures are summarized below.
$ million
Sales to joint ventures 2018 2017 2016
Amount Amount Amount
receivable at receivable at receivable at
Product Sales 31 December Sales 31 December Sales 31 December
LNG, crude oil and oil products, natural gas 4,603 251 3,578 352 3,327 291
$ million
Purchases from joint ventures 2018 2017 2016
payable at payable at payable at
Product Purchases 31 December Purchases 31 December Purchases 31 December
LNG, crude oil and oil products, natural gas, refinery

operating costs, plant processing fees 1,336 300 1,257 176 943 120
The terms of the outstanding balances receivable from joint ventures are typically 30 to 45 days. The balances are unsecured and will be
settled in cash. There are no significant provisions for doubtful debts relating to these balances and no significant expense recognized in the
income statement in respect of bad or doubtful debts. Dividends receivable are not included in the table above.
17. Investments in associates

The following table provides aggregated summarized financial information for the group’s associates as it relates to the amounts recognized in
the group income statement and on the group balance sheet.
$ million
Income statement Balance sheet
Earnings from associates Investments in
- after interest and tax associates
2018 2017 2016 2018 2017
Rosneft 2,283 922 647 10,074 10,059
Other associates 573 408 347 7,599 6,932
2,856 1,330 994 17,673 16,991
The associate that is material to the group at both 31 December 2018 and 2017 is Rosneft.
BP owns 19.75% of the voting shares of Rosneft which are listed on the MICEX stock exchange in Moscow and its global depository receipts
are listed on the London Stock Exchange. The Russian federal government, through its investment company JSC Rosneftegaz, owned 50.0%
plus one share of the voting shares of Rosneft at 31 December 2018.
BP classifies its investment in Rosneft as an associate because, in management’s judgement, BP has significant influence over Rosneft; see
Interests in other entities within Note 1 for further information. The group’s investment in Rosneft is a foreign operation whose functional
currency is the Russian rouble. The increase in the group's equity-accounted investment balance for Rosneft at 31 December 2018 compared
with 31 December 2017 principally relates to earnings from Rosneft offset by dividends distribution and foreign exchange effects which have
been recognized in other comprehensive income.

17. Investments in associates – continued
The value of BP’s 19.75% shareholding in Rosneft based on the quoted market share price of $6.18 per share (2017 $4.99 per share) was
$12,934 million at 31 December 2018 (2017 $10,444 million).
The following table provides summarized financial information relating to Rosneft. This information is presented on a 100% basis and reflects
adjustments made by BP to Rosneft’s own results in applying the equity method of accounting. BP adjusts Rosneft’s results for the accounting
required under IFRS relating to BP’s purchase of its interest in Rosneft and the amortization of the deferred gain relating to the disposal of BP’s
interest in TNK-BP. These adjustments have increased the reported profit for 2018, as shown in the table below, compared with the amounts
reported in Rosneft's IFRS financial statements. In particular, in 2018 these adjustments resulted in BP reporting a lower amount relating to
impairment charges of downstream goodwill than the equivalent amounts reported by Rosneft.
$ million
Gross amount
2018 2017 2016
Sales and other operating revenues 131,322 103,028 74,380
Profit before interest and taxation 18,886 9,949 7,094
Finance costs 2,785 2,228 1,747
Profit before taxation 16,101 7,721 5,347
Taxation 2,957 1,742 1,797
Non-controlling interests 1,585 1,311 273
Profit for the year 11,559 4,668 3,277
Other comprehensive income 2,086 2,810 4,203
Total comprehensive income 13,645 7,478 7,480
Non-current assets 137,038 158,719
Current assets 43,438 39,737
Total assets 180,476 198,456
Current liabilities 41,311 66,506
Non-current liabilities 78,754 70,704
Net assets 60,411 61,246
Less: non-controlling interests 9,403 10,314
51,008 50,932
The group received dividends, net of withholding tax, of $620 million from Rosneft in 2018 (2017 $314 million and 2016 $332 million).
Summarized financial information for the group’s share of associates is shown below.
$ million
BP share
2018 2017 2016
Rosnefta Other Total Rosnefta Other Total Rosnefta Other Total
Sales and other operating revenues 25,936 9,134 35,070 20,348 7,600 27,948 14,690 5,377 20,067
Profit before interest and taxation 3,730 1,150 4,880 1,965 626 2,591 1,401 525 1,926
Finance costs 550 78 628 440 54 494 345 22 367
Profit before taxation 3,180 1,072 4,252 1,525 572 2,097 1,056 503 1,559
Taxation 584 499 1,083 344 164 508 355 156 511
Non-controlling interests 313 — 313 259 — 259 54 — 54
Profit for the year 2,283 573 2,856 922 408 1,330 647 347 994
Other comprehensive income 412 (1) 411 555 1 556 830 (2) 828
Total comprehensive income 2,695 572 3,267 1,477 409 1,886 1,477 345 1,822
Non-current assets 27,065 10,787 37,852 31,347 9,261 40,608
Current assets 8,579 2,398 10,977 7,848 2,645 10,493
Total assets 35,644 13,185 48,829 39,195 11,906 51,101
Current liabilities 8,159 2,232 10,391 13,135 2,501 15,636
Non-current liabilities 15,554 3,817 19,371 13,964 3,308 17,272
Total liabilities 23,713 6,049 29,762 27,099 5,809 32,908
Net assets 11,931 7,136 19,067 12,096 6,097 18,193
Less: non-controlling interests 1,857 — 1,857 2,037 — 2,037
10,074 7,136 17,210 10,059 6,097 16,156
Group investment in associates
Group share of net assets (as above) 10,074 7,136 17,210 10,059 6,097 16,156
Loans made by group companies to
associates — 463 463 — 835 835
10,074 7,599 17,673 10,059 6,932 16,991
a
From 1 October 2014, Rosneft adopted hedge accounting in relation to a portion of highly probable future export revenue denominated in US dollars over a five-year period. Foreign exchange
gains and losses arising on the retranslation of borrowings denominated in currencies other than the Russian rouble and designated as hedging instruments are recognized initially in other
comprehensive income, and are reclassified to the income statement as the hedged revenue is recognized.

17. Investments in associates – continued
Transactions between the group and its associates are summarized below.
$ million
Sales to associates 2018 2017 2016
receivable at receivable at receivable at
Product Sales 31 December Sales 31 December Sales 31 December
LNG, crude oil and oil products, natural gas 2,064 393 1,612 216 3,643 765
$ million
Purchases from associates 2018 2017 2016
payable at payable at payable at
Product Purchases 31 December Purchases 31 December Purchases 31 December
Crude oil and oil products, natural gas, transportation

tariff 14,112 2,069 11,613 1,681 8,873 2,000
In addition to the transactions shown in the table above, in 2018 BP acquired a 49% stake in LLC Kharampurneftegaz, a Rosneft subsidiary,
which will develop subsoil resources within the Kharampurskoe and Festivalnoye licence areas in Yamalo-Nenets Autonomous Okrug in
northern Russia. BP’s interest in LLC Kharampurneftegaz is accounted for as an associate.
The terms of the outstanding balances receivable from associates are typically 30 to 45 days. The balances are unsecured and will be settled in
cash. There are no significant provisions for doubtful debts relating to these balances and no significant expense recognized in the income
statement in respect of bad or doubtful debts. Dividends receivable are not included in the table above.
The majority of the sales to and purchases from associates relate to crude oil and oil products transactions with Rosneft.
BP has commitments amounting to $11,303 million (2017 $13,932 million), primarily in relation to contracts with its associates for the purchase
of transportation capacity. For information on capital commitments in relation to associates see Note 13.
18. Other investments

$ million
2018 2017
Current Non-current Current Non-current
Equity investmentsa 1 482 15 418
Other 221 859 110 827
222 1,341 125 1,245
a
The majority of equity investments are unlisted.
Other investments includes $893 million relating to contingent consideration amounts arising on disposals (2017 $237 million) which are
financial assets classified as measured at fair value through profit or loss. The fair value is determined using an estimate of discounted future
cash flows that are expected to be received and is considered a level 3 valuation under the fair value hierarchy. Future cash flows are estimated
based on inputs including oil and natural gas prices, production volumes and operating costs related to the disposed operations. The discount
rate used is based on a risk-free rate adjusted for asset-specific risks.
19. Inventories
$ million
2018 2017
Crude oil 4,878 5,692
Natural gas 322 119
Refined petroleum and petrochemical products 10,419 10,694
15,619 16,505
Trading inventories 282 295
15,901 16,800
Supplies 2,087 2,211
17,988 19,011
Cost of inventories expensed in the income statement 229,878 179,716
The inventory valuation at 31 December 2018 is stated net of a provision of $1,009 million (2017 $474 million) to write down inventories to their
net realizable value, of which $604 million (2017 $62 million) relates to hydrocarbon inventories. The net charge to the income statement in the
year in respect of inventory net realizable value provisions was $552 million (2017 $27 million credit), of which $553 million (2017 $31 million
credit) related to hydrocarbon inventories.
Trading inventories are valued using quoted benchmark prices adjusted as appropriate for location and quality differentials. They are
predominantly categorized within level 2 of the fair value hierarchy.

20. Trade and other receivables
$ million
2018 2017
Financial assets
Trade receivables 19,414 7 18,912 4
Amounts receivable from joint ventures and associates 642 2 566 2
Other receivables 3,275 740 4,206 671
23,331 749 23,684 677
Non-financial assets
Gulf of Mexico oil spill trust fund reimbursement asset 214 — 252 —
Sales taxes and production taxes 790 482 746 276
Other receivables 143 603 167 481
1,147 1,085 1,165 757
24,478 1,834 24,849 1,434
In both 2018 and 2017 the group entered into non-recourse arrangements to discount certain receivables in support of supply and trading
activities and the management of credit risk.
Trade and other receivables are predominantly non-interest bearing. See Note 29 for further information.
21. Valuation and qualifying accounts

$ million
2018 2017 2016
Trade and Trade and Trade and
Not credit- Credit other Fixed asset other Fixed asset other Fixed asset
impaired impaired receivables investments receivables investments receivables investments
At 1 January – IAS 39 — 335 335 314 392 335 447 435

Adjustment on adoption of IFRS 9 115 — 115 (85) — — — —
At 1 January – IFRS 9 115 335 450 229 392 335 447 435
Charged to costs and expenses (26) 56 30 10 68 47 120 55
Charged to other accountsa — (12) (12) (1) 13 3 (7) (2)
Deductions — (52) (52) (3) (138) (71) (168) (153)
At 31 December 89 327 416 235 335 314 392 335
a
Principally exchange adjustments.
Valuation and qualifying accounts relating to trade and other receivables comprise expected credit loss allowances in 2018 and impairment
provisions recognized on an incurred loss basis in comparative periods. The adjustment on adoption of IFRS 9 relates to the additional loss
allowance required by the new standard's expected credit loss model. There were no significant changes to the gross carrying amounts of
trade and other receivables during the year that affected the estimation of the loss allowance at 31 December 2018.
Valuation and qualifying accounts relating to fixed asset investments comprise impairment provisions for investments in equity-accounted
entities in 2018. This includes expected credit loss allowances of $44 million (1 January 2018 $43 million) relating to loans that form part of the
net investment in equity-accounted entities. The adjustment on adoption of IFRS 9 primarily relates to amounts provided against investments in
equity instruments that were held at cost less impairment losses under IAS 39 but that are classified as measured at fair value through profit
or loss under IFRS 9.
In addition to the amounts presented above, expected loss allowances on cash and cash equivalents classified as measured at amortized cost
totalled $11 million (1 January 2018 $11 million). For further information on the group's credit risk management policies and how the group
recognizes and measures expected losses see Note 29.
Valuation and qualifying accounts are deducted in the balance sheet from the assets to which they apply.
For further information on the adjustments on adoption of IFRS 9 see Note 1.

22. Trade and other payables
$ million
2018 2017
Trade payables 26,252 — 26,983 —
Amounts payable to joint ventures and associates 2,369 — 1,857 —
Payables for capital expenditure and acquisitionsa 7,325 1,345 3,810 1,269
Payables related to the Gulf of Mexico oil spillb 2,279 11,922 2,089 12,253
Other payables 4,980 318 5,733 60
43,205 13,585 40,472 13,582
Non-financial liabilities
Sales taxes, customs duties, production taxes and social security 2,272 35 2,586 50
Other payables 788 210 1,151 257
3,060 245 3,737 307
46,265 13,830 44,209 13,889
a
Includes $3,514 million deferred consideration relating to the acquisition of Petrohawk Energy Corporation from BHP Billiton Petroleum (North America) Inc. See Note 3 for further
information.
b
Materially all of BP's trade payables have payment terms in the range of 30 to 60 days and give rise to operating cash flows. The active
management of supplier payment terms within this range enables BP to optimize and reduce volatility in cash flow.
Trade and other payables, other than those relating to the Gulf of Mexico oil spill, are predominantly interest free. See Note 29 (c) for further
information.
23. Provisions
$ million
Litigation and
Decommissioning Environmental claims Other Total
At 1 January 2018 16,100 1,516 3,334 2,994 23,944

Exchange adjustments (135) (9) (3) (84) (231)
Acquisitions 295 12 24 5 336
Increase (decrease) in existing provisions 137 428 1,492 1,303 3,360
Write-back of unused provisions (2) (115) (21) (255) (393)
Unwinding of discount 162 22 9 17 210
Change in discount ratea (2,377) (38) (31) (17) (2,463)
Utilization (9) (245) (1,034) (528) (1,816)
Reclassified to other payables (270) (4) (2,051) (37) (2,362)
Deletions (288) — (1) — (289)
At 31 December 2018 13,613 1,567 1,718 3,398 20,296
Of which – current 257 300 798 1,209 2,564
– non-current 13,356 1,267 920 2,189 17,732
Of which – Gulf of Mexico oil spillb — — 345 — 345
a
Includes the impact of changing from a real to nominal discount rate. See Note 1 for further information.
b
Further information on the financial impacts of the Gulf of Mexico oil spill is provided in Note 2.
The decommissioning provision comprises the future cost of decommissioning oil and natural gas wells, facilities and related pipelines. The
environmental provision includes provisions for costs related to the control, abatement, clean-up or elimination of environmental pollution
relating to soil, groundwater, surface water and sediment contamination. The litigation and claims category includes provisions for matters
related to, for example, commercial disputes, product liability, and allegations of exposures of third parties to toxic substances. Included within
the other category at 31 December 2018 are provisions for deferred employee compensation of $338 million (2017 $391 million).
For information on significant estimates and judgements made in relation to provisions, see Provisions and contingencies within Note 1.
24. Pensions and other post-retirement benefits

Most group companies have pension plans, the forms and benefits of which vary with conditions and practices in the countries concerned.
Pension benefits may be provided through defined contribution plans (money purchase schemes) or defined benefit plans (final salary and
other types of schemes with committed pension benefit payments). For defined contribution plans, retirement benefits are determined by the
value of funds arising from contributions paid in respect of each employee. For defined benefit plans, retirement benefits are based on such
factors as an employee’s pensionable salary and length of service. Defined benefit plans may be funded or unfunded. The assets of funded
plans are generally held in separately administered trusts.
For information on significant estimates and judgements made in relation to accounting for these plans see Pensions and other post-retirement
benefits in Note 1.
The primary pension arrangement in the UK is a funded final salary pension plan under which retired employees draw the majority of their
benefit as an annuity. This pension plan is governed by a corporate trustee whose board is composed of four member-nominated directors, four
company-nominated directors, an independent director and an independent chairman nominated by the company. The trustee board is required
by law to act in the best interests of the plan participants and is responsible for setting certain policies, such as investment policies of the plan.
The UK plan is closed to new joiners but remains open to ongoing accrual for current members. New joiners in the UK are eligible for
membership of a defined contribution plan.

24. Pensions and other post-retirement benefits – continued
In the US, all pension benefits now accrue under a cash balance formula. Benefits previously accrued under final salary formulas are legally
protected. Retiring US employees typically take their pension benefit in the form of a lump sum payment upon retirement. The plan is funded
and its assets are overseen by a fiduciary Investment Committee composed of six BP employees appointed by the president of BP Corporation
North America Inc. (the appointing officer). The Investment Committee is required by law to act in the best interests of the plan participants
and is responsible for setting certain policies, such as the investment policies of the plan. US employees are also eligible to participate in a
defined contribution (401k) plan in which employee contributions are matched with company contributions. In the US, group companies also
provide post-retirement healthcare to retired employees and their dependants (and, in certain cases, life insurance coverage); the entitlement
to these benefits is usually based on the employee remaining in service until a specified age and completion of a minimum period of service.
In the Eurozone, there are defined benefit pension plans in Germany, France, the Netherlands and other countries. In Germany and France, the
majority of the pensions are unfunded, in line with market practice. In Germany, the group’s largest Eurozone plan, employees receive a
pension and also have a choice to supplement their core pension through salary sacrifice. For employees who joined since 2002 the core
pension benefit is a career average plan with retirement benefits based on such factors as an employee’s pensionable salary and length of
service. The returns on the notional contributions made by both the company and employees are based on the interest rate which is set out in
German tax law. Retired German employees take their pension benefit typically in the form of an annuity. The German plans are governed by
legal agreements between BP and the works council or between BP and the trade union.
The level of contributions to funded defined benefit plans is the amount needed to provide adequate funds to meet pension obligations as they
fall due. During 2018 the aggregate level of contributions was $610 million (2017 $637 million and 2016 $651 million). The aggregate level of
contributions in 2019 is expected to be approximately $700 million, and includes contributions in all countries that we expect to be required to
make contributions by law or under contractual agreements, as well as an allowance for discretionary funding.
For the primary UK plan there is a funding agreement between the group and the trustee. On an annual basis the latest funding position is
reviewed and a schedule of contributions is agreed covering the next five years. Contractually committed funding amounted to $1,275 million
at 31 December 2018, all of which relates to future service. This amount is included in the group’s committed cash flows relating to pensions
and other post-retirement benefit plans as set out in the table of contractual obligations on page 278.
The surplus relating to the primary UK pension plan is recognized on the balance sheet on the basis that the company is entitled to a refund of
any remaining assets once all members have left the plan.
Pension contributions in the US are determined by legislation and are supplemented by discretionary contributions. No contributions were
made into the primary US pension plan in 2018 and no statutory funding requirement is expected in the next 12 months.
The surplus relating to the primary US fund is recognized on the balance sheet on the basis that economic benefit can be gained from the
surplus through a reduction in future contributions.
There was no minimum funding requirement for the US plan, and no significant minimum funding requirements in other countries at
31 December 2018.
The obligation and cost of providing pensions and other post-retirement benefits is assessed annually using the projected unit credit method.
The date of the most recent actuarial review was 31 December 2018. The UK plans are subject to a formal actuarial valuation every three years;
valuations are required more frequently in many other countries. The most recent formal actuarial valuation of the UK pension plans was as at
31 December 2017. A valuation of the US plan and largest Eurozone plans are carried out annually.
The material financial assumptions used to estimate the benefit obligations of the various plans are set out below. The assumptions are
reviewed by management at the end of each year, and are used to evaluate the accrued benefit obligation at 31 December and pension
expense for the following year.
%
Financial assumptions used to determine benefit UK US Eurozone
obligation 2018 2017 2016 2018 2017 2016 2018 2017 2016
Discount rate for plan liabilities 2.9 2.5 2.7 4.1 3.5 3.9 2.0 1.9 1.7
Rate of increase in salaries 3.8 4.1 4.6 3.9 4.1 4.2 3.1 3.0 3.0
Rate of increase for pensions in
payment 3.0 2.9 3.0 — — — 1.5 1.4 1.5
Rate of increase in deferred pensions 3.0 2.9 3.0 — — — 0.5 0.6 0.5
Inflation for plan liabilities 3.1 3.1 3.2 1.5 1.7 1.8 1.7 1.6 1.6
%
Financial assumptions used to determine benefit UK US Eurozone

expense 2018 2017 2016 2018 2017 2016 2018 2017 2016
Discount rate for plan service cost 2.6 2.7 4.0 3.6 4.1 4.2 2.4 2.1 2.7
Discount rate for plan other finance
expense 2.5 2.7 3.9 3.5 3.9 4.0 1.9 1.7 2.4
Inflation for plan service cost 3.1 3.2 3.1 1.7 1.8 1.5 1.6 1.6 1.8
The discount rate assumptions are based on third-party AA corporate bond indices and for our largest plans in the UK, US and the Eurozone we
use yields that reflect the maturity profile of the expected benefit payments. The inflation rate assumptions for our UK and US plans are based
on the difference between the yields on index-linked and fixed-interest long-term government bonds. In other countries, including the
Eurozone, we use this approach, or advice from the local actuary depending on the information available. The inflation assumptions are used to
determine the rate of increase for pensions in payment and the rate of increase in deferred pensions where there is such an increase.
The assumptions for the rate of increase in salaries are based on the inflation assumption plus an allowance for expected long-term real salary
growth. These include an allowance for promotion-related salary growth, of up to 0.8% depending on country.

In addition to the financial assumptions, we regularly review the demographic and mortality assumptions. The mortality assumptions reflect
best practice in the countries in which we provide pensions, and have been chosen with regard to applicable published tables adjusted where
appropriate to reflect the experience of the group and an extrapolation of past longevity improvements into the future. BP’s most substantial
pension liabilities are in the UK, the US and the Eurozone where our mortality assumptions are as follows:
Years
Mortality assumptions UK US Eurozone
2018 2017 2016 2018 2017 2016 2018 2017 2016
Life expectancy at age 60 for a male
currently aged 60 27.4 27.4 28.0 25.1 25.1 25.7 25.6 25.1 25.0
Life expectancy at age 60 for a male
currently aged 40 28.9 29.0 30.0 26.9 26.8 27.5 28.1 27.6 27.6
Life expectancy at age 60 for a female
currently aged 60 28.8 28.8 29.5 28.5 28.4 29.3 29.0 29.0 28.9
Life expectancy at age 60 for a female
currently aged 40 30.6 30.5 31.9 30.1 30.0 31.0 31.2 31.4 31.3
Pension plan assets are generally held in trusts, the primary objective of which is to accumulate assets sufficient to meet the obligations of the
plans. The assets of the trusts are invested in a manner consistent with fiduciary obligations and principles that reflect current practices in
portfolio management.
A significant proportion of the assets are held in equities, which are expected to generate a higher level of return over the long term, with an
acceptable level of risk. In order to provide reasonable assurance that no single security or type of security has an unwarranted impact on the
total portfolio, the investment portfolios are highly diversified.
The trustee’s long-term investment objective for the primary UK plan as it matures is to invest in assets whose value changes in the same way
as the plan liabilities, in order to reduce the level of funding risk. To move towards this objective, the UK plan uses a liability driven investment
(LDI) approach for part of the portfolio, investing primarily in government bonds to achieve this matching effect for the most significant plan
liability assumptions of interest rate and inflation rate. This is partly funded by short-term sale and repurchase agreements, whereby the plan
borrows money using existing bonds as security and which will be bought back at a specified price at an agreed future date. The funds raised
are used to invest in further bonds to increase the proportion of assets which match the plan liabilities. The borrowings are shown separately in
the analysis of pension plan assets in the table below.
For the primary UK pension plan there is an agreement with the trustee to increase the proportion of assets with liability matching
characteristics over time primarily by reducing the proportion of plan assets held as equities and increasing the proportion held as bonds. There
is a similar agreement in place for the primary US plan. During 2018, the UK and the US plans switched 12.5% and 10% of plan assets
respectively from equities to bonds.
The current asset allocation policy for the major plans at 31 December 2018 was as follows:
UK US
Asset category % %
Total equity (including private equity) 30 40
Bonds/cash (including LDI) 63 60
Property/real estate 7 —
The amounts invested under the LDI programme by the primary UK pension plan as at 31 December 2018 were $4,197 million (2017 $2,588
million) of government-issued nominal bonds and $17,491 million (2017 $16,177 million) of index-linked bonds.
Some of the group’s pension plans in the Eurozone and other countries use derivative financial instruments as part of their asset mix to
manage the level of risk. The fair value of these instruments are included in other assets in the table below. The UK and US plans do not use
derivative financial instruments.
The group’s main pension plans do not invest directly in either securities or property/real estate of the company or of any subsidiary.
The fair values of the various categories of assets held by the defined benefit plans at 31 December are presented in the table below, including
the effects of derivative financial instruments. Movements in the fair value of plan assets during the year are shown in detail in the table on
page 176.

$ million
UKa USb Eurozone Other Total
Fair value of pension plan assets
At 31 December 2018
Listed equities – developed markets 5,191 1,238 413 306 7,148
– emerging markets 950 63 65 56 1,134
Private equityc 2,792 1,495 — 4 4,291
Government issued nominal bondsd 4,263 2,072 895 533 7,763
Government issued index-linked bondsd 17,491 — 102 — 17,593
Corporate bondsd 4,606 2,184 506 243 7,539
Propertye 2,311 6 57 25 2,399
Cash 376 73 42 83 574
Other 116 64 32 40 252
Debt (repurchase agreements) used to fund liability driven investments (6,011) — — — (6,011)
32,085 7,195 2,112 1,290 42,682
At 31 December 2017
– emerging markets 2,220 220 83 53 2,576
Private equityc 2,679 1,461 — — 4,140
Government issued nominal bondsd 2,663 1,777 941 545 5,926
Propertye 2,211 6 71 30 2,318
Cash 390 80 21 98 589
Other 104 53 23 45 225
35,091 7,779 2,224 1,419 46,513
At 31 December 2016
– emerging markets 2,549 220 54 46 2,869
Private equityc 2,754 1,442 1 — 4,197
Government issued nominal bondsd 489 1,438 821 448 3,196
Propertye 1,970 6 45 28 2,049
Cash 547 105 17 83 752
Other (68) 90 74 83 179
30,180 7,316 1,879 1,310 40,685
a
Bonds held by the UK pension plans are denominated in sterling. Property held by the UK pension plans is in the United Kingdom.
b
Bonds held by the US pension plans are denominated in US dollars.
c
Private equity is valued at fair value based on the most recent third-party net asset valuation.
d
Bonds held by pension plans are valued using quoted prices in active markets. Where quoted prices are not available, quoted prices for similar instruments in active markets are used.
e
Properties are valued based on an analysis of recent market transactions supported by market knowledge derived from third-party valuers.

$ million
2018
UK US Eurozone Other Total
Analysis of the amount charged to profit or loss

Current service costa 295 299 84 43 721
Past service costb 15 — 9 4 28
Settlementb — — 17 — 17
Operating charge relating to defined benefit plans 310 299 110 47 766
Payments to defined contribution plans 38 178 5 40 261
Total operating charge 348 477 115 87 1,027
Interest income on plan assetsa (868) (262) (44) (45) (1,219)
Interest on plan liabilities 774 369 136 67 1,346
Other finance (income) expense (94) 107 92 22 127
Analysis of the amount recognized in other comprehensive income
Actual asset return less interest income on plan assets (722) (256) (69) (36) (1,083)
Change in financial assumptions underlying the present value of the plan liabilities 1,770 945 14 65 2,794
Change in demographic assumptions underlying the present value of the plan liabilities 123 (9) (42) 7 79
Experience gains and losses arising on the plan liabilities 520 41 (43) 9 527
Remeasurements recognized in other comprehensive income 1,691 721 (140) 45 2,317
Movements in benefit obligation during the year
Benefit obligation at 1 January 31,513 10,820 7,275 1,873 51,481
Exchange adjustments (1,589) — (303) (113) (2,005)
Interest cost 774 369 136 67 1,346
Contributions by plan participantsc 21 — 2 7 30
Benefit payments (funded plans)d (1,780) (597) (84) (83) (2,544)
Benefit payments (unfunded plans)d (6) (218) (301) (17) (542)
Disposals — — — (14) (14)
Remeasurements (2,413) (977) 71 (81) (3,400)
Benefit obligation at 31 Decembera e 26,830 9,696 6,906 1,686 45,118
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January 35,091 7,779 2,224 1,419 46,513
Exchange adjustments (1,883) — (93) (73) (2,049)
Interest income on plan assetsa f 868 262 44 45 1,219
Contributions by employers (funded plans) 490 7 88 25 610
Disposals — — — (14) (14)
Remeasurementsf (722) (256) (69) (36) (1,083)
Fair value of plan assets at 31 Decemberg 32,085 7,195 2,112 1,290 42,682
Surplus (deficit) at 31 December 5,255 (2,501) (4,794) (396) (2,436)
Represented by
Asset recognized 5,473 418 29 35 5,955
Liability recognized (218) (2,919) (4,823) (431) (8,391)
5,255 (2,501) (4,794) (396) (2,436)
The surplus (deficit) may be analysed between funded and unfunded plans as follows
Funded 5,473 396 (152) (97) 5,620
Unfunded (218) (2,897) (4,642) (299) (8,056)
5,255 (2,501) (4,794) (396) (2,436)
The defined benefit obligation may be analysed between funded and unfunded plans as
follows
Funded (26,612) (6,799) (2,264) (1,387) (37,062)
Unfunded (218) (2,897) (4,642) (299) (8,056)
(26,830) (9,696) (6,906) (1,686) (45,118)
a
The costs of managing plan investments are offset against the investment return, the costs of administering pension plan benefits are generally included in current service cost and the
costs of administering other post-retirement benefit plans are included in the benefit obligation.
b
Past service costs and settlements have arisen from restructuring programmes and represent charges for special termination benefits representing the increased liability arising as a result
of early retirements mostly in the UK and Eurozone.
c
Most of the contributions made by plan participants into UK pension plans were made under salary sacrifice.
d
The benefit payments amount shown above comprises $3,046 million benefits and $2 million settlements, plus $38 million of plan expenses incurred in the administration of the benefit.
e
The benefit obligation for the US is made up of $7,290 million for pension liabilities and $2,406 million for other post-retirement benefit liabilities (which are unfunded and are primarily retiree
medical liabilities). The benefit obligation for the Eurozone includes $4,328 million for pension liabilities in Germany which is largely unfunded.
f
The actual return on plan assets is made up of the sum of the interest income on plan assets and the remeasurement of plan assets as disclosed above.
g
The fair value of plan assets includes borrowings related to the LDI programme as described on page 174.

$ million
2017
Past service costb 12 — 5 (1) 16
Settlementb — — 13 — 13
Interest income on plan assetsa (845) (266) (37) (48) (1,196)
Interest on plan liabilities 831 393 121 71 1,416
Actual asset return less interest income on plan assets 2,396 826 30 43 3,295
Change in financial assumptions underlying the present value of the plan liabilities (236) (514) 336 (47) (461)
Change in demographic assumptions underlying the present value of the plan liabilities 734 72 — (23) 783
Experience gains and losses arising on the plan liabilities 91 (40) (36) 14 29
Remeasurements recognized in other comprehensive income 2,985 344 330 (13) 3,646
Benefit obligation at 1 January 29,908 10,533 6,820 1,715 48,976
Exchange adjustments 2,886 — 915 89 3,890
Interest cost 831 393 121 71 1,416
Benefit payments (unfunded plans)d (5) (239) (302) (20) (566)
Acquisitions — 1 — — 1
Disposals — (1) (9) — (10)
Remeasurements (589) 482 (300) 56 (351)
Benefit obligation at 31 Decembera e 31,513 10,820 7,275 1,873 51,481
Fair value of plan assets at 1 January 30,180 7,316 1,879 1,310 40,685
Exchange adjustments 3,048 — 264 72 3,384
Interest income on plan assetsa f 845 266 37 48 1,196
Contributions by employers (funded plans) 509 12 87 29 637
Remeasurementsf 2,396 826 30 43 3,295
Fair value of plan assets at 31 Decemberg 35,091 7,779 2,224 1,419 46,513
Surplus (deficit) at 31 December 3,578 (3,041) (5,051) (454) (4,968)
Represented by
Asset recognized 3,838 260 43 28 4,169
Liability recognized (260) (3,301) (5,094) (482) (9,137)
3,578 (3,041) (5,051) (454) (4,968)
The surplus (deficit) may be analysed between funded and unfunded plans as follows
Funded 3,838 238 (106) (101) 3,869
Unfunded (260) (3,279) (4,945) (353) (8,837)
3,578 (3,041) (5,051) (454) (4,968)
The defined benefit obligation may be analysed between funded and unfunded plans as
follows
Funded (31,253) (7,541) (2,330) (1,520) (42,644)
Unfunded (260) (3,279) (4,945) (353) (8,837)
(31,513) (10,820) (7,275) (1,873) (51,481)
a
The costs of managing plan investments are offset against the investment return, the costs of administering pension plan benefits are generally included in current service cost and the
costs of administering other post-retirement benefit plans are included in the benefit obligation.
b
Past service costs and settlements have arisen from restructuring programmes and represent charges for special termination benefits representing the increased liability arising as a result
of early retirements mostly in the UK and Eurozone.
c
Most of the contributions made by plan participants into UK pension plans were made under salary sacrifice.
d
The benefit payments amount shown above comprises $3,235 million benefits and $2 million settlements, plus $37 million of plan expenses incurred in the administration of the benefit.
e
The benefit obligation for the US is made up of $8,085 million for pension liabilities and $2,735 million for other post-retirement benefit liabilities (which are unfunded and are primarily retiree
medical liabilities). The benefit obligation for the Eurozone includes $4,586 million for pension liabilities in Germany which is largely unfunded.
f
g

$ million
2016
Past service costb 17 (24) 7 1 1
Settlement — — 9 (1) 8
Interest income on plan assetsa (1,086) (287) (47) (51) (1,471)
Interest on plan liabilities 1,005 417 159 80 1,661
Actual asset return less interest income on plan assets 4,422 330 53 8 4,813
Change in financial assumptions underlying the present value of the plan liabilities (6,932) (239) (622) 4 (7,789)
Change in demographic assumptions underlying the present value of the plan liabilities 430 9 12 (5) 446
Experience gains and losses arising on the plan liabilities 55 (62) 26 15 34
Remeasurements recognized in other comprehensive income (2,025) 38 (531) 22 (2,496)
a
The costs of managing plan investments are offset against the investment return, the costs of administering pension plan benefits are generally included in current service cost and the costs
of administering other post-retirement benefit plans are included in the benefit obligation.
b
Past service costs have arisen from restructuring programmes and represent a combination of credits as a result of the curtailment in the pension arrangements of a number of employees
mostly in the US and charges for special termination benefits representing the increased liability arising as a result of early retirements mostly in the UK and Eurozone. The UK also includes
$12 million of cost resulting from benefit harmonization within the primary plan.
Sensitivity analysis
The discount rate, inflation, salary growth and the mortality assumptions all have a significant effect on the amounts reported. A one-
percentage point change, in isolation, in certain assumptions as at 31 December 2018 for the group’s plans would have had the effects shown
in the table below. The effects shown for the expense in 2019 comprise the total of current service cost and net finance income or expense.
$ million
One percentage point
Increase Decrease
Discount ratea
Effect on pension and other post-retirement benefit expense in 2019 (337) 295
Effect on pension and other post-retirement benefit obligation at 31 December 2018 (6,179) 8,153
Inflation rateb
Effect on pension and other post-retirement benefit expense in 2019 227 (187)
Effect on pension and other post-retirement benefit obligation at 31 December 2018 4,919 (4,225)
Salary growth
Effect on pension and other post-retirement benefit expense in 2019 64 (55)
Effect on pension and other post-retirement benefit obligation at 31 December 2018 653 (595)
a
The amounts presented reflect that the discount rate is used to determine the asset interest income as well as the interest cost on the obligation.
b
The amounts presented reflect the total impact of an inflation rate change on the assumptions for rate of increase in salaries, pensions in payment and deferred pensions.
One additional year of longevity in the mortality assumptions would increase the 2019 pension and other post-retirement benefit expense by
$52 million and the pension and other post-retirement benefit obligation at 31 December 2018 by $1,432 million.
Estimated future benefit payments and the weighted average duration of defined benefit obligations
The expected benefit payments, which reflect expected future service, as appropriate, but exclude plan expenses, up until 2028 and the
weighted average duration of the defined benefit obligations at 31 December 2018 are as follows:
$ million
Estimated future benefit payments UK US Eurozone Other Total
2019 1,030 787 350 101 2,268
2020 1,036 755 339 97 2,227
2021 1,056 806 331 97 2,290
2022 1,088 749 326 100 2,263
2023 1,120 741 317 98 2,276
2024-2028 5,777 3,476 1,501 498 11,252
Years
Weighted average duration 17.8 9.5 14.2 13.0

25. Cash and cash equivalents
$ million
2018 2017
Cash 6,148 4,592
Term bank deposits 13,105 17,324
Cash equivalents (excluding term bank deposits) 3,215 3,670
22,468 25,586
Cash and cash equivalents comprise cash in hand; current balances with banks and similar institutions; term deposits of three months or less
with banks and similar institutions; money market funds and commercial paper. The carrying amounts of cash and term bank deposits
approximate their fair values. Substantially all of the other cash equivalents are categorized within level 1 of the fair value hierarchy.
Cash and cash equivalents at 31 December 2018 includes $1,350 million (2017 $1,488 million) that is restricted. The restricted cash balances
include amounts required to cover initial margin on trading exchanges and certain cash balances which are subject to exchange controls.
The group holds $4,693 million (2017 $3,638 million) of cash and cash equivalents outside the UK and it is not expected that any significant tax
will arise on repatriation.
26. Finance debt

$ million
2018 2017
Current Non-current Total Current Non-current Total
Borrowings 9,329 55,803 65,132 7,701 54,873 62,574
Net obligations under finance leases 44 623 667 38 618 656
9,373 56,426 65,799 7,739 55,491 63,230
The main elements of current borrowings are the current portion of long-term borrowings that is due to be repaid in the next 12 months of
$7,175 million (2017 $6,849 million) and issued commercial paper of $2,040 million (2017 $744 million). Finance debt does not include accrued
interest, which is reported within other payables.
The following table shows the weighted average interest rates achieved through a combination of borrowings and derivative financial
instruments entered into to manage interest rate and currency exposures.
Fixed rate debt Floating rate debt Total
Weighted
Weighted average Weighted
average time for average
interest which rate interest
rate is fixed Amount rate Amount Amount
% Years $ million % $ million $ million
2018
US dollar 4 4 17,593 4 47,465 65,058
Other currencies 7 18 657 8 84 741
18,250 47,549 65,799
2017
US dollar 4 4 18,090 3 44,212 62,302
Other currencies 6 16 895 3 33 928
18,985 44,245 63,230
Fair values
The estimated fair value of finance debt is shown in the table below together with the carrying amount as reflected in the balance sheet.
Long-term borrowings in the table below include the portion of debt that matures in the 12 months from 31 December 2018, whereas in the
group balance sheet the amount is reported within current finance debt.
The carrying amount of the group’s short-term borrowings, comprising mainly of commercial paper, approximates their fair value. The fair
values of the majority of the group’s long-term borrowings are determined using quoted prices in active markets, and so fall within level 1 of
the fair value hierarchy. Where quoted prices are not available, quoted prices for similar instruments in active markets are used and such
measurements are therefore categorized in level 2 of the fair value hierarchy. The fair value of the group’s finance lease obligations is estimated
using discounted cash flow analysis based on the group’s current incremental borrowing rates for similar types and maturities of borrowing and
are consequently categorized in level 2 of the fair value hierarchy.
$ million
2018 2017
Carrying Carrying
Fair value amount Fair value amount
Short-term borrowings 2,153 2,153 852 852

Long-term borrowings 63,106 62,979 63,182 61,722
Net obligations under finance leases 1,087 667 1,131 656
Total finance debt 66,346 65,799 65,165 63,230

27. Capital disclosures and analysis of changes in net debt
The group defines capital as total equity. We maintain our financial framework to support the pursuit of value growth for shareholders, while
ensuring a secure financial base.
The group monitors capital on the basis of the net debt ratio, that is, the ratio of net debt to net debt plus equity. Net debt is calculated as
gross finance debt, as shown in the balance sheet, plus the fair value of associated derivative financial instruments that are used to hedge
foreign exchange and interest rate risks relating to finance debt, for which hedge accounting is applied, less cash and cash equivalents. Net
debt and net debt ratio are non-GAAP measures. BP believes these measures provide useful information to investors. Net debt enables
investors to see the economic effect of gross debt, related hedges and cash and cash equivalents in total. The net debt ratio enables investors
to see how significant net debt is relative to equity from shareholders. The derivatives are reported on the balance sheet within the headings
‘Derivative financial instruments’. All components of equity are included in the denominator of the calculation.
We aim to manage the net debt ratio within a 20-30% band and maintain a significant liquidity buffer. At 31 December 2018, the net debt ratio
was 30.3% (2017 27.4%).
$ million
Gross debt 65,799 63,230
Less: fair value asset (liability) of hedges related to finance debta (813) (175)
66,612 63,405
Less: cash and cash equivalents 22,468 25,586
Net debt 44,144 37,819
Equity 101,548 100,404
Net debt ratio 30.3% 27.4 %
a
Derivative financial instruments entered into for the purpose of managing interest rate and foreign currency exchange risk associated with net debt with a fair value liability position of $827
million (2017 liability of $634 million, 2016 liability of $1,962 million) are not included in the calculation of net debt shown above as hedge accounting was not applied for these instruments.
The movement in the year is attributable to a net cash flow of $nil (2017 net cash outflow $242 million) and fair value losses of $193 million (2017 fair value gains of $1,086 million).
An analysis of changes in net debt is provided below.
$ million
2018 2017
Hedge- Cash and Hedge- Cash and
Finance accounted cash Finance accounted cash
Movement in net debt debt derivatives equivalents Net debt debt derivatives equivalents Net debt
At 1 January (63,230) (175) 25,586 (37,819) (58,300) (697) 23,484 (35,513)

Adjustment on adoption of
IFRS 9 — — (11) (11) — — — —
Exchange adjustments 259 — (330) (71) (1,324) — 544 (780)
Net financing cash flow (3,505) 360 (2,777) (5,922) (2,236) (284) 1,558 (962)
Fair value gains (losses) 856 (998) — (142) (1,314) 1,282 — (32)
Other movements (179) — — (179) (56) (476) — (532)
At 31 December (65,799) (813) 22,468 (44,144) (63,230) (175) 25,586 (37,819)
a
The adjustment on adoption of IFRS 9 reflects the creation of a credit loss allowance for cash and cash equivalents as a result of the new standard`s expected credit loss impairment model.
28. Operating leases

The cost recognized in relation to minimum lease payments for the year was $3,514 million (2017 $4,423 million and 2016 $5,113 million).
The future minimum lease payments at 31 December 2018, before deducting related rental income from operating sub-leases of $120 million
(2017 $188 million), are shown in the table below. This does not include future contingent rentals. Where the lease rentals are dependent on a
variable factor, the future minimum lease payments are based on the factor as at inception of the lease.
$ million
Future minimum lease payments 2018 2017
Payable within
1 year 2,511 2,969
2 to 5 years 5,359 6,387
Thereafter 4,109 4,614
11,979 13,970
In the case of an operating lease entered into by BP as the operator of a joint operation, the amounts included in the totals disclosed represent
the net operating lease expense and net future minimum lease payments. These net amounts are after deducting amounts reimbursed, or to
be reimbursed, by joint operators, whether the joint operators have co-signed the lease or not. Where BP is not the operator of a joint
operation, BP’s share of the lease expense and future minimum lease payments is included in the amounts shown, whether BP has co-signed
the lease or not.
Typical durations of operating leases are up to ten years for leases of plant and machinery, up to fifteen years for leases of ships and
commercial vehicles and up to forty years for leases of land and buildings.
The most significant items of plant and machinery hired under operating leases are drilling rigs used in the Upstream segment. At
31 December 2018, the future minimum lease payments relating to these amounted to $1,378 million (2017 $2,088 million).

28. Operating leases – continued
The group has entered into a number of structured operating leases for ships and in some cases the lease rental payments vary with market
interest rates. The variable portion of the lease payments above or below the amount based on the market interest rate prevailing at inception
of the lease is treated as contingent rental expense. The group also routinely enters into bareboat charters, time-charters and voyage-charters
for ships on standard industry terms. The future minimum lease payments relating to operating leases for international oil and gas ships
managed by the BP Shipping function amounted to $3,032 million (2017 $3,172 million). Commercial vehicles hired under operating leases are
primarily railcars.
Retail service station sites and office accommodation are the main items in the land and buildings category. At 31 December 2018, the future
minimum lease payments relating to land and buildings amounted to $1,914 million (2017 $2,167 million).
The terms and conditions of these operating leases do not impose any significant financial restrictions on the group. Some of the leases of
rigs, ships and buildings allow for renewals at BP’s option, and some of the group’s operating leases contain escalation clauses.
BP will adopt IFRS 16 'Leases' in the financial reporting period commencing 1 January 2019. See Note 1 for further details.
29. Financial instruments and financial risk factors

The accounting classification of each category of financial instruments and their carrying amounts are set out below. Current year amounts are
presented based on the classification, measurement and impairment requirements of IFRS 9. Comparatives are presented based on the
classification, measurement and impairment requirements of IAS 39.
$ million
Mandatorily
measured at
Measured at fair value Derivative
amortized through hedging Total carrying
At 31 December 2018 Note cost profit or loss instruments amount
Financial assets
Other investments 18 — 1,563 — 1,563
Loans 839 124 — 963
Trade and other receivables 20 24,080 — — 24,080
Derivative financial instruments 30 — 8,564 427 8,991
Cash and cash equivalents 25 20,366 2,102 — 22,468
Trade and other payables 22 (56,790) — — (56,790)
Derivative financial instruments 30 — (7,685) (1,248) (8,933)
Accruals (5,201) — — (5,201)
Finance debt 26 (65,799) — — (65,799)
(82,505) 4,668 (821) (78,658)
$ million
Financial
liabilities
Available-for- Held-to- At fair value Derivative measured at
Loans and sale financial maturity through hedging amortized Total carrying
At 31 December 2017 Note receivables assets investments profit or loss instruments cost amount
Financial assets
Other investments – equity shares 18 — 433 — — — — 433
– other 18 — 275 — 662 — — 937
Loans 836 — — — — — 836
Trade and other receivables 20 24,361 — — — — — 24,361
Derivative financial instruments 30 — — — 6,454 688 — 7,142
Cash and cash equivalents 25 21,916 2,270 1,400 — — — 25,586
Trade and other payables 22 — — — — — (54,054) (54,054)
Derivative financial instruments 30 — — — (5,705) (864) — (6,569)
Accruals — — — — (5,465) (5,465)
Finance debt 26 — — — — — (63,230) (63,230)
47,113 2,978 1,400 1,411 (176) (122,749) (70,023)
The fair value of finance debt is shown in Note 26. For all other financial instruments, the carrying amount is either the fair value, or
approximates the fair value.
Information on gains and losses on derivative financial assets and financial liabilities classified as measured at fair value through profit or loss is
provided in the derivative gains and losses section of Note 30. Fair value gains and losses related to other assets and liabilities classified as
measured at fair value through profit or loss totalled a net loss of $78 million. Dividend income of $8 million from investments in equity
instruments classified as measured at fair value through profit or loss is presented within other income - see Note 7.
Interest income and expenses arising on financial instruments are disclosed in Note 7.

29. Financial instruments and financial risk factors – continued
Financial risk factors
The group is exposed to a number of different financial risks arising from natural business exposures as well as its use of financial instruments
including market risks relating to commodity prices, foreign currency exchange rates and interest rates; credit risk; and liquidity risk.
The group financial risk committee (GFRC) advises the group chief financial officer (CFO) who oversees the management of these risks. The
GFRC is chaired by the CFO and consists of a group of senior managers including the group treasurer and the heads of the group finance, tax
and the integrated supply and trading functions. The purpose of the committee is to advise on financial risks and the appropriate financial risk
governance framework for the group. The committee provides assurance to the CFO and the group chief executive (GCE), and via the GCE to
the board, that the group’s financial risk-taking activity is governed by appropriate policies and procedures and that financial risks are identified,
measured and managed in accordance with group policies and group risk appetite.
The group’s trading activities in the oil, natural gas, LNG and power markets are managed within the integrated supply and trading
function. Treasury holds foreign exchange and interest-rate products in the financial markets to hedge group exposures related to debt
issuance; the compliance, control, and risk management processes for these activities are managed within the treasury function. All other
foreign exchange and interest rate activities within financial markets are performed within the integrated supply and trading function and are
also underpinned by the compliance, control and risk management infrastructure common to the activities of BP’s integrated supply and
trading function. All derivative activity is carried out by specialist teams that have the appropriate skills, experience and supervision. These
teams are subject to close financial and management control.
The integrated supply and trading function maintains formal governance processes that provide oversight of market risk, credit risk and
operational risk associated with trading activity. A policy and risk committee approves value-at-risk delegations, reviews incidents and validates
risk-related policies, methodologies and procedures. A commitments committee approves the trading of new products, instruments and
strategies and material commitments.
In addition, the integrated supply and trading function undertakes derivative activity for risk management purposes under a control framework
as described more fully below.
(a) Market risk
Market risk is the risk or uncertainty arising from possible market price movements and their impact on the future performance of a business.
The primary commodity price risks that the group is exposed to include oil, natural gas and power prices that could adversely affect the value
of the group’s financial assets, liabilities or expected future cash flows. The group enters into derivatives in a well-established entrepreneurial
trading operation. In addition, the group has developed a control framework aimed at managing the volatility inherent in certain of its natural
business exposures. In accordance with the control framework the group enters into various transactions using derivatives for risk
management purposes.
The major components of market risk are commodity price risk, foreign currency exchange risk and interest rate risk, each of which is
discussed below.
(i) Commodity price risk
The group’s integrated supply and trading function uses conventional financial and commodity instruments and physical cargoes and pipeline
positions available in the related commodity markets. Oil and natural gas swaps, options and futures are used to mitigate price risk. Power
trading is undertaken using a combination of over-the-counter forward contracts and other derivative contracts, including options and futures.
This activity is on both a standalone basis and in conjunction with gas derivatives in relation to gas-generated power margin. In addition, NGLs
are traded around certain US inventory locations using over-the-counter forward contracts in conjunction with over-the-counter swaps, options
and physical inventories.
The group measures market risk exposure arising from its trading positions in liquid periods using value-at-risk techniques. These techniques
make a statistical assessment of the market risk arising from possible future changes in market prices over a one-day holding period. The value-
at-risk measure is supplemented by stress testing. Trading activity occurring in liquid periods is subject to value-at-risk limits for each trading
activity and for this trading activity in total. The board has delegated a limit of $100 million value at risk in support of this trading activity.
Alternative measures are used to monitor exposures which are outside liquid periods and which cannot be actively risk-managed.
(ii) Foreign currency exchange risk
Since BP has global operations, fluctuations in foreign currency exchange rates can have a significant effect on the group’s reported results and
future expenditure commitments. The effects of most exchange rate fluctuations are absorbed in business operating results through changing
cost competitiveness, lags in market adjustment to movements in rates and translation differences accounted for on specific transactions. For
this reason, the total effect of exchange rate fluctuations is not identifiable separately in the group’s reported results. The main underlying
economic currency of the group’s cash flows is the US dollar. This is because BP’s major product, oil, is priced internationally in US dollars. BP’s
foreign currency exchange management policy is to limit economic and material transactional exposures arising from currency movements
against the US dollar. The group co-ordinates the handling of foreign currency exchange risks centrally, by netting off naturally-occurring
opposite exposures wherever possible and then managing any material residual foreign currency exchange risks.
Most of the group’s borrowings are in US dollars or are hedged with respect to the US dollar. At 31 December 2018, the total foreign currency
borrowings not swapped into US dollars amounted to $741 million (2017 $928 million).
The group manages the net residual foreign currency exposures by constantly reviewing the foreign currency economic value at risk and aims
to manage such risk to keep the 12-month foreign currency value at risk below $400 million. At no point over the past three years did the value
at risk exceed the maximum risk limit. A continuous assessment is made in respect to the group’s foreign currency exposures to capture
hedging requirements.
During the year, hedge accounting was applied to foreign currency exposure to highly probable forecast capital expenditure commitments. The
group fixes the US dollar cost of non-US dollar supplies by using currency forwards for the highly probable forecast capital expenditure; the
exposures are in sterling, euro, Australian dollar, Norwegian krone and Korean won. At 31 December 2018 the most significant open contracts
in place were for $434 million sterling (2017 $437 million sterling).
Where the group enters into foreign currency exchange contracts for entrepreneurial trading purposes the activity is controlled using trading
value-at-risk techniques as explained in (i) commodity price risk above.

(iii) Interest rate risk
BP is also exposed to interest rate risk from the possibility that changes in interest rates will affect future cash flows or the fair values of its
financial instruments, principally finance debt. While the group issues debt in a variety of currencies based on market opportunities, it uses
derivatives to swap the debt to a floating rate exposure, mainly to US dollar floating, but in certain defined circumstances maintains a US dollar
fixed rate exposure for a proportion of debt. The proportion of floating rate debt net of interest rate swaps at 31 December 2018 was 72% of
total finance debt outstanding (2017 70%). The weighted average interest rate on finance debt at 31 December 2018 was 4% (2017 3%) and
the weighted average maturity of fixed rate debt was five years (2017 five years).
The group’s earnings are sensitive to changes in interest rates on the floating rate element of the group’s finance debt. If the interest rates
applicable to floating rate instruments were to have changed by one percentage point on 1 January 2019, it is estimated that the group’s
finance costs for 2019 would change by approximately $475 million (2017 $442 million).
(b) Credit risk
Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing financial
loss to the group and arises from cash and cash equivalents, derivative financial instruments and deposits with financial institutions and
principally from credit exposures to customers relating to outstanding receivables. Credit exposure also exists in relation to guarantees issued
by group companies under which the outstanding exposure incremental to that recognized on the balance sheet at 31 December 2018 was
$696 million (2017 $656 million) in respect of liabilities of joint ventures and associates and $432 million (2017 $382 million) in respect of
liabilities of other third parties.
The group has a credit policy, approved by the CFO that is designed to ensure that consistent processes are in place throughout the group to
measure and control credit risk. Credit risk is considered as part of the risk-reward balance of doing business. On entering into any business
contract the extent to which the arrangement exposes the group to credit risk is considered. Key requirements of the policy include
segregation of credit approval authorities from any sales, marketing or trading teams authorized to incur credit risk; the establishment of credit
systems and processes to ensure that all counterparty exposure is rated and that all counterparty exposure and limits can be monitored and
reported; and the timely identification and reporting of any non-approved credit exposures and credit losses. While each segment is
responsible for its own credit risk management and reporting consistent with group policy, the treasury function holds group-wide credit risk
authority and oversight responsibility for exposure to banks and financial institutions.
For the purposes of financial reporting the group calculates expected loss allowances based on the maximum contractual period over which
the group is exposed to credit risk. Since this is typically less than 12 months for the group's in-scope financial assets there is no significant
difference between the measurement of 12-month and lifetime expected credit losses. The group has no significant financial guarantee
liabilities measured on an expected loss basis. Financial assets are considered to be credit-impaired when there is reasonable and supportable
evidence that one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. This
includes observable data concerning significant financial difficulty of the counterparty; a breach of contract; concession being granted to the
counterparty for economic or contractual reasons relating to the counterparty’s financial difficulty, that would not otherwise be considered; it
becoming probable that the counterparty will enter bankruptcy or other financial re-organization or an active market for the financial asset
disappearing because of financial difficulties. The group also applies a rebuttable presumption that an asset is credit-impaired when contractual
payments are more than 30 days past due. Where the group has no reasonable expectation of recovering a financial asset in its entirety or a
portion thereof for example where all legal avenues for collection of amounts due have been exhausted, the financial asset (or relevant portion)
is written off.
The measurement of expected credit losses is a function of the probability of default, loss given default (i.e. the magnitude of the loss after
recovery if there is a default) and the exposure at default (i.e. the asset's carrying amount). The group allocates a credit risk rating to exposures
based on data that is determined to be predictive of the risk of loss, including but not limited to external ratings. Probabilities of default derived
from historical, current and future-looking market data are assigned by credit risk rating with a loss given default based on historical experience
and relevant market and academic research applied by exposure type. Experienced credit judgement is applied to ensure probabilities of
default are reflective of the credit risk associated with the group's exposures. Credit enhancements that would reduce the group's credit
losses in the event of default are reflected in the calculation when they are considered integral to the related asset.
The maximum credit exposure associated with financial assets is equal to the carrying amount. The group does not aim to remove credit risk
entirely but expects to experience a certain level of credit losses. As at 31 December 2018, the group had in place credit enhancements
designed to mitigate approximately $7.3 billion of credit risk, of which $6.7 billion relates to assets in the scope of IFRS 9's impairment
requirements. Credit enhancements include standby and documentary letters of credit, bank guarantees, insurance and liens which are
typically taken out with financial institutions who have investment grade credit ratings, or are liens over assets held by the counterparty of the
related receivables. Reports are regularly prepared and presented to the GFRC that cover the group’s overall credit exposure and expected loss
trends, exposure by segment, and overall quality of the portfolio.
Management information used to monitor credit risk, which reflects the impact of credit enhancements, indicates that the risk profile of
financial assets which are subject to review for impairment under IFRS 9 is as set out below.
%
As at 31 December 2018
AAA to AA- 22%
A+ to A- 41%
BBB+ to BBB- 16%
BB+ to BB- 8%
B+ to B- 11%
CCC+ and below 2%
For the comparative period an analysis of the ageing of trade and other receivables reported under IAS 39 is provided.

$ million
Trade and other receivables at 31 December 2017
Neither impaired nor past due 22,858
Impaired (net of provision) 53
Not impaired and past due in the following periods
within 30 days 637
31 to 60 days 130
61 to 90 days 114
over 90 days 569
24,361
Movements in the impairment provision for trade and other receivables are shown in Note 21.
Financial instruments subject to offsetting, enforceable master netting arrangements and similar agreements
The following table shows the amounts recognized for financial assets and liabilities which are subject to offsetting arrangements on a gross
basis, and the amounts offset in the balance sheet.
Amounts which cannot be offset under IFRS, but which could be settled net under the terms of master netting agreements if certain
conditions arise, and collateral received or pledged, are also presented in the table to show the total net exposure of the group.
$ million
Related amounts not set off
Gross in the balance sheet
amounts of
recognized Net amounts Cash
financial presented on Master collateral
assets Amounts the balance netting (received)
At 31 December 2018 (liabilities) set off sheet arrangements pledged Net amount
Derivative assets 11,502 (2,511) 8,991 (2,079) (299) 6,613

Derivative liabilities (11,337) 2,511 (8,826) 2,079 — (6,747)
Trade and other receivables 11,296 (5,390) 5,906 (1,020) (169) 4,717
Trade and other payables (10,797) 5,390 (5,407) 1,020 — (4,387)
At 31 December 2017
Derivative assets 8,522 (1,380) 7,142 (1,554) (321) 5,267
Derivative liabilities (7,818) 1,380 (6,438) 1,554 — (4,884)
Trade and other receivables 11,648 (5,311) 6,337 (2,156) (114) 4,067
Trade and other payables (12,543) 5,311 (7,232) 2,156 — (5,076)
(c) Liquidity risk

Liquidity risk is the risk that suitable sources of funding for the group’s business activities may not be available. The group’s liquidity is
managed centrally with operating units forecasting their cash and currency requirements to the central treasury function. Unless restricted by
local regulations, generally subsidiaries pool their cash surpluses to the treasury function, which will then arrange to fund other subsidiaries’
requirements, or invest any net surplus in the market or arrange for necessary external borrowings, while managing the group’s overall net
currency positions.
BP utilizes various arrangements in order to manage its working capital including discounting of receivables and, in the supply and trading
business, the active management of supplier payment terms, inventory and collateral. In line with normal industry practice some supplier
arrangements utilize letter of credit (LC) facilities. In certain of those arrangements BP’s payments are made to the provider of the LC rather
than the supplier.
Standard & Poor’s Ratings long-term credit rating for BP is A- (stable outlook) and Moody’s Investors Service rating is A1 (stable outlook).
During 2018, $9 billion of long-term taxable bonds were issued with terms ranging from four to ten years. Commercial paper is issued at
competitive rates to meet short-term borrowing requirements as and when needed.
As a further liquidity measure, the group continues to maintain suitable levels of cash and cash equivalents, amounting to $22.5 billion at
31 December 2018 (2017 $25.6 billion), primarily invested with highly rated banks or money market funds and readily accessible at immediate
and short notice. At 31 December 2018, the group had substantial amounts of undrawn borrowing facilities available, consisting of $7,625
million of standby facilities, all of which is available to draw and repay up to the first half of 2022. These facilities are with 25 international
banks, and borrowings under them would be at pre-agreed rates.
The group has committed LC facilities totalling $12,175 million with a number of banks, allowing LCs to be issued for a maximum 24-month
duration. There were also uncommitted secured LC facilities in place at 31 December 2018 for $4,190 million, which are secured against
inventories or receivables when utilized. The facilities only terminate by either party giving a stipulated termination notice to the other.
The amounts shown for finance debt in the table below include future minimum lease payments with respect to finance leases. The table also
shows the timing of cash outflows relating to trade and other payables and accruals.

$ million
2018 2017
Trade and Trade and
other Finance Interest on other Finance Interest on
payablesa Accruals debt finance debt payablesa Accruals debt finance debt
Within one year 43,230 4,626 9,301 2,404 40,472 4,960 7,626 1,757
1 to 2 years 2,232 146 6,788 1,955 1,693 135 7,331 1,537
2 to 3 years 1,662 95 6,805 1,700 1,413 83 7,068 1,321
3 to 4 years 1,484 64 8,057 1,422 1,378 70 6,766 1,114
4 to 5 years 1,406 89 7,058 1,138 1,368 54 7,986 894
5 to 10 years 6,058 113 25,356 2,390 6,181 115 24,162 1,951
Over 10 years 5,001 68 1,243 320 6,125 48 2,089 390
61,073 5,201 64,608 11,329 58,630 5,465 63,028 8,964
a
2018 includes $18,360 million (2017 $18,918 million) in relation to the Gulf of Mexico oil spill.
The group manages liquidity risk associated with derivative contracts, other than derivative hedging instruments, based on the expected
maturities of both derivative assets and liabilities as indicated in Note 30. Management does not currently anticipate any cash flows that could
be of a significantly different amount or could occur earlier than the expected maturity analysis provided.
The table below shows the timing of cash outflows for derivative financial instruments entered into for the purpose of managing interest rate
and foreign currency exchange risk associated with finance debt, whether or not hedge accounting is applied, based upon contractual payment
dates. The amounts reflect the gross settlement amount where the pay leg of a derivative will be settled separately from the receive leg, as in
the case of cross-currency swaps hedging non-US dollar finance debt. The swaps are with high investment-grade counterparties and therefore
the settlement-day risk exposure is considered to be negligible. Not shown in the table are the gross settlement amounts (inflows) for the
receive leg of derivatives that are settled separately from the pay leg, which amount to $22,453 million at 31 December 2018 (2017 $21,484
million) to be received on the same day as the related cash outflows. For further information on our derivative financial instruments, see Note
30.
$ million
Cash outflows for derivative financial instruments at 31 December 2018 2017
Within one year 1,700 1,505
1 to 2 years 1,678 1,700
2 to 3 years 2,384 1,678
3 to 4 years 2,838 2,384
4 to 5 years 2,906 2,838
5 to 10 years 11,475 11,238
Over 10 years 724 724
23,705 22,067
30. Derivative financial instruments

In the normal course of business the group enters into derivative financial instruments (derivatives) to manage its normal business exposures
in relation to commodity prices, foreign currency exchange rates and interest rates, including management of the balance between floating
rate and fixed rate debt, consistent with risk management policies and objectives. An outline of the group’s financial risks and the objectives
and policies pursued in relation to those risks is set out in Note 29. Additionally, the group has a well-established entrepreneurial trading
operation that is undertaken in conjunction with these activities using a similar range of contracts.
For information on significant estimates and judgements made in relation to the valuation of derivatives see Derivative financial instruments
within Note 1.
The fair values of derivative financial instruments at 31 December are set out below.
Exchange traded derivatives are valued using closing prices provided by the exchange as at the balance sheet date. These derivatives are
categorized within level 1 of the fair value hierarchy. Exchange traded derivatives are typically considered settled through the (normally daily)
payment or receipt of variation margin.
Over-the-counter (OTC) financial swaps and physical commodity sale and purchase contracts are generally valued using readily available
information in the public markets and quotations provided by brokers and price index developers. These quotes are corroborated with market
data and are categorized within level 2 of the fair value hierarchy.
In certain less liquid markets, or for longer-term contracts, forward prices are not as readily available. In these circumstances, OTC financial
swaps and physical commodity sale and purchase contracts are valued using internally developed methodologies that consider historical
relationships between various commodities, and that result in management’s best estimate of fair value. These contracts are categorized
within level 3 of the fair value hierarchy.
Financial OTC and physical commodity options are valued using industry standard models that consider various assumptions, including quoted
forward prices for commodities, time value, volatility factors, and contractual prices for the underlying instruments, as well as other relevant
economic factors. The degree to which these inputs are observable in the forward markets determines whether the option is categorized
within level 2 or level 3 of the fair value hierarchy.

30. Derivative financial instruments – continued
$ million
2018 2017
Fair value Fair value Fair value Fair value
asset liability asset liability
Derivatives held for trading
Currency derivatives 69 (898) 237 (756)
Oil price derivatives 2,361 (1,849) 1,637 (1,281)
Natural gas price derivatives 4,787 (3,888) 3,580 (2,844)
Power price derivatives 1,240 (943) 885 (693)
Other derivatives 107 — 115 —
8,564 (7,578) 6,454 (5,574)
Embedded derivatives
Commodity price contracts — — — (16)
Other embedded derivatives — (107) — (115)
— (107) — (131)
Cash flow hedges
Currency forwards, futures and cylinders 5 (14) 35 (35)
Gas price futures 2 — — —
7 (14) 35 (35)
Fair value hedges
Currency forwards, futures and swaps 158 (789) 460 (523)
Interest rate swaps 262 (445) 193 (306)
420 (1,234) 653 (829)
8,991 (8,933) 7,142 (6,569)
Of which – current 3,846 (3,308) 3,032 (2,808)
– non-current 5,145 (5,625) 4,110 (3,761)
Derivatives held for trading

The group maintains active trading positions in a variety of derivatives. The contracts may be entered into for risk management purposes, to
satisfy supply requirements or for entrepreneurial trading. Certain contracts are classified as held for trading, regardless of their original
business objective, and are recognized at fair value with changes in fair value recognized in the income statement. Trading activities are
undertaken by using a range of contract types in combination to create incremental gains by arbitraging prices between markets, locations and
time periods. The net of these exposures is monitored using market value-at-risk techniques as described in Note 29.
The following tables show further information on the fair value of derivatives and other financial instruments held for trading purposes.
Derivative assets held for trading have the following fair values and maturities.
$ million
2018
Less than Over
1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total
Currency derivatives 48 12 9 — — — 69
Oil price derivatives 1,916 363 53 25 4 — 2,361
Natural gas price derivatives 1,333 708 542 452 352 1,400 4,787
Power price derivatives 540 276 158 79 55 132 1,240
Other derivatives — — — — 107 — 107
3,837 1,359 762 556 518 1,532 8,564
$ million
2017
Less than Over
Currency derivatives 186 31 8 5 3 4 237

Oil price derivatives 1,280 177 99 66 14 1 1,637
Natural gas price derivatives 1,122 609 428 328 288 805 3,580
Power price derivatives 420 188 81 60 38 98 885
Other derivatives — — — — — 115 115
3,008 1,005 616 459 343 1,023 6,454

Derivative liabilities held for trading have the following fair values and maturities.
$ million
2018
Less than Over
Currency derivatives (299) (71) (256) (171) (3) (98) (898)

Oil price derivatives (1,560) (232) (43) (12) (2) — (1,849)
Natural gas price derivatives (1,030) (557) (391) (338) (285) (1,287) (3,888)
Power price derivatives (401) (213) (95) (54) (47) (133) (943)
(3,290) (1,073) (785) (575) (337) (1,518) (7,578)
$ million
2017
Less than Over
Currency derivatives (92) (232) (66) (188) (99) (79) (756)

Oil price derivatives (1,120) (118) (33) (4) (6) — (1,281)
Natural gas price derivatives (973) (410) (334) (224) (194) (709) (2,844)
Power price derivatives (337) (134) (63) (39) (29) (91) (693)
(2,522) (894) (496) (455) (328) (879) (5,574)
The following table shows the fair value of derivative assets and derivative liabilities held for trading, analysed by maturity period and by
methodology of fair value estimation. This information is presented on a gross basis, that is, before netting by counterparty.
$ million
2018
Less than Over
Fair value of derivative assets

Level 1 111 14 3 — — — 128
Level 2 5,000 1,362 504 262 120 72 7,320
Level 3 491 385 353 331 427 1,640 3,627
5,602 1,761 860 593 547 1,712 11,075
Less: netting by counterparty (1,765) (402) (98) (37) (29) (180) (2,511)
3,837 1,359 762 556 518 1,532 8,564
Fair value of derivative liabilities
Level 1 (156) (11) (2) (2) — — (171)
Level 2 (4,562) (1,161) (576) (308) (67) (163) (6,837)
Level 3 (337) (303) (305) (302) (299) (1,535) (3,081)
(5,055) (1,475) (883) (612) (366) (1,698) (10,089)
Less: netting by counterparty 1,765 402 98 37 29 180 2,511
(3,290) (1,073) (785) (575) (337) (1,518) (7,578)
Net fair value 547 286 (23) (19) 181 14 986
$ million
2017
Less than Over
Fair value of derivative assets

Level 2 3,663 1,003 438 244 140 135 5,623
Level 3 386 258 231 226 211 899 2,211
4,049 1,261 669 470 351 1,034 7,834
Less: netting by counterparty (1,041) (256) (53) (11) (8) (11) (1,380)
3,008 1,005 616 459 343 1,023 6,454
Fair value of derivative liabilities
Level 2 (3,338) (953) (358) (289) (163) (166) (5,267)
Level 3 (225) (197) (191) (177) (173) (724) (1,687)
(3,563) (1,150) (549) (466) (336) (890) (6,954)
Less: netting by counterparty 1,041 256 53 11 8 11 1,380
(2,522) (894) (496) (455) (328) (879) (5,574)
Net fair value 486 111 120 4 15 144 880

Level 3 derivatives
The following table shows the changes during the year in the net fair value of derivatives held for trading purposes within level 3 of the fair
value hierarchy.
$ million
Oil Natural gas Power
price price price Other Total
Fair value contracts at 1 January 2018 67 65 (226) 115 21

Gains (losses) recognized in the income statement 58 (26) 209 (8) 233
Settlements (107) (32) (97) — (236)
Transfers out of level 3 5 (20) (34) — (49)
Net fair value of contracts at 31 December 2018 23 (13) (148) 107 (31)
Deferred day-one gains (losses) 577
Derivative asset (liability) 546
$ million
Oil Natural gas Power
price price price Other Total
Fair value contracts at 1 January 2017 68 145 (147) 231 297

Gains (losses) recognized in the income statement 76 161 61 15 313
Settlements (68) (35) (113) (131) (347)
Transfers out of level 3 (9) (206) (27) — (242)
Net fair value of contracts at 31 December 2017 67 65 (226) 115 21
Deferred day-one gains (losses) 503
Derivative asset (liability) 524
The amount recognized in the income statement for the year relating to level 3 held-for-trading derivatives still held at 31 December 2018 was a
$123-million gain (2017 $234-million gain related to derivatives still held at 31 December 2017).
Derivative gains and losses
The group enters into derivative contracts including futures, options, swaps and certain forward sales and forward purchases contracts, relating
to both currency and commodity trading activities. Gains or losses arise on contracts entered into for risk management purposes, optimization
activity and entrepreneurial trading. They also arise on certain contracts that are for normal procurement or sales activity for the group but that
are required to be fair valued under accounting standards. These gains and losses are included within sales and other operating revenues in the
income statement. Also included within this line item are gains and losses on inventory held for trading purposes. The total amount relating to
all these items (excluding gains and losses on realized physical derivative contracts that have been reflected gross in the income statement
within sales and purchases) was a net gain of $2,504 million (2017 $1,983 million net gain and 2016 $1,435 million net gain). This number does
not include gains and losses on realized physical derivative contracts that have been reflected gross in the income statement within sales and
purchases or the change in value of transportation and storage contracts which are not recognized under IFRS, but does include the associated
financially settled contracts. The net amounts for actual gains and losses relating to these derivative contracts and all related items therefore
differ significantly from the amounts disclosed above.
The group also enters into derivative contracts including futures, options, swaps and certain forward sales and forward purchase contracts
primarily relating to foreign currency risk management activities. Gains and losses on these contracts are included within production and
manufacturing expenses in the income statement. The change in the unrealized value of these contracts was a net loss of $351 million (2017
$1,420 million net gain and 2016 $154 million net loss), however the gains and losses in each year are largely offset by opposing net foreign
exchange differences on retranslation of the associated non-US dollar debt. The net amounts for actual gains and losses relating to these
derivative contracts and all related items therefore differ significantly from the amounts disclosed above.
Cash flow hedges
(i) Foreign currency risk of highly probable forecast capital expenditure
At 31 December 2018, the group held currency forwards designated as hedging instruments in cash flow hedge relationships of highly
probable forecast non-US dollar capital expenditure. Note 29 outlines the group’s approach to foreign currency exchange risk management.
When the highly probable forecast capital expenditure designated as a hedged item occurs, a non-financial asset is recognized and is
presented within the fixed asset section of the balance sheet.
The group claims hedge accounting only for the spot value of the currency exposure in line with the strategy to fix the volatility in the spot
exchange rate element. The fair value on the instrument attributable to forward points is taken immediately to the income statement.
The group applies hedge accounting where there is an economic relationship between the hedged item and hedging instrument. The existence
of an economic relationship is determined at inception and prospectively by comparing the critical terms of the hedging instrument and those
of the hedged item. The group enters into hedging derivatives that match the currency and notional of the hedged items on a 1:1 hedge ratio
basis. The hedge ratio is determined by comparing the notional amount of the derivative with the notional designated on the forecast
transaction. The group determines the extent to which it hedges highly probable forecast capital expenditures on a project by project basis.
The group has identified the following sources of ineffectiveness, which are not expected to be material:
• counterparty's credit risk, the group mitigates counterparty credit risk by entering into derivative transactions with high credit quality
counterparties; and
• differences in settlement timing between the derivative and hedged items. The latter impacts the discount factor used in the calculation of
the hedge ineffectiveness. The group mitigates differences in timing between the derivatives and hedged items by applying a rolling strategy
and by hedging currency pairs from stable economies (i.e. sterling/US dollar, Euro/US dollar, Norwegian krone/US dollar, Korean won/US
dollar). The group's cash flow hedge designations are highly effective as the sources of ineffectiveness identified are expected to result in
minimal hedge ineffectiveness.
The group has not designated any net positions as hedged items in cash flow hedges of foreign currency risk.

(ii) Commodity price risk of highly probable forecast sales
At 31 December 2018, the group held Henry Hub NYMEX futures designated as hedging instruments in cash flow hedge relationships of
certain highly probable forecast future sales.
The group is exposed to the variability in the gas price, but only applies hedge accounting to the risk of Henry Hub price movements for a
percentage of future gas sales from its BPX Energy business (previously known as US Lower 48 business). Hedge accounting may be applied
to such sales for up to the following two calendar years.
The group applies hedge accounting in relation to these highly probable future sales where there is an economic relationship between the
hedged item and hedging instrument. The existence of an economic relationship is determined at inception and prospectively by comparing the
critical terms of the hedging instrument and those of the hedged item. The group enters into hedging derivatives that match the notional
amounts of the hedged items on a 1:1 hedge ratio basis. The hedge ratio is determined by comparing the notional amount of the derivative
with the notional amount designated on the forecast transaction.
The hedge is expected to be highly effective due to the price index of the hedging instruments matching the price index of the hedged item
and the derivative assets or liabilities recognized in respect of exchange-traded instruments reflect the impact of daily margin payments and
receipts.
The group has not designated any net positions as hedged items in cash flow hedges of commodity price risk.
The table below summarizes the change in the fair value of hedging instruments and the hedged item used to calculate ineffectiveness in the
period.
$ million
Change in fair
value of Change in fair
hedging value of
instrument hedged item
Hedge
used to used to ineffectiveness
calculate calculate recognized in
At 31 December 2018 ineffectiveness ineffectiveness profit or (loss)
Cash flow hedges

Foreign exchange risk
Highly probable forecast capital expenditure (5) 5 —
Commodity price risk
Highly probable forecast sales (126) 126 —
The table below summarizes the carrying amount and nominal amount of the derivatives designated as hedging instruments in cash flow
hedge relationships at 31 December 2018.
Carrying amount of hedging

instrument
Nominal amounts of hedging
Assets Liabilities instruments
At 31 December 2018 $ million $ million $ million mmBtu
Cash flow hedges

Foreign exchange risk
Highly probable forecast capital expenditure 5 (14) 386
Commodity price risk
Highly probable forecast sales 2 — 145
All hedging instruments are presented within derivative financial instruments on the group balance sheet.
Of the nominal amount of hedging instruments relating to highly probable forecast capital expenditure $304 million matures in 2019 and $82
million matures in 2020. All of the hedging instruments relating to highly probable forecast sales mature in 2019.
The table below summarizes the weighted average exchange rates and the weighted average sales price in relation to the derivatives
designated as hedging instruments in cash flow hedge relationships at 31 December 2018.
Weighted average price/rate
Forecast
capital
At 31 December 2018 expenditure Forecast sales
Sterling/US dollar 1.34

Euro/US dollar 1.14
Australian dollar/US dollar 0.72
Norwegian krone/US dollar 8.67
Korean won/US dollar 1,107.90
Henry Hub $/mmBtu 2.86

Fair value hedges
At 31 December 2018, the group held interest rate and cross-currency interest rate swap contracts as fair value hedges of the interest rate risk
and foreign currency risk arising from group fixed rate debt issuances. The interest rate swaps are used to convert US dollar denominated fixed
rate borrowings into floating rate debt. The cross-currency interest rate swaps are used to convert sterling, euro, Swiss franc, Australian dollar,
Canadian dollar and Norwegian krone denominated fixed rate borrowings into US dollar floating rate debt. The group manages all risks derived
from debt issuance, such as credit risk, however, the group applies hedge accounting only to certain components of interest rate and foreign
currency risk in order to minimize hedge ineffectiveness. Note 29 outlines the group’s approach to interest rate and foreign currency exchange
risk management.
The interest rate and foreign currency exposures are identified and hedged on an instrument-by-instrument basis. For interest rate exposures,
the group designates as a fair value hedge the benchmark interest rate component only. This is an observable and reliably measurable
component of interest rate risk. For foreign currency exposures, the group excludes from the designation the foreign currency basis spread
component implicit in the cross-currency interest rate swaps. This is separately calculated at hedge designation, is recognized in other
comprehensive income over the life of the hedge and amortized to the income statement on a straight-line basis, in accordance with the
group’s policy on costs of hedging.
The group applies hedge accounting where there is an economic relationship between the hedged item and the hedging instrument. The
existence of an economic relationship is determined initially by comparing the critical terms of the hedging instrument and those of the hedged
item and it is prospectively assessed using linear regression analysis. The group issues fixed rate debt and enters into interest rate and cross-
currency interest rate swaps with critical terms that match those of the debt and on a 1:1 hedge ratio basis. The hedge ratio is determined by
comparing the notional amount of the derivative with the notional amount of the debt. The hedge relationship is designated for the full term
and notional value of the debt. Both the hedging instrument and the hedged item are expected to be held to maturity.
The group has identified the following sources of ineffectiveness, which are not expected to be material:
• derivative counterparty’s credit risk which is not offset by the hedged item. This risk is mitigated by entering into derivative transactions only
with high credit quality counterparties; and
• sensitivity to interest rate between the hedged item and the derivatives. This is driven by differences in payment frequencies between the
instrument and the bond.
The table below summarizes the change in the fair value of hedging instruments and the hedged item used to calculate ineffectiveness in the
period.
$ million
Change in fair
value of Change in fair
hedging value of
instrument hedged item Hedge
used to used to ineffectiveness
calculate calculate recognized in
At 31 December 2018 ineffectiveness ineffectiveness profit or (loss)
Fair value hedges

Interest rate risk on finance debt (70) 69 (1)
Interest rate and foreign currency risk on finance debt 812 (809) 3
The table below summarizes the carrying amount of the derivatives designated as hedging instruments in fair value hedge relationships at
31 December 2018.
$ million
Nominal
Carrying amount of hedging
amounts of
instrument
hedging
At 31 December 2018 Assets Liabilities instruments
Fair value hedges

Interest rate risk on finance debt 262 (445) 24,513
Interest rate and foreign currency risk on finance debt 158 (789) 16,580
All hedging instruments are presented within derivative financial instruments on the group balance sheet. Ineffectiveness arising on fair value
hedges is included within the production and manufacturing expenses section of the income statement.
The table below summarizes the profile by tenor of the nominal amount of the derivatives designated as hedging instruments in fair value
hedge relationships at 31 December 2018. The weighted average floating interest rate of these interest rate swaps and cross-currency interest
rate swaps was 3.04% and 4.07% respectively.
$ million
Less than 1
At 31 December 2018 year 1-2 years 2-3 years 3-4 years 4-5 years 5-10 years Over 10 years Total
Fair value hedges

Interest rate risk on finance debt 2,694 2,324 2,597 4,923 1,700 10,275 — 24,513
Interest rate and foreign currency
risk on finance debt — 1,245 1,167 707 2,921 10,254 286 16,580

The table below summarizes the carrying amount, and the accumulated fair value adjustments included within the carrying amount, of the
hedged items designated in fair value hedge relationships at 31 December 2018.
$ million
Accumulated fair value adjustment included in the
Carrying amount of hedged item carrying amount of hedged items
Discontinued
At 31 December 2018 Assets Liabilities Assets Liabilities hedges
Fair value hedges

Interest rate risk on finance debt — (24,747) 175 — (360)
Interest rate and foreign currency risk on finance debt — (16,883) — (62) —
The hedged item for all fair value hedges is presented within finance debt on the group balance sheet.
Movement in reserves related to hedge accounting
The table below provides a reconciliation of the cash flow hedge and costs of hedging reserves on a pre-tax basis by risk category. The signage
convention of this table is consistent with that presented in Note 32.
$ million
Costs of
hedging
Cash flow hedge reserve reserve
Interest rate
Highly and foreign
probable Highly currency risk
forecast capital probable Purchase of on finance
expenditure forecast sales equitya debt Total
At 31 December 2017 (10) — (651) — (661)

Adjustment on adoption of IFRS 9 — — — (37) (37)
At 1 January 2018 (10) — (651) (37) (698)
Recognized in other comprehensive income
Cash flow hedges marked to market (37) (126) — — (163)
Cash flow hedges reclassified to the income statement - hedged
item affected profit or loss — 120 — — 120
Costs of hedging marked to market — — — (244) (244)
Costs of hedging reclassified to the income statement — — — 58 58
(37) (6) — (186) (229)
Cash flow hedges transferred to the balance sheet 26 — — — 26
At 31 December 2018 (21) (6) (651) (223) (901)
a
See Note 32 for further information on the cash flow hedge reserve relating to the purchase of equity
Substantially all of the cash flow hedge reserve balances and all of the amounts reclassified into profit or loss during the year relate to
continuing hedge relationships. Amounts deferred in the cash flow hedge reserve that have been reclassified to profit or loss are presented in
sales and other operating revenues in the income statement.
Costs of hedging relates to the foreign currency basis spreads of hedging instruments used to hedge the group's interest rate and foreign
currency risk on debt which is a time-period related item.

31. Called-up share capital
The allotted, called up and fully paid share capital at 31 December was as follows:
2018 2017 2016
Shares Shares Shares
Issued thousand $ million thousand $ million thousand $ million
8% cumulative first preference shares of £1 eacha 7,233 12 7,233 12 7,233 12

9% cumulative second preference shares of £1 eacha 5,473 9 5,473 9 5,473 9
21 21 21
Ordinary shares of 25 cents each
At 1 January 21,288,193 5,322 21,049,696 5,263 20,108,771 5,028
Issue of new shares for the scrip dividend programme 195,305 49 289,789 72 548,005 137
Issue of new shares for employee share-based
payment plans 92,168 23 — — — —
b
Issue of new shares – other — — — — 392,920 98
Repurchase of ordinary share capital (50,202) (13) (51,292) (13) — —
At 31 December 21,525,464 5,381 21,288,193 5,322 21,049,696 5,263
5,402 5,343 5,284
a
The nominal amount of 8% cumulative first preference shares and 9% cumulative second preference shares that can be in issue at any time shall not exceed £10,000,000 for each class of
preference shares.
b
2016 relates to the issue of new ordinary shares in consideration for a 10% interest in the Abu Dhabi onshore oil concession. See Note 32 for further information.
Voting on substantive resolutions tabled at a general meeting is on a poll. On a poll, shareholders present in person or by proxy have two votes
for every £5 in nominal amount of the first and second preference shares held and one vote for every ordinary share held. On a show-of-hands
vote on other resolutions (procedural matters) at a general meeting, shareholders present in person or by proxy have one vote each.
In the event of the winding up of the company, preference shareholders would be entitled to a sum equal to the capital paid up on the
preference shares, plus an amount in respect of accrued and unpaid dividends and a premium equal to the higher of (i) 10% of the capital paid
up on the preference shares and (ii) the excess of the average market price of such shares on the London Stock Exchange during the previous
six months over par value.
During 2018 the company repurchased 50 million ordinary shares for a total consideration of $355 million, including transaction costs of $2
million, as part of the share repurchase programme announced on 31 October 2017. All shares purchased were for cancellation. The
repurchased shares represented 0.2% of ordinary share capital.
Treasury sharesa
2018 2017 2016
Shares Nominal value Shares Nominal value Shares Nominal value
thousand $ million thousand $ million thousand $ million
At 1 January 1,482,072 370 1,614,657 403 1,756,327 439
Purchases for settlement of employee share plans 757 — 4,423 1 9,631 2
Issue of new shares for employee share-based
payment plans 92,168 23 — — — —
Shares re-issued for employee share-based payment
plans (148,732) (37) (137,008) (34) (151,301) (38)
At 31 December 1,426,265 356 1,482,072 370 1,614,657 403
Of which – shares held in treasury by BP 1,264,732 316 1,472,343 368 1,576,411 394
– shares held in ESOP trusts 161,518 40 9,705 2 21,432 5
– shares held by BP’s US share plan
administratorb 15 — 24 — 16,814 4
a
See Note 32 for definition of treasury shares.
b
Held in the form of ADSs to meet the requirements of employee share-based payment plans in the US.
For each year presented, the balance at 1 January represents the maximum number of shares held in treasury by BP during the year,
representing 6.9% (2017 7.5% and 2016 8.6%) of the called-up ordinary share capital of the company.
During 2018, the movement in shares held in treasury by BP represented less than 1.0% (2017 less than 0.5% and 2016 less than 0.8%) of the
ordinary share capital of the company.

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32. Capital and reserves
Total
Share Capital share capital
Share premium redemption Merger and capital
capital account reserve reserve reserves
At 31 December 2017 5,343 12,147 1,426 27,206 46,122
Adjustment on adoption of IFRS 9, net of tax — — — — —
At 1 January 2018 5,343 12,147 1,426 27,206 46,122
Profit (loss) for the year — — — — —
Currency translation differences (including reclassifications) — — — — —
Cash flow hedges and costs of hedging (including reclassifications) — — — — —
Share of items relating to equity-accounted entities, net of taxa — — — — —
Other — — — — —
Remeasurements of the net pension and other post-retirement benefit liability or asset — — — — —
Cash flow hedges that will subsequently be transferred to the balance sheet — — — — —
Total comprehensive income — — — — —
Dividends 49 (49) — — —
Cash flow hedges transferred to the balance sheet, net of tax — — — — —
Repurchases of ordinary share capital (13) — 13 — —
Share-based payments, net of taxb 23 207 — — 230
Share of equity-accounted entities’ changes in equity, net of tax — — — — —
Transactions involving non-controlling interests, net of tax — — — — —
At 31 December 2018 5,402 12,305 1,439 27,206 46,352
Total
At 1 January 2017 5,284 12,219 1,413 27,206 46,122
Currency translation differences (including reclassifications) — — — — —
Available-for-sale investments (including reclassifications) — — — — —
Cash flow hedges (including reclassifications) — — — — —
Other — — — — —
Dividends 72 (72) — — —
Repurchases of ordinary share capital (13) — 13 — —
Share-based payments, net of taxb — — — — —
Transactions involving non-controlling interests, net of taxc — — — — —
At 31 December 2017 5,343 12,147 1,426 27,206 46,122
Total
At 1 January 2016 5,049 10,234 1,413 27,206 43,902
Currency translation differences (including reclassifications)a — — — — —
Available-for-sale investments (including reclassifications) — — — — —
Cash flow hedges (including reclassifications) — — — — —
Other — — — — —
Dividends 137 (137) — — —
Share-based payments, net of taxb d 98 2,122 — — 2,220
Transactions involving non-controlling interests, net of tax — — — — —
At 31 December 2016 5,284 12,219 1,413 27,206 46,122
a
Principally foreign exchange effects relating to the Russian rouble.
b
Movements in treasury shares relate to employee share-based payment plans.

32. Capital and reserves – continued
$ million
Foreign
currency Available- Total Profit and BP Non-
Treasury translation for-sale Cash flow Costs of fair value loss shareholders’ controlling
shares reserve investments hedges hedging reserves account equity interests Total equity
(16,958) (5,156) 17 (760) — (743) 75,226 98,491 1,913 100,404

— — (17) — (37) (54) (126) (180) — (180)
(16,958) (5,156) — (760) (37) (797) 75,100 98,311 1,913 100,224
— — — — — — 9,383 9,383 195 9,578
— (3,746) — — — — — (3,746) (41) (3,787)

— — — (6) (173) (179) — (179) — (179)
— — — — — — 417 417 — 417
— — — — — — 7 7 — 7
— — — — — — 1,599 1,599 — 1,599

— — — (37) — (37) — (37) — (37)
— (3,746) — (43) (173) (216) 11,406 7,444 154 7,598
— — — — — — (6,699) (6,699) (170) (6,869)
— — — 26 — 26 — 26 — 26
— — — — — — (355) (355) — (355)
1,191 — — — — — (718) 703 — 703
— — — — — — 14 14 — 14
— — — — — — — — 207 207
(15,767) (8,902) — (777) (210) (987) 78,748 99,444 2,104 101,548
Foreign
(18,443) (6,878) 3 (1,156) — (1,153) 75,638 95,286 1,557 96,843

— — — — — — 3,389 3,389 79 3,468
— 1,722 — — — — (3) 1,719 52 1,771

— — 14 — — 14 — 14 — 14
— — — 396 — 396 — 396 — 396
— — — — — — 564 564 — 564
— — — — — — (72) (72) — (72)
— — — — — — 2,343 2,343 — 2,343

— 1,722 14 396 — 410 6,221 8,353 131 8,484
— — — — — — (6,153) (6,153) (141) (6,294)
— — — — — — (343) (343) — (343)
1,485 — — — — — (798) 687 — 687
— — — — — — 215 215 — 215
— — — — — — 446 446 366 812
(16,958) (5,156) 17 (760) — (743) 75,226 98,491 1,913 100,404
Foreign
(19,964) (7,267) 2 (825) — (823) 81,368 97,216 1,171 98,387

— — — — — — 115 115 57 172
— 389 — — — — — 389 (27) 362

— — 1 — — 1 — 1 — 1
— — — (331) — (331) — (331) — (331)
— — — — — — 833 833 — 833
— — — — — — (96) (96) — (96)
— — — — — — (1,757) (1,757) — (1,757)

— 389 1 (331) — (330) (905) (846) 30 (816)
— — — — — — (4,611) (4,611) (107) (4,718)
1,521 — — — — — (750) 2,991 — 2,991
— — — — — — 106 106 — 106
— — — — — — 430 430 463 893
(18,443) (6,878) 3 (1,156) — (1,153) 75,638 95,286 1,557 96,843
c
Principally relates to the initial public offering of common units in BP Midstream Partners LP for which net proceeds of $811 million were received.
d
Includes ordinary shares issued to the government of Abu Dhabi in consideration for a 10% interest in the Abu Dhabi onshore oil concession. The share-based payment transaction was
valued at the fair value of the interest in the assets, with reference to a market transaction for an identical interest.

Share capital
The balance on the share capital account represents the aggregate nominal value of all ordinary and preference shares in issue, including
treasury shares.
Share premium account
The balance on the share premium account represents the amounts received in excess of the nominal value of the ordinary and preference
shares.
Capital redemption reserve
The balance on the capital redemption reserve represents the aggregate nominal value of all the ordinary shares repurchased and cancelled.
Merger reserve
The balance on the merger reserve represents the fair value of the consideration given in excess of the nominal value of the ordinary shares
issued in an acquisition made by the issue of shares.
Treasury shares
Treasury shares represent BP shares repurchased and available for specific and limited purposes. For accounting purposes shares held in
Employee Share Ownership Plans (ESOPs) and BP’s US share plan administrator to meet the future requirements of the employee share-
based payment plans are treated in the same manner as treasury shares and are, therefore, included in the financial statements as treasury
shares. The ESOPs are funded by the group and have waived their rights to dividends in respect of such shares held for future awards. Until
such time as the shares held by the ESOPs vest unconditionally to employees, the amount paid for those shares is shown as a reduction in
shareholders’ equity. Assets and liabilities of the ESOPs are recognized as assets and liabilities of the group.
Foreign currency translation reserve
The foreign currency translation reserve records exchange differences arising from the translation of the financial statements of foreign
operations. Upon disposal of foreign operations, the related accumulated exchange differences are reclassified to the income statement.
Available-for-sale investments
This reserve recorded the changes in fair value of investments classified as available-for-sale under IAS 39 except for impairment losses,
foreign exchange gains or losses, or changes arising from revised estimates of future cash flows. On adoption of IFRS 9 the balance in this
reserve was transferred to the profit and loss account reserve. Under the new standard the group recognizes fair value gains and losses on
these investments in profit or loss.
Cash flow hedges
This reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is determined to be an effective hedge.
It includes $651 million relating to the acquisition of an 18.5% interest in Rosneft in 2013 which will only be reclassified to the income
statement if the investment in Rosneft is either sold or impaired. For further information on the accounting for cash flow hedges see Note 1 -
Derivative financial instruments and hedging activities.
Costs of hedging
This reserve records the change in fair value of the foreign currency basis spread of financial instruments to which cost of hedge accounting
has been applied. The accumulated amount relates to time-period related hedged items and is amortized to profit or loss over the term of the
hedging relationship.
Prior to the group’s adoption of IFRS 9 changes in the fair value of such foreign currency basis spreads were recognized in profit or loss. On
adoption of the new standard a transfer from the profit and loss account reserve to the costs of hedging reserve was made in order to reflect
the opening reserves position for relevant hedging instruments existing on transition. For further information on the accounting for costs of
hedging see Note 1 - Derivative financial instruments and hedging activities.
Profit and loss account
The balance held on this reserve is the accumulated retained profits of the group.

The pre-tax amounts of each component of other comprehensive income, and the related amounts of tax, are shown in the table below.
$ million
2018
Pre-tax Tax Net of tax
Currency translation differences (including reclassifications) (3,771) (16) (3,787)
Cash flow hedges (including reclassifications) (6) — (6)
Costs of hedging (including reclassifications) (186) 13 (173)
Share of items relating to equity-accounted entities, net of tax 417 — 417
Other — 7 7
Remeasurements of the net pension and other post-retirement benefit liability or asset 2,317 (718) 1,599
Cash flow hedges that will subsequently be transferred to the balance sheet (37) — (37)
Other comprehensive income (1,266) (714) (1,980)
$ million
2017
Currency translation differences (including reclassifications) 1,866 (95) 1,771
Available-for-sale investments (including reclassifications) 14 — 14
Cash flow hedges (including reclassifications) 425 (29) 396
Other — (72) (72)
Remeasurements of the net pension and other post-retirement benefit liability or asset 3,646 (1,303) 2,343
Other comprehensive income 6,515 (1,499) 5,016
$ million
2016
Currency translation differences (including reclassifications) 284 78 362
Available-for-sale investments (including reclassifications) 1 — 1
Cash flow hedges (including reclassifications) (362) 31 (331)
Other — (96) (96)
Remeasurements of the net pension and other post-retirement benefit liability or asset (2,496) 739 (1,757)
Other comprehensive income (1,740) 752 (988)
33. Contingent liabilities

Contingent liabilities related to the Gulf of Mexico oil spill
See Note 2 for information on contingent liabilities related to the Gulf of Mexico oil spill.
Contingent liabilities not related to the Gulf of Mexico oil spill
There were contingent liabilities at 31 December 2018 in respect of guarantees and indemnities entered into as part of the ordinary course of
the group’s business. No material losses are likely to arise from such contingent liabilities. Further information on financial guarantees is
included in Note 29.
In the normal course of the group’s business, legal and regulatory proceedings are pending or may be brought against BP group entities arising
out of current and past operations, including matters related to commercial disputes, product liability, antitrust, commodities trading, premises-
liability claims, consumer protection, general health, safety and environmental claims and allegations of exposures of third parties to toxic
substances, such as lead pigment in paint, asbestos and other chemicals. BP believes that the impact of these legal and regulatory
proceedings on the group‘s results of operations, liquidity or financial position will not be material.
The group files tax returns in many jurisdictions throughout the world. Various tax authorities are currently examining the group’s tax returns.
Tax returns contain matters that could be subject to differing interpretations of applicable tax laws and regulations including the tax
deductibility of certain intercompany charges. The resolution of tax positions through negotiations with relevant tax authorities, or through
litigation, can take several years to complete and the amounts could be significant and could be material to the group’s results of operations,
financial position or liquidity. While it is difficult to predict the ultimate outcome in some cases, the group does not anticipate that there will be
any material impact upon the group‘s results of operations, financial position or liquidity.

33. Contingent liabilities – continued
The group is subject to numerous national and local health, safety and environmental laws and regulations concerning its products, operations
and other activities. These laws and regulations may require the group to take future action to remediate the effects on the environment of
prior disposal or release of chemicals or petroleum substances by the group or other parties. Such contingencies may exist for various sites
including refineries, chemical plants, oil fields, commodities extraction sites, service stations, terminals and waste disposal sites. In addition,
the group may have obligations relating to prior asset sales or closed facilities. The ultimate requirement for remediation and its cost are
inherently difficult to estimate. However, the estimated cost of known environmental obligations has been provided in these accounts in
accordance with the group‘s accounting policies. While the amounts of future costs that are not provided for could be significant and could be
material to the group‘s results of operations in the period in which they are recognized, it is not possible to estimate the amounts involved. BP
does not expect these costs to have a material impact on the group’s results of operations, financial position or liquidity.
If oil and natural gas production facilities and pipelines are sold to third parties and the subsequent owner is unable to meet their
decommissioning obligations it is possible that, in certain circumstances, BP could be partially or wholly responsible for decommissioning.
While the amounts associated with decommissioning provisions reverting to the group could be significant and could be material, BP is not
currently aware of any such cases that have a greater than remote chance of reverting to the group. Furthermore, as described in Provisions
and contingencies within Note 1, decommissioning provisions associated with downstream and petrochemical facilities are not generally
recognized as the potential obligations cannot be measured given their indeterminate settlement dates.
See also Legal proceedings on pages 296-298.
34. Remuneration of senior management and non-executive directors

Remuneration of directors
$ million
2018 2017 2016
Total for all directors
Emoluments 8 9 10
Amounts received under incentive schemesa 16 9 14
Total 24 18 24
a
Excludes amounts relating to past directors.
Emoluments
These amounts comprise fees paid to the non-executive chairman and the non-executive directors and, for executive directors, salary and
benefits earned during the relevant financial year, plus cash bonuses awarded for the year.
Pension contributions
During 2018 one executive director participated in a UK final salary pension plan in respect of service prior to 1 April 2011. During 2018, one
executive director participated in retirement savings plans established for US employees and in a US defined benefit pension plan in respect of
service prior to 1 September 2016.
Further information
Full details of individual directors’ remuneration are given in the Directors’ remuneration report on page 87. See also Related-party transactions
on page 300.
Remuneration of directors and senior management
$ million
2018 2017 2016
Total for all senior management and non-executive directors
Short-term employee benefits 25 29 28
Pensions and other post-retirement benefits 2 2 3
Share-based payments 32 29 39
Total 59 60 70
Senior management comprises members of the executive team, see pages 63-65 for further information.
Short-term employee benefits
These amounts comprise fees and benefits paid to the non-executive chairman and non-executive directors, as well as salary, benefits and
cash bonuses for senior management. Deferred annual bonus awards, to be settled in shares, are included in share-based payments. Short
term employee benefits includes compensation for loss of office of $nil in 2018 (2017 $nil and 2016 $2.2 million).
Pensions and other post-retirement benefits
The amounts represent the estimated cost to the group of providing pensions and other post-retirement benefits to senior management in
respect of the current year of service measured in accordance with IAS 19 ‘Employee Benefits’.
This is the cost to the group of senior management’s participation in share-based payment plans, as measured by the fair value of options and
shares granted, accounted for in accordance with IFRS 2 ‘Share-based Payments’.

35. Employee costs and numbers
$ million
Employee costs 2018 2017 2016
Wages and salariesa 7,931 7,572 8,456
Social security costs 743 711 760
Share-based paymentsb 669 624 764
Pension and other post-retirement benefit costs 1,154 1,296 1,253
10,497 10,203 11,233
2018 2017 2016

Average number of employeesc US Non-US Total US Non-US Total US Non-US Total
Upstream 5,900 11,500 17,400 6,200 12,200 18,400 6,700 13,500 20,200
Downstreamd e 6,000 36,300 42,300 6,100 35,900 42,000 6,600 36,600 43,200
Other businesses and corporatee f 1,900 12,100 14,000 1,900 12,400 14,300 1,900 12,100 14,000
13,800 59,900 73,700 14,200 60,500 74,700 15,200 62,200 77,400
a
Includes termination costs of $493 million (2017 $189 million and 2016 $545 million).
b
The group provides certain employees with shares and share options as part of their remuneration packages. The majority of these share-based payment arrangements are equity-settled.
c
Reported to the nearest 100.
d
Includes 17,100 (2017 16,500 and 2016 15,800) service station staff.
e
Around 800 centralized function employees were reallocated from Upstream and Downstream to Other businesses and corporate during 2016.
f
Includes 4,000 (2017 4,700 and 2016 4,900) agricultural, operational and seasonal workers in Brazil.
36. Auditor’s remuneration

$ million
Fees 2018 2017 2016
The audit of the company annual accountsa 25 26 25
The audit of accounts of subsidiaries of the company 10 11 12
Total audit 35 37 37
Audit-related assurance servicesb 4 7 7
Total audit and audit-related assurance services 39 44 44
Taxation compliance services — — 1
Non-audit and other assurance services 2 3 1
Total non-audit or non-audit-related assurance services 2 3 2
Services relating to BP pension plans 1 — 1
42 47 47
a
Fees in respect of the audit of the accounts of BP p.l.c. including the group’s consolidated financial statements.
b
Includes interim reviews and audit of internal control over financial reporting and non-statutory audit services.
With effect from 2018, following a competitive tender process, Deloitte LLP (Deloitte) was appointed as auditor of the Company, replacing
Ernst & Young LLP (EY). In the table above, auditor’s remuneration for services provided during the year ended 31 December 2018 thus relates
to Deloitte and for the years ended 31 December 2017 and 31 December 2016 to EY.
In addition to the amounts shown in the table above, in 2018 $0.75 million of additional fees were paid to EY in respect of their audit for 2017.
Auditors’ remuneration is included in the income statement within distribution and administration expenses.
The tax services relate to income tax and indirect tax compliance, employee tax services and tax advisory services.
The audit committee has established pre-approval policies and procedures for the engagement of Deloitte to render audit and certain
assurance and other services. The audit fees payable to Deloitte were considered as part of the audit tender process in 2016 and challenged by
the audit committee through comparison with the audit pricing proposals of the other bidding firms, before being approved. Deloitte performed
further assurance services that were not prohibited by regulatory or other professional requirements and were pre-approved by the
Committee. Deloitte is engaged for these services when its expertise and experience of BP are important. Most of this work is of an audit-
related or assurance nature.
Under SEC regulations, the remuneration of the auditor of $42 million (2017 $47 million and 2016 $47 million) is required to be presented as
follows: audit $35 million (2017 $37 million and 2016 $37 million); other audit-related $4 million (2017 $7 million and 2016 $7 million); tax $nil
(2017 $nil and 2016 $1 million); and all other fees $3 million (2017 $3 million and 2016 $2 million).

37. Subsidiaries, joint arrangements and associates
The more important subsidiaries and associates of the group at 31 December 2018 and the group percentage of ordinary share capital (to
nearest whole number) are set out below. There are no individually significant incorporated joint arrangements. The group's share of the assets
and liabilities of the more important unincorporated joint arrangements are held by subsidiaries listed in the table below. Those subsidiaries
held directly by the parent company are marked with an asterisk (*), the percentage owned being that of the group unless otherwise indicated.
A complete list of undertakings of the group is included in Note 14 in the parent company financial statements of BP p.l.c. which are filed with
the Registrar of Companies in the UK, along with the group’s annual report.
Country of
Subsidiaries % incorporation Principal activities
International
BP Corporate Holdings 100 England & Wales Investment holding
BP Exploration Operating Company 100 England & Wales Exploration and production
*BP Global Investments 100 England & Wales Investment holding
*BP International 100 England & Wales Integrated oil operations
BP Oil International 100 England & Wales Integrated oil operations
*Burmah Castrol 100 Scotland Lubricants
Angola
BP Exploration (Angola) 100 England & Wales Exploration and production
Azerbaijan
BP Exploration (Caspian Sea) 100 England & Wales Exploration and production
BP Exploration (Azerbaijan) 100 England & Wales Exploration and production
Canada
*BP Holdings Canada 100 England & Wales Investment holding
Egypt
BP Exploration (Delta) 100 England & Wales Exploration and production
Germany
BP Europa SE 100 Germany Refining and marketing
India
BP Exploration (Alpha) 100 England & Wales Exploration and production
Trinidad & Tobago
BP Trinidad and Tobago 70 US Exploration and production
UK
BP Capital Markets 100 England & Wales Finance
US
*BP Holdings North America 100 England & Wales Investment holding
Atlantic Richfield Company 100 US
BP America 100 US
BP America Production Company 100 US
BP Company North America 100 US Exploration and production, refining and
BP Corporation North America 100 US marketing
BP Exploration (Alaska) 100 US
BP Products North America 100 US
Standard Oil Company 100 US
BP Capital Markets America 100 US Finance
Country of
Associates % incorporation Principal activities
Russia
Rosneft Oil Company 19.75 Russia Integrated oil operations

38. Condensed consolidating information on certain US subsidiaries
BP p.l.c. fully and unconditionally guarantees the payment obligations of its 100%-owned subsidiary BP Exploration (Alaska) Inc. under the BP
Prudhoe Bay Royalty Trust. The following financial information for BP p.l.c., BP Exploration (Alaska) Inc. and all other subsidiaries on a
condensed consolidating basis is intended to provide investors with meaningful and comparable financial information about BP p.l.c. and its
subsidiary issuers of registered securities and is provided pursuant to Rule 3-10 of Regulation S-X in lieu of the separate financial statements of
each subsidiary issuer of public debt securities. Non-current assets for BP p.l.c. includes investments in subsidiaries recorded under the equity
method for the purposes of the condensed consolidating financial information. Equity-accounted income of subsidiaries is the group’s share of
profit related to such investments. The eliminations and reclassifications column includes the necessary amounts to eliminate the
intercompany balances and transactions between BP p.l.c., BP Exploration (Alaska) Inc. and other subsidiaries. The financial information
presented in the following tables for BP Exploration (Alaska) Inc. incorporates subsidiaries of BP Exploration (Alaska) Inc. using the equity
method of accounting and excludes the BP group’s midstream operations in Alaska that are reported through different legal entities and that
are included within the ‘other subsidiaries’ column in these tables. BP p.l.c. also fully and unconditionally guarantees securities issued by BP
Capital Markets p.l.c. and BP Capital Markets America Inc. These companies are 100%-owned finance subsidiaries of BP p.l.c.
Income statement
$ million
2018
Issuer Guarantor
Eliminations
BP Exploration Other and
(Alaska) Inc. BP p.l.c. subsidiaries reclassifications BP group
Sales and other operating revenues 4,315 — 298,620 (4,179) 298,756

Earnings from joint ventures - after interest and tax — — 897 — 897
Earnings from associates - after interest and tax — — 2,856 — 2,856
Equity-accounted income of subsidiaries - after interest and tax — 10,942 — (10,942) —
Interest and other income 42 373 2,081 (1,723) 773
Gains on sale of businesses and fixed assets — — 456 — 456
Total revenues and other income 4,357 11,315 304,910 (16,844) 303,738
Purchases 1,507 — 232,550 (4,179) 229,878
Production and manufacturing expenses 1,015 — 21,990 — 23,005
Production and similar taxes 282 — 1,254 — 1,536
Depreciation, depletion and amortization 377 — 15,080 — 15,457
Impairment and losses on sale of businesses and fixed assets 66 — 794 — 860
Exploration expense — — 1,445 — 1,445
Distribution and administration expenses 22 642 11,673 (158) 12,179
Profit (loss) before interest and taxation 1,088 10,673 20,124 (12,507) 19,378
Finance costs 8 1,326 2,759 (1,565) 2,528
Net finance (income) expense relating to pensions and other post-
retirement benefits — (95) 222 — 127
Profit (loss) before taxation 1,080 9,442 17,143 (10,942) 16,723
Taxation 164 59 6,922 — 7,145
Profit (loss) for the year 916 9,383 10,221 (10,942) 9,578
Attributable to
BP shareholders 916 9,383 10,026 (10,942) 9,383
Non-controlling interests — — 195 — 195
916 9,383 10,221 (10,942) 9,578

38. Condensed consolidating information on certain US subsidiaries – continued
Statement of comprehensive income
$ million
2018
Issuer Guarantor
Eliminations
Currency translation differences — (296) (3,475) — (3,771)
Cash flow hedges (including reclassifications) — — (6) — (6)
Costs of hedging (including reclassifications) — — (186) — (186)
Share of items relating to equity-accounted entities, net of tax — — 417 — 417
Income tax relating to items that may be reclassified — — 4 — 4
— (296) (3,246) — (3,542)
Remeasurements of the net pension and other post-retirement
benefit liability or asset — 1,689 628 — 2,317
Cash flow hedges that will subsequently be transferred to the
balance sheet — — (37) — (37)
Income tax relating to items that will not be reclassified — (511) (207) — (718)
— 1,178 384 — 1,562
Other comprehensive income — 882 (2,862) — (1,980)
Equity-accounted other comprehensive income of subsidiaries — (2,821) — 2,821 —
Total comprehensive income 916 7,444 7,359 (8,121) 7,598
Attributable to
BP shareholders 916 7,444 7,205 (8,121) 7,444
916 7,444 7,359 (8,121) 7,598
Income statement continued

$ million
2017
Issuer Guarantor
BP Exploration Other Eliminations and

Earnings from joint ventures - after interest and tax — — 1,177 — 1,177
Earnings from associates - after interest and tax — — 1,330 — 1,330
Equity-accounted income of subsidiaries - after interest and tax — 4,436 — (4,436) —
Interest and other income 11 369 1,470 (1,193) 657
Gains on sale of businesses and fixed assets 71 9 1,139 (9) 1,210
Purchases 1,010 — 181,939 (3,233) 179,716
Production and similar taxesa (18) — 1,793 — 1,775
Impairment and losses on sale of businesses and fixed assets — — 1,216 — 1,216
Distribution and administration expenses 19 616 10,022 (149) 10,508
Profit (loss) before interest and taxation 444 4,198 10,321 (5,489) 9,474
Finance costs 6 826 2,286 (1,044) 2,074
Profit (loss) before taxation 438 3,387 7,800 (4,445) 7,180
Taxation (392) (11) 4,115 — 3,712
Attributable to
BP shareholders 830 3,398 3,606 (4,445) 3,389
830 3,398 3,685 (4,445) 3,468
a
Includes revised non-cash provision adjustments; actual cash payments for Production and similar taxes remain in line with prior year.

Statement of comprehensive income continued
$ million
2017
Issuer Guarantor
Currency translation differences — 166 1,820 — 1,986
Exchange (gains) losses on translation of foreign operations
transferred to gain or loss on sale of businesses and fixed assets — — (120) — (120)
Available-for-sale investments marked to market — — 14 — 14
Cash flow hedges marked to market — — 197 — 197
Cash flow hedges reclassified to the income statement — — 116 — 116
Cash flow hedges reclassified to the balance sheet — — 112 — 112
Share of items relating to equity-accounted entities, net of tax
— — 564 — 564
Income tax relating to items that may be reclassified — — (196) — (196)
— 166 2,507 — 2,673
benefit liability or asset — 2,984 662 — 3,646
Income tax relating to items that will not be reclassified — (1,169) (134) — (1,303)
— 1,815 528 — 2,343
Other comprehensive income — 1,981 3,035 — 5,016
Equity-accounted other comprehensive income of subsidiaries — 2,983 — (2,983) —
Total comprehensive income 830 8,362 6,720 (7,428) 8,484
Attributable to
BP shareholders 830 8,362 6,589 (7,428) 8,353
830 8,362 6,720 (7,428) 8,484
Income statement continued

$ million
2016
Issuer Guarantor

Earnings from joint ventures - after interest and tax — — 966 — 966
Earnings from associates - after interest and tax — — 994 — 994
Equity-accounted income of subsidiaries - after interest and tax — 862 — (862) —
Interest and other income 94 343 899 (830) 506
Gains on sale of businesses and fixed assets — — 1,132 — 1,132
Purchases 888 — 134,062 (2,731) 132,219
Production and similar taxes 102 — 581 — 683
Impairment and losses on sale of businesses and fixed assets (147) — (1,517) — (1,664)
Distribution and administration expenses — 808 9,797 (110) 10,495
Profit (loss) before interest and taxation 147 397 608 (1,582) (430)
Finance costs 103 311 1,981 (720) 1,675
Profit (loss) before taxation 44 168 (1,645) (862) (2,295)
Taxation (41) 53 (2,479) — (2,467)
Profit (loss) for the year 85 115 834 (862) 172
Attributable to
BP shareholders 85 115 777 (862) 115
85 115 834 (862) 172

Statement of comprehensive income continued
$ million
2016
Issuer Guarantor
Profit (loss) for the year 85 115 834 (862) 172

Currency translation differences — (236) 490 — 254
Exchange (gains) losses on translation of foreign operations
transferred to gain or loss on sale of businesses and fixed assets — — 30 — 30
Available-for-sale investments marked to market — — 1 — 1
Cash flow hedges marked to market — — (639) — (639)
Cash flow hedges reclassified to the income statement — — 196 — 196
Cash flow hedges reclassified to the balance sheet — — 81 — 81
Share of items relating to equity-accounted entities, net of tax — — 833 — 833
Income tax relating to items that may be reclassified — — 13 — 13
— (236) 1,005 — 769
benefit liability or asset — (2,019) (477) — (2,496)
Income tax relating to items that will not be reclassified — 750 (11) — 739
— (1,269) (488) — (1,757)
Other comprehensive income — (1,505) 517 — (988)
Equity-accounted other comprehensive income of subsidiaries — 544 — (544) —
Total comprehensive income 85 (846) 1,351 (1,406) (816)
Attributable to
BP shareholders 85 (846) 1,321 (1,406) (846)
85 (846) 1,351 (1,406) (816)

Balance sheet
$ million
2018
Issuer Guarantor
Non-current assets
Property, plant and equipment 4,445 — 130,816 — 135,261
Goodwill — — 12,204 — 12,204
Intangible assets 598 — 16,686 — 17,284
Investments in joint ventures — — 8,647 — 8,647
Investments in associates — 2 17,671 — 17,673
Other investments — — 1,341 — 1,341
Subsidiaries - equity-accounted basis — 166,311 — (166,311) —
Fixed assets 5,043 166,313 187,365 (166,311) 192,410
Loans — — 32,402 (31,765) 637
Trade and other receivables — 2,600 1,834 (2,600) 1,834
Derivative financial instruments — — 5,145 — 5,145
Prepayments — — 1,179 — 1,179
Deferred tax assets — — 3,706 — 3,706
Defined benefit pension plan surpluses — 5,473 482 — 5,955
5,043 174,386 232,113 (200,676) 210,866
Current assets
Loans — — 326 — 326
Inventories 302 — 17,686 — 17,988
Trade and other receivables 2,536 151 38,931 (17,140) 24,478
Prepayments 7 — 956 — 963
Current tax receivable — — 1,019 — 1,019
Other investments — — 222 — 222
Cash and cash equivalents — 13 22,455 — 22,468
2,845 164 85,441 (17,140) 71,310
Total assets 7,888 174,550 317,554 (217,816) 282,176
Current liabilities
Trade and other payables 413 14,634 48,358 (17,140) 46,265
Accruals 89 31 4,506 — 4,626
Finance debt — — 9,373 — 9,373
Current tax payable 310 — 1,791 — 2,101
Provisions 1 — 2,563 — 2,564
813 14,665 69,899 (17,140) 68,237
Other payables — 31,800 16,395 (34,365) 13,830
Accruals — — 575 — 575
Finance debt — — 56,426 — 56,426
Deferred tax liabilities 586 1,907 7,319 — 9,812
Provisions 670 — 17,062 — 17,732
Defined benefit pension plan and other post-retirement benefit
plan deficits — 184 8,207 — 8,391
1,256 33,891 111,609 (34,365) 112,391
Total liabilities 2,069 48,556 181,508 (51,505) 180,628
Net assets 5,819 125,994 136,046 (166,311) 101,548
Equity
BP shareholders’ equity 5,819 125,994 133,942 (166,311) 99,444
Non-controlling interests — — 2,104 — 2,104
5,819 125,994 136,046 (166,311) 101,548

Balance sheet continued
$ million
2017
Issuer Guarantor
Non-current assets
Property, plant and equipment 6,973 — 122,498 — 129,471
Goodwill — — 11,551 — 11,551
Intangible assets 585 — 17,770 — 18,355
Investments in joint ventures — — 7,994 — 7,994
Investments in associates — 2 16,989 — 16,991
Other investments — — 1,245 — 1,245
Subsidiaries - equity-accounted basis — 161,840 — (161,840) —
Fixed assets 7,558 161,842 178,047 (161,840) 185,607
Loans 1 — 32,401 (31,756) 646
Trade and other receivables — 2,623 1,434 (2,623) 1,434
Prepayments — — 1,112 — 1,112
Deferred tax assets — — 4,469 — 4,469
Defined benefit pension plan surpluses — 3,838 331 — 4,169
7,559 168,303 221,904 (196,219) 201,547
Current assets
Loans — — 190 — 190
Inventories 274 — 18,737 — 19,011
Trade and other receivables 2,206 293 34,991 (12,641) 24,849
Prepayments 2 — 1,412 — 1,414
Current tax receivable — — 761 — 761
Other investments — — 125 — 125
Cash and cash equivalents — 10 25,576 — 25,586
2,482 303 84,824 (12,641) 74,968
Total assets 10,041 168,606 306,728 (208,860) 276,515
Current liabilities
Trade and other payablesa 673 10,143 46,034 (12,641) 44,209
Accruals 115 60 4,785 — 4,960
Finance debt — — 7,739 — 7,739
Current tax payable — — 1,686 — 1,686
Provisions 1 — 3,323 — 3,324
789 10,203 66,375 (12,641) 64,726
Other payablesa — 31,804 16,464 (34,379) 13,889
Accruals — — 505 — 505
Finance debt — — 55,491 — 55,491
Deferred tax liabilities 838 1,337 5,807 — 7,982
Provisions 1,222 — 19,398 — 20,620
Defined benefit pension plan and other post-retirement benefit
plan deficits — 221 8,916 — 9,137
2,060 33,362 110,342 (34,379) 111,385
Total liabilities 2,849 43,565 176,717 (47,020) 176,111
Net assets 7,192 125,041 130,011 (161,840) 100,404
Equity
BP shareholders’ equity 7,192 125,041 128,098 (161,840) 98,491
Non-controlling interests — — 1,913 — 1,913
7,192 125,041 130,011 (161,840) 100,404
a
For BP plc, an amount of $2,300 million has been reclassified from non-current other payables to current trade and other payables, with consequential amendments to the eliminations and
reclassifications column.

Cash flow statement
$ million
2018
Issuer Guarantor
Eliminations
Profit (loss) before taxation 1,080 9,442 17,143 (10,942) 16,723
Adjustments to reconcile profit (loss) before taxation to net cash
provided by operating activities
Exploration expenditure written off — — 1,085 — 1,085
Impairment and (gain) loss on sale of businesses and fixed assets 66 — 338 — 404
Earnings from joint ventures and associates — — (3,753) — (3,753)
Dividends received from joint ventures and associates — — 1,535 — 1,535
Equity accounted income of subsidiaries - after interest and tax — (10,942) — 10,942 —
Dividends received from subsidiaries — 3,490 — (3,490) —
Interest receivable (42) (215) (1,776) 1,565 (468)
Interest received 42 215 1,656 (1,565) 348
Finance costs 8 1,326 2,759 (1,565) 2,528
Interest paid (8) (1,326) (2,159) 1,565 (1,928)
Net finance expense relating to pensions and other post-
Share-based payments — 671 19 — 690
Net operating charge for pensions and other post-retirement
benefits, less contributions and benefit payments for unfunded
plans — (183) (203) — (386)
Net charge for provisions, less payments 33 — 953 — 986
(Increase) decrease in inventories (62) — 734 — 672
(Increase) decrease in other current and non-current assets (72) 165 (951) (2,000) (2,858)
Increase (decrease) in other current and non-current liabilities (491) 4,509 (6,595) — (2,577)
Income taxes paid (133) — (5,579) — (5,712)
Net cash provided by (used in) operating activities 798 7,057 20,508 (5,490) 22,873
Expenditure on property, plant and equipment, intangible and other
assets (273) — (16,434) — (16,707)
Acquisitions, net of cash acquired — — (6,986) — (6,986)
Investment in joint ventures — — (382) — (382)
Investment in associates — — (1,013) — (1,013)
Total cash capital expenditure (273) — (24,815) — (25,088)
Proceeds from disposals of fixed assets — — 940 — 940
Proceeds from disposals of businesses, net of cash disposed 1,475 — 436 — 1,911
Proceeds from loan repayments — — 666 — 666
Net cash provided by (used in) investing activities 1,202 — (22,773) — (21,571)
Repurchase of shares — (355) — — (355)
Proceeds from long-term financing — — 9,038 — 9,038
Repayments of long-term financing — — (7,210) — (7,210)
Net increase (decrease) in short-term debt — — 1,317 — 1,317
Dividends paid
BP shareholders (2,000) (6,699) (3,490) 5,490 (6,699)
Non-controlling interests — — (170) — (170)
Net cash provided by (used in) financing activities (2,000) (7,054) (515) 5,490 (4,079)
Currency translation differences relating to cash and cash equivalents — — (330) — (330)
Increase (decrease) in cash and cash equivalents — 3 (3,110) — (3,107)
Cash and cash equivalents at beginning of year — 10 25,565 — 25,575
Cash and cash equivalents at end of year — 13 22,455 — 22,468

Cash flow statement continued
$ million
2017
Issuer Guarantor

Profit (loss) before taxation 438 3,387 7,800 (4,445) 7,180
Impairment and (gain) loss on sale of businesses and fixed assets (71) (9) 77 9 6
Equity accounted income of subsidiaries - after interest and tax — (4,436) — 4,436 —
Dividends received from subsidiaries — 3,183 — (3,183) —
Interest receivable (11) (220) (1,117) 1,044 (304)
Interest received 11 220 1,188 (1,044) 375
Finance costs 6 826 2,286 (1,044) 2,074
Interest paid (6) (826) (1,784) 1,044 (1,572)
Share-based payments — 595 66 — 661
plans — (145) (249) — (394)
Net charge for provisions, less payments (128) — 2,234 — 2,106
(Increase) decrease in inventories (25) — (823) — (848)
(Increase) decrease in other current and non-current assets 108 522 (5,478) — (4,848)
Increase (decrease) in other current and non-current liabilities (830) 3,374 (200) — 2,344
Income taxes paid — — (4,002) — (4,002)
Net cash provided by operating activities 227 6,456 15,431 (3,183) 18,931
assets (321) — (16,241) — (16,562)
Acquisitions, net of cash acquired — — (327) — (327)
Investment in associates — — (901) — (901)
Proceeds from disposals of fixed assets 94 — 2,842 — 2,936
Proceeds from disposals of businesses, net of cash disposed — — 478 — 478
Net cash provided by (used in) investing activities (227) — (13,850) — (14,077)
Net issue (repurchase) of shares — (343) — — (343)
Net increase (decrease) in short-term debt — — (158) — (158)
Net increase (decrease) in non-controlling interests — — 1,063 — 1,063
Dividends paid
BP shareholders — (6,153) (3,183) 3,183 (6,153)
Net cash provided by (used in) financing activities — (6,496) 17 3,183 (3,296)
Currency translation differences relating to cash and cash equivalents — — 544 — 544
Increase (decrease) in cash and cash equivalents — (40) 2,142 — 2,102
Cash and cash equivalents at beginning of year — 50 23,434 — 23,484

Cash flow statement continued
$ million
2016
Issuer Guarantor

Profit (loss) before taxation 44 168 (1,645) (862) (2,295)
Impairment and (gain) loss on sale of businesses and fixed assets (148) — (2,648) — (2,796)
Equity accounted income of subsidiaries - after interest and tax — (862) — 862 —
Dividends received from (paid to) subsidiaries (7,000) 372 — 6,628 —
Interest receivable (94) (233) (593) 720 (200)
Interest received 94 233 660 (720) 267
Finance costs 103 311 1,981 (720) 1,675
Interest paid (103) (311) (1,443) 720 (1,137)
Share-based payments — 780 (1) — 779
plans — (192) (275) — (467)
Net charge for provisions, less payments 77 — 4,410 — 4,487
(Increase) decrease in inventories (3) — (3,678) — (3,681)
(Increase) decrease in other current and non-current assets 6,985 (156) (1,001) (7,000) (1,172)
Increase (decrease) in other current and non-current liabilities (33) 4,634 (2,946) — 1,655
Income taxes paid 104 (1) (1,641) — (1,538)
Net cash provided by operating activities 699 4,661 5,703 (372) 10,691
assets (699) — (16,002) — (16,701)
Acquisitions, net of cash acquired — — (1) — (1)
Investment in associates — — (700) — (700)
Proceeds from disposals of fixed assets — — 1,372 — 1,372
Proceeds from disposals of businesses, net of cash disposed — — 1,259 — 1,259
Net cash provided by (used in) investing activities (699) — (14,054) — (14,753)
Net increase (decrease) in short-term debt — — 51 — 51
Net increase (decrease) in non-controlling interests — — 887 — 887
Dividends paid
BP shareholders — (4,611) (372) 372 (4,611)
Net cash provided by (used in) financing activities — (4,611) 6,216 372 1,977
Currency translation differences relating to cash and cash equivalents — — (820) — (820)
Increase (decrease) in cash and cash equivalents — 50 (2,955) — (2,905)
Cash and cash equivalents at beginning of year — — 26,389 — 26,389

Supplementary information on oil and natural gas (unaudited)
The regional analysis presented below is on a continent basis, with separate disclosure for countries that contain 15% or more of the total
proved reserves (for subsidiaries plus equity-accounted entities), in accordance with SEC and FASB requirements.
Oil and gas reserves – certain definitions
Unless the context indicates otherwise, the following terms have the meanings shown below:
Proved oil and gas reserves
Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with
reasonable certainty to be economically producible – from a given date forward, from known reservoirs, and under existing economic
conditions, operating methods, and government regulations – prior to the time at which contracts providing the right to operate expire, unless
evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation.
The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project
within a reasonable time.
(i) The area of the reservoir considered as proved includes:
(A) The area identified by drilling and limited by fluid contacts, if any; and
(B) Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain
economically producible oil or gas on the basis of available geoscience and engineering data.
(ii) In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seen in
a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with
reasonable certainty.
(iii) Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for an
associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience,
engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.
(iv) Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid
injection) are included in the proved classification when:
(A) Successful testing by a pilot project in an area of the reservoir with properties no more favourable than in the reservoir as a
whole, the operation of an installed programme in the reservoir or an analogous reservoir, or other evidence using reliable
technology establishes the reasonable certainty of the engineering analysis on which the project or programme was based; and
(B) The project has been approved for development by all necessary parties and entities, including governmental entities.
(v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price
shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an
unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by
contractual arrangements, excluding escalations based upon future conditions.
Undeveloped oil and gas reserves
Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from
existing wells where a relatively major expenditure is required for recompletion.
(i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of
production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility
at greater distances.
(ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they
are scheduled to be drilled within five years, unless the specific circumstances, justify a longer time.
(iii) Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid
injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects
in the same reservoir or an analogous reservoir, or by other evidence using reliable technology establishing reasonable certainty.
Developed oil and gas reserves
Developed oil and gas reserves are reserves of any category that can be expected to be recovered:
(i) Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively
minor compared to the cost of a new well; and
(ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means
not involving a well.
For details on BP’s proved reserves and production compliance and governance processes, see pages 285-290.

Oil and natural gas exploration and production activities
$ million
2018
North South
Europe America America Africa Asia Australasia Total
Rest of
Rest of North Rest of
UK Europe US America Russia Asia
Subsidiaries
Capitalized costs at 31 Decembera b
Gross capitalized costs
Proved properties 29,730 — 89,069 3,385 14,269 51,980 — 38,315 6,119 232,867
Unproved properties 451 — 3,602 2,667 2,742 3,870 — 3,153 568 17,053
30,181 — 92,671 6,052 17,011 55,850 — 41,468 6,687 249,920
Accumulated depreciation 16,809 — 47,051 420 8,517 38,324 — 20,173 3,626 134,920
Net capitalized costs 13,372 — 45,620 5,632 8,494 17,526 — 21,295 3,061 115,000
Costs incurred for the year ended 31 Decembera b

Acquisition of properties
Proved 1,933 — 10,650 — — (1) — 36 — 12,618
Unproved — — 35 — 100 50 — (5) — 180
1,933 — 10,685 — 100 49 — 31 — 12,798
Exploration and appraisal costsc 238 — 216 139 245 283 5 148 24 1,298
Development 817 — 3,429 46 591 2,340 — 2,458 236 9,917
Total costs 2,988 — 14,330 185 936 2,672 5 2,637 260 24,013
Results of operations for the year ended 31 Decembera

Sales and other operating revenuesd
Third parties 619 — 1,306 105 2,074 3,228 — 1,430 1,410 10,172
Sales between businesses 2,255 — 11,656 1 195 3,928 — 7,793 665 26,493
2,874 — 12,962 106 2,269 7,156 — 9,223 2,075 36,665
Exploration expenditure 105 — 509 146 252 405 5 20 3 1,445
Production costs 646 — 2,729 120 430 1,066 — 951 138 6,080
Production taxes (269) — 369 — 357 — — 1,010 69 1,536
Other costs (income)e (331) (2) 2,379 43 165 133 42 94 223 2,746
Depreciation, depletion and amortization 1,199 — 3,921 101 1,023 3,635 — 2,165 298 12,342
Net impairments and (gains) losses on
sale of businesses and fixed assets (226) — 203 10 — (141) — 21 136 3
1,124 (2) 10,110 420 2,227 5,098 47 4,261 867 24,152
Profit (loss) before taxationf 1,750 2 2,852 (314) 42 2,058 (47) 4,962 1,208 12,513
Allocable taxesg 446 — 454 (95) 314 1,184 13 3,509 508 6,333
Results of operations 1,304 2 2,398 (219) (272) 874 (60) 1,453 700 6,180
Upstream and Rosneft segments replacement cost profit (loss) before interest and tax
Exploration and production activities –
subsidiaries (as above) 1,750 2 2,852 (314) 42 2,058 (47) 4,962 1,208 12,513
Midstream and other activities –
subsidiariesh (20) 265 188 (111) 135 (58) 5 463 6 873
Equity-accounted entitiesi j (2) 130 28 — 209 207 2,346 245 — 3,163
Total replacement cost profit (loss)
before interest and tax 1,728 397 3,068 (425) 386 2,207 2,304 5,670 1,214 16,549
a
These tables contain information relating to oil and natural gas exploration and production activities of subsidiaries, which includes our share of oil and natural gas exploration and production
activities of joint operations. They do not include any costs relating to the Gulf of Mexico oil spill. Amounts relating to the management and ownership of crude oil and natural gas pipelines,
LNG liquefaction and transportation operations are excluded. In addition, our midstream activities of marketing and trading of natural gas, power and NGLs in the US, Canada, UK, Asia and
Europe are excluded. The most significant midstream pipeline interests include the Trans-Alaska Pipeline System, the South Caucasus Pipeline and the Baku-Tbilisi-Ceyhan pipeline. Major
LNG activities are located in Trinidad, Indonesia, Australia and Angola.
b
Costs of decommissioning are included in capitalized costs at 31 December but are excluded from costs incurred for the year.
c
Includes exploration and appraisal drilling expenditures, which are capitalized within intangible assets, and geological and geophysical exploration costs, which are charged to income as
incurred.
d
Presented net of transportation costs, purchases and sales taxes.
e
Includes property taxes, other government take and the fair value gain on embedded derivatives of $17 million. The UK region includes a $384-million gain which is offset by corresponding
charges primarily in the US region, relating to the group self-insurance programme.
f
Excludes the unwinding of the discount on provisions and payables amounting to $208 million which is included in finance costs in the group income statement.
g
US region includes the deferred tax impact of the reduction in the US Federal corporate income tax rate from 35% to 21% enacted in December 2017.
h
Midstream and other activities excludes inventory holding gains and losses.
i
The profits of equity-accounted entities are included after interest and tax.
j
From 16 December 2017, BP entered into a new 50:50 joint venture Pan American Energy Group (PAEG). Prior to this, Pan American Energy (PAE) was owned 60% by BP and 40% by Bridas
Corporation.

Oil and natural gas exploration and production activities – continued
$ million
2018
North South
Rest of
UK Europe US America Russiaa Asia
Equity-accounted entities (BP share)

Capitalized costs at 31 Decemberb c
Proved properties — 3,439 — — 9,643 — 24,052 3,646 — 40,780
Unproved properties — 657 — — 86 — 828 26 — 1,597
— 4,096 — — 9,729 — 24,880 3,672 — 42,377
Accumulated depreciation — 670 — — 4,665 — 6,749 3,672 — 15,756
Net capitalized costs — 3,426 — — 5,064 — 18,131 — — 26,621
Costs incurred for the year ended 31 Decemberb d e

Acquisition of propertiesc
Proved — — — — — — 425 — — 425
Unproved — 137 — — — — 148 — — 285
— 137 — — — — 573 — — 710
Exploration and appraisal costsd — 67 — — 25 — 207 — — 299
Development — 251 — — 575 — 3,255 212 — 4,293
Total costs — 455 — — 600 — 4,035 212 — 5,302
Results of operations for the year ended 31 Decemberb

Sales and other operating revenuesf
Third parties — 1,114 — — 1,792 — — 353 — 3,259
Sales between businesses — — — — — — 15,901 — — 15,901
— 1,114 — — 1,792 — 15,901 353 — 19,160
Exploration expenditure — 89 — — 7 — 112 — — 208
Production costs — 207 — — 438 — 1,487 39 — 2,171
Production taxes — — — — 361 — 7,634 94 — 8,089
Other costs (income) — 21 — — 127 — 638 — — 786
Depreciation, depletion and amortization — 290 — — 416 — 1,627 212 — 2,545
Net impairments and losses on sale of
businesses and fixed assets — 6 — — — — 47 1 — 54
— 613 — — 1,349 — 11,545 346 — 13,853
Profit (loss) before taxation — 501 — — 443 — 4,356 7 — 5,307
Allocable taxes — 350 — — 279 — 849 — — 1,478
Results of operationsg — 151 — — 164 — 3,507 7 — 3,829
Upstream and Rosneft segments replacement cost profit (loss) before interest and tax from equity-accounted entities
equity-accounted entities after tax (as
above) — 151 — — 164 — 3,507 7 — 3,829
Midstream and other activities after taxh (2) (21) 28 — 45 207 (1,161) 238 — (666)
Total replacement cost profit (loss) after
interest and tax (2) 130 28 — 209 207 2,346 245 — 3,163
a
Amounts reported for Russia in this table include BP’s share of Rosneft’s worldwide activities, including insignificant amounts outside Russia. The amounts reported include the
corresponding amounts for their equity-accounted entities.
b
These tables contain information relating to oil and natural gas exploration and production activities of equity-accounted entities. Amounts relating to the management and ownership of
crude oil and natural gas pipelines, LNG liquefaction and transportation operations as well as downstream activities of Rosneft and Pan American Energy Group are excluded.
c
d
incurred.
e
The amounts shown reflect BP’s share of equity-accounted entities’ costs incurred, and not the costs incurred by BP in acquiring an interest in equity-accounted entities.
f
Presented net of transportation costs and sales taxes.
g
Corporation.
h
Includes interest and adjustment for non-controlling interests. Excludes inventory holding gains and losses.

$ million
2017
North South
Rest of
Subsidiaries
34,689 — 87,406 6,079 16,486 53,808 — 38,926 6,546 243,940

Acquisition of properties
Proved — — 22 — — 564 — 1,187 — 1,773
Unproved 13 — 13 — 330 374 — 228 — 958
13 — 35 — 330 938 — 1,415 — 2,731
Exploration and appraisal costsc 336 — 102 52 264 682 11 190 18 1,655
Development 995 — 2,776 58 911 2,972 — 2,760 223 10,695
Total costs 1,344 — 2,913 110 1,505 4,592 11 4,365 241 15,081

Sales and other operating revenuesd
Third parties 204 — 724 171 1,134 2,211 — 1,276 967 6,687
Sales between businesses 1,745 — 9,117 2 327 4,022 — 6,394 487 22,094
1,949 — 9,841 173 1,461 6,233 — 7,670 1,454 28,781
Exploration expenditure 331 — 282 39 83 1,346 11 (29) 17 2,080
Production costs 629 — 2,256 116 573 979 — 904 157 5,614
Production taxes (37) — 52 — 86 — — 1,618 56 1,775
Other costs (income)e (272) 2 1,655 34 71 280 39 311 349 2,469
Depreciation, depletion and amortization 1,190 — 4,258 96 742 3,586 — 2,147 366 12,385
sale of businesses and fixed assets 133 (12) 87 (1) (31) — — (10) 13 179
1,974 (10) 8,590 284 1,524 6,191 50 4,941 958 24,502
Profit (loss) before taxationf (25) 10 1,251 (111) (63) 42 (50) 2,729 496 4,279
Allocable taxesg (104) — (1,811) (28) 155 788 (19) 1,505 146 632
Results of operations 79 10 3,062 (83) (218) (746) (31) 1,224 350 3,647
subsidiaries (as above) (25) 10 1,251 (111) (63) 42 (50) 2,729 496 4,279
subsidiariesh (185) 97 (176) (111) 140 (80) 3 315 11 14
Equity-accounted entitiesi j — 71 25 — 381 205 837 245 — 1,764
before interest and tax (210) 178 1,100 (222) 458 167 790 3,289 507 6,057
a
Europe are excluded. The most significant midstream pipeline interests include the Trans-Alaska Pipeline System, the South Caucasus Pipeline, the Forties Pipeline System and the Baku-
Tbilisi-Ceyhan pipeline. The Forties Pipeline System was divested on 31 October 2017. Major LNG activities are located in Trinidad, Indonesia, Australia and Angola.
b
c
incurred.
d
e
f
g
US region includes the deferred tax impact of the reduction in the US Federal corporate income tax rate from 35% to 21% enacted in December 2017.
h
i
j
Corporation. Of BP's initial 60% interest in PAE, 10% was classified as held for sale on 9 September 2017. For September, only 9 days of income was reported for the full 60%. After this
equity accounting continued for the 50% not classified as held for sale. BP accounted for 50% of the enlarged entity from 16 December 2017.

$ million
2017
North South
Rest of

Unproved properties — 481 — — 68 — 907 26 — 1,482
— 3,668 — — 9,164 — 25,593 3,460 — 41,885

Proved — 323 — — — — 653 — — 976
Unproved — 152 — — 20 — 416 — — 588
— 475 — — 20 — 1,069 — — 1,564
Exploration and appraisal costsd — 49 — — 43 — 194 — — 286
Development — 199 — — 576 — 3,361 446 — 4,582
Total costs — 723 — — 639 — 4,624 446 — 6,432

Third parties — 773 — — 1,750 — — 988 — 3,511
Sales between businesses — — — — — — 11,537 — — 11,537
— 773 — — 1,750 — 11,537 988 — 15,048
Exploration expenditure — 68 — — — — 59 — — 127
Other costs (income) — 67 — — 11 — 409 (5) — 482
businesses and fixed assets — 6 — — 27 — 54 — — 87
— 626 — — 1,424 — 9,197 984 — 12,231
Allocable taxes — 54 — — (18) — 457 — — 493
above) — 93 — — 344 — 1,883 4 — 2,324
Midstream and other activities after taxh — (22) 25 — 37 205 (1,046) 241 — (560)
interest and tax — 71 25 — 381 205 837 245 — 1,764
a
corresponding amounts for their equity-accounted entities.
b
crude oil and natural gas pipelines, LNG liquefaction and transportation operations as well as downstream activities of Rosneft and Pan American Energy Group are excluded.
c
d
incurred.
e
f
g
Corporation. Of BP's initial 60% interest in PAE, 10% was classified as held for sale on 9 September 2017. For September, only 9 days of income was reported for the full 60%. After this
equity accounting continued for the 50% not classified as held for sale. BP accounted for 50% of the enlarged entity from 16 December 2017.
h

$ million
2016
North South
Rest of
Subsidiaries
34,654 — 86,345 5,999 15,074 50,700 — 35,002 6,314 234,088

Proved 215 — 314 — — — — 703 207 1,439
Unproved — — 38 10 10 181 — 1,728 — 1,967
215 — 352 10 10 181 — 2,431 207 3,406
Exploration and appraisal costsd 165 5 391 70 123 297 10 252 89 1,402
Development 1,284 3 2,372 28 1,519 2,957 — 2,788 194 11,145
Total costs 1,664 8 3,115 108 1,652 3,435 10 5,471 490 15,953

Sales and other operating revenuese
Third parties 244 26 640 74 747 1,215 — 97 1,042 4,085
Sales between businesses 1,387 421 6,204 2 103 3,391 — 3,908 309 15,725
1,631 447 6,844 76 850 4,606 — 4,005 1,351 19,810
Exploration expenditure 133 3 693 61 672 87 10 (27) 89 1,721
Production costs 619 208 2,524 114 476 1,220 — 691 154 6,006
Production taxes (351) — 155 — 38 — — 800 41 683
Other costs (income)f (215) 37 1,687 25 115 597 34 115 153 2,548
Depreciation, depletion and amortization 1,002 209 3,940 66 591 2,937 — 2,179 289 11,213
sale of businesses and fixed assets (809) (345) (627) (5) (77) (765) — (182) 63 (2,747)
379 112 8,372 261 1,815 4,076 44 3,576 789 19,424
Profit (loss) before taxationg 1,252 335 (1,528) (185) (965) 530 (44) 429 562 386
Allocable taxesh (286) (287) (402) (40) (194) 670 (10) (74) 288 (335)
Results of operations 1,538 622 (1,126) (145) (771) (140) (34) 503 274 721
subsidiaries (as above) 1,252 335 (1,528) (185) (965) 530 (44) 429 562 386
subsidiariesi (417) 54 (14) (137) 187 (142) (2) (81) 13 (539)
Equity-accounted entitiesj k — (1) 20 — 447 (12) 597 266 — 1,317
before interest and tax 835 388 (1,522) (322) (331) 376 551 614 575 1,164
a
Europe are excluded. The most significant midstream pipeline interests include the Trans-Alaska Pipeline System, the Forties Pipeline System, the South Caucasus Pipeline and the Baku-
Tbilisi-Ceyhan pipeline. Major LNG activities are located in Trinidad, Indonesia, Australia and Angola.
b
c
Rest of Asia amounts include BP’s participating interest in the Abu Dhabi ADCO concession.
d
incurred.
e
f
g
h
UK region includes the deferred tax impact of the enactment of legislation to reduce the UK supplementary charge tax rate applicable to profits arising in the North Sea from 20% to 10%.
i
j
k
Includes the results of BP’s 30% interest in Aker BP ASA from 1 October 2016.

$ million
2016
North South
Rest of

Unproved properties — 296 — — 6 — 383 26 — 711
— 2,998 — — 10,217 — 19,941 3,035 — 36,191

Proved — — — — — — 1,576 — — 1,576
Unproved — — — — — — 69 — — 69
— — — — — — 1,645 — — 1,645
Exploration and appraisal costsd — 18 — — 7 — 118 1 — 144
Development — 54 — — 559 — 2,070 371 — 3,054
Total costs — 72 — — 566 — 3,833 372 — 4,843

Third parties — 162 — — 1,865 — — 876 — 2,903
Sales between businesses — — — — — — 8,088 16 — 8,104
— 162 — — 1,865 — 8,088 892 — 11,007
Exploration expenditure — 13 — — — — 50 — — 63
Other costs (income) — (13) — — (429) — 345 3 — (94)
businesses and fixed assets — — — — 164 — 59 — — 223
— 84 — — 1,128 — 6,014 886 — 8,112
Allocable taxes — 75 — — 319 — 435 3 — 832
above) — 3 — — 418 — 1,639 3 — 2,063
Midstream and other activities after taxh — (4) 20 — 29 (12) (1,042) 263 — (746)
interest and tax — (1) 20 — 447 (12) 597 266 — 1,317
a
corresponding amounts for their equity-accounted entities. Amounts also include certain adjustments, mainly related to purchase price allocations for 2016 acquisitions.
b
crude oil and natural gas pipelines, LNG liquefaction and transportation operations as well as downstream activities of Rosneft are excluded.
c
d
incurred.
e
f
g
Includes the results of BP’s 30% interest in Aker BP ASA from 1 October 2016.
h

Movements in estimated net proved reserves
million barrels
Crude oila b 2018
North South
Rest of
UK Europe USc America Russia Asia
Subsidiaries
At 1 January
Developed 245 — 932 54 10 281 — 1,040 31 2,592
Undeveloped 164 — 492 195 6 28 — 642 11 1,537
409 — 1,423 248 16 309 — 1,682 42 4,129
Changes attributable to
Revisions of previous estimates 22 — 116 (6) 1 11 — 40 (2) 183
Improved recovery — — 51 — — 1 — — — 52
Purchases of reserves-in-place 93 — 412 — — — — — — 504
Discoveries and extensions 15 — 17 — — 13 — — — 46
Productiond (37) — (137) (9) (3) (75) — (114) (6) (381)
Sales of reserves-in-place (37) — (118) — — — — — — (155)
57 — 341 (15) (2) (50) — (74) (8) 249
At 31 Decembere
Developed 223 — 962 43 8 223 — 1,126 30 2,615
Undeveloped 243 — 802 190 5 36 — 482 5 1,763
466 — 1,764 234 14 259 — 1,608 34 4,378
Equity-accounted entities (BP share)f
At 1 January
Developed — 56 — — 285 1 3,124 6 — 3,473
Undeveloped — 89 — — 263 — 2,251 — — 2,603
— 145 — — 548 1 5,374 6 — 6,076
Revisions of previous estimates — 11 — — 7 — 150 — — 168
Improved recovery — 13 — — — — — — — 13
Purchases of reserves-in-place — — — — — — 89 — — 89
Discoveries and extensions — — — 19 21 — 326 — — 366
Production — (13) — — (25) — (335) (6) — (379)
Sales of reserves-in-place — — — — — — — — — —
— 12 — 19 4 (1) 229 (6) — 257
At 31 Decemberg
Developed — 57 — — 293 1 3,190 — — 3,541
Undeveloped — 100 — 19 259 — 2,414 — — 2,792
— 157 — 19 552 1 5,604 — — 6,333
Total subsidiaries and equity-accounted entities (BP share)
At 1 January
Developed 245 56 932 54 295 282 3,124 1,047 31 6,064
Undeveloped 164 89 492 195 269 28 2,251 642 11 4,140
409 145 1,423 249 564 310 5,374 1,688 42 10,205
At 31 December
Developed 223 57 962 43 302 224 3,190 1,126 30 6,156
Undeveloped 243 100 802 209 264 36 2,414 482 5 4,555
466 157 1,764 253 566 260 5,604 1,608 34 10,711
a
Crude oil includes condensate and bitumen. Proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interest in the
underlying production and the option and ability to make lifting and sales arrangements independently.
b
Because of rounding, some totals may not exactly agree with the sum of their component parts.
c
Proved reserves in the Prudhoe Bay field in Alaska include an estimated 16 million barrels upon which a net profits royalty will be payable over the life of the field under the terms of the BP
Prudhoe Bay Royalty Trust.
d
Includes 4 million barrels of crude oil in respect of the 30% non-controlling interest in BP Trinidad and Tobago LLC.
e
Volumes of equity-accounted entities include volumes of equity-accounted investments of those entities.
f
Includes 344 million barrels of crude oil in respect of the 6.28% non-controlling interest in Rosneft, including 24 mmbbl held through BP's interests in Russia other than Rosneft.
g
Total proved crude oil reserves held as part of our equity interest in Rosneft is 5,539 million barrels, comprising less than 1 million barrels in Vietnam and Canada, 58 million barrels in
Venezuela and 5,481 million barrels in Russia.

Movements in estimated net proved reserves - continued
million barrels
Natural gas liquidsa b 2018
North South
Rest of
Subsidiaries
At 1 January
Developed 11 — 177 — 2 21 — — 5 216
Undeveloped 3 — 69 — 28 — — — 1 102
14 — 246 — 30 21 — — 6 318
Revisions of previous estimates 1 — 20 — — (3) — — — 17
Purchases of reserves-in-place — — 253 — — — — — — 253
Productionc (2) — (25) — (3) (3) — — (1) (34)
Sales of reserves-in-place (3) — — — — — — — — (3)
— — 265 — (3) (2) — — (1) 258
At 31 Decemberd
Developed 8 — 266 — 2 14 — — 5 295
Undeveloped 6 — 246 — 25 4 — — — 280
14 — 511 — 27 18 — — 5 576
Equity-accounted entities (BP share)e
At 1 January
Developed — 4 — — — 10 82 — — 97
Undeveloped — 4 — — — — 49 — — 53
— 8 — — — 10 131 — — 149
Revisions of previous estimates — — — — — (1) 25 — — 23
Improved recovery — — — — — — — — — —
Purchases of reserves-in-place — — — — — — — — — —
Discoveries and extensions — — — — — — — — — —
Production — (1) — — — (1) (2) — — (4)
— (1) — — — (3) 23 — — 19
At 31 Decemberf
Developed — 4 — — — 7 103 — — 114
Undeveloped — 3 — — — — 51 — — 54
— 7 — — — 7 154 — — 169
At 1 January
Developed 11 4 177 — 2 31 82 — 5 313
Undeveloped 3 4 69 — 28 — 49 — 1 154
14 8 246 — 30 31 131 — 6 467
At 31 December
Developed 8 4 266 — 2 22 103 — 5 409
Undeveloped 6 3 246 — 25 4 51 — — 335
14 7 511 — 27 26 154 — 5 744
a
Proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interest in the underlying production and the option and ability to
make lifting and sales arrangements independently.
b
c
Excludes NGLs from processing plants in which an interest is held of less than 1 thousand barrels per day for subsidiaries and 3 thousand barrels per day for equity-accounted entities.
d
Includes 8 million barrels of NGL in respect of the 30% non-controlling interest in BP Trinidad and Tobago LLC.
e
f
Includes 12 million barrels of NGLs in respect of the 7.82% non-controlling interest in Rosneft.
f
Total proved NGL reserves held as part of our equity interest in Rosneft is 154 million barrels, comprising less than 1 million barrels in Venezuela, Vietnam and Canada, and 154 million barrels
in Russia.

Movements in estimated net proved reserves - continued
million barrels
Total liquidsa b 2018
North South
Rest of
Subsidiaries
At 1 January
Developed 256 — 1,108 54 12 301 — 1,040 36 2,808
Undeveloped 167 — 561 195 34 28 — 642 12 1,639
424 — 1,669 248 46 329 — 1,682 48 4,447
Revisions of previous estimates 23 — 136 (6) 1 8 — 40 (2) 200
Productiond (39) — (162) (9) (6) (79) — (114) (7) (415)
56 — 606 (15) (5) (52) — (74) (9) 507
At 31 Decembere
Developed 231 — 1,228 43 10 237 — 1,126 35 2,910
Undeveloped 249 — 1,048 190 30 40 — 482 5 2,044
480 — 2,276 234 41 277 — 1,608 39 4,954
At 1 January
Developed — 60 — — 285 11 3,206 6 — 3,569
Undeveloped — 93 — — 263 — 2,300 — — 2,656
— 153 — — 548 12 5,505 6 — 6,225
Revisions of previous estimates — 11 — — 7 (2) 175 — — 191
Production — (13) — — (25) (2) (337) (6) — (383)
— 11 — 19 4 (3) 253 (6) — 277
At 31 Decemberg h
Developed — 60 — — 293 8 3,293 — — 3,655
Undeveloped — 104 — 19 259 — 2,465 — — 2,846
— 164 — 19 552 8 5,758 — — 6,502
At 1 January
Developed 256 60 1,108 54 297 313 3,206 1,047 36 6,377
Undeveloped 167 93 561 195 297 28 2,300 642 12 4,295
424 153 1,669 249 594 341 5,505 1,688 48 10,672
At 31 December
Developed 231 60 1,228 44 303 245 3,293 1,126 35 6,565
Undeveloped 249 104 1,048 209 289 40 2,465 482 5 4,890
480 164 2,276 253 593 285 5,758 1,608 39 11,456
a
b
c
Proved reserves in the Prudhoe Bay field in Alaska include an estimated 16 million barrels of oil equivalent upon which a net profits royalty will be payable, over the life of the field under the
terms of the BP Prudhoe Bay Royalty Trust.
d
e
Also includes 12 million barrels in respect of the 30% non-controlling interest in BP Trinidad and Tobago LLC.
f
g
Includes 356 million barrels in respect of the non-controlling interest in Rosneft, including 24 mmboe held through BP’s interests in Russia other than Rosneft.
h
Total proved liquid reserves held as part of our equity interest in Rosneft is 5,693 million barrels, comprising less than 1 million barrels in Canada, 58 million barrels in Venezuela, less than
1 million barrels in Vietnam and 5,635 million barrels in Russia.

Movements in estimated net proved reserves – continued
billion cubic feet
Natural gasa b 2018
North South
Rest of
Subsidiaries
At 1 January
Developed 523 — 5,238 (1) 2,862 1,159 — 2,755 2,730 15,266
Undeveloped 320 — 3,086 — 3,330 1,510 — 4,245 1,505 13,997
843 — 8,323 (1) 6,193 2,670 — 7,000 4,235 29,263
Revisions of previous estimates 84 — 10 3 (195) (444) — 140 (123) (524)
Improved recovery — — 1,315 — — — — — — 1,315
Purchases of reserves-in-place 40 — 2,655 — — — — — — 2,695
Discoveries and extensions 60 — 11 — 31 578 — — — 680
Productionc (66) — (751) (3) (788) (423) — (324) (303) (2,658)
(61) — 3,003 1 (951) (290) — (184) (426) 1,092
At 31 Decemberd
Developed 439 — 6,270 — 2,168 1,313 — 3,599 2,630 16,420
Undeveloped 343 — 5,056 — 3,073 1,067 — 3,218 1,179 13,936
782 — 11,326 — 5,241 2,380 — 6,817 3,809 30,355
At 1 January
Developed — 112 — — 1,274 476 6,077 17 — 7,955
Undeveloped — 69 — — 450 146 7,173 3 — 7,841
— 180 — — 1,724 622 13,250 20 — 15,796
Revisions of previous estimates — 2 — — (50) (39) 805 2 — 719
Improved recovery — — — — 1 — — — — 1
Purchases of reserves-in-place — — — — — — 2,413 — — 2,413
Productionc — (22) — — (145) (48) (464) (6) — (685)
— (19) — 3 (71) (87) 3,267 (5) — 3,087
At 31 Decemberf g
Developed — 107 — — 1,207 391 7,798 12 — 9,515
Undeveloped — 55 — 4 446 143 8,719 4 — 9,369
— 161 — 4 1,653 534 16,517 15 — 18,884
At 1 January
Developed 523 112 5,238 — 4,136 1,635 6,077 2,771 2,730 23,221
Undeveloped 320 69 3,086 — 3,781 1,656 7,173 4,249 1,505 21,838
843 180 8,323 — 7,917 3,291 13,250 7,020 4,235 45,060
At 31 December
Developed 439 107 6,270 — 3,375 1,704 7,798 3,610 2,630 25,934
Undeveloped 343 55 5,056 4 3,519 1,210 8,719 3,221 1,179 23,305
782 161 11,326 4 6,894 2,914 16,517 6,832 3,809 49,239
a
b
c
Includes 181 billion cubic feet of natural gas consumed in operations, 139 billion cubic feet in subsidiaries, 42 billion cubic feet in equity-accounted entities.
d
Includes 1,573 billion cubic feet of natural gas in respect of the 30% non-controlling interest in BP Trinidad and Tobago LLC.
e
f
Includes 1,211 billion cubic feet of natural gas in respect of the 8.60% non-controlling interest in Rosneft including 480 billion cubic feet held through BP’s interests in Russia other than
Rosneft.
g
Total proved gas reserves held as part of our equity interest in Rosneft is 14,325 billion cubic feet, comprising 0 billion cubic feet in Canada, 26 billion cubic feet in Venezuela, 15 billion cubic
feet in Vietnam, 200 billion cubic feet in Egypt and 14,084 billion cubic feet in Russia.

million barrels of oil equivalentc
Total hydrocarbonsa b 2018
North South
Rest of
UK Europe USd America Russia Asia
Subsidiaries
At 1 January
Developed 347 — 2,011 54 505 501 — 1,515 507 5,440
Undeveloped 222 — 1,093 195 608 288 — 1,374 272 4,052
569 — 3,104 248 1,114 790 — 2,889 779 9,492
Revisions of previous estimates 38 — 138 (5) (33) (69) — 64 (23) 110
Purchases of reserves-in-place 100 — 1,123 — — — — — — 1,222
Discoveries and extensions 29 — 20 — 5 116 — — — 169
Productione f (50) — (292) (9) (142) (152) — (170) (59) (874)
46 — 1,124 (15) (169) (102) — (106) (82) 696
At 31 Decemberg
Developed 307 — 2,309 43 384 464 — 1,746 488 5,741
Undeveloped 308 — 1,919 190 560 224 — 1,037 208 4,447
615 — 4,228 234 944 687 — 2,783 696 10,188
Equity-accounted entities (BP share)h
At 1 January
Developed — 80 — — 505 93 4,254 9 — 4,941
Undeveloped — 105 — — 341 25 3,536 1 — 4,008
— 184 — — 846 119 7,790 10 — 8,949
Revisions of previous estimates — 11 — — (1) (8) 313 — — 315
Productione — (17) — — (50) (10) (417) (7) — (501)
— 8 — 19 (9) (18) 816 (7) — 809
At 31 Decemberi j
Developed — 79 — — 501 76 4,638 2 — 5,296
Undeveloped — 113 — 20 336 25 3,968 1 — 4,462
— 192 — 20 837 101 8,605 3 — 9,757
At 1 January
Developed 347 80 2,011 54 1,010 595 4,254 1,524 507 10,381
Undeveloped 222 105 1,093 195 949 314 3,536 1,374 272 8,060
569 184 3,104 249 1,959 908 7,790 2,899 779 18,441
At 31 December
Developed 307 79 2,309 44 885 539 4,638 1,749 488 11,037
Undeveloped 308 113 1,919 210 896 249 3,968 1,037 208 8,908
615 192 4,228 253 1,781 788 8,605 2,786 696 19,945
a
b
c
5.8 billion cubic feet of natural gas = 1 million barrels of oil equivalent.
d
e
f
Includes 31 million barrels of oil equivalent of natural gas consumed in operations, 24 million barrels of oil equivalent in subsidiaries, 7 million barrels of oil equivalent in equity-accounted
entities.
g
Includes 283 million barrels of oil equivalent in respect of the 30% non-controlling interest in BP Trinidad and Tobago LLC.
h
i
Includes 565 million barrels of oil equivalent in respect of the non-controlling interest in Rosneft, including 107 mmboe held through BP’s interests in Russia other than Rosneft.
j
Total proved reserves held as part of our equity interest in Rosneft is 8,163 million barrels of oil equivalent, comprising less than 1 million barrels of oil equivalent in Canada, 62 million barrels
of oil equivalent in Venezuela, 3 million barrels of oil equivalent in Vietnam, 35 million barrels of oil equivalent in Egypt and 8,063 million barrels of oil equivalent in Russia.

million barrels
Crude oila b 2017
North South
Rest of
Subsidiaries
At 1 January
Developed 155 — 826 42 9 317 — 1,107 32 2,487
Undeveloped 274 — 497 209 11 42 — 245 14 1,291
429 — 1,322 251 20 358 — 1,352 46 3,778
Revisions of previous estimates 15 — 208 5 1 35 — 407 2 673
Purchases of reserves-in-place 3 — 1 — — 1 — — — 5
Discoveries and extensions — — 12 — — — — 42 — 53
Productiond (29) — (131) (7) (5) (88) — (119) (6) (384)
(20) — 101 (2) (4) (50) — 330 (4) 351
At 31 Decembere
Developed 245 — 932 54 10 281 — 1,040 31 2,592
Undeveloped 164 — 492 195 6 28 — 642 11 1,537
409 — 1,423 248 16 309 — 1,682 42 4,129
At 1 January
Developed — 45 — — 321 1 3,162 43 — 3,573
Undeveloped — 69 — — 325 — 2,134 1 — 2,529
— 114 — — 646 1 5,296 44 — 6,101
Revisions of previous estimates — 2 — — 1 — 102 (1) — 104
Improved recovery — 11 — — 4 — — — — 16
Purchases of reserves-in-place — 34 — — — — 37 — — 71
Discoveries and extensions — 1 — — 22 — 264 — — 288
Production — (11) — — (28) — (325) (36) — (401)
Sales of reserves-in-place — (5) — — (98) — — — — (103)
— 31 — — (98) — 78 (37) — (25)
At 31 Decemberg
Developed — 56 — — 285 1 3,124 6 — 3,473
Undeveloped — 89 — — 263 — 2,251 — — 2,603
— 145 — — 548 1 5,374 6 — 6,076
At 1 January
Developed 155 45 826 42 330 318 3,162 1,150 32 6,060
Undeveloped 274 69 497 209 336 42 2,134 246 14 3,819
429 114 1,322 251 666 360 5,296 1,395 46 9,879
At 31 December
Developed 245 56 932 54 295 282 3,124 1,047 31 6,064
Undeveloped 164 89 492 195 269 28 2,251 642 11 4,140
409 145 1,423 249 564 310 5,374 1,688 42 10,205
a
b
c
d
e
f
Includes 337 million barrels of crude oil in respect of the 6.31% non-controlling interest in Rosneft, including 6 mmbbl held through BP’s equity-accounted interest in Taas-Yuryakh
Neftegazodobycha.
g

million barrels

North South
Rest of
Subsidiaries
At 1 January
Developed 13 — 226 — 5 13 — — 9 266
Undeveloped 3 — 73 — 28 1 — — 2 107
16 — 299 — 33 14 — — 11 373
Revisions of previous estimates 2 — (44) — — 11 — — (4) (36)
Improved recovery — — 15 — — — — — — 15
Purchases of reserves-in-place — — — — — — — — — —
Discoveries and extensions — — 1 — — — — — — 1
Productionc (3) — (24) — (3) (4) — — (1) (35)
(2) — (52) — (3) 7 — — (5) (55)
At 31 Decemberd
Developed 11 — 177 — 2 21 — — 5 216
Undeveloped 3 — 69 — 28 — — — 1 102
14 — 246 — 30 21 — — 6 318
At 1 January
Developed — 3 — — — 11 50 — — 65
Undeveloped — 2 — — — — 15 — — 17
— 5 — — — 11 65 — — 81
Revisions of previous estimates — — — — — 1 68 — — 69
Purchases of reserves-in-place — 2 — — — — — — — 2
Production — (1) — — — (1) (2) — — (4)
— 3 — — — (1) 66 — — 68
At 31 Decemberf
Developed — 4 — — — 10 82 — — 97
Undeveloped — 4 — — — — 49 — — 53
— 8 — — — 10 131 — — 149
At 1 January
Developed 13 3 226 — 5 24 50 — 9 331
Undeveloped 3 2 73 — 28 1 15 — 2 123
16 5 299 — 33 25 65 — 11 454
At 31 December
Developed 11 4 177 — 2 31 82 — 5 313
Undeveloped 3 4 69 — 28 — 49 — 1 154
14 8 246 — 30 31 131 — 6 467
a
b
c
d
e
f
Total proved NGL reserves held as part of our equity interest in Rosneft is 131 million barrels, comprising less than 1 million barrels in Venezuela, Vietnam and Canada, and 131 million barrels
in Russia.

million barrels
North South
Rest of
Subsidiaries
At 1 January
Developed 168 — 1,051 42 14 330 — 1,107 42 2,753
Undeveloped 277 — 569 209 39 43 — 245 16 1,398
445 — 1,621 251 53 372 — 1,352 57 4,151
Revisions of previous estimates 17 — 164 5 1 45 — 407 (2) 637
Discoveries and extensions — — 12 — — — — 42 — 54
Productiond (32) — (155) (7) (8) (92) — (119) (7) (419)
(22) — 49 (2) (7) (43) — 330 (9) 296
At 31 Decembere
Developed 256 — 1,108 54 12 301 — 1,040 36 2,808
Undeveloped 167 — 561 195 34 28 — 642 12 1,639
424 — 1,669 248 46 329 — 1,682 48 4,447
At 1 January
Developed — 48 — — 321 12 3,213 43 — 3,637
Undeveloped — 71 — — 325 — 2,148 1 — 2,545
— 119 — — 646 12 5,361 44 — 6,183
Revisions of previous estimates — 2 — — 1 1 170 (1) — 174
Purchases of reserves-in-place — 36 — — — — 37 — — 72
Production — (12) — — (28) (2) (327) (36) — (405)
— 34 — — (98) (1) 144 (37) — 43
At 31 Decemberg h
Developed — 60 — — 285 11 3,206 6 — 3,569
Undeveloped — 93 — — 263 — 2,300 — — 2,656
— 153 — — 548 12 5,505 6 — 6,225
At 1 January
Developed 168 48 1,051 42 335 342 3,213 1,150 42 6,390
Undeveloped 277 71 569 209 364 43 2,148 246 16 3,943
445 119 1,621 251 699 385 5,361 1,395 57 10,333
At 31 December
Developed 256 60 1,108 54 297 313 3,206 1,047 36 6,377
Undeveloped 167 93 561 195 297 28 2,300 642 12 4,295
424 153 1,669 249 594 341 5,505 1,688 48 10,672
a
b
c
d
e
f
g
Includes 338 million barrels in respect of the non-controlling interest in Rosneft, including 6 mmboe held through BP’s equity accounted interest in Taas-Yuryakh Neftegazodobycha.
i

billion cubic feet
Natural gasa b 2017
North South
Rest of
Subsidiaries
At 1 January
Developed 499 — 5,447 — 1,784 767 — 1,890 3,012 13,398
Undeveloped 350 — 2,567 — 4,970 2,191 — 3,769 1,643 15,490
848 — 8,014 — 6,755 2,958 — 5,659 4,654 28,888
Revisions of previous estimates 50 — (38) 3 (677) (450) — 258 (129) (983)
Improved recovery — — 1,002 — — 1 — 6 — 1,009
Purchases of reserves-in-place 25 — — — — 527 — — — 552
Discoveries and extensions — — 10 — 829 14 — 1,229 — 2,082
Productionc (77) — (664) (3) (714) (380) — (152) (291) (2,281)
(5) — 309 — (562) (288) — 1,342 (420) 376
At 31 Decemberd
Developed 523 — 5,238 (1) 2,862 1,159 — 2,755 2,730 15,266
Undeveloped 320 — 3,086 — 3,330 1,510 — 4,245 1,505 13,997
843 — 8,323 (1) 6,193 2,670 — 7,000 4,235 29,263
At 1 January
Developed — 89 — — 1,546 412 5,544 26 — 7,617
Undeveloped — 21 — — 534 — 6,304 4 — 6,863
— 110 — 1 2,080 412 11,847 30 — 14,480
Revisions of previous estimates — 19 — — 47 5 1,556 (2) — 1,625
Purchases of reserves-in-place — 39 — — — 237 10 — — 286
Productionc — (19) — — (178) (32) (488) (8) — (726)
— 70 — — (356) 210 1,403 (10) — 1,316
At 31 Decemberf g
Developed — 112 — — 1,274 476 6,077 17 — 7,955
Undeveloped — 69 — — 450 146 7,173 3 — 7,841
— 180 — — 1,724 622 13,250 20 — 15,796
At 1 January
Developed 499 89 5,447 — 3,330 1,179 5,544 1,916 3,012 21,015
Undeveloped 350 21 2,567 — 5,505 2,191 6,304 3,772 1,643 22,353
848 110 8,014 — 8,835 3,370 11,847 5,688 4,654 43,368
At 31 December
Developed 523 112 5,238 — 4,136 1,635 6,077 2,771 2,730 23,221
Undeveloped 320 69 3,086 — 3,781 1,656 7,173 4,249 1,505 21,838
843 180 8,323 — 7,917 3,291 13,250 7,020 4,235 45,060
a
b
c
d
e
f
Includes 306 billion cubic feet of natural gas in respect of the 2.30% non-controlling interest in Rosneft including 2 billion cubic feet held through BP’s equity accounted interest in Taas-
Yuryakh Neftegazodobycha.
g
feet in Vietnam, 237 billion cubic feet in Egypt and 13,237 billion cubic feet in Russia.

million barrels of oil equivalent c
North South
Rest of
Subsidiaries
At 1 January
Developed 254 — 1,990 42 321 462 — 1,433 561 5,063
Undeveloped 338 — 1,012 209 896 420 — 895 299 4,068
592 — 3,002 251 1,217 882 — 2,327 860 9,131
Revisions of previous estimates 25 — 157 5 (116) (32) — 451 (24) 467
Improved recovery — — 200 — — 2 — 1 — 203
Discoveries and extensions — — 14 — 143 3 — 254 — 413
Productione f (45) — (270) (8) (131) (157) — (145) (57) (812)
(23) — 102 (2) (104) (93) — 562 (81) 361
At 31 Decemberg
Developed 347 — 2,011 54 505 501 — 1,515 507 5,440
Undeveloped 222 — 1,093 195 608 288 — 1,374 272 4,052
569 — 3,104 248 1,114 790 — 2,889 779 9,492
Equity-accounted entities (BP share)h
At 1 January
Developed — 63 — — 588 83 4,168 47 — 4,951
Undeveloped — 75 — — 417 — 3,235 1 — 3,729
— 138 — — 1,005 83 7,404 49 — 8,679
Revisions of previous estimates — 5 — — 9 2 439 (1) — 454
Purchases of reserves-in-place — 42 — — — 41 38 — — 122
Productione — (15) — — (58) (7) (411) (38) — (530)
— 46 — — (159) 35 386 (39) — 269
At 31 Decemberi j
Developed — 80 — — 505 93 4,254 9 — 4,941
Undeveloped — 105 — — 341 25 3,536 1 — 4,008
— 184 — — 846 119 7,790 10 — 8,949
At 1 January
Developed 254 63 1,990 42 909 545 4,168 1,480 561 10,014
Undeveloped 338 75 1,012 209 1,313 420 3,235 896 299 7,797
592 138 3,002 251 2,222 966 7,404 2,376 860 17,810
At 31 December
Developed 347 80 2,011 54 1,010 595 4,254 1,524 507 10,381
Undeveloped 222 105 1,093 195 949 314 3,536 1,374 272 8,060
569 184 3,104 249 1,959 908 7,790 2,899 779 18,441
a
b
c
d
e
f
entities.
g
h
i
Includes 391 million barrels of oil equivalent in respect of the non-controlling interest in Rosneft, including 7 mmboe held through BP’s equity accounted interest in Taas-Yuryakh
Neftegazodobycha.
j
of oil equivalent in Venezuela, 3 million barrels of oil equivalent in Vietnam, 41 million barrels of oil equivalent in Egypt and 7,755 million barrels of oil equivalent in Russia.

million barrels
Crude oila b 2016
North South
Rest of
UK Europe USc America Russia Asiad
Subsidiaries
At 1 January
Developed 141 86 890 46 8 340 — 598 35 2,146
Undeveloped 298 19 577 205 18 89 — 192 16 1,414
440 106 1,467 252 26 429 — 790 51 3,560
Revisions of previous estimatesd 13 — (30) — (2) 22 — 543 2 548
Purchases of reserves-in-place 3 — 3 — — — — 25 1 32
Discoveries and extensions 2 — — 4 — — — — — 6
Productione (29) (9) (119) (5) (4) (96) — (75) (6) (341)
Sales of reserves-in-place — (97) (1) — — — — (1) (2) (102)
(11) (106) (145) (1) (6) (71) — 562 (5) 218
At 31 Decemberf
Developed 155 — 826 42 9 317 — 1,107 32 2,487
Undeveloped 274 — 497 209 11 42 — 245 14 1,291
429 — 1,322 251 20 358 — 1,352 46 3,778
Equity-accounted entities (BP share)g
At 1 January
Developed — — — — 311 2 2,844 68 — 3,225
Undeveloped — — — — 311 — 1,981 — — 2,292
— — — — 622 2 4,825 68 — 5,517
Revisions of previous estimates — — — — (2) — 33 13 — 45
Improved recovery — — — — 1 — 4 — — 5
Purchases of reserves-in-place — 116 — — 36 — 456 — — 609
Discoveries and extensions — — — — 16 — 285 — — 301
Production — (3) — — (28) — (305) (37) — (373)
Sales of reserves-in-place — — — — — — (2) (1) — (2)
— 114 — — 24 — 471 (25) — 584
At 31 Decemberh
Developed — 45 — — 321 1 3,162 43 — 3,573
Undeveloped — 69 — — 325 — 2,134 1 — 2,529
— 114 — — 646 1 5,296 44 — 6,101
At 1 January
Developed 141 86 890 47 319 342 2,844 666 35 5,371
Undeveloped 298 19 577 205 329 89 1,981 192 16 3,707
440 106 1,467 252 648 431 4,825 858 51 9,078
At 31 December
Developed 155 45 826 42 330 318 3,162 1,150 32 6,060
Undeveloped 274 69 497 209 336 42 2,134 246 14 3,819
429 114 1,322 251 666 360 5,296 1,395 46 9,879
a
b
c
d
Rest of Asia includes additions from Abu Dhabi ADCO concession.
e
f
g
Includes 347 million barrels of crude oil in respect of the 6.58% non-controlling interest in Rosneft, including 6 mmbbl held through BP’s equity accounted interest in Taas-Yuryakh
Neftegazodobycha.
h

million barrels
North South
Rest of
Subsidiaries
At 1 January
Developed 5 11 269 — 7 5 — — 9 308
Undeveloped 4 1 70 — 28 10 — — 2 115
10 12 339 — 35 15 — — 12 422
Revisions of previous estimates 7 — (24) — — 1 — — — (14)
Improved recovery — — 3 — — — — — — 3
Productionc (2) (1) (24) — (2) (2) — — (1) (34)
Sales of reserves-in-place — (10) — — — — — — — (10)
7 (12) (40) — (2) (1) — — (1) (49)
At 31 Decemberd
Developed 13 — 226 — 5 13 — — 9 266
Undeveloped 3 — 73 — 28 1 — — 2 107
16 — 299 — 33 14 — — 11 373
At 1 January
Developed — — — — — 13 32 — — 45
Undeveloped — — — — — — 15 — — 15
— — — — — 13 47 — — 60
Revisions of previous estimates — — — — — (2) 18 — — 16
Improved recovery — — — — — — — — — —
Purchases of reserves-in-place — 5 — — — — — — — 5
Production — — — — — — — — — —
— 5 — — — (2) 18 — — 21
At 31 Decemberf
Developed — 3 — — — 11 50 — — 65
Undeveloped — 2 — — — — 15 — — 17
— 5 — — — 11 65 — — 81
At 1 January
Developed 5 11 269 — 7 18 32 — 9 352
Undeveloped 4 1 70 — 28 10 15 — 2 130
10 12 339 — 35 28 47 — 12 482
At 31 December
Developed 13 3 226 — 5 24 50 — 9 331
Undeveloped 3 2 73 — 28 1 15 — 2 123
16 5 299 — 33 25 65 — 11 454
a
b
c
d
e
f
Total proved NGL reserves held as part of our equity interest in Rosneft is 65 million barrels, comprising less than 1 million barrels in Venezuela, Vietnam and Canada, and 65 million barrels in
Russia.

million barrels
North South
Rest of
Subsidiaries
At 1 January
Developed 147 98 1,159 46 15 346 — 598 45 2,453
Undeveloped 303 20 647 205 46 99 — 192 18 1,529
449 117 1,806 252 61 444 — 790 63 3,982
Revisions of previous estimatesd 20 — (54) — (2) 23 — 543 3 533
Discoveries and extensions 2 — — 4 — — — — — 6
Productione (31) (10) (143) (5) (6) (98) — (75) (7) (375)
Sales of reserves-in-place — (108) (1) — — — — (1) (2) (112)
(4) (117) (185) (1) (8) (72) — 562 (5) 168
At 31 Decemberf
Developed 168 — 1,051 42 14 330 — 1,107 42 2,753
Undeveloped 277 — 569 209 39 43 — 245 16 1,398
445 — 1,621 251 53 372 — 1,352 57 4,151
At 1 January
Developed — — — — 311 14 2,876 68 — 3,270
Undeveloped — — — — 312 — 1,996 — — 2,307
— — — — 622 14 4,872 68 — 5,577
Revisions of previous estimates — — — — (2) (2) 51 13 — 61
Production — (3) — — (28) — (305) (37) — (374)
— 119 — — 24 (2) 489 (25) — 605
At 31 Decemberh i
Developed — 48 — — 321 12 3,213 43 — 3,637
Undeveloped — 71 — — 325 — 2,148 1 — 2,545
— 119 — — 646 12 5,361 44 — 6,183
At 1 January
Developed 147 98 1,159 47 326 360 2,876 666 45 5,723
Undeveloped 302 20 647 205 357 99 1,996 192 18 3,836
449 117 1,806 252 684 459 4,872 858 63 9,560
At 31 December
Developed 168 48 1,051 42 335 342 3,213 1,150 42 6,390
Undeveloped 277 71 569 209 364 43 2,148 246 16 3,943
445 119 1,621 251 699 385 5,361 1,395 57 10,333
a
b
c
d
e
f
g
h
Includes 347 million barrels in respect of the non-controlling interest in Rosneft, including 6 mmboe held through BP’s equity accounted interest in Taas-Yuryakh Neftegazodobycha.
i

billion cubic feet
Natural gasa b 2016
North South
Rest of
Subsidiaries
At 1 January
Developed 348 274 6,257 — 2,071 847 — 1,803 3,408 15,009
Undeveloped 343 14 2,105 — 5,989 2,305 — 3,455 1,343 15,553
691 288 8,363 — 8,060 3,152 — 5,257 4,751 30,563
Revisions of previous estimates 133 — (231) 3 (1,042) (19) — 548 396 (211)
Improved recovery — — 469 — 42 1 — 22 — 534
Purchases of reserves-in-place 95 — 91 — — — — — 252 438
Discoveries and extensions — — 1 — 355 43 — — — 399
Productionc (71) (33) (676) (4) (624) (219) — (152) (306) (2,085)
Sales of reserves-in-place — (256) (2) — (37) — — (17) (439) (750)
158 (288) (348) — (1,306) (194) — 401 (97) (1,675)
At 31 Decemberd
Developed 499 — 5,447 — 1,784 767 — 1,890 3,012 13,398
Undeveloped 350 — 2,567 — 4,970 2,191 — 3,769 1,643 15,490
848 — 8,014 — 6,755 2,958 — 5,659 4,654 28,888
At 1 January
Developed — — — 1 1,463 386 4,962 44 — 6,856
Undeveloped — — — — 598 — 6,176 4 — 6,778
— — — 1 2,061 386 11,139 48 — 13,634
Revisions of previous estimates — — — — 62 34 736 5 — 836
Productionc — (4) — — (190) (8) (461) (15) — (680)
— 110 — — 20 26 709 (18) — 846
At 31 Decemberf g
Developed — 89 — — 1,546 412 5,544 26 — 7,617
Undeveloped — 21 — — 534 — 6,304 4 — 6,863
— 110 — 1 2,080 412 11,847 30 — 14,480
At 1 January
Developed 348 274 6,257 1 3,534 1,233 4,962 1,847 3,408 21,865
Undeveloped 343 14 2,105 — 6,587 2,305 6,176 3,459 1,343 22,331
691 288 8,363 1 10,121 3,538 11,139 5,305 4,751 44,197
At 31 December
Developed 499 89 5,447 — 3,330 1,179 5,544 1,916 3,012 21,015
Undeveloped 350 21 2,567 — 5,505 2,191 6,304 3,772 1,643 22,353
848 110 8,014 — 8,835 3,370 11,847 5,688 4,654 43,368
a
b
c
d
e
f
Includes 300 billion cubic feet of natural gas in respect of the 2.53% non-controlling interest in Rosneft including 1 billion cubic feet held through BP’s equity accounted interest in Taas-
Yuryakh Neftegazodobycha.
g
feet in Vietnam and 11,843 billion cubic feet in Russia.

million barrels of oil equivalentc
North South
Rest of
Subsidiaries
At 1 January
Developed 207 145 2,238 46 373 492 — 909 632 5,041
Undeveloped 362 22 1,010 205 1,078 496 — 788 250 4,211
568 167 3,248 252 1,451 988 — 1,696 882 9,252
Revisions of previous estimatese 43 — (94) 1 (181) 20 — 637 71 497
Improved recovery — — 86 — 7 3 — 74 — 170
Discoveries and extensions 2 — — 4 61 8 — — — 75
Productionf g (43) (16) (260) (5) (114) (136) — (101) (60) (735)
Sales of reserves-in-place — (152) (1) — (7) — — (4) (78) (241)
23 (167) (245) (1) (233) (105) — 631 (22) (121)
At 31 Decemberh
Developed 254 — 1,990 42 321 462 — 1,433 561 5,063
Undeveloped 338 — 1,012 209 896 420 — 895 299 4,068
592 — 3,002 251 1,217 882 — 2,327 860 9,131
Equity-accounted entities (BP share)i
At 1 January
Developed — — — — 563 81 3,732 76 — 4,452
Undeveloped — — — — 415 — 3,061 1 — 3,476
— — — — 978 81 6,792 77 — 7,928
Revisions of previous estimates — — — — 9 4 178 14 — 205
Productiong — (3) — — (61) (2) (385) (40) — (491)
— 138 — — 27 2 611 (28) — 751
At 31 Decemberj k
Developed — 63 — — 588 83 4,168 47 — 4,951
Undeveloped — 75 — — 417 — 3,235 1 — 3,729
— 138 — — 1,005 83 7,404 49 — 8,679
At 1 January
Developed 207 145 2,238 47 936 573 3,732 984 632 9,493
Undeveloped 362 22 1,010 205 1,493 496 3,061 788 250 7,687
568 167 3,248 252 2,429 1,069 6,792 1,773 882 17,180
At 31 December
Developed 254 63 1,990 42 909 545 4,168 1,480 561 10,014
Undeveloped 338 75 1,012 209 1,313 420 3,235 896 299 7,797
592 138 3,002 251 2,222 966 7,404 2,376 860 17,810
a
b
c
d
e
f
g
entities.
h
i
j
Includes 402 million barrels of oil equivalent in respect of the non-controlling interest in Rosneft, including 6 mmboe held through BP’s equity accounted interest in Taas-Yuryakh
Neftegazodobycha.
k
of oil equivalent in Venezuela, 4 million barrels of oil equivalent in Vietnam and 7,375 million barrels of oil equivalent in Russia.

Standardized measure of discounted future net cash flows and changes therein relating to proved oil and
gas reserves
The following tables set out the standardized measure of discounted future net cash flows, and changes therein, relating to crude oil and
natural gas production from the group’s estimated proved reserves. This information is prepared in compliance with FASB Oil and Gas
Disclosures requirements.
Future net cash flows have been prepared on the basis of certain assumptions which may or may not be realized. These include the timing of
future production, the estimation of crude oil and natural gas reserves and the application of average crude oil and natural gas prices and
exchange rates from the previous 12 months. Furthermore, both proved reserves estimates and production forecasts are subject to revision as
further technical information becomes available and economic conditions change. BP cautions against relying on the information presented
because of the highly arbitrary nature of the assumptions on which it is based and its lack of comparability with the historical cost information
presented in the financial statements.
$ million
2018
Europe North South Africa Asia Australasia Total
America America
Rest of
At 31 December
Subsidiaries
Future cash inflowsa 39,700 — 160,000 4,100 17,500 30,400 — 147,500 30,000 429,200
Future production costb 15,000 — 57,600 3,400 7,200 8,500 — 55,800 7,600 155,100
Future development costb 2,100 — 17,800 1,100 2,800 2,600 — 16,400 2,500 45,300
Future taxationc 8,900 — 16,600 — 3,200 5,300 — 51,100 6,900 92,000
Future net cash flows 13,700 — 68,000 (400) 4,300 14,000 — 24,200 13,000 136,800
10% annual discountd 5,000 — 29,900 (200) 700 3,300 — 9,400 5,800 53,900
Standardized measure of discounted
future net cash flowse f 8,700 — 38,100 (200) 3,600 10,700 — 14,800 7,200 82,900
Future cash inflowsa — 12,800 — — 38,500 — 356,800 — — 408,100
Future production costb — 4,200 — — 16,100 — 232,100 — — 252,400
Future development costb — 800 — — 3,600 — 19,300 — — 23,700
Future taxationc — 5,900 — — 4,400 — 24,000 — — 34,300
Future net cash flows — 1,900 — — 14,400 — 81,400 — — 97,700
10% annual discountd — 600 — — 8,500 — 48,100 — — 57,200
future net cash flowsh i — 1,300 — — 5,900 — 33,300 — — 40,500
Total subsidiaries and equity-accounted entities
future net cash flows 8,700 1,300 38,100 (200) 9,500 10,700 33,300 14,800 7,200 123,400
The following are the principal sources of change in the standardized measure of discounted future net cash flows:
$ million
Total subsidiaries and
Equity-accounted equity-accounted
Subsidiaries entities (BP share) entities
Sales and transfers of oil and gas produced, net of production costs (18,800) (8,000) (26,800)
Development costs for the current year as estimated in previous year 8,500 4,300 12,800
Extensions, discoveries and improved recovery, less related costs 5,800 3,500 9,300
Net changes in prices and production cost 41,000 15,800 56,800
Revisions of previous reserves estimates (2,100) 2,100 —
Net change in taxation (17,000) (7,600) (24,600)
Future development costs 1,000 (3,500) (2,500)
Net change in purchase and sales of reserves-in-place 7,600 400 8,000
Addition of 10% annual discount 5,200 3,100 8,300
Total change in the standardized measure during the yearj 31,200 10,100 41,300
a
The marker prices used were Brent $71.43/bbl, Henry Hub $3.10/mmBtu.
b
Production costs, which include production taxes, and development costs relating to future production of proved reserves are based on the continuation of existing economic conditions.
Future decommissioning costs are included.
c
Taxation is computed with reference to appropriate year-end statutory corporate income tax rates.
d
Future net cash flows from oil and natural gas production are discounted at 10% regardless of the group assessment of the risk associated with its producing activities.
e
In certain situations, revenues and costs are included in the standardized measure of discounted future net cash flows valuation and excluded from the determination of proved reserves and
vice versa. This can result in the standardized measure of discounted future net cash flows being negative.
f
Non-controlling interests in BP Trinidad and Tobago LLC amounted to $1,100 million.
g
The standardized measure of discounted future net cash flows of equity-accounted entities includes standardized measure of discounted future net cash flows of equity-accounted
investments of those entities.
h
Non-controlling interests in Rosneft amounted to $2,500 million in Russia.
i
No equity-accounted future cash flows in Africa because proved reserves are received as a result of contractual arrangements, with no associated costs.
i
Total change in the standardized measure during the year includes the effect of exchange rate movements. Exchange rate effects arising from the translation of our share of Rosneft changes
to US dollars are included within ‘Net changes in prices and production cost’.

gas reserves – continued
$ million
2017
America America
Rest of
At 31 December
Subsidiaries
Future taxationc 4,200 — 6,500 — 1,700 3,800 — 33,200 4,800 54,200
Future net cash flows 6,600 — 33,900 1,900 4,000 11,200 — 14,800 9,800 82,200
10% annual discountd 2,100 — 13,100 1,100 500 3,400 — 5,500 4,800 30,500
future net cash flowse 4,500 — 20,800 800 3,500 7,800 — 9,300 5,000 51,700
Future cash inflowsa — 9,000 — — 32,900 — 205,100 400 — 247,400
Future production costb — 4,100 — — 15,500 — 114,900 300 — 134,800
Future development costb — 800 — — 3,400 — 17,600 100 — 21,900
Future net cash flows — 1,000 — — 10,900 — 60,200 — — 72,100
future net cash flowsg h — 600 — — 4,500 — 25,300 — — 30,400
future net cash flows 4,500 600 20,800 800 8,000 7,800 25,300 9,300 5,000 82,100
$ million
Extensions, discoveries and improved recovery, less related costs 2,300 1,300 3,600
Net changes in prices and production cost 33,100 7,300 40,400
Revisions of previous reserves estimates 2,800 1,000 3,800
Net change in taxation (12,500) (1,500) (14,000)
Future development costs 3,000 (4,600) (1,600)
Net change in purchase and sales of reserves-in-place 800 (600) 200
Total change in the standardized measure during the yeari 28,800 4,200 33,000
a
b
c
d
e
Non-controlling interests in BP Trinidad and Tobago LLC amounted to $1,100 million.
f
g
h
i
Total change in the standardized measure during the year includes the effect of exchange rate movements. Exchange rate effects arising from the translation of our share of Rosneft changes
to US dollars are included within ‘Net changes in prices and production cost’.

gas reserves – continued
$ million
2016
America America
Rest of
At 31 December
Subsidiaries
Future taxationc 1,700 — 500 — 100 2,000 — 17,800 3,400 25,500
Future net cash flows 3,000 — 14,500 (100) 1,300 6,500 — 2,300 7,700 35,200
10% annual discountd e 900 — 4,900 — 200 2,800 — (600) 4,100 12,300
future net cash flowse f 2,100 — 9,600 (100) 1,100 3,700 — 2,900 3,600 22,900
Future cash inflowsa — 5,400 — — 34,400 — 159,900 1,900 — 201,600
Future production costb — 3,000 — — 16,500 — 84,300 1,200 — 105,000
Future development costb — 700 — — 3,800 — 13,200 700 — 18,400
Future net cash flows — 400 — — 10,500 — 52,300 — — 63,200
future net cash flowsh i — 200 — — 4,400 — 21,600 — — 26,200
future net cash flows 2,100 200 9,600 (100) 5,500 3,700 21,600 2,900 3,600 49,100
$ million
Extensions, discoveries and improved recovery, less related costs 700 900 1,600
Net changes in prices and production cost (25,500) (5,900) (31,400)
Revisions of previous reserves estimates 12,200 1,200 13,400
Net change in taxation (2,500) 900 (1,600)
Future development costs 4,900 (2,500) 2,400
Net change in purchase and sales of reserves-in-place 1,800 2,900 4,700
Total change in the standardized measure during the yearj (7,500) (1,600) (9,100)
a
b
c
d
e
In certain situations, revenues and costs are included in the standardized measure of discounted future net cash flows valuation and excluded from the determination of proved reserves and
vice versa. This can result in the standardized measure of discounted future net cash flows being negative. Depending on the timing of those cash flows the effect of discounting may be to
increase the discounted future net cash flows.
f
Non-controlling interests in BP Trinidad and Tobago LLC amounted to $300 million.
g
h
i
j
Total change in the standardized measure during the year includes the effect of exchange rate movements. Exchange rate effects arising from the translation of our share of Rosneft to US
dollars are included within ‘Net changes in prices and production cost’.

Operational and statistical information
The following tables present operational and statistical information related to production, drilling, productive wells and acreage. Figures include
amounts attributable to assets held for sale.
Crude oil and natural gas production
The following table shows crude oil, natural gas liquids and natural gas production for the years ended 31 December 2018, 2017 and 2016.
Production for the yeara b
America America
Rest of
UK Europe US America Russiac Asiad
Subsidiariese
Crude oilf thousand barrels per day
2018 101 — 385 24 7 204 — 313 17 1,051

2017 80 — 370 20 12 241 — 325 17 1,064
2016 79 24 335 13 10 263 — 204 16 943
Natural gas liquids thousand barrels per day
2018 5 — 60 — 9 11 — — 2 88
2017 6 — 56 — 10 10 — — 2 85
2016 6 4 56 — 8 5 — — 3 82
Natural gasg million cubic feet per day
2018 152 — 1,900 7 2,136 1,061 — 826 819 6,900

2017 182 — 1,659 9 1,936 949 — 371 783 5,889
2016 170 82 1,656 10 1,689 513 — 363 820 5,302
Crude oilf thousand barrels per day
2018 — 34 — — 55 1 933 16 — 1,040

2017 — 31 — — 63 1 905 99 — 1,099
2016 — 7 — — 65 — 840 102 — 1,015
Natural gas liquids thousand barrels per day
2018 — 2 — — — 6 4 — — 12
2017 — 2 — — — 6 4 — — 12
2016 — — — — 1 4 4 — — 8
Natural gasg million cubic feet per day
2018 — 59 — — 335 80 1,286 — — 1,760

2017 — 53 — — 418 77 1,308 — — 1,855
2016 — 12 — — 449 18 1,279 15 — 1,773
a
Production excludes royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interest in the underlying production and the option and ability to make
lifting and sales arrangements independently.
b
c
Amounts reported for Russia include BP’s share of Rosneft worldwide activities, including insignificant amounts outside Russia.
d
Production volume recognition methodology for our Technical Service Contract arrangement in Iraq was simplified in 2016 to exclude the impact of oil price movements on lifting imbalances.
A minor adjustment has been made to comparative periods.
e
All of the oil and liquid production from Canada is bitumen.
f
Crude oil includes condensate.
g
Natural gas production excludes gas consumed in operations.

Operational and statistical information – continued
Productive oil and gas wells and acreage
The following tables show the number of gross and net productive oil and natural gas wells and total gross and net developed and
undeveloped oil and natural gas acreage in which the group and its equity-accounted entities had interests as at 31 December 2018. A ‘gross’
well or acre is one in which a whole or fractional working interest is owned, while the number of ‘net’ wells or acres is the sum of the whole or
fractional working interests in gross wells or acres. Productive wells are producing wells and wells capable of production. Developed acreage is
the acreage within the boundary of a field, on which development wells have been drilled, which could produce the reserves; while
undeveloped acres are those on which wells have not been drilled or completed to a point that would permit the production of commercial
quantities, whether or not such acres contain proved reserves.
Europe North South Africa Asia Australasia Totalb
America America
Rest of
Number of productive wells at 31 December 2018

Oil wellsc – gross 116 74 2,677 169 5,356 695 66,147 1,979 12 77,225
– net 69 22 1,097 45 2,437 466 13,151 445 2 17,734
Gas wellsd – gross 34 1 20,565 244 1,069 209 512 102 78 22,814
– net 5 — 10,602 121 379 89 114 45 16 11,371
Oil and natural gas acreage at 31 December 2018 thousands of acres
Developed – gross 81 57 6,263 147 1,336 868 6,751 1,290 173 16,966
– net 46 17 3,683 64 355 345 1,297 272 41 6,120
Undevelopede – gross 3,067 180 5,012 17,110 19,890 52,698 431,130 8,586 4,022 541,695
– net 1,861 54 3,700 8,750 6,469 36,504 86,045 2,357 1,889 147,629
a
Based on information received from Rosneft as at 31 December 2018.
b
c
Includes approximately 7,381 gross (1,447 net) multiple completion wells (more than one formation producing into the same well bore).
d
Includes approximately 2,768 gross (1,407 net) multiple completion wells. If one of the multiple completions in a well is an oil completion, the well is classified as an oil well.
e
Undeveloped acreage includes leases and concessions.
Net oil and gas wells completed or abandoned

The following table shows the number of net productive and dry exploratory and development oil and natural gas wells completed or
abandoned in the years indicated by the group and its equity-accounted entities. Productive wells include wells in which hydrocarbons were
encountered and the drilling or completion of which, in the case of exploratory wells, has been suspended pending further drilling or evaluation.
A dry well is one found to be incapable of producing hydrocarbons in sufficient quantities to justify completion.
Europe North South Africa Asia Australasia Totala
America America
Rest of
2018
Exploratory
Productive 0.3 — 1.7 — 2.0 — 15.0 5.0 — 24.0
Dry — — — 0.5 2.0 2.4 — — — 4.9
Development
Productive 1.4 0.6 142.7 5.0 103.9 14.4 137.3 53.5 1.3 460.1
Dry — — 6.8 — 3.6 — — 2.6 — 13.0
2017
Exploratory
Productive 2.8 0.1 1.5 1.2 3.2 2.6 9.4 1.4 — 22.2
Dry 2.4 — — — — 2.9 — 1.0 — 6.3
Development
Productive 2.5 0.5 124.0 8.0 103.7 16.5 282.7 43.6 1.1 582.6
Dry — — 0.5 — 1.6 2.1 — 0.8 — 5.0
2016
Exploratory
Productive 0.3 0.4 0.5 — 0.6 2.1 3.4 1.6 — 8.9
Dry 1.0 0.3 4.7 — — 1.5 — 0.3 — 7.8
Development
Productive 3.4 1.4 145.6 — 99.8 20.2 88.5 55.2 0.5 414.6
Dry 0.8 — — — 0.6 2.0 — 1.0 — 4.4
a

Operational and statistical information – continued
Drilling and production activities in progress
The following table shows the number of exploratory and development oil and natural gas wells in the process of being drilled by the group and
its equity-accounted entities as of 31 December 2018. Suspended development wells and long-term suspended exploratory wells are also
included in the table.
Europe North South Africa Asia Australasia Totala
America America
Rest of
At 31 December 2018
Exploratory
Gross — 0.9 5.0 — 3.0 3.0 — 3.0 — 14.9
Net — 0.3 2.9 — 0.8 1.3 — 3.0 — 8.3
Development
Gross 9.0 4.6 147.0 5.0 11.0 18.0 — 108.0 — 302.6
Net 2.9 1.4 80.5 2.5 5.0 9.2 — 19.0 — 120.5
a

Parent company financial statements of BP p.l.c.
Company balance sheet
Note 2018 2017
Non-current assets
Investments 2 166,271 166,276
Receivables 3 2,600 2,623
Defined benefit pension plan surpluses 4 5,473 3,838
174,344 172,737
Current assets
Receivables 3 151 293
Cash and cash equivalents 13 10
164 303
Total assets 174,508 173,040
Current liabilities
Payablesa 5 14,665 10,203
Payablesa 5 31,800 31,804
Deferred tax liabilities 6 1,907 1,337
Defined benefit pension plan deficits 4 184 221
33,891 33,362
Net assets 125,952 129,475
Capital and reservesb
Brought forward 101,078 104,498
Profit (loss) for the year 1,931 2,145
Other movements (6,579) (5,565)
96,430 101,078
Called-up share capital 7 5,402 5,343
Share premium account 12,305 12,147
Other capital and reserves 11,815 10,907
125,952 129,475
a
A re-presentation from non-current payables to current payables has been made in 2017. See Note 5 for details.
b
See Statement of changes in equity on page 239 for further information.
The financial statements on pages 238-271 were approved and signed by the group chief executive on 29 March 2019 having been duly
authorized to do so by the board of directors:
R W Dudley Group chief executive
The parent company financial statements of BP p.l.c. on pages 238-271 do not form part of BP’s Annual Report on Form 20-F as filed with
the SEC.
Company statement of changes in equitya
$ million
Foreign
Share Capital currency
premium redemption Merger Treasury translation Profit and
Share capital account reserve reserve shares reserve loss account Total equity
At 1 January 2018 5,343 12,147 1,426 26,509 (16,958) (70) 101,078 129,475
Profit for the year — — — — — — 1,931 1,931
Other comprehensive income — — — — — (296) 1,178 882
Total comprehensive income — — — — — (296) 3,109 2,813
Dividends 49 (49) — — — — (6,699) (6,699)
Repurchases of ordinary share capital (13) — 13 — — — (355) (355)
Share-based payments, net of tax 23 207 — — 1,191 — (703) 718
At 31 December 2018 5,402 12,305 1,439 26,509 (15,767) (366) 96,430 125,952
At 1 January 2017 5,284 12,219 1,413 26,509 (18,443) (236) 104,498 131,244
Profit for the year — — — — — — 2,145 2,145
Other comprehensive income — — — — — 166 1,815 1,981
Total comprehensive income — — — — — 166 3,960 4,126
Dividends 72 (72) — — — — (6,153) (6,153)
Repurchases of ordinary share capital (13) — 13 — — — (343) (343)
Share-based payments, net of tax — — — — 1,485 — (884) 601
At 31 December 2017 5,343 12,147 1,426 26,509 (16,958) (70) 101,078 129,475
a
the SEC.
Notes on financial statements
1. Significant accounting policies, judgements, estimates and assumptions
Authorization of financial statements and statement of compliance with Financial Reporting Standard 101 ‘Reduced Disclosure
Framework’ (FRS 101)
The financial statements of BP p.l.c. for the year ended 31 December 2018 were approved and signed by the group chief executive on
29 March 2019 having been duly authorized to do so by the board of directors. The company meets the definition of a qualifying entity under
Financial Reporting Standard 100 ‘Application of Financial Reporting Requirements’ (FRS 100) issued by the Financial Reporting Council.
Accordingly, these financial statements have been prepared in accordance with FRS 101 and in accordance with the provisions of the UK
Companies Act 2006.
Basis of preparation
The financial statements have been prepared on a going concern basis and in accordance with the Companies Act 2006 and applicable UK
accounting standards.
The financial statements have been prepared under the historical cost convention. Historical cost is generally based on the fair value of the
consideration given in exchange for the assets.
As permitted by FRS 101, the company has taken advantage of the disclosure exemptions available in relation to:
(a) the requirements of IFRS 7 ‘Financial Instruments: Disclosures’;
(b) the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to 136 of IAS 1 ‘Presentation of
Financial Statements’;
(c) the requirements of IAS 7 ‘Statement of Cash Flows’;
(d) the requirements of paragraphs 30 and 31 of IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ in relation to
standards not yet effective;
(e) the requirements of paragraphs 17 and 18A of IAS 24 ‘Related Party Disclosures’; and
(f) the requirements of IAS 24 ‘Related Party Disclosures’ to disclose related party transactions entered into between two or more members
of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
(g) the requirement of the second sentence of paragraph 110 and paragraphs 113(a), 114,115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15
Revenue from Contracts with Customers
Where required, equivalent disclosures are given in the consolidated financial statements of BP p.l.c.
As permitted by Section 408 of the Companies Act 2006, the income statement of the company is not presented as part of these financial
statements.
The financial statements are presented in US dollars and all values are rounded to the nearest million dollars ($ million), except where
otherwise indicated.
Significant accounting policies: use of judgements, estimates and assumptions

Inherent in the application of many of the accounting policies used in preparing the financial statements is the need for management to make
judgements, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities, and the reported amounts of revenues and expenses. Actual outcomes could differ from the estimates and assumptions used. The
accounting judgements and estimates that have a significant impact on the results of the company are set out in boxed text below, and should
be read in conjunction with the information provided in the Notes on financial statements.
Investments
Investments in subsidiaries are recorded at cost. The company assesses investments for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. If any such indication of impairment exists, the company makes an
estimate of its recoverable amount. Where the carrying amount of an investment exceeds its recoverable amount, the investment is
considered impaired and is written down to its recoverable amount. Where these circumstances have reversed, the impairment previously
made is reversed to the extent of the original cost of the investment.
Foreign currency translation
The functional and presentation currency of the financial statements is US dollars. Transactions in foreign currencies are initially recorded in the
functional currency by applying the spot exchange rate on the date of the transaction. Monetary assets and liabilities denominated in foreign
currencies are retranslated into the functional currency at the spot exchange rate on the balance sheet date. Any resulting exchange
differences are included in the income statement. Non-monetary assets and liabilities, other than those measured at fair value, are not
retranslated subsequent to initial recognition.
Exchange adjustments arising when the opening net assets and the profits for the year retained by a non-US dollar functional currency branch
are translated into US dollars are recognized in a separate component of equity and reported in other comprehensive income. Income
statement transactions are translated into US dollars using the average exchange rate for the reporting period.
Financial guarantees
The company enters into financial guarantee contracts with its subsidiaries. At the inception of a financial guarantee contract, a liability is
recognized initially at fair value and then subsequently at the higher of the estimated loss and amortized cost. Where a guarantee is issued for
a premium, a receivable of an amount equal to the liability is initially recognized. Subsequently, the liability and receivable reduce by the amount
of consideration received, which is recognized in the income statement. Where a guarantee is issued without a premium, the fair value is
recognized as additional investment in the entity to which the guarantee relates.
the SEC.
Equity-settled transactions
The cost of equity-settled transactions with employees of the company and other members of the group is measured by reference to the fair
value of the equity instruments on the date on which they are granted and is recognized as an expense over the vesting period, which ends on
the date on which the employees become fully entitled to the award. A corresponding credit is recognized within equity. Fair value is
determined by using an appropriate, widely used, valuation model. In valuing equity-settled transactions, no account is taken of any vesting
conditions, other than conditions linked to the price of the shares of the company (market conditions). Non-vesting conditions, such as the
condition that employees contribute to a savings-related plan, are taken into account in the grant-date fair value, and failure to meet a non-
vesting condition, where this is within the control of the employee, is treated as a cancellation and any remaining unrecognized cost is
expensed.
For other equity-settled share-based payment transactions, the goods or services received and the corresponding increase in equity are
measured at the fair value of the goods or services received, unless their fair value cannot be reliably estimated. If the fair value of the goods
and services received cannot be reliably estimated, the transaction is measured by reference to the fair value of the equity instruments
granted.
Cash-settled transactions
The cost of cash-settled transactions is recognized as an expense over the vesting period, measured by reference to the fair value of the
corresponding liability which is recognized on the balance sheet. The liability is remeasured at fair value at each balance sheet date until
settlement, with changes in fair value recognized in the income statement.
Pensions
The defined benefit pension plans are plans that share risks between entities under common control. In each instance BP p.l.c. is the principal
employer and carries the whole plan surplus or deficit on its balance sheet. The cost of providing benefits under the company’s defined benefit
plans is determined separately for each plan using the projected unit credit method, which attributes entitlement to benefits to the current
period to determine current service cost and to the current and prior periods to determine the present value of the defined benefit obligation.
Past service costs, resulting from either a plan amendment or a curtailment (a reduction in future obligations as a result of a material reduction
in the plan membership), are recognized immediately when the company becomes committed to a change.
Net interest expense relating to pensions, which is recognized in the income statement, represents the net change in present value of plan
obligations and the value of plan assets resulting from the passage of time, and is determined by applying the discount rate to the present
value of the benefit obligation at the start of the year, and to the fair value of plan assets at the start of the year, taking into account expected
changes in the obligation or plan assets during the year.
Remeasurements of the defined benefit liability and asset, comprising actuarial gains and losses, and the return on plan assets (excluding
amounts included in net interest described above) are recognized within other comprehensive income in the period in which they occur and
are not subsequently reclassified to profit and loss.
The defined benefit pension plan surplus or deficit recognized on the balance sheet for each plan comprises the difference between the
present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds) and the fair value of plan assets
out of which the obligations are to be settled directly. Fair value is based on market price information and, in the case of quoted securities, is
the published bid price. Defined benefit pension plan surpluses are only recognized to the extent they are recoverable, typically by way of
refund.
Contributions to defined contribution plans are recognized in the income statement in the period in which they become payable.
Significant estimate: pensions
Accounting for defined benefit pensions involves making significant estimates when measuring the company's pension plan surpluses and
deficits. These estimates require assumptions to be made about many uncertainties.
Pension assumptions are reviewed by management at the end of each year. These assumptions are used to determine the projected benefit
obligation at the year end and hence the surpluses and deficits recorded on the company’s balance sheet, and pension expense for the
following year. The assumptions used are provided in Note 4.
The assumptions that are the most significant to the amounts reported are the discount rate, inflation rate, salary growth and mortality levels.
Assumptions about these variables are based on the environment in each country. The assumptions used vary from year to year, with
resultant effects on future net income and net assets. Changes to some of these assumptions, in particular the discount rate and inflation
rate, could result in material changes to the carrying amounts of the company’s pension obligations within the next financial year for the UK
plan. Any differences between these assumptions and the actual outcome will also affect future net income and net assets.
The values ascribed to these assumptions and a sensitivity analysis of the impact of changes in the assumptions on the benefit expense and
obligation used are provided in Note 4.
Income taxes
Income tax expense represents the sum of current tax and deferred tax.
Income tax is recognized in the income statement, except to the extent that it relates to items recognized in other comprehensive income or
directly in equity, in which case the related tax is recognized in other comprehensive income or directly in equity.
Current tax is based on the taxable profit for the period. Taxable profit differs from net profit as reported in the income statement because it is
determined in accordance with the rules established by the applicable taxation authorities. It therefore excludes items of income or expense
that are taxable or deductible in other periods as well as items that are never taxable or deductible. The company’s liability for current tax is
calculated using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax is provided, using the liability method, on temporary differences at the balance sheet date between the tax bases of assets and
liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for taxable temporary differences.
Deferred tax assets are only recognized to the extent that it is probable that they will be realized in the future.
the SEC.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realized or the
liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date. Deferred tax
assets and liabilities are not discounted. See note 6 for further details.
Financial assets
The company determines the classification of its financial assets at initial recognition. Financial assets are recognized initially at fair value,
normally being the transaction price plus directly attributable transaction costs. The subsequent measurement of financial assets depends on
their classification, as set out below. The company derecognizes financial assets when the contractual rights to the cash flows expire or the
financial asset is transferred to a third party.
Financial assets measured at amortized cost
Financial assets are classified as measured at amortized cost when they are held in a business model the objective of which is to collect contractual
cash flows and the contractual cash flows represent solely payments of principal and interest. Such assets are carried at amortized cost using
the effective interest method if the time value of money is significant. Gains and losses are recognized in profit or loss when the assets are
derecognized or impaired and when interest is recognized using the effective interest method. This category of financial assets includes trade
and other receivables.
Cash equivalents
Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash, are subject to insignificant risk
of changes in value and generally have a maturity of three months or less from the date of acquisition. Cash equivalents are classified as
financial assets measured at amortized cost.
All financial liabilities held by the company are classified as financial liabilities measured at amortized cost. Financial liabilities include other
payables, accruals, and most items of finance debt. The company determines the classification of its financial liabilities at initial recognition.
Financial liabilities measured at amortized cost
All financial liabilities are initially recognized at fair value, net of directly attributable transaction costs. For interest-bearing loans and borrowings
this is typically equivalent to the fair value of the proceeds received, net of issue costs associated with the borrowing.
After initial recognition, financial liabilities are subsequently measured at amortized cost using the effective interest method. Amortized cost is
calculated by taking into account any issue costs and any discount or premium on settlement. Gains and losses arising on the repurchase,
settlement or cancellation of liabilities are recognized in interest and other income and finance costs respectively. This category of financial
liabilities includes trade and other payables and finance debt.
Impact of new International Financial Reporting Standards
The company adopted two new accounting standards issued by the IASB with effect from 1 January 2018, IFRS 9 ‘Financial instruments’ and
IFRS 15 ‘Revenue from contracts with customers’. There are no other new or amended standards or interpretations adopted during the year
that have a significant impact on the financial statements.
IFRS 9 ‘Financial Instruments’
IFRS 9 ‘Financial Instruments’ was issued in July 2014 and replaced IAS 39 ‘Financial Instruments: Recognition and Measurement.’ The
company adopted IFRS 9 and the related consequential amendments to other IFRSs in the financial reporting period commencing 1 January
2018. The company has applied the new standard in accordance with the transition provisions of IFRS 9. Comparatives have not been restated
and there were no material adjustments on transition reported in opening retained earnings at 1 January 2018.
The company’s revised accounting policies in relation to financial instruments are provided above.
IFRS 15 ‘Revenue from Contracts with Customers’
IFRS 15 ‘Revenue from Contracts with Customers’ was issued in May 2014 and replaced IAS 18 ‘Revenue’ and certain other standards and
interpretations. IFRS 15 provides a single model for accounting for revenue arising from contracts with customers, focusing on the
identification and satisfaction of performance obligations. The company adopted IFRS 15 from 1 January 2018 and applied the ‘modified
retrospective’ transition approach to implementation. The company identified no changes in accounting as a result of implementing IFRS 15.
the SEC.
2. Investments
$ million
Subsidiaries Associates
Shares Shares Total
Cost
At 1 January 2018 166,307 2 166,309
Additions 270 — 270
Disposals (275) — (275)
At 31 December 2018 166,302 2 166,304
Amounts provided
At 1 January 2018 33 — 33
At 31 December 2018 33 — 33
Cost
At 1 January 2017 166,355 2 166,357
Disposals (41) — (41)
Other movements (7) — (7)
At 31 December 2017 166,307 2 166,309
Amounts provided
At 1 January 2017 74 — 74
Disposals (41) — (41)
At 31 December 2017 33 — 33
At 31 December 2018 166,269 2 166,271
At 31 December 2017 166,274 2 166,276
The more important subsidiaries of the company at 31 December 2018 and the percentage holding of ordinary share capital (to the nearest
whole number) are set out below. For a full list of related undertakings see Note 14.
Subsidiaries % Country of incorporation Principal activities

International
BP Global Investments 100 England & Wales Investment holding
BP International 100 England & Wales Integrated oil operations
Burmah Castrol 100 Scotland Lubricants
Canada
BP Holdings Canada 100 England & Wales Investment holding
US
BP Holdings North America 100 England & Wales Investment holding
The carrying value of the investment in BP International Limited at 31 December 2018 was $76,152 million (2017 $76,152 million).
3. Receivables
$ million
2018 2017
Amounts receivable from subsidiariesa 148 2,600 289 2,623
Amounts receivable from associates 4 — 4 —
Other receivables (1) — — —
151 2,600 293 2,623
a
Non-current receivables includes a promissory note issued by BP (Abu Dhabi) Limited in 2016 in consideration for the issue of BP p.l.c. ordinary shares to the government of Abu Dhabi.
4. Pensions
The primary pension arrangement is a funded final salary pension plan in the UK under which retired employees draw the majority of their
benefit as an annuity. This pension plan is governed by a corporate trustee whose board is composed of four member-nominated directors, four
company-nominated directors, an independent director, and an independent chairman nominated by the company. The trustee board is required
by law to act in the best interests of the plan participants and is responsible for setting certain policies, such as investment policies of the plan.
The plan is closed to new joiners but remains open to ongoing accrual for current members. New joiners are eligible for membership of a
defined contribution plan.
The level of contributions to funded defined benefit plans is the amount needed to provide adequate funds to meet pension obligations as they
fall due. During 2018 the aggregate level of contributions was $490 million (2017 $509 million). The aggregate level of contributions in 2019 is
expected to be approximately $262 million, and includes contributions we expect to be required to make by law or under contractual
agreements, as well as an allowance for discretionary funding.
the SEC.
4. Pensions – continued
For the primary UK plan there is a funding agreement between the company and the trustee. On an annual basis the latest funding position is
reviewed and a schedule of contributions is agreed covering the next five years. Contractually committed funding amounted to $1,275 million
at 31 December 2018, all of which relates to future service. The surplus relating to the primary UK pension plan is recognized on the balance
sheet on the basis that the company is entitled to a refund of any remaining assets once all members have left the plan.
The obligation and cost of providing the pension benefits is assessed annually using the projected unit credit method. The date of the most
recent actuarial review was 31 December 2018. The principal plans are subject to a formal actuarial valuation every three years in the UK. The
most recent formal actuarial valuation of the main pension plan was as at 31 December 2017.
The material financial assumptions used for estimating the benefit obligations of the plans are set out below. The assumptions are reviewed by
management at the end of each year and are used to evaluate accrued pension benefits at 31 December and pension expense for the following
year.
Financial assumptions used to determine benefit obligation %
2018 2017
Discount rate for pension plan liabilities 2.9 2.5
Rate of increase in salaries 3.8 4.1
Rate of increase for pensions in payment 3.0 2.9
Rate of increase in deferred pensions 3.0 2.9
Inflation for pension plan liabilities 3.1 3.1
Financial assumptions used to determine benefit expense %

2018 2017
Discount rate for pension plan service costs 2.6 2.7
Discount rate for pension plan other finance expense 2.5 2.7
Inflation for pension plan service costs 3.1 3.2
The discount rate assumption is based on third-party AA corporate bond indices and we use yields that reflect the maturity profile of the
expected benefit payments. The inflation rate assumption is based on the difference between the yields on index-linked and fixed-interest long-
term government bonds. The inflation assumption is used to determine the rate of increase for pensions in payment and the rate of increase in
deferred pensions.
The assumption for the rate of increase in salaries is based on our inflation assumption plus an allowance for expected long-term real salary
growth. This comprises of an allowance for promotion-related salary growth of 0.7%.
In addition to the financial assumptions, we regularly review the demographic and mortality assumptions. The mortality assumptions reflect
best practice in the UK and have been chosen with regard to the latest available published tables adjusted to reflect the experience of the
plans and an extrapolation of past longevity improvements into the future. For the main pension plan the mortality assumptions are as follows:
Mortality assumptions Years
2018 2017
Life expectancy at age 60 for a male currently aged 60 27.4 27.4
Life expectancy at age 60 for a male currently aged 40 28.9 29.0
Life expectancy at age 60 for a female currently aged 60 28.8 28.8
Life expectancy at age 60 for a female currently aged 40 30.6 30.5
The assets of the primary plan are held in a trust, the primary objective of which is to accumulate pools of assets sufficient to meet the
obligations of the plan. The assets of the trusts are invested in a manner consistent with fiduciary obligations and principles that reflect current
practices in portfolio management.
A significant proportion of the assets are held in equities, owing to a higher expected level of return over the long term of such assets with an
acceptable level of risk. In order to provide reasonable assurance that no single security or type of security has an unwarranted impact on the
total portfolio, the investment portfolios are highly diversified.
The trustee’s long-term investment objective for the primary UK plan as it matures is to invest in assets whose value changes in the same way
as the plan liabilities, in order to reduce the level of funding risk. To move towards this objective, the UK plan uses a liability driven investment
(LDI) approach for part of the portfolio, investing primarily in government bonds to achieve this matching effect for the most significant plan
liability assumptions of interest rate and inflation rate. This is partly funded by short-term sale and repurchase agreements, whereby the plan
borrows money using existing bonds as security and which will be bought back at a specified price at an agreed future date. The funds raised
are used to invest in further bonds to increase the proportion of assets which match the plan liabilities. The borrowings are shown separately in
the analysis of pension plan assets in the table below.
For the primary UK pension plan there is an agreement with the trustee to increase the proportion of assets with liability matching
characteristics over time primarily by reducing the proportion of plan assets held as equities and increasing the proportion held as bonds.
During 2018, the plan switched 12.5% from equities to bonds.
The company’s asset allocation policy for the primary plan is as follows:
Asset category %
Total equity (including private equity) 30
Bonds/cash (including LDI) 63
Property/real estate 7
The amounts invested under the LDI programme by the primary UK pension plan as at 31 December 2018 were $4,197 million (2017 $2,588
million) of government-issued nominal bonds and $17,491 million (2017 $16,177 million) of index-linked bonds.
the SEC.
The primary plan does not invest directly in either securities or property/real estate of the company or of any subsidiary.
The fair values of the various categories of assets held by the defined benefit plans at 31 December are presented in the table below, including
the effects of derivative financial instruments. Movements in the fair value of plan assets during the year are shown in detail in the table on
page 246.
$ million
2018 2017
Fair value of pension plan assets
Listed equities – developed markets 5,191 9,548
– emerging markets 950 2,220
Private equitya 2,792 2,679
Government issued nominal bondsb 4,263 2,663
Government issued index-linked bondsb 17,491 16,177
Corporate bondsb 4,606 4,682
Propertyc 2,311 2,211
Cash 376 390
Other 116 104
Debt (repurchase agreements) used to fund liability driven investments (6,011) (5,583)
32,085 35,091
a
Private equity is valued as fair value based on the most recent third-party net asset valuation.
b
Bonds held are denominated in sterling and valued using quoted prices in active markets. Where quoted prices are not available, quoted prices for similar instruments in active markets are
used.
c
Property held is all located in the United Kingdom and are valued based on an analysis of recent market transactions supported by market knowledge derived from third-party valuers.
$ million
2018 2017
Current service costa 295 357
Past service costb 15 12
Operating charge relating to defined benefit plans 310 369
Payments to defined contribution plan 38 31
Total operating charge 348 400
Interest income on plan assetsc (868) (845)
Interest on plan liabilities 773 830
Other finance (income) (95) (15)
Actual asset return less interest income on pension plan assets (722) 2,396
Change in financial assumptions underlying the present value of the plan liabilities 1,768 (237)
Change in demographic assumptions underlying the present value of plan liabilities 123 734
Experience gains and losses arising on the plan liabilities 520 91
Remeasurements recognized in other comprehensive income 1,689 2,984
a
The costs of managing the fund’s investments are treated as being part of the investment return, the costs of administering our pensions plan benefits are included in current service cost.
b
Past service cost represents the increased liability arising as a result of early retirements occurring as part of restructuring programmes.
c
the SEC.
$ million
2018 2017
Benefit obligation at 1 January 31,474 29,871
Exchange adjustments (1,587) 2,882
Operating charge relating to defined benefit plans 310 369
Interest cost 773 830
Contributions by plan participantsa 21 16
Benefit payments (funded plans)b (1,780) (1,903)
Benefit payments (unfunded plans)b (4) (3)
Remeasurements (2,411) (588)
Benefit obligation at 31 December 26,796 31,474
Fair value of plan assets at 1 January 35,091 30,180
Exchange adjustments (1,883) 3,048
Interest income on plan assetsc 868 845
Contributions by plan participantsa 21 16
Contributions by employers (funded plans) 490 509
Benefit payments (funded plans)b (1,780) (1,903)
Remeasurementsc (722) 2,396
Fair value of plan assets at 31 Decemberd e 32,085 35,091
Surplus at 31 December 5,289 3,617
Represented by
Asset recognized 5,473 3,838
Liability recognized (184) (221)
5,289 3,617
The surplus may be analysed between funded and unfunded plans as follows
Funded 5,473 3,838
Unfunded (184) (221)
5,289 3,617
The defined benefit obligation may be analysed between funded and unfunded plans as follows
Funded (26,612) (31,253)
Unfunded (184) (221)
(26,796) (31,474)
a
Most of the contributions made by plan participants were made under salary sacrifice.
b
The benefit payments amount shown above comprises $1,764 million benefits (2017 $1,888 million) plus $20 million (2017 $18 million) of plan expenses incurred in the administration of the
benefit.
c
d
Reflects $31,818 million of assets held in the BP Pension Fund (2017 $34,841 million) and $203 million held in the BP Global Pension Trust (2017 $183 million), as well as $51 million
representing the company’s share of Merchant Navy Officers Pension Fund (2017 $53 million) and $13 million of Merchant Navy Ratings Pension Fund (2017 $14 million).
e
Sensitivity analysis
The discount rate, inflation, salary growth and the mortality assumptions all have a significant effect on the amounts reported. A one-
percentage point change, in isolation, in certain assumptions as at 31 December 2018 for the company’s plans would have had the effects
shown in the table below. The effects shown for the expense in 2019 comprise the total of current service cost and net finance income or
expense.
$ million
One percentage point
Increase Decrease
Discount ratea
Effect on pension expense in 2019 (270) 239
Effect on pension obligation at 31 December 2018 (4,137) 5,527
Inflation rateb
Effect on pension expense in 2019 176 (145)
Effect on pension obligation at 31 December 2018 3,939 (3,396)
Salary growth
Effect on pension expense in 2019 37 (33)
Effect on pension obligation at 31 December 2018 449 (411)
a
The amounts presented reflect that the discount rate is used to determine the asset interest income as well as the interest cost on the obligation.
b
The amounts presented reflect the total impact of an inflation rate change on the assumptions for rate of increase in salaries, pensions in payment and deferred pensions.
One additional year of longevity in the mortality assumptions would increase the 2019 pension expense by $34 million and the pension
obligation at 31 December 2018 by $965 million.
the SEC.
Estimated future benefit payments and the weighted average duration of defined benefit obligations
The expected benefit payments, which reflect expected future service, as appropriate, but exclude plan expenses, up until 2028 and the
weighted average duration of the defined benefit obligations at 31 December 2018 are as follows:
$ million
Estimated future benefit payments
2019 1,027
2020 1,034
2021 1,054
2022 1,086
2023 1,118
2024-2028 5,766
Years
Weighted average duration 17.8
5. Payables
$ million
2018 2017
Amounts payable to subsidiariesa 14,559 31,765 10,070 31,755
Accruals and deferred income 31 — 60 —
Other payables 75 35 73 49
14,665 31,800 10,203 31,804
a
In 2017, an amount of $2,300 million has been reclassified from non-current payables to current payables.
Included in non-current amounts payable to subsidiaries is an interest-bearing payable of $4,236 million (2017 $4,236 million) with
BP International Limited, with interest being charged based on a 3-month USD LIBOR rate plus 55 basis points and a maturity date of
December 2021. Also included is an interest-bearing payable of $27,100 million (2017 $27,100 million) with BP International Limited, with
interest being charged based on a 3-month USD LIBOR rate plus 65 basis points and a maturity date of May 2023. Current amounts payable to
subsidiaries also includes an interest-bearing payable of $5,000 million (2017 $2,300 million) with BP Finance plc, with interest being charged
based on a 1-year USD LIBOR rate and a maturity date of April 2020, callable upon demand.
The maturity profile of the financial liabilities included in the balance sheet at 31 December is shown in the table below. These amounts are
included within payables.
$ million
2018 2017
Due within
1 to 2 years 40 73
2 to 5 years 31,520 4,530
More than 5 years 240 27,201
31,800 31,804
6. Taxation
$ million
Tax charge included in total comprehensive income 2018 2017
Deferred tax
Origination and reversal of temporary differences in the current year 570 1,158
This comprises:
Taxable temporary differences relating to pensions 570 1,158
Deferred tax
Deferred tax liability
Pensions 1,907 1,337
Net deferred tax liability 1,907 1,337
Analysis of movements during the year
At 1 January 1,337 179
Charge (credit) for the year in the income statement 59 (11)
Charge (credit) for the year in other comprehensive income 511 1,169
At 31 December 1,907 1,337
At 31 December 2018, deferred tax assets of $258 million on other temporary differences, $7 million relating to pensions, $67 million relating
to income losses and $184 million relating to other deductible temporary differences (2017 $92 million relating to other temporary differences
and $8 million relating to pensions) were not recognized as it is not considered probable that suitable taxable profits will be available in the
company from which the future reversal of the underlying temporary differences can be deducted. There is no fixed expiry date for the
unrecognised temporary differences.
the SEC.
7. Called-up share capital
The allotted, called-up and fully paid share capital at 31 December was as follows:
2018 2017
Shares Shares
Issued thousand $ million thousand $ million
8% cumulative first preference shares of £1 eacha 7,233 12 7,233 12

9% cumulative second preference shares of £1 eacha 5,473 9 5,473 9
21 21
Ordinary shares of 25 cents each
At 1 January 21,288,193 5,322 21,049,696 5,263
Issue of new shares for the scrip dividend programme 195,305 49 289,789 72
Issue of new shares for employee share-based payment plans 92,168 23 — —
Repurchase of ordinary share capital (50,202) (13) (51,292) (13)
At 31 December 21,525,464 5,381 21,288,193 5,322
5,402 5,343
a
The nominal amount of 8% cumulative first preference shares and 9% cumulative second preference shares that can be in issue at any time shall not exceed £10,000,000 for each class of
preference shares.
Voting on substantive resolutions tabled at a general meeting is on a poll. On a poll, shareholders present in person or by proxy have two votes
for every £5 in nominal amount of the first and second preference shares held and one vote for every ordinary share held. On a show-of-hands
vote on other resolutions (procedural matters) at a general meeting, shareholders present in person or by proxy have one vote each.
In the event of the winding up of the company, preference shareholders would be entitled to a sum equal to the capital paid up on the
preference shares, plus an amount in respect of accrued and unpaid dividends and a premium equal to the higher of (i) 10% of the capital paid
up on the preference shares and (ii) the excess of the average market price of such shares on the London Stock Exchange during the previous
six months over par value.
During 2018 the company repurchased 50 million ordinary shares at a cost of $355 million, including transaction costs of $2 million, as part of
the share repurchase programme announced on 31 October 2017. All shares purchased were for cancellation. The repurchased shares
represented 0.2% of ordinary share capital.
Treasury sharesa
2018 2017
Shares Nominal value Shares Nominal value
thousand $ million thousand $ million
At 1 January 1,482,072 370 1,614,657 403
Purchases for settlement of employee share plans 757 — 4,423 1
Issue of new shares for employee share-based payment plans 92,168 23 — —
Shares re-issued for employee share-based payment plans (148,732) (37) (137,008) (34)
At 31 December 1,426,265 356 1,482,072 370
Of which - shares held in treasury by BP 1,264,732 316 1,472,343 368
- shares held in ESOP trusts 161,518 40 9,705 2
- shares held by BP’s US plan administratorb 15 — 24 —
a
See Note 8 for definition of treasury shares.
b
Held by the company in the form of ADSs to meet the requirements of employee share-based payment plans in the US.
For each year presented, the balance at 1 January represents the maximum number of shares held in treasury by BP during the year,
representing 6.9% (2017 7.5%) of the called-up ordinary share capital of the company.
During 2018, the movement in shares held in treasury by BP represented less than 1.0% (2017 less than 0.5%) of the ordinary share capital of
the company.
8. Capital and reserves

See statement of changes in equity for details of all reserves balances.
Share capital
The balance on the share capital account represents the aggregate nominal value of all ordinary and preference shares in issue, including
treasury shares.
Share premium account
The balance on the share premium account represents the amounts received in excess of the nominal value of the ordinary and preference
shares.
Capital redemption reserve
The balance on the capital redemption reserve represents the aggregate nominal value of all the ordinary shares repurchased and cancelled.
Merger reserve
The balance on the merger reserve represents the fair value of the consideration given in excess of the nominal value of the ordinary shares
issued in an acquisition made by the issue of shares.
the SEC.
Treasury shares
Treasury shares represent BP shares repurchased and available for specific and limited purposes. For accounting purposes, shares held in
Employee Share Ownership Plans (ESOPs) and by BP’s US share plan administrator to meet the future requirements of the employee share-
based payment plans are treated in the same manner as treasury shares and are, therefore, included in the financial statements as treasury
shares. The ESOPs are funded by the company and have waived their rights to dividends in respect of such shares held for future awards. Until
such time as the shares held by the ESOPs vest unconditionally to employees, the amount paid for those shares is shown as a reduction in
shareholders’ equity. Assets and liabilities of the ESOPs are recognized as assets and liabilities of the company.
Foreign currency translation reserve
The foreign currency translation reserve records exchange differences arising from the translation of the financial information of the foreign
currency branch. Upon disposal of foreign operations, the related accumulated exchange differences are recycled to the income statement.
The balance held on this reserve is the accumulated retained profits of the company.
The profit and loss account reserve includes $24,107 million (2017 $24,107 million), the distribution of which is limited by statutory or other
restrictions.
The financial statements for the year ended 31 December 2018 do not reflect the dividend announced on 5 February 2019 and paid in March
2019; this will be treated as an appropriation of profit in the year ended 31 December 2019.
9. Financial guarantees
The company has issued guarantees under which the maximum aggregate liabilities at 31 December 2018 were $77,965 million (2017 $75,824
million), the majority of which relate to finance debt of subsidiaries. Also included are guarantees of subsidiaries' liabilities under the Consent
Decree between the United States, the Gulf states and BP and under the settlement agreement with the Gulf states in relation to the Gulf of
Mexico oil spill. The company has also issued uncapped indemnities and guarantees, including a guarantee of subsidiaries’ liabilities under the
Plaintiffs’ Steering Committee agreement relating to the Gulf of Mexico oil spill. Uncapped indemnities and guarantees are also issued in
relation to potential losses arising from environmental incidents involving ships leased and operated by a subsidiary.
10. Share-based payments

Effect of share-based payment transactions on the company’s result and financial position
$ million
2018 2017
Total expense recognized for equity-settled share-based payment transactions 429 397
Total (credit) expense recognized for cash-settled share-based payment transactions (9) 9
Total expense recognized for share-based payment transactions 420 406
Closing balance of liability for cash-settled share-based payment transactions 27 54
Total intrinsic value for vested cash-settled share-based payments 23 58
Additional information on the company’s share-based payment plans is provided in Note 11 to the consolidated financial statements.
11. Auditor’s remuneration

Note 36 to the consolidated financial statements provides details of the remuneration of the company’s auditor on a group basis.
12. Directors’ remuneration

$ million
Remuneration of directors 2018 2017
Total for all directors
Emoluments 8 9
Amounts awarded under incentive schemesa 16 9
Total 24 18
a
Excludes amounts relating to past directors.
Emoluments
These amounts comprise fees paid to the non-executive chairman and the non-executive directors and, for executive directors, salary and
benefits earned during the relevant financial year, plus cash bonuses awarded for the year. Further information is provided in the Directors’
remuneration report on page 87.
the SEC.
13. Employee costs and numbers
$ million
Employee costs 2018 2017
Wages and salaries 491 496
Social security costs 74 74
Pension costs 80 92
645 662
Average number of employees 2018 2017

Upstream 269 262
Downstream 1,151 1,125
Other businesses and corporate 2,344 2,384
3,764 3,771
the SEC.
14. Related undertakings of the group
In accordance with Section 409 of the Companies Act 2006, a full list of related undertakings, the registered office address and the percentage
of equity owned as at 31 December 2018 is disclosed below.
Unless otherwise stated, the share capital disclosed comprises ordinary shares or common stock (or local equivalent thereof) which are
indirectly held by BP p.l.c.
All subsidiary undertakings are controlled by the group and their results are fully consolidated in the group’s financial statements.
The percentage of equity owned by the group is 100% unless otherwise noted below.
The stated ownership percentages represent the effective equity owned by the group.
Subsidiaries
200 PS Overseas Holdings Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
4321 North 800 West LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
563916 Alberta Ltd. (99.90%) 240 - Fourth Avenue SW, Calgary AB T2P 4H4, Canada
ACP (Malaysia), Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Actomat B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
Advance Petroleum Holdings Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
Advance Petroleum Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
AE Cedar Creek Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
AE Goshen II Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
AE Goshen II Wind Farm LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
AE Power Services LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
AE Wind PartsCo LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Air BP Albania SHA Aeroporti Nderkombetar i Tiranes, “Nene Tereza”, Post Box 2933 in Tirana, Albania
Air BP Brasil Ltda. Avenida Rouxinol, 55 , Offices 501-514 , Moema Office Tower, São Paulo, 04516 - 000, Brazil
Air BP Canada LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Air BP Croatia d.o.o. Petrinjska ulica 2, Zagreb, Croatia
Air BP Denmark ApS Arne Jacobsens Allé 7, 5th Floor, 2300, Copenhagen, Denmark
Air BP Finland Oy Öljytie 4, 01530 Vantaa, Finland
Air BP Iceland Armula 24, 108, Reykjavik, Iceland
Air BP Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Air BP Norway AS P.O. Box, 153 Skoyen, Oslo, 0212, Norway
Air BP Sales Romania S.R.L. 59 Aurel Vlaicu Street, Otopeni, Ilfov County, Romania
Air BP Sweden AB Box 8107, 10420, Stockholm, Sweden
Air Refuel Pty Ltdb 398 Tingira Street, Pinkenba QLD 4008, Australia
Allgreen Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
AM/PM International Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
American Oil Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco (Fiddich) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Amoco (U.K.) Exploration Company, LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Bolivia Petroleum Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Bolivia Services Company Inc. Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, British Virgin Islands
Amoco Canada International Holdings B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
Amoco Capline Pipeline Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Chemical (Europe) S.A. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Chemicals (FSC) B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
Amoco CNG (Trinidad) Limited 5-5A Queen's Park West, Port-of-Spain, Trinidad and Tobago
Amoco Cypress Pipeline Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Destin Pipeline Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Endicott Pipeline Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Environmental Services Company Bank of America Center, 16th Floor, 1111 East Main Street, Richmond VA 23219, United States
Amoco Exploration Holdings B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
Amoco Fabrics and Fibers Ltd.c 1423 Cameron Street, Hawkesbury ON, Canada
Amoco Guatemala Petroleum Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco International Finance Corporation Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco International Petroleum Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Leasing Corporation 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
Amoco Louisiana Fractionator Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Main Pass Gathering Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Marketing Environmental Services Company 400 East Court Avenue, Des Moines IA 50309, United States
Amoco MB Fractionation Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco MBF Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Netherlands Petroleum Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Nigeria Exploration Company Limitedd 7M8 Ligali Ayorinde Street, Victoria Island, Lagos, Nigeria
Amoco Nigeria Oil Company Limitedd 7M8 Ligali Ayorinde Street, Victoria Island, Lagos, Nigeria
Amoco Nigeria Petroleum Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Nigeria Petroleum Company Limited 7M8 Ligali Ayorinde Street, Victoria Island, Lagos, Nigeria
the SEC.
14. Related undertakings of the group – continued
Amoco Norway Oil Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Oil Holding Company 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
Amoco Olefins Corporation Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Overseas Exploration Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Pipeline Asset Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Pipeline Holding Company 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
Amoco Properties Incorporated 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
Amoco Realty Company 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
Amoco Remediation Management Services 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
Corporation
Amoco Research Operating Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Rio Grande Pipeline Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Somalia Petroleum Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco Sulfur Recovery Company 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
Amoco Trinidad Gas B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
Amoco Tri-States NGL Pipeline Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Amoco U.K. Petroleum Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
AmProp Finance Company 251 East Ohio Street, Suite 500, Indianapolis IN 46204, United States
Amprop Illinois I Limited Partnershipe 801 Adlai Stevenson Drive, Springfield, IL, 62703, United States
Amprop, Inc. 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
Anaconda Arizona, Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Arabian Production And Marketing Lubricants Riyadh Airport Road, Business Gate, Building C2, 2nd Floor., Saudi Arabia
Company (50.00%)
Aral Aktiengesellschaft Wittener Straße 45, 44789 Bochum, Germany
Aral Luxembourg S.A. Bâtiment B, 36route de Longwy, L-8080 Bertrange, Luxembourg
Aral Services Luxembourg Sarl Autoroute A3/E25, L-3325 Brechem Ouest, Luxembourg
Aral Tankstellen Services Sarl Bâtiment B, 36route de Longwy, L-8080 Bertrange, Luxembourg
Aral Vertrieb GmbH Überseeallee 1, 20457, Hamburg, Hamburg, Germany
ARCO British International, Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO British Limited, LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO Coal Australia Inc. Level 17, 717 Bourke Street, Docklands VIC, Australia
ARCO El-Djazair Holdings Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO El-Djazair LLC Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO Environmental Remediation, L.L.C.a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO Exploration, Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO Gaviota Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO Ghadames Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO International Investments Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO International Services Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO Material Supply Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO Mediterraneo Inversiones, S.L Federico García Lorca, 43, entreplanta, 04004, Almería, Spain
ARCO Midcon LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO Oil Company Nigeria Unlimiteda 7M8 Ligali Ayorinde Street, Victoria Island, Lagos, Nigeria
ARCO Oman Inc. Providence House, East Hill Street, P.O. Box N-3944, Nassau, Bahamas
ARCO Products Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO Resources Limited Level 17, 717 Bourke Street, Docklands VIC, Australia
ARCO Terminal Services Corporation Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
ARCO Trinidad Exploration and Production Company Providence House, East Hill Street, P.O. Box N-3944, Nassau, Bahamas
Limited
ARCO Unimar Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Areas Noriega S.L. Ronda de Poniente 3, 1ªPlanta, 28760 Tres Cantos, Madrid, Spain
Areas Singulares Reyes S.L. Calle Velázquez 18, 28001 Madrid, Spain
Aspac Lubricants (Malaysia) Sdn. Bhd. (63.03%) Tower 5, Avenue 7, The Horizon Bangsar South City, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia
Atlantic 2/3 UK Holdings Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Atlantic Richfield Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Autino Holdings Limited (88.85%)f 83-85 London Street , Reading , Berkshire, RG1 4QA, United Kingdom
Autino Limited (88.85%) 83-85 London Street , Reading , Berkshire, RG1 4QA, United Kingdom
Auwahi Wind Energy Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
B2Mobility GmbH Wittener Straße 45, 44789 Bochum, Germany
Bahia de Bizkaia Electridad, S.L. (75.00%) Atraque Punta Lucero, Explanada Punta Ceballos s/n, Ziérbena (Vizcaya), Spain
Baltimore Ennis Land Company, Inc. 1300 East Ninth Street, Cleveland, OH, 44114, United States
BHP Billiton Petroleum (Eagle Ford Gathering) LLC Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
(75.00%)a
BHP Billiton Petroleum (KCS Resources), LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BHP Billiton Petroleum (Tx Gathering), LLCa The Corporation Company, 1833 South Morgan Road,, Oklahoma City OK 73128, United States
BHP Billiton Petroleum (TxLa Operating) Company 350 North St. Paul Street, Suite 2900, Dallas, Texas 75201, United States
BHP Billiton Petroleum (WSF Operating), Inc. 5615 Corporate Blvd., Suite 400B, Baton Rouge LA 70808, United States
BHP Billiton Petroleum Properties (GP), LLCa CT Corporation System, 1021 Main Street, Suite 1150, Houston, Texas 77002, United States
the SEC.
BHP Billiton Petroleum Properties (LP) LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BHP Billiton Petroleum Properties (N.A.), LPe 1999 Bryan St., STE 900, Dallas TX 75201, United States
Black Lake Pipe Line Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP - Castrol (Thailand) Limited (57.57%)g 23rd Fl. Rajanakarn Bldg, 3 South Sathon Road, Yannawa Sathon, Bangkok 10120, Thailand
BP (Abu Dhabi) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP (Barbados) Holding SRL Erin Court, Bishop's Court Hill, St. Michael , Barbados
BP (Barbican) Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP (China) Holdings Limiteda Room 2101, 21F Youyou International Plaza, 76 Pujian Road, Pudong, Shanghai, PRC
BP (China) Industrial Lubricants Limiteda Bin Jiang Road, Petrochemical Industrial Park, Jiangsu Province, China
BP (Gibraltar) Limitedi Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP (Indian Agencies) Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP (Malta) Limited (in liquidation)h 3rd Floor, Navi Buildings, Pantar Road, Lija, LJA 2021, Malta
BP (Shandong) Petroleum Co., Ltda Room 1-2201, Sijian Meilin Mansion, No. 48-15 Wuyingshan Middle Road, Tianqiao District, Ji'nan,
Shandong, China
BP (Shanghai) Trading Limiteda No. 28 Maji Road, Donghua Financial Building, China (Shanghai) Pilot Free Trade, Shanghai, China
BP Absheron Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Advanced Mobility Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Africa Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Akaryakit Ortakligi (70.00%)e Degirmen yolu cad. No:28, Asia OfisPark K:3 İcerenkoy-Atasehir, Istanbul, 34752, Turkey
BP Alaska LNG LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Alternative Energy Holdings Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Alternative Energy Investments Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Alternative Energy North America Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP America Chembel Holding LLC Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP America Chemicals Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP America Foreign Investments Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP America Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP America Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP America Production Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP AMI Leasing, Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Amoco Chemical Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Amoco Chemical Holding Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Amoco Chemical Indonesia Limited 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
BP Amoco Chemical Malaysia Holding Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Amoco Chemical Singapore Holding Company 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
BP Amoco Exploration (Faroes) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Amoco Exploration (In Amenas) Limited 1 Wellheads Avenue, Dyce, Aberdeen, AB21 7PB, United Kingdom
BP Angola (Block 18) B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Argentina Exploration Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Argentina Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Aromatics Holdings Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Aromatics Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Asia Limited Unit 807, Tower B, Manulife Financial Centre, 223 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
BP Asia Pacific (Malaysia) Sdn. Bhd. Tower 5, Avenue 7, The Horizon Bangsar South City, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia
BP Asia Pacific Holdings Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Asia Pacific Pte Ltdh 7 Straits View #26-01, Marina One East Tower, Singapore, 018936, Singapore
BP Australia Capital Markets Limited Level 17, 717 Bourke Street, Docklands VIC, Australia
BP Australia Employee Share Plan Proprietary Limited Level 17, 717 Bourke Street, Docklands VIC, Australia
BP Australia Group Pty Ltdd Level 17, 717 Bourke Street, Docklands VIC, Australia
BP Australia Investments Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
BP Australia Nominees Proprietary Limited Level 17, 717 Bourke Street, Docklands VIC, Australia
BP Australia Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
BP Australia Shipping Pty Ltdj Level 17, 717 Bourke Street, Docklands VIC, Australia
BP Australia Swaps Management Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Aviation A/S c/o Danish Refuelling Services, Kastrup Lufthavn, 2770 Kastrup, Denmark
BP Benevolent Fund Trustees Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Berau Ltd. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Biocombustíveis S.A. (91.10%) Avenida das Nações Unidas, 12399, 4fl, Sao Paulo, Brazil
BP Bioenergia Campina Verde Ltda. (91.10%) Rua Principal, Fazenda Recanto, Caixa Postal 01, Ituiutaba, Minas Gerais, 38.300-898, Brazil
BP Bioenergia Ituiutaba Ltda. (81.26%) Fazenda Recanto, Zona Rural, CEP 38.300-898, Ituiutaba, Minas Gerais, Brazil
BP Bioenergia Itumbiara S.A. (73.95%) Estrada Municipal Itumbiara, Chacoeira Dourada, Fazenda Jandaia, Itumbiara, Goiás, 75516-126, Brazil
BP Bioenergia Tropical S.A. (94.04%) Rodovia GO 410, km 51 à esquerda, Fazenda Canadá, s/n, Zona Rural, Edéia, Goiás, 75940-000, Brazil
BP Biofuels Advanced Technology Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Biofuels Brazil Investments Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Biofuels Louisiana LLCa 5615 Corporate Blvd., Suite 400B, Baton Rouge LA 70808, United States
BP Biofuels North America LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Biofuels Trading Comércio, Importação e Avenida das Nações Unidas, 12399, 4fl, Sao Paulo, Brazil
Exportação Ltda. (81.18%)
the SEC.
BP Bomberai Ltd. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Brasil Ltda. Avenida das Américas, no. 3434, Salas 301 a 308, Barra da Tijuca, Rio de Janeiro, RJ, 22640-102, Brazil
BP Brazil Tracking L.L.C.a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Bulwer Island Pty Ltdk Level 17, 717 Bourke Street, Docklands VIC, Australia
BP Business Service Centre Asia Sdn Bhd Tower 5, Avenue 7, The Horizon Bangsar South City, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia
BP Business Service Centre KFTa BP Business Service Centre KFT, 32-34 Soroksári út, H-1095 Budapest, Hungary
BP Canada Energy Development Company Stewart McKelvey, 900, 1959 Upper Water Street, Halifax NS B3J 3N2, Canada
BP Canada Energy Group ULC Stewart McKelvey, 900, 1959 Upper Water Street, Halifax NS B3J 3N2, Canada
BP Canada Energy Marketing Corp. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Canada International Holdings B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Canada Investments Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Capellen Sarl Aire de Capellen, L-8309 Capellen, Luxembourg
BP Capital Markets America Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Capital Markets p.l.c. Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Car Fleet Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Caribbean Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Castrol KK (64.84%) East Tower 20F, Gate CIty Ohsaki, 1-11-2 Osaki, Shinagawa-ku, Tokyo, Japan
BP Castrol Lubricants (Malaysia) Sdn. Bhd. (63.03%) Tower 5, Avenue 7, The Horizon Bangsar South City, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia
BP Chembel N.V. Amocolaan 2 2440 Geel , Belgium
BP Chemicals (Korea) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Chemicals East China Investments Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Chemicals Investments Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Chemicals Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Chemicals Trading Limited (In Liquidation) Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP China Exploration and Production Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP China Limited (In Liquidation)h 55 Baker Street, London, W1U 7EU, United Kingdom
BP Comercializadora de Energia Ltda. Avenida das Nações Unidas, 12399, 4fl, Sao Paulo, Brazil
BP Commodities Trading Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Commodity Supply B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Company North America Inc. 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
BP Containment Response Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Containment Response System Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Continental Holdings Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Corporate Holdings Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Corporation North America Inc. 150 West Market Street, Suite 800, Indianapolis IN 46204, United States
BP D230 Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Danmark A/S Arne Jacobsens Allé 7, 5th Floor, 2300, Copenhagen, Denmark
BP D-B Pipeline Company LLCe Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Developments Australia Pty. Ltd. Level 8, 250 St Georges Terrace, Perth WA 6000, Australia
BP Diagnostic Acoustic Sensing Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Dogal Gaz Ticaret Anonim Sirketi Degirmen yolu cad. No:28, Asia OfisPark K:3 İcerenkoy-Atasehir, Istanbul, 34752, Turkey
BP East Kalimantan CBM Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Eastern Mediterranean Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Egypt Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Egypt East Delta Marine Corporation Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, British Virgin Islands
BP Egypt East Tanka B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Egypt Production B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Egypt Ras El Barr B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Egypt West Mediterranean (Block B) B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Energía México, S. de R.L. de C.V. Avenida Santa Fe 505, Col. Cruz Manca Santa Fe, Delegacion Cuajimalpa, Mexico
BP Energy Asia Pte. Limited 7 Straits View #26-01, Marina One East Tower, Singapore, 018936, Singapore
BP Energy Colombia Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Energy Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Energy do Brasil Ltda. Avenida das Américas, no. 3434, Salas 301 a 308, Barra da Tijuca, Rio de Janeiro, RJ, 22640-102, Brazil
BP Energy Europe Limited 1 Wellheads Avenue, Dyce, Aberdeen, AB21 7PB, United Kingdom
BP Energy Solutions B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Espana, S.A. Unipersonalk Avenida de Barajas 30, Parque Empresarial Omega, Edificio D. 28108 Alcobendas, Madrid, Spain
BP Estaciones y Servicios Energéticos, Sociedad Avenida Santa Fe 505, Piso 10, Distrito Federal, Mexico C.P. 0534, Mexico
Anónima de Capital Variableb
BP Europa SEl Überseeallee 1, 20457, Hamburg, Hamburg, Germany
BP Exploracion de Venezuela S.A. Av. Francisco de Miranda, Edif Cavendes, Los Palos Grandes, Chacao, Caracas Miranda, 1060, Venezuela
BP Exploration & Production Inc.c Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Exploration (Absheron) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Alaska) Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Exploration (Algeria) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Alpha) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Angola) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Azerbaijan) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
the SEC.
BP Exploration (Canada) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Caspian Sea) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Delta) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (El Djazair) Limited Providence House, East Hill Street, P.O. Box N-3910, Nassau, Bahamas
BP Exploration (Epsilon) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Finance) Limited (In Liquidation) Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Greenland) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Madagascar) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Morocco) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Namibia) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Nigeria Finance) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Nigeria) Limited Landmark Towers - 5B, Water Corporation Road, Victoria Island, Lagos, Nigeria
BP Exploration (Shafag-Asiman) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Shah Deniz) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (South Atlantic) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (STP) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Vietnam) Limited (In Liquidation) Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration (Xazar) Pte. Ltd. 7 Straits View #26-01, Marina One East Tower, Singapore, 018936, Singapore
BP Exploration Angola (Kwanza Benguela) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration Australia Pty Ltd Level 8, 250 St Georges Terrace, Perth WA 6000, Australia
BP Exploration Beta Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration China Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration Company (Middle East) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration Company Limitedm 1 Wellheads Avenue, Dyce, Aberdeen, AB21 7PB, United Kingdom
BP Exploration Indonesia Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration Libya Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration Mexico Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration Mexico, S.A. De C.V.b Avenida Santa Fe 505, Col. Cruz Manca Santa Fe, Delegacion Cuajimalpa, Mexico
BP Exploration North Africa Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration Operating Company Limitedk Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration Orinoco Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Exploration Personnel Company Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Express Shopping Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Finance Australia Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
BP Finance p.l.c. Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Foundation Incorporateda 251 East Ohio Street, Suite 500, Indianapolis IN 46204, United States
BP France Immeuble Le Cervier, 12 Avenue des Béguines, Cergy Saint Christophe, 95866, Cergy Pontoise, France
BP Fuels & Lubricants AS P.O.Box 153 Skøyen, 0212 Oslo, Norway
BP Fuels Deutschland GmbH Wittener Straße 45, 44789 Bochum, Germany
BP Gas Europe, S.A.U. Avenida de Barajas 30, Parque Empresarial Omega, Edificio D. 28108 Alcobendas, Madrid, Spain
BP Gas Marketing Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Gas Supply (Angola) LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Ghana Limited Number 12, Aviation Road, Una Home 3rd Floor, Airport City , Accra, Greater Accra, PMB CT 42, Ghana
BP Global Investments Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Global Investments Salalah & Co LLC PO Box 2309, Salalah, 211, Oman
BP Global West Africa Limited Heritage Place, 7th Floor, Left Wing, 21 Lugard Avenue, Ikoyi, Lagos, Nigeria
BP GOM Logistics LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Greece Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Guangdong Limited (90.00%)a Rm 2710Guangfa Bank Plaza, No. 83 Nonglin Xia Road, Yuexiu District, Guangzhou, China
BP High Density Polyethylene - France Campus Saint Christophe, Bâtiment Galilée 3, 10 Avenue de l'Entreprise, 95863, Cergy Saint Christophe,
Cergy Pontoise, France
BP Holdings (Thailand) Limited (81.01%)n 39/77-78 Moo 2 Rama II Road, Tambon Bangkrachao, Amphur Muang, Samutsakorn 74000, Thailand
BP Holdings B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Holdings Canada Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Holdings International B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Holdings North America Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Hong Kong Limited Unit 807, Tower B, Manulife Financial Centre, 223 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
BP India Limited Technopolis Knowledge Park, Mahakali Caves Road, Andheri (East), Mumbai 400 093, India
BP India Services Private Limited Technopolis Knowledge Park, Mahakali Caves Road, Andheri (East), Mumbai 400 093, India
BP Indonesia Investment Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP International Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP International Services Company 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
BP Investment Management Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Investments Asia Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Iran Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Iraq N.V. Amocolaan 2 2440 Geel , Belgium
BP Italia SpA Via Verona 12, Cornaredo, 20010, Milan, Italy
BP Japan K.K. Roppongi Hills Mori Tower, 10-1 Roppongi 6-chome, Minato-ku, Tokyo106-6115, Japan
the SEC.
BP Kapuas II Limited (in liquidation) 55 Baker Street, London, W1U 7EU, United Kingdom
BP Korea Limited 2nd Floor, Woojin Bldg., 76-4, Jamwon-dong, Seocho-gu, Seoul 137-909, Republic of Korea
BP Kuwait Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Latin America LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Latin America Upstream Services Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP LNG Shipping Limited Clarendon House, 2 Church Street, P.O. Box HM 1022, Hamilton, HM DX, Bermuda
BP Lubricants KK (64.84%) East Tower 20F, Gate CIty Ohsaki, 1-11-2 Osaki, Shinagawa-ku, Tokyo, Japan
BP Lubricants USA Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Luxembourg S.A. Aire de Capellen, L-8309 Capellen, Luxembourg
BP Malaysia Holdings Sdn. Bhd. (70.00%) Tower 5, Avenue 7, The Horizon Bangsar South City, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur, Malaysia
BP Management International B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Management Netherlands B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Marine Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Mariner Holding Company LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Maritime Services (Isle of Man) Limited Samuel Harris House, 5-11 St Georges Street, Douglas, Isle of Man, IM1 1AJ, Isle of Man
BP Maritime Services (Singapore) Pte. Limited 7 Straits View #26-01, Marina One East Tower, Singapore, 018936, Singapore
BP Marketing Egypt LLC Plot 28, North 90 Road, Housing & Construction Bank Building, New Cairo, Cairo, 11835, Egypt
BP Mauritania Investments Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Mauritius Limited (In Liquidation) 5th Floor, Ebene Esplanade, 24 Cybercity, Ebene, Mauritius
BP Middle East Enterprises Corporation Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, British Virgin Islands
BP Middle East Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Middle East LLC P.O.Box 1699, Dubai, 1699, United Arab Emirates
BP Midstream Partners GP LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Midstream Partners Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Midstream Partners LP (54.37%)o Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Mocambique Limitada Society and Geography Avenue, Plot No. 269 , Third floor, Maputo, Mozambique
BP Mocambique Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Muturi Holdings B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Nederland Holdings BV d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Netherlands Upstream B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP New Ventures Middle East Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP New Zealand Holdings Limited Watercare House, 73 Remuera Road, Newmarket, Auckland, 1050, New Zealand
BP New Zealand Share Scheme Limited Watercare House, 73 Remuera Road, Newmarket, Auckland, 1050, New Zealand
BP Nutrition Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Offshore Gathering Systems Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Offshore Pipelines Company LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Offshore Response Company LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Oil (Thailand) Limited (90.32%)p 39/77-78 Moo 2 Rama II Road, Tambon Bangkrachao, Amphur Muang, Samutsakorn 74000, Thailand
BP Oil Australia Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
BP Oil Espana, S.A. Unipersonal Polígono Industrial "El Serrallo", s/n 12100 Grao de Castellón, Castellón de la Plana, Spain
BP Oil Hellenic S.A. 26 Kifissias Ave. and 2 Paradissou st., 15125 Maroussi, Athens, Greece
BP Oil International Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Oil Kent Refinery Limited (in liquidation) Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Oil Llandarcy Refinery Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Oil Logistics UK Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Oil New Zealand Limited Watercare House, 73 Remuera Road, Newmarket, Auckland, 1050, New Zealand
BP Oil Pipeline Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Oil Shipping Company, USA Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Oil UK Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Oil Venezuela Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Oil Vietnam Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Oil Yemen Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Olex Fanal Mineralol GmbH Überseeallee 1, 20457, Hamburg, Hamburg, Germany
BP Pacific Investments Ltd Watercare House, 73 Remuera Road, Newmarket, Auckland, 1050, New Zealand
BP Pakistan (Badin) Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Pakistan Exploration and Production, Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Pension Trustees Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Pensions (Overseas) Limitedi Albert House, South Esplanade, St. Peter Port, GY1 1AW, Guernsey
BP Pensions Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Petrochemicals India Investments Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Petroleo y Gas, S.A. Av. Francisco de Miranda, Edif Cavendes, Los Palos Grandes, Chacao, Caracas Miranda, 1060, Venezuela
BP Petrolleri Anonim Sirketi Degirmen yolu cad. No:28, Asia OfisPark K:3 İcerenkoy-Atasehir, Istanbul, 34752, Turkey
BP Pipelines (Alaska) Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Pipelines (BTC) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Pipelines (North America) Inc. 45 Memorial Circle, Augusta ME 04330, United States
BP Pipelines (SCP) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Pipelines (TANAP) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Pipelines TAP Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
the SEC.
BP Polska Services Sp. z o.o. Ul. Jasnogórska 1, 31-358 Kraków, Malopolskie, Poland
BP Portugal -Comercio de Combustiveis e Lubrificantes Lagoas Park, Edificio 3, Porto Salvo, Oeiras, Portugal
SA
BP Poseidon Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Products North America Inc. 351 West Camden Street, Baltimore MD 21201, United States
BP Properties Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Raffinaderij Rotterdam B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP Refinery (Kwinana) Proprietary Limited Level 17, 717 Bourke Street, Docklands VIC, Australia
BP Regional Australasia Holdings Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
BP River Rouge Pipeline Company LLCe Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Russian Investments Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Russian Ventures Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP SC Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Scale Up Factory Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Senegal Investments Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Services International Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Servicios de Combustibles S.A. de C.V. Avenida Santa Fe 505, Col. Cruz Manca Santa Fe, Delegacion Cuajimalpa, Mexico
BP Servicios territoriales, S.A. de C.V. Avenida Santa Fe 505, Col. Cruz Manca Santa Fe, Delegacion Cuajimalpa, Mexico
BP Shafag-Asiman Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Shipping Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Singapore Pte. Limited 7 Straits View #26-01, Marina One East Tower, Singapore, 018936, Singapore
BP Solar Energy North America LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Solar Espana, S.A. Unipersonalb Avenida de Barajas 30, Parque Empresarial Omega, Edificio D. 28108 Alcobendas, Madrid, Spain
BP Solar International Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Solar Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
BP South America Holdings Ltd Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP South East Asia Limited (In Liquidation)h 55 Baker Street, London, W1U 7EU, United Kingdom
BP Southern Africa Proprietary Limited (75.00%) BP House, 10 Junction Avenue, Parktown, Johannesburg, 2193, South Africa
BP Southern Cone Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Subsea Well Response (Brazil) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Subsea Well Response Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Taiwan Marketing Limited 7FNo. 71Sec. 3Min Sheng East Road, Taipei, Taiwan
BP Tanjung IV Limited (In Liquidation) 55 Baker Street, London, W1U 7EU, United Kingdom
BP Technology Ventures Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Technology Ventures Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Trading Limited (In Liquidation) 55 Baker Street, London, W1U 7EU, United Kingdom
BP Train 2/3 Holding SRL Erin Court, Bishop's Court Hill, St. Michael , Barbados
BP Transportation (Alaska) Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Trinidad and Tobago LLC (70.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Trinidad Processing Limited 5-5A Queen's Park West, Port-of-Spain, Trinidad and Tobago
BP Turkey Refining Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Two Pipeline Company LLCe Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Venezuela Investments B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BP West Aru I Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP West Aru II Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP West Coast Products LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP West Papua I Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP West Papua III Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Wind Energy North America Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP Wiriagar Ltd. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP World-Wide Technical Services Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BP Zhuhai Chemical Company Limited (91.90%)a Da Ping Harbour, Lin Gang Industrial Zone, Zhuhai City, Guangdong Province, China
BP+Amoco International Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
BPA Investment Holding Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
BP-AIOC Exploration (TISA) LLC (65.88%)a 153 Neftchilar Avenue, Baku, AZ1010, Azerbaijan
BPNE International B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
BPRY Caribbean Ventures LLC (70.00%)a RL&F Service Corp, 920 North King Street, 2nd Floor, Wilmington DE 19801, United States
BPX Energy Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Brian Jasper Nominees Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
Britannic Energy Trading Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Britannic Investments Iraq Limited (90.00%) Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Britannic Marketing Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Britannic Strategies Limited 1 Wellheads Avenue, Dyce, Aberdeen, AB21 7PB, United Kingdom
Britannic Trading Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
British Pipeline Agency Limited (50.00%)g q 5-7 Alexandra Road, Hemel Hempstead, Hertfordshire, HP2 5BS, United Kingdom
Britoil Limited 1 Wellheads Avenue, Dyce, Aberdeen, AB21 7PB, United Kingdom
BTC Pipeline Holding Company Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Burmah Castrol Australia Pty Ltdr Level 17, 717 Bourke Street, Docklands VIC, Australia
the SEC.
Burmah Castrol Holdings Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Burmah Castrol PLCh 1 Wellheads Avenue, Dyce, Aberdeen, AB21 7PB, United Kingdom
Burmah Castrol South Africa (Pty) Limiteds BP House, 10 Junction Avenue, Parktown, Johannesburg, 2193, South Africa
Burmah Chile SpA José Musalen Saffie, Huerfanos N° 770 Of. 301, Santiago, Chile
BXL Plastics Limitedt Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Cadman DBP Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Cape Vincent Wind Power, LLCa 111 Eighth Avenue, New York, New York, 10011, United States
Casitas Pipeline Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Castrol (China) Limited Unit 807, Tower B, Manulife Financial Centre, 223 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
Castrol (Ireland) Limited 2 Grand Canal Square, Dublin 2, Dublin, Ireland
Castrol (Shanghai) Management Co., Ltda Floor 20, Shanghai Youyou International Plaza, No.76 Pujian Road, Pudong, Shanghai, China
Castrol (Shenzhen) Company Limiteda No.1120 Mawan Road, Nanshan District, China
Castrol (Tianjin) Lubricants Co., Ltda Tianjin Economic Development Area, China
Castrol (U.K.) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Castrol Australia Pty. Limited Level 17, 717 Bourke Street, Docklands VIC, Australia
CASTROL Austria GmbHa Straße 6, Objekt 17, Industriezentrum NÖ-Süd, 2355 Wr. Neudorf, Austria
Castrol B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
Castrol BP Petco Limited Liability Company (65.00%)a 22-36 Nguyen Hue Street, 57-69F Dong Khoi Street, District 1, Ho Chi Minh City, Vietnam
Castrol Brasil Ltda. Avenida das Américas, no. 3434, Salas 301 a 308, Barra da Tijuca, Rio de Janeiro, RJ, 22640-102, Brazil
Castrol Caribbean & Central America Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Castrol Colombia Limitada KR 7 NO. 74 09, Bogota D.C., Colombia
Castrol Del Peru S.A. (99.49%) Av. Camino Real, 111 Torre B Oficina, 603 San Isidro, Lima, Peru
Castrol Digital Holdings Limited Technology Centre, Whitchurch Hill, Pangbourne, Reading, RG8 7QR, United Kingdom
Castrol Egypt Lubricants S.A.E. (51.00%) Plot 28, North 90 Road, Housing & Construction Bank Building, New Cairo, Cairo, 11835, Egypt
Castrol Hungária Trading Co. LLC "u.d." (Castrol 32-34 Soroksári út, Budapest, 1095, Hungary
Hungária Kereskedelmi Kft. "v.a.")a
Castrol India Limited (51.00%) Technopolis Knowledge Park, Mahakali Caves Road, Andheri (East), Mumbai 400 093, India
Castrol Industrie und Service GmbH Erkelenzer Straße 20, 41179 Mönchengladbach, Germany
Castrol KK (64.84%) East Tower 20F, Gate CIty Ohsaki, 1-11-2 Osaki, Shinagawa-ku, Tokyo, Japan
Castrol Limited Technology Centre, Whitchurch Hill, Pangbourne, Reading, RG8 7QR, United Kingdom
Castrol Lubricants RO S.R.L 5th Floor, 92-96 Izvor St, 5th District, Bucharest, Romania
Castrol Mexico, S.A. de C.V.b Avenida Santa Fe 505, Col. Cruz Manca Santa Fe, Delegacion Cuajimalpa, Mexico
Castrol Namibia (Pty) Limited BP House, 10 Junction Avenue, Parktown, Johannesburg, 2193, South Africa
Castrol Offshore Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Castrol Pakistan (Private) Limited D-67/1, Block # 4, Scheme # 5, , Clifton, Karachi, Pakistan, Karachi, Pakistan
Castrol Philippines, Inc. 32/F LKG Tower, Ayala Avenue, Makati City, 6801, Philippines
Castrol Servicos Ltda. Avenida Tamboré, 448, Barueri, Sao Paulo, Brazil
Castrol Slovensko, s.r.o. (v likvidácii) (in liquidation)a Rožnavská 24, 821 04 Bratislava 2, Slovakia
Castrol Ukraine LLCa 2a Konstiantynivskay Street, Kyiv, 04071, Ukraine
Castrol Zimbabwe (Private) Limited Barking Road, Willowvale, Harare, Zimbabwe
Centrel Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
Charge Your Car Limitedb 500 Capability Green, Luton, LU1 3LS, United Kingdom
Chargemaster (Europe) GmbH Bischof-von-Henle-Straße 2a, Regensburg, 93051, Germany
Chargemaster Limited 500 Capability Green, Luton, LU1 3LS, United Kingdom
Charging Solutions Limited 500 Capability Green, Luton, LU1 3LS, United Kingdom
CH-Twenty, Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Clarisse Holdings Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
Coastwise Trading Company, Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Consolidada de Energia y Lubricantes, (CENERLUB) Av. Eugenio Mendoza, San Felipe Edificio Centro Letonia, La Castellana, Caracas, 1060, Venezuela
C.A.
Conti Cross Keys Inn, Inc. Easton and Swamp Roads, Buckinham Township, Bucks County, Pennsylvania, United States
Corner Card, S.L. Ronda de Poniente 3, 1ªPlanta, 28760 Tres Cantos, Madrid, Spain
Coro Trading NZ Limited Watercare House, 73 Remuera Road, Newmarket, Auckland, 1050, New Zealand
Cuyama Pipeline Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Dermody Developments Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
Dermody Holdings Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
Dermody Investments Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
Dermody Petroleum Pty. Ltd. Level 17, 717 Bourke Street, Docklands VIC, Australia
DHC Solvent Chemie GmbH Timmerhellstsr. 28, 45478, Mülheim/Ruhr, Germany
Dome Beaufort Petroleum Limited 240 - 4th Avenue SW, Calgary AB T2P 4H4, Canada
Dome Beaufort Petroleum Limited (March 1980) 240 - Fourth Avenue SW, Calgary AB T2P 4H4, Canada
Limited Partnershipe
Dome Beaufort Petroleum Limited 1979 Partnership 240 - Fourth Avenue SW, Calgary AB T2P 4H4, Canada
No. 1e
Dome Wallis (1980) Limited Partnership (92.50%)e 240 - Fourth Avenue SW, Calgary AB T2P 4H4, Canada
Dradnats, Inc. 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
ECM Markets SA (Pty) Ltd (75.00%) BP House, 10 Junction Avenue, Parktown, Johannesburg, 2193, South Africa
Elektromotive Limited 500 Capability Green, Luton, LU1 3LS, United Kingdom
the SEC.
Elite Customer Solutions Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
Elm Holdings Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Energy Global Investments (USA) Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Enstar LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Estacion De Servicio Molinar S.L. Ronda de Poniente 3, 1ªPlanta, 28760 Tres Cantos, Madrid, Spain
Europa Oil NZ Limited Watercare House, 73 Remuera Road, Newmarket, Auckland, 1050, New Zealand
Exomet, Inc. 1300 East Ninth Street, Cleveland, OH, 44114, United States
Expandite Contract Services Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Exploration (Luderitz Basin) Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Exploration Service Company Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Flat Ridge 2 Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Flat Ridge Wind Energy, LLCa 112 SW 7th Street, Suite 3C, Topeka, Kansas, 66603, United States
Foseco Holding International B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
Foseco Holding, Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Foseco, Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Fosroc Expandite Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Fowler Ridge Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Fowler Ridge I Land Investments LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Fowler Ridge II Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Fowler Ridge III Wind Farm LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
FreeBees B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
Fuel & Retail Aviation Sweden AB Box 8107, 10420, Stockholm, Sweden
Fuelplane- Sociedade Abastecedora De Aeronaves, Lagoas Park, Edificio 3, Porto Salvo, Oeiras, Portugal
Unipessoal, Lda
FWK (2017) Limitedu Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
FWK Holdings (2017) LTDu Chertsey Road , Sunbury on Thames , TW16 7BP, United Kingdom
Gardena Holdings Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Gasolin GmbH Wittener Straße 45, 44789 Bochum, Germany
GB Electrical and Building Services Limited 500 Capability Green, Luton, LU1 3LS, United Kingdom
Gelsenkirchen Raffinerie Netz GmbH Alexander-von-Humboldt-Straße 1, Gelsenkirchen, 45896, Germany
GOAM 1 C.I S. A .S Calle 80 No.11-42, Bogota, 110111, Colombia
Grampian Aviation Fuelling Services Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Guangdong Investments Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Highlands Ethanol, LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Hosteleria Noriega S.L. Ronda de Poniente 3, 1ªPlanta, 28760 Tres Cantos, Madrid, Spain
Hydrogen Energy International Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
IGI Resources, Inc. 12550 W. Explorer Dr., Suite 100, Boise, Idaho, 83713, United States
Insight Analytics Solutions Holdings Limited (74.50%) Romax Technology Centre , University of Nottingham Innovation Park, Triumph Road, Nottingham, NG7
2TU, United Kingdom
Insight Analytics Solutions Limited (74.50%) Romax Technology Centre , University of Nottingham Innovation Park, Triumph Road, Nottingham, NG7
2TU, United Kingdom
Insight Analytics Solutions USA, Inc (74.50%) 2108 55th Street, Suite 105, Boulder CO 80301, United States
International Bunker Supplies Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
International Card Centre Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Iraq Petroleum Company Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Jupiter Insurance Limited The Albany, South Esplanade, St Peter Port, GY1 4NF, Guernsey
Ken-Chas Reserve Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Kenilworth Oil Company Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Kingbook Inversiones Socimi, S.A. Calle Velázquez 18, 28001 Madrid, Spain
Latin Energy Argentina S.A. Av. Cordoba 315 Piso 8, Buenos Aires, 1054, Argentina
Lebanese Aviation Technical Services S.A.L. P O Box - 11 -5814c/o Coral Oil Building, 583Avenue de Gaulle, Raoucheh, Beirut, Lebanon
Limited Liability Company BP Toplivnaya Kompaniaa Novinskiy blvd.8, 17th floor, office 11, 121099, Moscow, Russian Federation
Limited liability company Setra Lubricantsa 2 Paveletskaya sq, Building1, 115054 Moscow, Russian Federation
Lubricants UK Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Mardi Gras Transportation System Company LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Markoil, S.A. Unipersonal Avenida de Barajas 30, Parque Empresarial Omega, Edificio D. 28108 Alcobendas, Madrid, Spain
Masana Petroleum Solutions (Pty) Ltd (37.88%) BP House, 10 Junction Avenue, Parktown, Johannesburg, 2193, South Africa
Mayaro Initiative for Private Enterprise Development 5-5A Queen's Park West, Port-of-Spain, Trinidad and Tobago
(70.00%)a
Mehoopany Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Mes Tecnologia en Servicios y Energia, S.A. De C.V.b Avenida Santa Fe 505, Col. Cruz Manca Santa Fe, Delegacion Cuajimalpa, Mexico
Minza Pty. Ltd. Level 17, 717 Bourke Street, Docklands VIC, Australia
Mountain City Remediation, LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
No. 1 Riverside Quay Proprietary Limited Level 17, 717 Bourke Street, Docklands VIC, Australia
Nordic Lubricants A/S Arne Jacobsens Allé 7, 5th Floor, 2300, Copenhagen, Denmark
Nordic Lubricants AB Hemvärnsgatan , 171 54, Solna, Sweden
Nordic Lubricants Oy, (in liquidation) Teknobulevardi 3-5, 01530 Vantaa, Finland
North America Funding Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
the SEC.
OMD87, Inc. 111 Eighth Avenue, New York, New York, 10011, United States
Omega Oil Company 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
OnSight Analytics Solutions India Private Ltd. (74.50%) #11, Platinum Tower, Ground Floor, Old Trunk Road, Pallavaram Chennai, India
OOO BP STLa Novinskiy blvd.8, 17th floor, office 11, 121099, Moscow, Russian Federation
Orion Delaware Mountain Wind Farm LPa 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
Orion Energy Holdings, LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Orion Energy L.L.C.a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Orion Post Land Investments, LLCa 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
Pacroy (Thailand) Co., Ltd. (39.00%) 23rd Fl. Rajanakarn Bldg, 3 South Sathon Road, Yannawa Sathon, Bangkok 10120, Thailand
Peaks America Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Pearl River Delta Investments Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Petrocorner Retail S.L.U. Ronda de Poniente 3, 1ªPlanta, 28760 Tres Cantos, Madrid, Spain
Petrohawk Energy Corporation Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Phoenix Petroleum Services, Limited Liability Company Baghdad International Airport, Al-Burhan Commercial Complex , First floor, Baghdad, Iraq
Produits Métallurgie Doittau Immeuble Le Cervier, 12 Avenue des Béguines, Cergy Saint Christophe, 95866, Cergy Pontoise, France
Prospect International, C.A. (In liquidation) Av. Eugenio Mendoza, San Felipe Edificio Centro Letonia, La Castellana, Caracas, 1060, Venezuela
PT BP Petrochemicals Indonesia 20th Floor Summitmas II Jl., Jend. Sudirman Kav. 61 - 62, Jakarta, Selatan, Indonesia
PT Castrol Indonesia (68.30%) Perkantoran Hijau Arkadia, Tower B, Jl. Let. Jenderal TB. Simatupang Kav. 88, Jakarta12520, Indonesia
PT Castrol Manufacturing Indonesia JL. Raya Merak KM 117, DS Gerem, Gerem Grogol, Cilegon, Banten, Indonesia
PT Jasatama Petroindob Perkantoran Hijau Arkadia, Tower B, Jl. Let. Jenderal TB. Simatupang Kav. 88, Jakarta12520, Indonesia
Remediation Management Services Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Richfield Oil Corporation Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Rolling Thunder I Power Partners, LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Romax Insight Korea Limited (74.50%) 504 Cheong dan ro-213-3, Young pyung dong 2170-1 Jeju Science Park Smart Building, Jeju City, Jeju-do,
Korea, Republic of
Ropemaker Deansgate Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Ropemaker Properties Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Ruhr Oel GmbH (ROG) Johannastraße 2-8, 45899 Gelsenkirchen-Horst, Germany
Rusdene GSS Limitedu 4 High Street, Alton, Hampshire, GU34 1BU, United Kingdom
Saturn Insurance Inc. 400 Cornerstone Drive, Suite 240, Williston VT 05495, United States
Setra Lubricants Kazakhstan LLP (in liquidation)e 98 Panfilov Street, office 809, Almaty, 05000, Kazakhstan
Sherbino I Holdings LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Sherbino Mesa I Land Investments LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Shine Top International Investment Limited Unit 807, Tower B, Manulife Financial Centre, 223 Wai Yip Street, Kwun Tong, Kowloon, Hong Kong
Sociedade de Promocao Imobiliaria Quinta do Loureiro, Lagoas Park, Edificio 3, Porto Salvo, Oeiras, Portugal
SA
Société de Gestion de Dépots d'Hydrocarbures - GDHa Immeuble Le Cervier, 12 Avenue des Béguines, Cergy Saint Christophe, 95866, Cergy Pontoise, France
SOFAST Limited (62.77%)v 23rd Fl. Rajanakarn Bldg, 3 South Sathon Road, Yannawa Sathon, Bangkok 10120, Thailand
South Texas Shale LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Southeast Texas Biofuels LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Southern Ridge Pipeline Holding Company Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Southern Ridge Pipeline LP LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Sp/f Decision3 (GreenSteam) Company (61.68%)w Krosslíð 11, FO-100 Tórshavn , Faroe Islands
SRHP (99.99%)a Immeuble Le Cervier, 12 Avenue des Béguines, Cergy Saint Christophe, 95866, Cergy Pontoise, France
Standard Oil Company, Inc. 251 East Ohio Street, Suite 500, Indianapolis IN 46204, United States
Taradadis Pty. Ltd. Level 17, 717 Bourke Street, Docklands VIC, Australia
Telcom General Corporation (99.96%)c 818 West Seventh Street, 2nd Floor, Los Angeles, CA, 90017, United States
Terre de Grace Partnership (75.00%)e 1100, 635 - 8th Avenue SW, Calgary AB T2P 3M3, Canada
The Anaconda Company 814 Thayer Avenue, Bismarck, ND, 58501-4018, United States
The BP Share Plans Trustees Limitedh Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
The Burmah Oil Company (Pakistan Trading) Limited 1 Wellheads Avenue, Dyce, Aberdeen, AB21 7PB, United Kingdom
The Standard Oil Company 4400 Easton Commons Way , Suite 125, Columbus OH 43219, United States
TISA Education Complex LLC (65.88%)a 153 Neftchilar Avenue, Baku, AZ1010, Azerbaijan
TJKK Roppongi Hills Mori Tower, 10-1 Roppongi 6-chome, Minato-ku, Tokyo106-6115, Japan
Toledo Refinery Holding Company LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Union Texas International Corporation Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Vastar Pipeline, LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Viceroy Investments Limited Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Warrenville Development Limited Partnershipa 33 North LaSalle Street, Chicago, Illinois 60602, United States
Water Way Trading and Petroleum Services LLC Hay Al Wihda, Q904, Alley 68, H32, Korodha, Baghdad, Iraq
(90.00%)
Welchem, Inc. 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
West Kimberley Fuels Pty Ltd Level 17, 717 Bourke Street, Docklands VIC, Australia
Westlake Houston Development, LLCa Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Whiting Clean Energy, Inc. Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Windpark Energy Nederland B.V. d'Arcyweg 76, 3198 NA Europoort Rotterdam, Netherlands
Winwell Resources, L.L.C.a 5615 Corporate Blvd., Suite 400B, Baton Rouge LA 70808, United States
Wiriagar Overseas Ltd Jayla Place, Wickhams Cay 1, PO Box 3190, Road Town, Tortola, VG1110, British Virgin Islands
the SEC.
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ABG Autobahn-Betriebe GmbH (32.58%)a Brucknerstraße 4, 1041 Wien, Austria
Abu Dhabi Marine Areas Limited (33.33%)g Chertsey Road, Sunbury on Thames, Middlesex, TW16 7BP, United Kingdom
Advanced Biocatalytics Corporation (24.20%)x 18010 Skypark Circle , #130 , Irvine CA 92614, United States
AEP I HoldCo LLC (24.30%) Harvard Business Services, Inc., 16192 Coastal Hwy, Lewes, Delaware, 19958, USA
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Australian Terminal Operations Management Pty Ltd Level 3, Unit 3, 22 Albert Road, South Melbourne VIC 3205, Australia
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Axion Energy Argentina S.A. (50.00%) Carlos María Della Paolera 265, Piso 22, Ciudad Autónoma de Buenos Aires, Argentina
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the SEC.
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Mexico
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Energy Emerging Investments, LLC (50.00%)a 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
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the SEC.
Field Services Enterprise S.A. (50.00%) Av. Leandro N. Alem 1180, piso 11, Buenos Aires, Argentina
Finite Carbon Corporation (50.00%) 435 Devon Park Drive, Suite 700, Wayne, Pennsylvania, 19087
Finite Resources, Inc. (50.00%) 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
Fip Verwaltungs GmbH (50.00%) Rheinstraße 36, 49090 Osnabrück, Germany
Flat Ridge 2 Wind Energy LLC (50.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Flat Ridge 2 Wind Holdings LLC (50.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Flughafen Hannover Pipeline Verwaltungsgesellschaft Überseeallee 1, 20457, Hamburg, Germany
mbH (50.00%)
Flughafen Hannover Pipelinegesellschaft mbH & Co. Überseeallee 1, 20457, Hamburg, Hamburg, Germany
KG (50.00%)e
Flytanking AS (50.00%) Postboks 36, Stjordal, NO-7501, Norway
Foreseer Ltd (25.00%) 121A Thoday Street, Cambridge , Cambridgeshire, CB1 3AT , United Kingdom
Formosa BP Chemicals Corporation (50.00%) No. 1-1Formosa Industrial Comples, Mailiao, Yunlin Hsien, Taiwan
Fotech Group Limited (22.40%)x 5th Floor, Condor House, 10 St Paul's Churchyard, London, EC4M 8AL , United Kingdom
Fowler I Holdings LLC (50.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Fowler II Holdings LLC (50.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Fowler Ridge II Wind Farm LLC (50.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Fowler Ridge Wind Farm LLC (50.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Free Power for Schools 13 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Freetricity Central June Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Freetricity Commercial June Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Fuelling Aviation Service - FAS (50.00%)a 3 Rue des Vignes, Aéroport Charles de Gaulle, 93290, Tremblay en France, France
Fundación para la Eficiencia Energética de la Calle Lituania nº 10, Castellón de la Plana, Spain
Comunidad Valenciana (33.33%)a
Gardermeon Fuelling Services AS (33.33%) Postboks 133, Gardermoen, NO-2061, Norway
Gemalsur S.A. (50.00%) Colonia 810, Oficina 403, Montevideo, Uruguay
Georgian Pipeline Company (30.37%)z 190 Elgin Avenue, George Town, Grand Cayman , KY1-9005, Cayman Islands
Gezamenlijke Tankdienst Schiphol B.V. (50.00%) Anchoragelaan 6, 1118 LD Schiphol, Netherlands
GISSCO S.A. (50.00%) 2,Vouliagmenis Ave & Papaflessa, 16777 Elliniko, Athens, Attika, Greece
Gnowee Power Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Goshen Phase II LLC (50.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Gothenburgh Fuelling Company AB (GFC) (33.33%) Box 2154, 438 14, LANDVETTER, Sweden
Gravcap, Inc. (25.00%) Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Groupement Pétrolier de Saint Pierre des Corps - 150 Avenue Yves Farge, 37700, Saint Pierre des Corps, France
GPSPC (20.00%)a
Guangdong Dapeng LNG Company Limited (30.00%)a 10-11/FTime Finance Center, No.4001 Shennan Dadao, Shenzhen, Guangdong Province, China
Gulf Of Suez Petroleum Company "GUPCO" (50.00%) 4 Palestine Road, 4th District, New Maadi, Cairo, Egypt
GVÖ Gebinde-Verwertungsgesellschaft der Steindamm 55, 20099 Hamburg, Germany
Mineralölwirtschaft mbH (21.00%)
H7 Energy Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Hamburg Tank Service (HTS) GbR (33.00%)e Sportallee 6, 22335 Hamburg, Germany
Hebei Dongming Yinglun Petroleum Co., Ltd. South Side, Floor 10, Insurance Industrial Park, No. 672, Chengjiao Street, Qiaoxi, Shijiazhuang, Hebei
(49.00%)a Province, China
Heinrich Fip GmbH & Co. KG (50.00%)e Rheinstraße 36, 49090 Osnabrück, Germany
Heliex Power Limited (32.40%)x Kelvin Building , Bramah Avenue , East Kilbride, Glasgow , Scotland, G75 0RD, United Kingdom
Henan Dongming Yinglun Petroleum Co., Ltd. Room 124, Longhu Enterprise Service Center, Floor 1, Building No. 10, Courtyard No.1, Long Xing Jia
(49.00%)a Yuan, No. 66, Longhu Outer Ring Road, Zhengdong New District, Zhenzhou City
HFS Hamburg Fuelling Services GbR (25.00%)e Sportallee 6, 22335 Hamburg, Germany
Hiergeist Heizolhandel GmbH & Co. KG (50.00%)e Grubenweg 4, 83666 Waakirchen-Marienstein, Germany
Hiergeist Verwaltung GmbH (50.00%) Grubenweg 4, 83666 Waakirchen-Marienstein, Germany
Hokchi Energy S.A. de C.V. (50.00%) Torre A, Calzada Legaria 549, Colonia 10 de Abril, Ciudad de Mexico, C. P. 11250, Mexico
Hokchi Iberica S.L. (50.00%) Campus Empresarial Arbea - Edificio No 1, Carretera Fuencarral a Alcobendas, Alcobendas, Madrid,
Spain
Howbery Solar Park Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
In Salah Gas Ltd (25.50%)α 22 Grenville Street, St Helier, JE4 8PX, Jersey
In Salah Gas Services Ltd (25.50%)α 22 Grenville Street, St Helier, JE4 8PX, Jersey
India Gas Solutions Private Limited (50.00%) 2nd North Avenue, Bandra - Kurla Complex, Bandra (East), Mumbai 400 051, Maharashtra, India
Jamaica Aircraft Refuelling Services Limited (51.00%)g PCJ Building36 Trafalgar Road, Kingston 10, Jamaica
Johnson Corner Solar I, LLC (43.20%)a Cogency Global Inc., 850 New Burton Road, Suite 201, Dover, Delaware, 19904, United States
Kala Power Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
the SEC.
Kingston Research Limited (50.00%) C/O Banks Cooper Associates, 21 Marina Court, Hull, HU1 1TJ, United Kingdom
Klaus Köhn GmbH (50.00%) An der Braker Bahn 22, 26122 Oldenburg, Germany
KM Phoenix Holdings LLC (25.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Köhn & Plambeck GmbH & Co. KG (50.00%)e An der Braker Bahn 22, 26122 Oldenburg, Germany
Kosmos Energy Investments Senegal Limited 6th Floor, 65 Gresham Street, London, England and Wales, EC2V 7NQ, United Kingdom
(49.99%)g
Kurt Ammenn GmbH & Co. KG (50.00%)e Luisenstraße 5 a, 26382 Wilhelmshaven, Germany
LCA Aviation Fuelling Systems Limited (35.00%) 90 Archiepiskopou str, Dromolaxia – Meneou, 7020 Larnaca , Cyprus
LFS Langenhagen Fuelling Services GbR (50.00%)e Sportallee 6, 22335 Hamburg, Germany
Lightning Hybrids, LLC (31.60%)c 160 Greentree Drive, Suite 101, Dover, County of Kent DE 19904, United States
Lightsource Asset Holdings Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Asset Management Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Lightsource Australia SPV 1 Pty Limited (43.20%) CBW' Level 19, 181 William Street, Melbourne, VIC 3000, Australia
Lightsource BP Renewable Energy Investments 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Limited (43.20%)δ
Lightsource Commercial Rooftops (Buyback) Limited 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
(43.20%)
Lightsource Commercial Rooftops Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Lightsource Construction Management Limited 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
(43.20%)
Lightsource Development Services Australia Pty Ltd CBW' Level 19, 181 William Street, Melbourne, VIC 3000, Australia
(43.20%)
Lightsource Development Services Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Egypt Holdings Limited (43.20%) 7th Floor, Jie Tai Plaza, 218 - 222 Zhong Shan Liu Road, Guangzhou, China
Lightsource Finance 55 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Lightsource Grace 1 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Holdings 1 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Holdings 2 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource India Holdings (Mauritius) Limited 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
(43.20%)
Lightsource India Holdings Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource India Investments (UK) Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Lightsource India Limited (22.03%)g 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource India Maharashtra 1 Holdings Limited 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
(43.20%)
Lightsource India Maharashtra 1 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Kingfisher Holdings Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Kingpin 1 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Labs Holdings Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Lightsource Labs Limited (41.04%) Trinity House, Charleston Road, Ranelagh, Dublin 6, D06C8X4, Ireland
Lightsource Largescale Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Midscale Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Nala Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Operations 1 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Operations Services Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Pumbaa Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Radiate 1 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Lightsource Radiate 2 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Lightsource Raindrop Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Renewable Development Limited 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
(43.20%)
Lightsource Renewable Energy (Australia) Pty Ltd CBW' Level 19, 181 William Street, Melbourne, VIC 3000, Australia
(43.20%)
Lightsource Renewable Energy (India) Limited 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
(43.20%)
Lightsource Renewable Energy (NI) Limited (43.20%) Scottish Provident Building, 7 Donegall Square West, Belfast, BT1 6JH, United Kingdom
Lightsource Renewable Energy Australia Holdings 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Limited (43.20%)
Lightsource Renewable Energy Development LLC Cogency Global Inc., 850 New Burton Road, Suite 201, Dover, Delaware, 19904, United States
(43.20%)a
Lightsource Renewable Energy Holdings Limited 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
(43.20%)
the SEC.
Lightsource Renewable Energy India Assets Limited 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
(43.20%)
Lightsource Renewable Energy India Holdings Limited 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
(43.20%)
Lightsource Renewable Energy India Opco Private No.44/38, 1st Floor, Veerabhadran Street, Valluvarkottam, Nungambakkam, Chennai, 600034, India
Limited (43.20%)
Lightsource Renewable Energy India Projects Limited 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
(43.20%)
Lightsource Renewable Energy Ireland Limited Trinity House, Charleston Road, Ranelagh, Dublin 6, D06C8X4, Ireland
(43.20%)
Lightsource Renewable Energy Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Lightsource Renewable Energy Nederland Holdings Prins Bernhardplein 200, 1097JB, Amsterdam, Netherlands
B.V. (43.20%)
Lightsource Renewable Energy Netherlands Holdings 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Limited (43.20%)
Lightsource Renewable Energy North America LLC Cogency Global Inc., 850 New Burton Road, Suite 201, Dover, Delaware, 19904, United States
(43.20%)a
Lightsource Renewable Energy North America Cogency Global Inc., 850 New Burton Road, Suite 201, Dover, Delaware, 19904, United States
Management LLC (43.20%)a
Lightsource Renewable Energy North America Cogency Global Inc., 850 New Burton Road, Suite 201, Dover, Delaware, 19904, United States
Operations LLC (43.20%)a
Lightsource Renewable Services Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Lightsource Residential NI Limited (43.20%) Scottish Provident Building, 7 Donegall Square West, Belfast, BT1 6JH, United Kingdom
Lightsource Residential Rooftops (Buyback) Limited 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
(43.20%)
Lightsource Residential Rooftops (PPA) Limited 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
(43.20%)
Lightsource Residential Rooftops Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Lightsource Simba Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Singapore Renewables Holdings Private 8 Marina Boulevard, #05-02 Marina Bay Financial Centre, Singapore
Limited (43.20%)
Lightsource Singapore Renewables Private Limited 8 Marina Boulevard, #05-02 Marina Bay Financial Centre, Singapore
(43.20%)
Lightsource SPV 10 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource SPV 100 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
the SEC.
the SEC.
Lightsource SPV 266 (NI) Limited (43.20%) Scottish Provident Building, 7 Donegall Square West, Belfast, BT1 6JH, United Kingdom
Lightsource Timon Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Trading Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Lightsource Trojan 1 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lightsource Trojan 2 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
the SEC.
Lightsource Viking 1 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Lightsource Viking 2 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Limited Liability Company TYNGD (20.00%)a Pervomayskaya street, 32A, 678144, Lensk, Sakha (Yakutiya) Republic, Russian Federation
LL Property Services 2 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
LL Property Services Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
LLC "Kharampurneftegaz" (49.00%)a 629830, Gubkinskiy town, Yamalo-Nenets Autonomous Okrug, Russian Federation
Lora Solar Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Lotos - Air BP Polska Spółka z ograniczoną Grunwaldzka 472B, 80-309, Gdansk, Poland
odpowiedzialnością (50.00%)
LOTTE BP Chemical Co., Ltd (50.94%) 2-2 Sangnam-ri, Chungryang-myun, Ulju-gun, Ulsan 689-863, Republic of Korea
LREHL Renewables India SPV 1 Private Limited 815-816 International Trade Tower, Nehru Place, New Delhi, New Delhi, 110019, India
(32.79%)
Maasvlakte Europoort Pipeline Maatschap (50.00%)e Rijndwarsweg 3, 3198 LK Europoort, Rotterdam, Netherlands
Maatschap Europoort Terminal (50.00%)e Moezelweg 101, 3198LS Europoort, Rotterdam, Netherlands
Mach Monument Aviation Fuelling Co. Ltd. (70.00%) Naz City, Building J, Suite 10 Erbil, Iraq
Malmo Fuelling Services AB (33.33%) Box 22, SE 230 32 Malmö-Sturup, Sweden
Manchester Airport Storage and Hydrant Company Bircham Dyson Bell, 50 Broadway, London, SW1H 0BL , United Kingdom
Limited (25.00%)
Manor Farm (Solar Power) Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Manpetrol S.A. (50.00%) Francisco Behr 20, Barrio Pueyrredon, Comodoro Rivadavia, Provincia del Chubut, Argentina
Maputo International Airport Fuelling Services (MIAFS) Praca Dos Trabalhadores, Nr 09, Distrito Urbano 1, Maputo, Mozambique
Limitada (50.00%)a
Mars Oil Pipeline Company LLC (28.50%)e Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Masana Employee Share Trust No. 1 (37.88%)a Block B, 2nd Floor, BP House, 10 Junction Avenue, Parktown, 2193, South Africa
Mavrix, LLC (50.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
McFall Fuel Limited (49.00%) 700 Bond Street, Te Awamutu, New Zealand
Mediteranean Gas Co. "MEDGAS" (25.00%) 5 El Mokhayam El Daiem St, 6th Sector, Nasr City, Egypt
Mehoopany Wind Energy LLC (50.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Mehoopany Wind Holdings LLC (50.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Meri Power Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Middle East Lubricants Company LLC (40.00%) 6th Flr City Tower, 2 - Sheikh Zayed Road, PO Box 1699, Dubai, United Arab Emirates
Milne Point Pipeline, LLC (50.00%)a 900 E. Benson Boulevard, Anchorage, Alaska, 99508, United States
Mobene Beteiligungs GmbH & Co. KG (50.00%)a Spaldingstraße 64, 20097 Hamburg, Germany
Mobene GmbH & Co. KG (50.00%)e Spaldingstraße 64, 20097 Hamburg, Germany
Mobene Verwaltungs-GmbH (50.00%) Spaldingstraße 64, 20097 Hamburg, Germany
MTS Francis Court Solar Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
MTS Trefinnick Solar Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
N.V. Rotterdam-Rijn-Pijpleiding Maatschappij (RRP) Butaanweg 215, NL-3196 KC Vondelingenplaat, Rotterdam, 3045, Havennummer , Netherlands
(44.40%)
Natural Gas Vehicles Company "NGVC" (40.00%) 85 El Nasr Road, Cairo, Cairo, Egypt
New Zealand Oil Services Limited (50.00%) Level 3, 139 The Terrace, Wellington, 6011, New Zealand
Newshelf 1310 (RF) Proprietary Limited (37.88%) Block B, 2nd Floor, BP House, 10 Junction Avenue, Parktown, 2193, South Africa
Nextpower Trevemper Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
NFX Combustíveis Marítimos Ltda. (50.00%) Avenida Atlântica, no. 1.130, 2nd floor (part), Copacabana, Rio de Janeiro, RJ, 22021-000, Brazil
Nima Power Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Nord-West Oelleitung GmbH (59.33%) Zum Ölhafen 207, 26384 Wilhelmshaven, Germany
North Ghara Petroleum Company (NOGHCO) 4 Palestine Road, 4th District, New Maadi, Cairo, Egypt
(30.00%)
North October Petroleum Company 4 Palestine Road, 4th District, New Maadi, Cairo, Egypt
"NOPCO" (50.00%)
Ocwen Energy Pty Ltd (49.50%) GTH Accounting Group Pty Ltd '2', 1A Kitchener Street, Toowoomba QLD 4350, Australia
Oleoductos Canarios, S.A. (20.00%) C/ Explanada Tomas Quevedo S/N, 35008 Puerto De La Luz, Las Palmas De G.C, Spain
Olympic Pipe Line Company LLC (70.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Oslo Lufthaven Tankanlegg AS (33.33%) Postboks 134, Gardermoen, NO-2061, Norway
PAE E & P Bolivia Limited (50.00%) Trinity Place Annex, Corner of Frederick & Shirley Streets, P.O. Box N-4805, Nassau, Bahamas
PAE Oil & Gas Bolivia Ltda. (50.00%) Cuarto anillo, Avda. Ovidio Barbery N° 4200,Equipetrol Norte, Santa Cruz de la Sierra, Bolivia
Palk Power Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Pan American Energy Chile Limitada (50.00%) Nueva de Lyon Nº 145, piso 12, oficina 1203, Edificio Costa, Santiago de Chile, Chile
Pan American Energy do Brasil Ltda. (50.00%)a Rua Manoel da Nóbrega n°1280, 10° andar, Sao Paulo, Sao Paulo, 04001-902, Brazil
Pan American Energy Group, S.L. (50.00%)α Campus Empresarial Arbea - Edificio No 1, Carretera Fuencarral a Alcobendas, Alcobendas, Madrid,
Spain
Pan American Energy Holdings S.A. (50.00%) Colonia 810, Oficina 403, Montevideo, Uruguay
Pan American Energy Iberica S.L. (50.00%) Campus Empresarial Arbea - Edificio No 1, Carretera Fuencarral a Alcobendas, Alcobendas, Madrid,
Spain
Pan American Energy Investments Ltd. (50.00%) Palm Grove House, P.O. Box 438, Road Town, Tortola, British Virgin Islands
Pan American Energy Uruguay S.A. (50.00%) Colonia 810, Oficina 403, Montevideo, Uruguay
Pan American Energy US LLC (51.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Pan American Energy, S.L. (50.00%)a Campus Empresarial Arbea - Edificio No 1, Carretera Fuencarral a Alcobendas, Alcobendas, Madrid,
Spain
the SEC.
Pan American Fueguina S.A. (50.00%) O´Higgins N° 194, Rio Grande, Argentina
Pan American Sur S.A. (50.00%) O´Higgins N° 194, Rio Grande, Argentina
Peninsular Aviation Services Company Limited P O Box 6369, Jeddah 21442, Saudi Arabia
(25.00%)h
Pentland Aviation Fuelling Services Limited (50.00%)b 6th Floor (c/o Q8 Aviation), Dukes Court, Duke Street, Woking, GU21 5BH, United Kingdom
Petrostock SA (50.00%) route de Pré-Bois 2, 1214, Vernier, Switzerland
Pharaonic Petroleum Company "PhPC" (25.00%) 70/72 Road 200, Maadi, Cairo, Egypt
Pont Andrew Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Prince William Sound Oil Spill Response Corporation 9360 Glacier Highway, Suite 202, Juneau AK 99801, United States
(25.00%)
Proteus Oil Pipeline Company, LLC (65.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
PT Petro Storindo Energi (30.00%) Bakrie Tower 17th Floor, Rasuna Epicentrum Complex Jl. H.R Rasuna Said, Jakarta, 12940, Indonesia
PT. Aneka Petroindo Raya (49.90%) AKR Tower 25th floor, Jalan Panjang No.5, Kebon Jeruk, Jakarta, 11530, Indonesia
PT. Dirgantara Petroindo Raya (49.90%) Wisma AKR, 25th floor, Jalan Panjang No.5, Kebon Jeruk, , Jakarta Barat, 11530, Indonesia
PTE Pipeline LLC (32.00%)a 2711 Centerville Road, Suite 400, Wilmington DE 19808, United States
Raffinerie de Strasbourg (in liquidation) (33.33%) 24 Cours Michelet, 92800, Puteaux, France
Rahamat Petroleum Company (PETRORAHAMAT) 70/72 Road 200, Maadi, Cairo, Egypt
(50.00%)
RAPI SA (62.51%) 26 Kifissias Ave. and 2 Paradissou st., 15125 Maroussi, Athens, Greece
Raststaette Glarnerland AG, Niederurnen (20.00%) Nideracher 1, 8867, Niederurnen, Switzerland
RD Petroleum Limited (49.00%) Albert Alloo & Sons, 67 Princes Street, Dunedin, New Zealand
Resolution Partners LLP (68.00%)e 1675 Broadway, Denver CO 80202, United States
Rhein-Main-Rohrleitungstransportgesellschaft mbH Godorfer Hauptstraße 186, 50997 Köln, Germany
(35.00%)
Rio Grande Pipeline Company (30.00%)e Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
RMF Holdings Limited (49.00%) KPMG, 247 Cameron Road, Tauranga, 3110, New Zealand
Romanian Fuelling Services S.R.L. (50.00%) 59 Aurel Vlaicu Street, Otopeni, Ilfov County, Romania
Rosneft Oil Company (19.75%) 26/1 Sofiyskaya Embankment, 115035, Moscow, Russian Federation
Routex B.V. (25.00%) Strawinskylaan 1725, 1077XX Amsterdam, Netherlands
Rudeis Oil Company "RUDOCO" (50.00%) 4 Palestine Road, 4th District, New Maadi, Cairo, Egypt
S&JD Robertson North Air Limited (49.00%) 1 Wellheads Avenue, Dyce, Aberdeen, AB21 7PB, United Kingdom
SABA- Sociedade Abastecedora de Aeronaves, Lda Grupo Operacional de Combustiveis do Aeroporto de Lisboa, Edificio 19, 1.º Sala Saba, Lisboa, Portugal
(25.00%)
SAFCO SA (33.33%) International airport "El. Venizelos", Athens, Greece
Salzburg Fuelling GmbH (33.00%)a Innsbrucker Bundesstraße 95, 5020 Salzburg, Austria
Saraco SA (20.00%) route de Pré-Bois 17, 1216, Cointrin, Switzerland
SeaPort Midstream Partners, LLC (49.00%)a Cogency Global Inc., 850 New Burton Road, Suite 201, Dover, Delaware, 19904, United States
Servicios Logísticos de Combustibles de Aviación, S.L Vía de los Poblados1, Madrid, Spain
(50.00%)
Shakti Power Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Shandong Dongming Yinglun Petroleum Co., Ltd. Room 01, 08, 09, 10, Floor 11, Block B, , No. 8, Luoyuan Avenue, Lixia District, Jinan City, China
(49.00%)a
Sharjah Aviation Services Co. LLC (49.00%)α P O Box- 97, Sharjah, United Arab Emirates
Sharjah Pipeline Company LLC (49.00%) Sharjah 42244, Sharjah, UAE, Sharjah, United Arab Emirates
Shell and BP South African Petroleum Refineries (Pty) 1 Refinery Road, Prospecton, 4110, South Africa
Ltd (37.50%)g
Shell Mex and B.P. Limited (40.00%)α Shell Centre, London, SE1 7NA, United Kingdom
Shenzhen Cheng Yuan Aviation Oil Company Limited Fu Yong Town, Bao An county, ShenZhen Airport, Guangdong Province, China
(25.00%)a
Shenzhen Dapeng LNG Marketing Company Limited Room 316 Excellence Mansion, No.98 Fuhua 1Rd, Futian District, Shenzhen, China
(30.00%)a
Sherbino I Wind Farm LLC (50.00%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
SKA Energy Holdings Limited (50.00%) LOB 16, Suite #309, Jebel Ali Free Zone, Dubai, PO BOX 262794, United Arab Emirates
SM Realisations Limited (In Liquidation) (40.00%) Shell International Petroleum, Co Ltd, Shell Centre, 8 York Road, London, SE1 7NA , United Kingdom
Société d'Avitaillement et de Stockage de Carburants 1 Place Gustave Eiffel, 94150, Rungis, France
Aviation "SASCA" (40.00%)a
Société de Gestion de Produits Pétroliers - SOGEPP 27 Route du Bassin Numéro 6, 92230, Gennevilliers, France
(37.00%)
Solar Photovoltaic (SPV2) Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Solar Photovoltaic (SPV3) Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
South Caucasus Pipeline Company Limited (28.83%)α P.O. Box 309, Ugland House, 113 South Church Street, George Town, Grand Cayman, Cayman Islands
South Caucasus Pipeline Holding Company Limited P.O. Box 309, Ugland House, 113 South Church Street, George Town, Grand Cayman, Cayman Islands
(28.83%)
South Caucasus Pipeline Option Gas Company P.O. Box 309, Ugland House, 113 South Church Street, George Town, Grand Cayman, Cayman Islands
Limited (28.83%)
South China Bluesky Aviation Oil Company Limited Baiyun Internation Airport, Guangzhou, China
(24.50%)a
Stansted Intoplane Company Limited (20.00%) Causeway House, 1 Dane Street, Bishop's Stortford, Hertfordshire, CM23 3BT, United Kingdom
the SEC.
STDG Strassentransport Dispositions Gesellschaft Holstenhofweg 47, 22043 Hamburg, Germany
mbH (50.00%)
Stockholm Fuelling Services Aktiebolag (25.00%) Box 7, 190 45 Arlanda, Sweden
Stonewall Resources Ltd. (50.00%) Palm Grove House, P.O. Box 438, Road Town, Tortola, British Virgin Islands
Sula Power Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Sun and Soil Renewable 12 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Sunrise Oil Sands Partnership (50.00%)e c/o Husky Oil Operations Limited, 707 - 8th Avenue SW, Calgary AB T2P 1H5, Canada
Tankanlage AG Mellingen (33.33%) Birmenstorferstrasse 2, 5507, Mellingen, Switzerland
TAR - Tankanlage Ruemlang AG (27.32%) Zwüscheteich, 8153, Rümlang, Switzerland
TAU Tanklager Auhafen AG (50.00%) Auhafenstrasse 10a, 4132, Muttenz, Switzerland
TCE Participações S.A. (50.00%) Avenida Paulista, 287, 1st floor, room 10, São Paulo, São Paulo, 01311000, Brazil
Team Terminal B.V. (22.80%) Rijndwarsweg 3, 3198 LK Europoort, Rotterdam, Netherlands
Tecklenburg GmbH (50.00%) Wesermünder Straße 1, 27729 Hambergen, Germany
Tecklenburg GmbH & Co. Energiebedarf KG (50.00%)e Wesermünder Straße 1, 27729 Hambergen, Germany
Terminales Canarios, S.L. (50.00%) Carretera de San Andréss/n, La Jurada-María Jiménez, Santa Cruz de Tenerife, Spain
Texaco Esso AOC Maatschap (TEAM) (22.80%)e Rijndwarsweg 3, 3198 LK Europoort, Rotterdam, Netherlands
TFSS Turbo Fuel Services Sachsen GbR (20.00%)e Sportallee 6, 22335 Hamburg, Germany
TGC Solar 106 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
TGC Solar 91 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
TGFH Tanklager-Gesellschaft Frankfurt-Hahn GbR Sportallee 6, 22335 Hamburg, Germany
(50.00%)e
TGH Tankdienst-Gesellschaft Hamburg GbR (33.33%)e Sportallee 6, 22335 Hamburg, Germany
TGHL Tanklager-Gesellschaft Hannover-Langenhagen Sportallee 6, 22335 Hamburg, Germany
GbR (50.00%)e
TGK Tanklagergesellschaft Koln-Bonn (25.00%)e Sportallee 6, 22335 Hamburg, Germany
Thames Electricity Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
The Baku-Tbilisi-Ceyhan Pipeline Company (30.10%)γ P.O. Box 309, Ugland House, 113 South Church Street, George Town, Grand Cayman, Cayman Islands
The Consolidated Petroleum Company Limited Shell Centre, London, SE1 7NA, United Kingdom
(50.00%)α
The Consolidated Petroleum Supply Company Limited Shell Centre, London, SE1 7NA, United Kingdom
(50.00%)ε
The Sullom Voe Association Limited (33.33%)α Town Hall, Lerwick, Shetland, ZE1 0HB, United Kingdom
TLK Holding Company LLC (37.04%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
TLK Intermediate Holding Company LLC (37.04%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
TLK Operating Company LLC (37.04%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
TLM Tanklager Management GmbH (49.00%)a Am Tankhafen 4, 4020 Linz, Austria
TLS Tanklager Stuttgart GmbH (45.00%) Zum Ölhafen 49, 70327 Stuttgart, Germany
Tonatiuh Trading 1 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
Torsina Oil Company "TORSINA" (37.50%) 4 Palestine Road, 4th District, New Maadi, Cairo, Egypt
TRaBP GbR (75.00%)e Huestraße 25, 44787, Bochum, Germany
Trafineo GmbH & Co. KG (75.00%)e Wittener Straße 56, Bochum, Germany
Trafineo Service GmbH (75.00%) Wittener Straße 45, 44789 Bochum, Germany
Trafineo Verwaltungs-GmbH (75.00%) Wittener Straße 56, Bochum, Germany
Trans Adriatic Pipeline AG (24.57%) Lindenstrasse 2, 6340 Baar, Switzerland
TransTank GmbH (50.00%) Am Stadthafen 60, 45881 Gelsenkirchen, Germany
Tricoya Ventures UK Limited (35.56%) Brettenham House, 19 Lancaster Place, London, WC2E 7EN, United Kingdom
TRTM Inc. (37.04%) Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
Tuwale Power Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
TWQE2 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HU, United Kingdom
United Gas Derivatives Company "UGDC" (33.33%) 55 Road 18, Maadi, Cairo, Egypt
United Kingdom Oil Pipelines Limited (33.50%) 5-7 Alexandra Road, Hemel Hempstead, Hertfordshire, HP2 5BS, United Kingdom
Ursa Oil Pipeline Company LLC (22.69%)a Corporation Trust Center, 1209 Orange Street, Wilmington DE 19801, United States
VIC CBM Limited (50.00%) Eni House, 10 Ebury Bridge Road, London, SW1W 8PZ, United Kingdom
Virginia Indonesia Co. CBM Limited (50.00%) Eni House, 10 Ebury Bridge Road, London, SW1W 8PZ, United Kingdom
Walton-Gatwick Pipeline Company Limited (42.33%) 5-7 Alexandra Road, Hemel Hempstead, Hertfordshire, HP2 5BS, United Kingdom
West London Pipeline and Storage Limited (30.50%) 5-7 Alexandra Road, Hemel Hempstead, Hertfordshire, HP2 5BS, United Kingdom
West Morgan Petroleum Company (PETROMORGAN) 4 Palestine Road, 4th District, New Maadi, Cairo, Egypt
(50.00%)
Wick Farm Grid Limited (21.60%) Woodwater House, Pynes Hill, Exeter, England, EX2 5WR
Wiri Oil Services Limited (27.78%) 303 Parnell Rd, Parnell, Auckland, New Zealand
Yangtze River Acetyls Co., Ltd (51.00%)a 97 Weijiang Road (in the Petrochemical Park), Changshou District, Chongqing, China
Yermak Neftegaz LLC (49.00%)a Kosmodamianskaya nab, 52/3, 115035, Moscow, Russian Federation
Your Power No. 1 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
the SEC.
Your Power No12 Limited (43.20%) 7th Floor, 33 Holborn, London, EC1N 2HT, United Kingdom
Zubie, Inc. (20.30%) 160 Greentree Drive, Suite 101, Dover, County of Kent DE 19904, United States
a
Member interest
b
A and B shares
c
Common stock and preference shares
d
Ordinary shares and preference shares
e
Partnership interest
f
A, B and D shares
g
A shares
h
Interest held directly by BP p.l.c.
i
99% held directly by BP p.l.c.
j
1% held directly by BP p.l.c.
k
Ordinary, A and B shares
l
0.008% held directly by BP p.l.c.
m
Ordinary shares and cumulative redeemable preference shares
n
79.93% ordinary shares and 99.06% preference shares
o
Members interest, (49.99%) subordinated units and (4.37%) common units traded on the New York stock exchange
p
93.59% ordinary shares and 81.01% preference shares
q
Subsidiary in which the group does not hold a majority of the voting rights but exercises control over it
r
Ordinary shares and redeemable preference shares
s
Ordinary and A shares
t
Ordinary and deferred shares
u
Subsidiary undertaking pursuant to sections 1162(2), 1162(3)(b) and Paragraph 6 of Schedule 7 of the Companies Act 2006
v
100% ordinary shares and 58.63% preference shares
w
92.31% B shares and 78.43% D shares
x
Preference shares
y
15% held directly by BP p.l.c
z
Unlimited redeemable shares
α
B shares
β
96.52% C shares
γ
1.89% A shares and 40.80% B shares
δ
43.2% A shares, 43.2% C shares, 43.2% D shares, 43.2% E shares, 43.2% F shares and 43.2% G shares
ε
5% held directly by BP p.l.c
the SEC.
THIS PAGE HAS BEEN LEFT BLANK INTENTIONALLY

Additional 274 Selected financial information
disclosures 277 Liquidity and capital resources
279 Upstream analysis by region
284 Downstream plant capacity
285 Oil and gas disclosures for the group
291 Environmental expenditure
291 Regulation of the group’s business
296 Legal proceedings
298 International trade sanctions
300 Material contracts
300 Property, plant and equipment
300 Related-party transactions
300 Corporate governance practices
300 Code of ethics
300 Controls and procedures
301 Principal accountant’s fees and services
301 Directors’ report information
Additional disclosures
302 Disclosures required under Listing Rule 9.8.4R
303 Cautionary statement

BPForm 20-F
Report 247
273
Selected financial information
This information has been extracted or derived from the audited consolidated financial statements of the BP group. Note 1 to the financial
statements includes details on the basis of preparation of these financial statements. The selected information should be read in conjunction
with the audited financial statements and related notes. The audited consolidated financial statements and related notes as of 31 December
2018 and 2017 and for the three years ended 31 December 2018 are presented on page 114.
$ million except per share amounts
2018 2017 2016 2015 2014
Income statement data
Sales and other operating revenues 298,756 240,208 183,008 222,894 353,568
Profit (loss) before interest and taxation 19,378 9,474 (430) (7,918) 6,412
Finance costs and net finance expense relating to pensions and other
post-retirement benefits (2,655) (2,294) (1,865) (1,653) (1,462)
Taxation (7,145) (3,712) 2,467 3,171 (947)
Non-controlling interests (195) (79) (57) (82) (223)
Profit (loss) for the yeara 9,383 3,389 115 (6,482) 3,780
Inventory holding (gains) losses«, before tax 801 (853) (1,597) 1,889 6,210
Taxation charge (credit) on inventory holding gains and losses (198) 225 483 (569) (1,917)
RC profit (loss)«for the year 9,986 2,761 (999) (5,162) 8,073
Net (favourable) adverse impact of non-operating items« and fair
value accounting effects«, before taxb 3,380 3,730 6,746 15,067 8,234
accounting effects (643) (325) (3,162) (4,000) (4,171)
Underlying RC profit«for the year 12,723 6,166 2,585 5,905 12,136
Earnings per sharec – cents
Profit (loss) for the yeara per ordinary share
Basic 46.98 17.20 0.61 (35.39) 20.55
Diluted 46.67 17.10 0.60 (35.39) 20.42
RC profit (loss) for the year per ordinary share« 50.00 14.02 (5.33) (28.18) 43.90
Underlying RC profit for the year per ordinary share« 63.70 31.31 13.79 32.22 66.00
Dividends paid per share – cents 40.50 40.00 40.00 40.00 39.00
– pence 30.568 30.979 29.418 26.383 23.850
Capital expenditure«d
Organic capital expenditure« 15,140 16,501 16,675 N/A N/A
Inorganic capital expenditure« 9,948 1,339 777 N/A N/A
25,088 17,840 17,452 20,202 23,192
Balance sheet data (at 31 December)
Total assets 282,176 276,515 263,316 261,832 284,305
Net assets 101,548 100,404 96,843 98,387 112,642
Share capital 5,402 5,343 5,284 5,049 5,023
BP shareholders’ equity 99,444 98,491 95,286 97,216 111,441
Finance debt due after more than one year 56,426 55,491 51,666 46,224 45,977
Net debt to net debt plus equity« 30.3% 27.4% 26.8% 21.6% 16.7%
Ordinary share datae Share million
Basic weighted average number of shares 19,970 19,693 18,745 18,324 18,385
Diluted weighted average number of shares 20,102 19,816 18,855 18,324 18,497
a
Profit attributable to BP shareholders.
b
See pages 276 and 320 for further analysis of these items.
c
A reconciliation to GAAP information is provided on page 320.
d
From 2017 onwards BP reports organic, inorganic and total capital expenditure on a cash basis which were previously reported on an accruals basis. This aligns with BP's financial framework
and is consistent with other financial metrics used when comparing sources and uses of cash. An analysis of capital expenditure on a cash basis for 2015 and 2014 is not available.
e
The number of ordinary shares shown has been used to calculate the per share amounts.
274 «See Glossary BP Annual Report and Form 20-F 2018

Additional information
Capital expenditure
$ million
2018 2017 2016
Capital expenditure
Organic capital expenditure 15,140 16,501 16,675
Inorganic capital expenditurea 9,948 1,339 777
25,088 17,840 17,452
$ million
2018 2017 2016
Organic capital expenditure by segment
Upstream
US 3,482 2,999 3,415
Non-US 8,545 10,764 10,929
12,027 13,763 14,344
Downstream
US 877 809 774
Non-US 1,904 1,590 1,328
2,781 2,399 2,102
US 54 64 32
Non-US 278 275 197
332 339 229
15,140 16,501 16,675
Organic capital expenditure by geographical area
US 4,413 3,872 4,221
Non-US 10,727 12,629 12,454
15,140 16,501 16,675
a
On 31 October 2018, BP acquired from BHP Billiton Petroleum (North America) Inc. 100% of the issued share capital of Petrohawk Energy Corporation, a wholly owned subsidiary of BHP
that holds a portfolio of unconventional onshore US oil and gas assets. As at 31 December 2018, $6,788 million of the consideration had been paid. 2018 includes $1,739 million relating to
the purchase of an additional 16.5% interest in the Clair field west of Shetland in the North Sea, as part of the agreements with ConocoPhillips in which ConocoPhillips simultaneously
purchased BP's entire 39.2% interest in the Greater Kuparuk Area on the North Slope of Alaska. 2018 also includes amounts relating to the 25-year extension to our ACG production-sharing
agreement« in Azerbaijan. 2017 includes amounts paid to acquire interests in Mauritania and Senegal and in the Zohr gas field in Egypt.
BP Annual Report and Form 20-F 2018 «See Glossary 275

Non-operating items
Non-operating items are charges and credits included in the financial statements that BP discloses separately because it considers such
disclosures to be meaningful and relevant to investors. They are items that management considers not to be part of underlying business
operations and are disclosed in order to enable investors to understand better and evaluate the group’s reported financial performance. An
analysis of non-operating items is shown in the table below.
$ million
2018 2017 2016
Upstream
Impairment and gain (loss) on sale of businesses and fixed assetsa b (90) (563) 2,391
Environmental and other provisions (35) 1 (8)
Restructuring, integration and rationalization costsc (131) (24) (373)
Fair value gain (loss) on embedded derivatives 17 33 32
Otherb d 56 (118) (289)
(183) (671) 1,753
Downstream
Impairment and gain (loss) on sale of businesses and fixed assetsa e (54) 579 405
Environmental and other provisions (83) (19) (73)
Fair value gain (loss) on embedded derivatives — — —
Other (174) — (56)
(716) 389 (24)
Rosneft
Impairment and gain (loss) on sale of businesses and fixed assets (95) — 62
Environmental and other provisions — — —
Restructuring, integration and rationalization costs — — —
Other — — (39)
(95) — 23
Impairment and gain (loss) on sale of businesses and fixed assetsa (260) (22) —
Environmental and other provisionsf (640) (156) (134)
Gulf of Mexico oil spill responseg (714) (2,687) (6,640)
Other (159) 90 (55)
(1,963) (2,847) (6,919)
Total before interest and taxation (2,957) (3,129) (5,167)
Finance costsg (479) (493) (494)
Total before taxation (3,436) (3,622) (5,661)
Taxation credit (charge) on non-operating itemsh 510 1,172 2,833
Taxation - impact of US tax reformi 121 (859) —
Total after taxation (2,805) (3,309) (2,828)
a
See Financial statements – Note 4 for further information.
b
2018 includes an impairment reversal for assets in the North Sea and Angola. 2017 includes an impairment charge relating to BPX Energy (previously known as the US Lower 48 business),
partially offset by gains associated with asset divestments. In addition, 2017 includes an impairment charge arising following the announcement of the agreement to sell the Forties Pipeline
System business to INEOS. 2016 includes a $319-million exploration write-back relating to Block KG D6 in India. In addition, an impairment reversal of $234 million was also recorded in
relation to this block.
c
Restructuring charges are classified as non-operating items where they relate to an announced major group restructuring. A major group restructuring is a restructuring programme affecting
more than one of the group’s operating segments that is expected to result in charges of more than $1 billion over a defined period. Following the Gulf of Mexico oil spill in 2010 and since
the fall in oil prices in late 2014, major group restructuring programmes were initiated.The group's restructuring programme, originally announced in 2014, has now been completed.
d
2018 and 2017 include exploration write-offs of $124 million and $145 million respectively in relation to the value ascribed to certain licences in the deepwater Gulf of Mexico as part of the
accounting for the acquisition of upstream assets from Devon Energy in 2011. 2017 also includes BP’s share of an impairment reversal recognized by the Angola LNG equity-accounted entity,
partially offset by other items. 2016 includes the write-off of $334 million in relation to the value ascribed to the licence in Brazil as part of the accounting for the acquisition of upstream
assets from Devon Energy in 2011.
e
2017 primarily reflects the disposal of our shareholding in the SECCO joint venture.
f
2018 primarily reflects charges due to the annual update of environmental provisions, including asbestos-related provisions for past operations, together with updates of non-Gulf of Mexico
oil spill related legal provisions.
g
See Financial statements – Note 2 for further details regarding costs relating to the Gulf of Mexico oil spill.
h
2017 includes the tax effect of the increase in the provision in the fourth quarter for business economic loss and other claims associated with the Deepwater Horizon Court Supervised
Settlement Program (DHCSSP) at the new US tax rate.
i
In 2017 the US tax reform reduced the US federal corporate income tax rate from 35% to 21%, effective from 1 January 2018. The impact disclosed has been calculated as the change in
deferred tax balances at 31 December 2017, excluding the increase in the provision in the fourth quarter for business economic loss and other claims associated with the DHCSSP, which
arises following the reduction in the tax rate. 2018 reflects a further impact following a clarification of the tax reform. The impact of the US tax reform has been treated as a non-operating
item because it is not considered to be part of underlying business operations, has a material impact upon the reported result and is substantially impacted by Gulf of Mexico oil spill
charges, which are also treated as non-operating items. Separate disclosure is considered meaningful and relevant to investors.

Liquidity and capital resources operations with US dollar debt. Where debt is issued in other
currencies, including euros, it is generally swapped back to US dollars
Financial framework using derivative contracts, or else hedged by maintaining offsetting
cash positions in the same currency. Cash balances of the group are
BP’s financial framework sets a number of parameters in support of mainly held in US dollars or swapped to US dollars and holdings are
growing shareholder value, distributions and returns, while well diversified to reduce concentration risk. The group is not,
maintaining a strong balance sheet. BP’s objective over time is to therefore, exposed to significant currency risk regarding its cash or
grow sustainable free cash flow« through a combination of operating borrowings. Also see Risk factors on page 55 for further information
cash flow« growth and capital discipline, in service of growing on risks associated with prices and markets and Financial
shareholder distributions over the long term. statements – Note 29.
We maintain our progressive dividend policy and the commitment to The group’s gross debt at 31 December 2018 amounted to
the share buyback programme and expect the impact of the scrip $65.8 billion (2017 $63.2 billion). Of the total gross debt, $9.4 billion is
dilution since the third quarter of 2017 to be fully offset by the end of classified as short term at the end of 2018 (2017 $7.7 billion). See
2019. The shape of the buyback programme will reflect ongoing Financial statements – Note 26 for more information on the short-
consideration of factors including changes in the environment, the term balance. Net debt« was $44.1 billion at the end of 2018, an
underlying performance of the business, the outlook for the group increase of $6.3 billion from the 2017 year-end position of $37.8 billion.
financial framework, and other market factors which may vary quarter
to quarter. The ratio of gross debt to gross debt plus equity at
31 December 2018 was 39.3% (2017 38.6%). The ratio of net debt to
We expect operating cash flow excluding amounts relating to the Gulf net debt plus equity« was 30.3% at the end of 2018 (2017 27.4%).
of Mexico oil spill to continue to cover organic capital expenditure« of See Financial statements – Note 27 for gross debt, which is the
$15-17 billion and the full dividend« (including scrip) at around $50 nearest equivalent measure on an IFRS basis, and for further
per barrel. Looking further out, this balancing point is expected to information on net debt.
steadily reduce to $35-40 per barrel by 2021, with organic capital
expenditure in a range of $15-17 billion per year. In a constant price Cash and cash equivalents of $22.5 billion at 31 December 2018 (2017
environment, surplus organic free cash flow« is expected to grow $25.6 billion) are included in net debt. We manage our cash position
and be used to ensure the right balance between deleveraging the to ensure the group has adequate cover to respond to potential short-
balance sheet, growing distributions and disciplined investment, term market illiquidity, and expect to maintain a robust cash position.
depending on the context and outlook at the time. The group also has undrawn committed bank facilities of $7.6 billion
Gulf of Mexico oil spill payments were just over $3 billion in 2018, are (see Financial statements – Note 29 for more information).
expected to step down to around $2 billion in 2019 and around We believe that the group has sufficient working capital for
$1 billion per annum thereafter. Over the next two years we plan to foreseeable requirements, taking into account the amounts of
complete more than $10 billion of divestments and we expect undrawn borrowing facilities and levels of cash and cash equivalents,
divestment proceeds« subsequently to revert to the historical norm and its ongoing ability to generate cash.
of around $2-3 billion per annum.
BP utilizes various arrangements in order to manage its working
We continue to target a gearing« band on a pre-IFRS 16 basis of capital including discounting of receivables and, in the supply and
20-30%, while maintaining strong liquidity and debt market access. trading business, the active management of supplier payment terms,
Payments for the acquisition of BHP’s onshore US assets using inventory and collateral.
available cash moved gearing to 30.3% at the end of 2018. Gearing is
expected to move towards the middle of the band in 2020 in line with Standard & Poor’s Ratings’ long-term credit rating for BP is A- (stable
the generation of free cash flow and receipt of disposal proceeds. outlook) and the Moody’s Investors Service rating is A1 (stable
outlook).
In 2018, the return on average capital employed« was 11.2%a at an
average of $71 per barrel. At $55 per barrel real, return on average The group’s sources of funding, its access to capital markets and
capital employed is targeted to improve to over 10% by 2021, as we maintaining a strong cash position are described in Financial
continue to grow our underlying business. statements – Note 25 and Note 29. On 14 December 2018, BP
a
completed the exchange of $10.5 billion of notes previously issued by
Nearest equivalent GAAP measures: Numerator – Profit attributable to BP shareholders
$9.4 billion; Denominator – Average capital employed $165.5 billion. BP Capital Markets p.l.c for new notes issued by BP Capital Markets
America Inc. in order to optimize the BP group’s capital structure and
Dividends and other distributions to shareholders align revenue generation to indebtedness. Further information on the
The dividend is determined in US dollars, the economic currency of management of liquidity risk and credit risk, and the maturity profile
BP, and the dividend level is regularly reviewed by the board. The and fixed/floating rate characteristics of the group’s debt are also
quarterly dividend was increased to 10.25 cents per share from the provided in Financial statements – Note 26 and Note 29.
third quarter of 2018 (2017 10 cents per share).
Off-balance sheet arrangements
The total dividend distributed to BP shareholders in 2018 was At 31 December 2018, the group’s share of third-party finance debt of
$8.1 billion (2017 $7.9 billion). Shareholders have the option to receive equity-accounted entities was $16.1 billion (2017 $18.0 billion). These
a scrip dividend in place of receiving cash. In 2018 the total dividend amounts are not reflected in the group’s debt on the balance sheet.
paid in cash was $6.7 billion (2017 $6.2 billion). The group has issued third-party guarantees under which amounts
Details of share repurchases to satisfy the requirements of certain outstanding, incremental to amounts recognized on the balance
employee share-based payment plans are set out on page 312. The sheet, at 31 December 2018 were $696 million (2017 $656 million) in
share buyback programme to offset the dilutive impact of the scrip respect of liabilities of joint ventures«and associates«and $432
dividend purchased 50 million ordinary shares in 2018 at a cost of million (2017 $382 million) in respect of liabilities of other third parties.
$355 million, including fees and stamp duty. Of these amounts, $684 million (2017 $645 million) of the joint
ventures and associates guarantees relate to borrowings and for
Financing the group’s activities other third-party guarantees, $423 million (2017 $350 million) relate to
The group’s principal commodities, oil and gas, are priced guarantees of borrowings. Details of operating lease commitments,
internationally in US dollars. Group policy has generally been to which are not recognized on the balance sheet, are shown in the
minimize economic exposure to currency movements by financing table below and provided in Financial statements – Note 28.
The information above contains forward-looking statements, which by their nature involve risk and uncertainty because they relate to events
and depend on circumstances that will or may occur in the future and are outside the control of BP. You are urged to read the Cautionary
statement on page 303 and Risk factors on page 55, which describe the risks and uncertainties that may cause actual results and
developments to differ materially from those expressed or implied by these forward-looking statements.

Contractual obligations
The following table summarizes the group’s capital expenditure commitments for property, plant and equipment at 31 December 2018 and the
proportion of that expenditure for which contracts have been placed.
$ million
Payments due by period
2024 and
Capital expenditure Total 2019 2020 2021 2022 2023 thereafter
Committed 26,378 12,749 5,689 3,456 1,653 1,001 1,830

of which is contracted 8,319 5,646 1,742 528 157 53 193
Capital expenditure is considered to be committed when the project has received the appropriate level of internal management approval. For
joint operations«, the net BP share is included in the amounts above.
In addition, at 31 December 2018, the group had committed to capital expenditure relating to investments in equity-accounted entities
amounting to $1,411 million. Contracts were in place for $1,170 million of this total.
The following table summarizes the group’s principal contractual obligations at 31 December 2018, distinguishing between those for which a
liability is recognized on the balance sheet and those for which no liability is recognized. Further information on borrowings is given in Financial
statements – Note 26 and more information on operating leases is given in Financial statements – Note 28.
$ million
2024 and
Expected payments by period under contractual obligations Total 2019 2020 2021 2022 2023 thereafter
Balance sheet obligations

Borrowingsa 74,587 11,607 8,646 8,410 9,385 8,110 28,429
Finance lease future minimum lease paymentsb 1,350 98 97 95 94 86 880
Decommissioning liabilitiesc 23,807 290 169 107 339 96 22,806
Environmental liabilitiesc 1,663 300 303 219 173 136 532
Gulf of Mexico oil spill liabilitiesd 18,360 2,302 1,569 1,343 1,267 1,219 10,660
Pensions and other post-retirement benefitse 19,114 1,237 1,211 1,149 1,084 1,067 13,366
138,881 15,834 11,995 11,323 12,342 10,714 76,673
Off-balance sheet obligations
Operating lease future minimum lease
paymentsf 11,979 2,511 1,875 1,446 1,124 914 4,109
Unconditional purchase obligationsg 144,660 69,676 16,422 11,479 8,326 6,715 32,042
156,639 72,187 18,297 12,925 9,450 7,629 36,151
Total 295,520 88,021 30,292 24,248 21,792 18,343 112,824
a
Expected payments include interest totalling $10,646 million ($2,350 million in 2019, $1,904 million in 2020, $1,653 million in 2021, $1,379 million in 2022, $1,101 million in 2023 and $2,259
million thereafter).
b
Expected payments include interest totalling $683 million ($54 million in 2019, $51 million in 2020, $47 million in 2021, $43 million in 2022, $37 million in 2023 and $451 million thereafter).
c
The amounts presented are undiscounted.
d
The amounts presented are undiscounted. Gulf of Mexico oil spill liabilities are included in the group balance sheet, on a discounted basis, within other payables. See Financial statements –
Note 2 for further information.
e
Represents the expected future contributions to funded pension plans and payments by the group for unfunded pension plans and the expected future payments for other post-retirement
benefits.
f
The future minimum lease payments are before deducting related rental income from operating sub-leases. In the case of an operating lease entered into solely by BP as the operator of a
joint operation, the amounts shown in the table represent the net future minimum lease payments, after deducting amounts reimbursed, or to be reimbursed, by joint operation partners.
Where BP is not the operator of a joint operation, BP’s share of the future minimum lease payments are included in the amounts shown, whether BP has co-signed the lease or not. Where
operating lease costs are incurred in relation to the hire of equipment used in connection with a capital project, some or all of the cost may be capitalized as part of the capital cost of the
project.
g
Represents any agreement to purchase goods or services that is enforceable and legally binding and that specifies all significant terms (such as fixed or minimum purchase volumes, timing
of purchase and pricing provisions). Agreements that do not specify all significant terms, or that are not enforceable, are excluded. The amounts shown include arrangements to secure long-
term access to supplies of crude oil, natural gas, feedstocks and pipeline systems. In addition, the amounts shown for 2019 include purchase commitments existing at 31 December 2018
entered into principally to meet the group’s short-term manufacturing and marketing requirements. The price risk associated with these crude oil, natural gas and power contracts is
discussed in Financial statements – Note 29.
The following table summarizes the nature of the group’s unconditional purchase obligations.
$ million
2024 and
Unconditional purchase obligations Total 2019 2020 2021 2022 2023 thereafter
Crude oil and oil products 62,801 43,265 6,395 4,679 2,769 2,356 3,337
Natural gas 27,642 14,916 4,922 2,880 2,325 1,555 1,044
Chemicals and other refinery feedstocks 6,715 4,857 923 298 291 118 228
Power 5,573 3,296 1,087 494 158 113 425
Utilities 1,037 163 138 80 64 64 528
Transportation 21,682 1,740 1,480 1,580 1,412 1,412 14,058
Use of facilities and services 19,210 1,439 1,477 1,468 1,307 1,097 12,422
Total 144,660 69,676 16,422 11,479 8,326 6,715 32,042

Upstream analysis by region Energy plc. We operated the assets through the year until the sale
and transfer of ownership completed at the end of November 2018.
Our upstream operations are set out below by geographical area, with
associated significant events for 2018. BP’s percentage working • In November as part of the sale of Rhum to Serica Energy plc the
interest in oil and gas assets is shown in brackets. Working interest is US Office of Foreign Assets Control issued a joint licence to BP
the cost-bearing ownership share of an oil or gas lease. Consequently, and Serica permitting certain US persons and US owned and
the percentages disclosed for certain agreements do not necessarily controlled companies to support Rhum activities in compliance
reflect the percentage interests in proved reserves and production. with US primary sanctions and a letter of comfort permitting all
non-US persons to support Rhum activities in compliance with US
In addition to exploration, development and production activities, our secondary sanctions. The Rhum field is now owned by Serica
upstream business also includes midstream and liquefied natural gas (50%) and the Iranian Oil Company (U.K.) Limited (IOC, 50%) under
(LNG) supply activities. Midstream activities involve the ownership a joint operating agreement. The shares in IOC are now held in
and management of crude oil and natural gas pipelines, processing trust. See International Trade Sanctions on page 298.
facilities and export terminals, LNG processing facilities and
transportation, and our natural gas liquids (NGLs) processing • In November we announced the start-up of production at Clair
business. Ridge – the second phase of development at the Clair field. Two
new, bridge-linked platforms and oil and gas export pipelines have
Our LNG supply activities are located in Abu Dhabi, Angola, Australia, been constructed as part of the project. The new facilities, which
Indonesia and Trinidad. We market around 3.5 million tonnes per required capital investment in excess of $6 billion, are designed for
annum of our LNG production to IST, which uses contractual rights to around 40 years of production.
access import terminal capacity in the liquid markets of Italy (Rovigo),
the Netherlands (Gate), Spain (Bilbao), the UK (the Isle of Grain) and North America
the US (Cove Point), with the remainder marketed directly to Our upstream activities in North America are located in five areas:
customers. LNG is supplied to customers in markets including deepwater Gulf of Mexico, the Lower 48 states, Alaska, Canada and
Argentina, China, the Dominican Republic, India, Japan, Kuwait, South Mexico.
Korea, Taiwan and Thailand.
BP has around 240 lease blocks in the deepwater Gulf of Mexico and
Europe operates four production hubs.
BP is active in the North Sea and the Norwegian Sea. In 2018 BP’s • In October we announced the start-up of the Northwest Expansion
production came from three key areas: the Shetland area comprising project at our Thunder Horse platform, under budget and ahead of
the Clair, Foinaven, Magnus and Schiehallion fields; the central area schedule. The project, which achieved first oil just 16 months after
comprising the Andrew area, Bruce, ETAP, Keith, Kinnoull and Rhum being sanctioned, adds a new subsea manifold and two wells tied
fields; and Norway, through our equity accounted 30% interest in into existing flowlines two miles to the north of the platform. The
Aker BP. new project is expected to boost production at Thunder Horse and
• In July we announced that we had entered into an agreement with is the third major field expansion there in recent years.
ConocoPhillips to increase our holding in the Clair field (prior to the • We participated in lease sales 250 and 251 during the year, and
increase BP 29% and operator) by 16.5%, while selling our non- were awarded 44 leases in total.
operated interest in the Greater Kuparuk Area on the North Slope
of Alaska as well as our holding in the Kuparuk Transportation • In December BP received approval from the Bureau of Safety
Company. Clair is the largest oilfield on the UK Continental Shelf. Environmental Enforcement of the assignment of Chevron’s
The transaction completed in December. interest in the Tiber and Guadalupe leases. BP now has a 100%
working interest in these leases.
• In September we received approval from the Oil and Gas Authority
(OGA) to proceed with the Vorlich development (BP 66% and • Exploration write-offs totalling $447 million were recognized in
operator). Located 240 kilometres east of Aberdeen, in the central 2018, driven primarily by lease relinquishment ($131 million of this
North Sea, Vorlich will consist of two wells tied back to the existing was recognized as a non-operating item).
Ithaca Energy-operated FPF-1 floating production facility. The • In February 2019 we announced the start-up of the Constellation
development is part of a programme of North Sea subsea tie-back project (BP 66.67%), operated by Anadarko.
developments that seek to access new production from fields
located near to established producing infrastructure. The field is • See also Financial statements – Note 1 for further information on
expected to come onstream in 2020. exploration leases.
• In October EnQuest notified BP that it would exercise its option to The US Lower 48 onshore new combined business, following
acquire the remaining 75% of BP’s stake in the Magnus field and acquisition of BHP's unconventional assets (see below), has
associated infrastructure. The disposal completed at the end of significant operated and non-operated activities across Colorado,
November. EnQuest acquired the initial 25% of BP’s interest in the Louisiana, New Mexico, Oklahoma, Texas and Wyoming producing
Magnus field and associated infrastructure in December 2017. natural gas, oil, NGLs and condensate. It had a 2.4 billion boe proved
reserve base as at 31 December 2018, predominantly in
• Also in October we received approval from OGA to proceed with unconventional reservoirs (tight gas«, shale gas and coalbed
the Alligin development (BP 50% and operator). Located 140 methane, and newly acquired shale oil). This resource spans 3.5
kilometres west of Shetland, Alligin is part of the Greater million net developed acres and has approximately 12,000 operated
Schiehallion area. We announced our intention to develop it in April. gross wells, with daily net production around 500mboe/d.
The development will consist of two wells tied back to the existing
Schiehallion and Loyal subsea infrastructure, and is expected to Since the beginning of 2015, our US Lower 48 onshore business has
come onstream in 2020. operated as a separate business while remaining part of our
Upstream segment. With its own governance, systems and
• Development progressed at the Total-operated Culzean field (BP processes, it was established to increase competitive performance
32%) during the year. The field will be developed with three fixed through swift decision making and innovation, while maintaining BP’s
platforms and a floating storage unit. At the end of 2018, commitment to safe, reliable and compliant operations. In October
construction activities were complete and the hook-up and 2018 we announced that we had changed the name of our Lower 48
commissioning activities were underway, with first production business to BPX Energy.
expected in 2019.
• In October we completed the acquisition of BHP’s US
• In November 2017 we announced that we had agreed to sell a unconventional assets in a landmark deal that will significantly
package of our interests in the North Sea comprising the Bruce (BP upgrade our US onshore oil and gas portfolio and help drive long-
37%), Keith (BP 35%) and Rhum (BP 50%) fields, three bridge- term growth. The acquisition, which was announced in July, adds
linked platforms and associated subsea infrastructure to Serica oil and gas production of 190mboe/d in the liquids-rich regions of

the Permian and Eagle Ford basins in Texas and in the Haynesville offshore exploration licences in Nova Scotia, Newfoundland and
natural gas basin in East Texas and Louisiana. Labrador and the Canadian Beaufort Sea.
• As part of the BHP acquisition announcement, BPX Energy expects • The government of Canada continued with its plans to introduce
to divest some existing assets to shift the organization’s core focus legislation to allow it to suspend any oil and gas activities in the
towards the newly-acquired BHP assets. The divestment includes Beaufort Sea.
core positions in San Juan, Wamsutter, Anadarko, Arkoma, legacy In Mexico, we have interests in two exploration joint operations« in
East Texas and Southwest Oklahoma basins, as well as diversified the Salina Basin with Equinor and Total, Block 1 (BP 33% and
non-operated royalty and working interests across the US Lower operator) and Block 3 (BP 33%), and in one exploration joint operation
48. in the Sureste Basin with Total and Hokchi, a subsidiary of Pan
BP’s onshore US crude oil and product pipelines and related American Energy Group (PAEG), Block 34 (BP 42.5% and operator).
transportation assets are included in the Downstream segment. Both Salina Basin operations received exploration plan approval in
March from Comisión Nacional de Hidrocarburos (CNH), the Mexican
In Alaska, BP Exploration (Alaska) Inc. (BPXA) operated nine North
regulator. Seismic interpretation and well pre-spud activities are
Slope oilfields in the Greater Prudhoe Bay area at the end of the year.
taking place in 2018 and 2019 with the tentative plan to commence
For the past four years BP has slowed decline at Prudhoe Bay through
drilling in the first half of 2020. The Sureste Basin operation submitted
wellwork and improved operating field efficiencies, with production
an exploration plan for approval to CNH at the end of December.
being largely maintained. Infrastructure renewal activities in 2018
included compressor replacements, fire and gas system upgrades,
South America
safety system upgrades, pipeline renewal, and facility piping upgrade
projects. BP owns significant interests in three producing fields BP has upstream activities in Brazil and Trinidad & Tobago and through
operated by others, as well as a non-operating interest in the Liberty PAEG, in Argentina and Bolivia.
development project and owned significant interests in an additional In Brazil BP has interests in 25 exploration concessions across five
five producing fields operated by others prior to the sale of our basins.
interest in the Greater Kuparuk Area (see below).
• In the North Campos basin, BP was nominated as operator
• In July we announced the sale of our non-operated 39.2% interest following Anadarko's withdrawal from both the BM-C-30 and BM-
in the Greater Kuparuk Area on the North Slope comprising five C-32 blocks. Regulatory consent is being sought for both
fields, as well as our holding in the Kuparuk Transportation Anadarko's exit and the operatorship transfer. The consortium
Company to ConocoPhillips. The transaction received all regulatory decided not to perform the previously planned extended well test
approvals and closed in December, with a retroactive effective date during the year. Instead it elected to finalize the appraisal plans and
of 1 July 2018. request a postponement of up to five years to decide whether the
projects are commercially feasible. During this period, the
• In May 2018 BP signed a Gas Sales Precedent Agreement with the
consortium will assess alternative development concepts. Approval
Alaska Gas Development Corporation detailing key terms for
of this request by the Brazilian National Petroleum Agency (ANP) is
potential future gas sales to the State. In addition, in September an
still pending.
amendment to the Point Thomson development plan was agreed
with the State to better align field milestones to those of the • BP continues to progress the preparatory activities for drilling
Alaska LNG project. exploration wells in the Foz do Amazonas Basin, with a BP-
BP Pipelines (Alaska) Inc. (BPPA) owns a 49% interest in the Trans- operated well scheduled to start drilling in 2021. An extension
Alaska Pipeline System (TAPS). TAPS transports crude oil from request to August 2020 was approved by the ANP regarding the
Prudhoe Bay on the Alaska North Slope to the port of Valdez in BP-operated Block FZA-M-59. BP is monitoring developments on
southcentral Alaska. In April 2012 Unocal (1.37%) gave notice to the its other non-operated interests in the Foz de Amazonas basin (BP
other TAPS owners of their intention to withdraw as an owner of 30%) to establish an expected drilling activity schedule.
TAPS. The remaining owners and Unocal have not yet reached • In the South Campos basin, BP's request for a contract suspension
agreement regarding the terms for the transfer of Unocal’s interest in in Block BM-C-35 is under review by the ANP.
TAPS.
• BP won Blocks C-M-755 and C-M-793 at the 15th bid round in
• In 2017 the parties involved in TAPS tariff matters at the Federal March in a consortium with Equinor (BP 60%).
Energy Regulatory Commission (FERC) and the Regulatory
Commission of Alaska (RCA) reached an agreement to settle all • In June BP won the licence for the Dois Irmãos block located in the
pending legal challenges involving TAPS interstate rates at FERC Campos basin, offshore Brazil, as a result of the fourth Pre-Salt
for the years 2009-15 and establish a mechanism for calculating Production Sharing Contract Bid Round (Petrobras operator 45%,
interstate rate ceilings for TAPS for the period from 2016 through BP 30%, and Equinor 25%).
2021, as well as subsequent years unless otherwise terminated. • BP accessed new acreage in the Santos basin, offshore Brazil in
The agreement resolved all challenges involving TAPS intrastate September by winning the licence for the Pau Brasil block (BP 50%
rates from 2008 to 2019 and established intrastate rate ceilings for and operator). This represents BP’s first operated production
the future through to 30 June 2019. RCA approval was granted in sharing acreage in the Santos basin.
January and FERC approval in February and all associated
settlement amounts and tariff refunds were paid. • In October drilling commenced at the Peroba block (BP 40%). Well
results are expected in the first quarter of 2019.
• In September BP Alaska removed one of its four Alaska grade
crude oil tankers from service (the vessel Frontier). Historically, BP In Argentina and Bolivia BP conducts activity through PAEG, a joint
Alaska has utilized four tankers to carry crude oil shipments from venture that is owned by BP (50%) and Bridas Corporation (50%).
Alaska. With the reduction in volume over time, as well as new PAEG also has activities in Mexico.
efficiencies identified in the shipping programme, Frontier has In Trinidad & Tobago BP holds exploration and production licences and
been removed from service and its carrying value impaired production-sharing agreements«(PSAs) covering 1.8 million acres
accordingly. offshore of the east and north-east coast. Facilities include 14
In Canada BP is focused on oil sands development as well as offshore platforms and two onshore processing facilities. Production
pursuing offshore exploration opportunities. We utilize in-situ steam- comprises gas and associated liquids.
assisted gravity drainage (SAGD) technology in our oil sands BP also has a shareholding in the Atlantic LNG liquefaction plant. BP’s
developments, which uses the injection of steam into the reservoir to shareholding averages 39% across four LNG trains« with a
warm the bitumen so that it can flow to the surface through combined capacity of 15 million tonnes per annum. We sell gas to
producing wells. We hold interests in three oil sands lease areas train 1, 2 and 3 and process gas in train 4. All LNG from train 1 and
through the Sunrise Oil Sands and Terre de Grace partnerships and most of the LNG from trains 2 and 3 is sold to third parties under
the Pike Oil Sands joint operation«. In addition, we have significant

long-term contracts. BP’s LNG entitlement from trains 2, 3 and 4 is • The Atoll field in the North Damietta concession came fully
marketed to the US, Europe, Asia and South America. onstream at the start of 2018.
• In December, the Cassia compression project was sanctioned. This • In 2018 exploration write-offs of $236 million were recognized, the
project involves the installation of a new compression platform most significant being $169 million in connection with withdrawal
(Cassia C), bridge-linked to the Cassia B processing platform and from the Rahamat lease.
providing lowered wellhead pressures to fields served by the Cassia
hub. The expected project start-up date is 2021. • Following concept sanction in 2017, BP continued progressing the
Baltim South West field. Two wells are planned in 2019 followed by
• Negotiations of three historical upstream commercial issues were further development wells in 2020. A new nine-slot platform will be
completed with the government of the Republic of Trinidad & installed and tied back to existing infrastructure (Abu Madi) through
Tobago at the end of 2018. This resulted in a payment of $144 a new offshore and onshore pipeline.
million representing final settlement.
• In December BP announced it had acquired a 25% interest in the
• The Atlantic LNG Train 1 gas supply contract is currently being Nour North Sinai offshore concession area from Eni. The
negotiated for the period April 2019 to September 2024. concession is in the East Nile Delta Basin. Eni, the operator, is
currently carrying out drilling of the first exploration well and will
• Discussions are ongoing with partners in the Manakin project on the
remain the operator with a 40% stake in the concession. BP will
Unit Operating Agreement (UOA), Field Development Plan and
hold a 25% interest, Mubadala Petroleum 20% and Tharwa
subsurface arrangements following declaration of commerciality in
Petroleum Company 15%.
January 2018. The UOA is expected to be agreed in 2019. Manakin,
discovered in 1998, is a cross-border field with Venezuela. • In February 2019 BP announced the start-up of gas production from
the Giza and Fayoum fields in the West Nile Delta development (BP
• In October the Bongos exploration well in the deepwater Block 14
82.75%). This development comprises five fields across the North
(BP 30%) was announced as a discovery. Assessment of the well
Alexandria and West Mediterranean deepwater offshore blocks and
results is currently in progress.
is being developed as three separate projects to enable BP and its
• The Angelin project, sanctioned in June 2017, involves the partners to accelerate gas production commitments to Egypt. The
construction of a new platform, BP’s 15th offshore production first of these three projects (Taurus and Libra) started production in
facility, 60 kilometres off the south-east coast of Trinidad in water 2017, Giza and Fayoum is the second, and the third project (Raven)
depths of approximately 65 metres. The development includes four is expected to be onstream in 2019.
wells, with gas from Angelin flowing to the Cassia B hub for In Libya, BP partners with the Libyan Investment Authority (LIA) in an
processing via a new pipeline to the Serrette platform. During 2018 exploration and production-sharing agreement (EPSA) to explore
the jacket and topsides were installed and subsea skid and pipeline acreage in the onshore Ghadames and offshore Sirt basins (BP 85%).
installation was also completed. The first well was completed in BP wrote off all balances associated with the Libya EPSA in 2015.
January 2019 and the project commenced production in February
2019. • In October we announced that we had signed an agreement with
the Libyan National Oil Corporation and Eni with a view to working
Africa together to resume exploration activities in Libya. The parties have
BP’s upstream activities in Africa are located in Algeria, Angola, Côte agreed to work towards Eni acquiring a 42.5% interest in the BP-
d'Ivoire, Egypt, Libya, Madagascar, Mauritania, São Tomé & Príncipe operated EPSA in Libya. On completion, Eni would also become
and Senegal. operator of the EPSA. The companies are working to finalize and
complete all agreements with a target of resuming exploration
In Algeria BP, Sonatrach and Equinor are partners in the In Salah (BP
activities in 2019.
33.15%) and In Amenas (BP 45.89%) projects that supply gas to the
domestic and European markets. In Mauritania and Senegal, BP has a 62% participating interest in the
C-6, C-8, C-12 and C-13 exploration blocks in Mauritania and a 60%
• In December 2017 BP and Equinor signed an extension agreement participating interest in the Cayar Profond and St Louis Profond
for the In Amenas production sharing contract with Sonatrach, the exploration blocks in Senegal. Together these blocks cover
Algerian state-owned energy company. The agreement was approximately 33,000 square kilometres. BP also has a 15% interest
formally ratified in April 2018. in the C-18 exploration block, operated by Total.
In Angola, BP owns an interest in five major deepwater offshore
• In February KE announced that the Requin Tigre-1 well in the Saint
licences and is operator in two of these, Blocks 18 and 31, that are
Louis Profond Block, offshore Senegal, was fully tested but did not
producing. We also have an equity interest in the Angola LNG plant
encounter hydrocarbons.
(BP 13.6%).
• In December BP and partners announced that the FID for Phase 1
• During the year a final investment decision (FID) on Block 17 was of the cross-border Greater Tortue Ahmeyim development had
made by the operator, Total, to proceed with the Zinia 2 deep
been agreed. The decision was made following agreement
offshore development project (BP 16.67%).
between the Mauritanian and Senegalese governments and
• In December, BP announced it had taken the FID to progress the partners BP, KE and National Oil Companies, Petrosen and
Platina project in Block 18. The agreement also extends the SMHPM. The project will produce gas from an ultra-deepwater
production licence for the Greater Plutonio operation in Block 18 to subsea system and mid-water floating production, storage and
2032, and provides for Sonangol to take an 8% equity interest in offloading (FPSO) vessel. The gas will then be transferred to a
the block, all subject to government approval. floating liquefied natural gas (FLNG) facility at a near-shore hub
located on the Mauritania and Senegal maritime border. The FLNG
• The Block 25/11 production sharing agreement expired in January facility is designed to provide approximately 2.5 million tonnes of
2019. The remaining intangible asset of $42 million associated with LNG per annum on average. The project, the first major gas project
the licence acquisition cost was written off at the start of 2018 as to reach FID in the basin, is planned to provide LNG for global
no further drilling activity was planned. export as well as making gas available for domestic use in both
In Côte d’Ivoire, BP has interests in five offshore oil blocks with Mauritania and Senegal. First gas for the project is expected in
Kosmos Energy (KE) under agreements with the government of Côte 2022.
d'Ivoire and the state oil company Société Nationale d'Operations In Madagascar, BP signed four production-sharing contracts (PSC) in
Pétrolières de la Côte d'Ivoire (PETROCI) (BP 45%, KE 45% and 2018 for exploration licences situated offshore northwest
operator, PETROCI approximately 10%). New 3D seismic data was Madagascar, under agreements with the government of Madagascar
acquired during the year and analysis of it is ongoing. represented by Office des Mines Nationales et des Industries
In Egypt, BP and its partners currently produce 10% of Egypt’s Stratégiques (OMNIS) (BP 100%).
liquids« production and over 50% of its gas production.

In São Tomé & Príncipe, BP and KE were awarded two offshore capacity of the pipeline during the first phase is 106mboe/d and the
blocks in March 2018, under production-sharing agreements with the average throughput in 2018 was 30mboe/d. The second phase will
government of São Tomé & Príncipe represented by Agência Nacional take gas from Eskishehir to the connection with the Trans Adriatic
do Petróleo de São Tomé e Príncipe (ANP-STP) (BP 50% (operator), KE Pipeline (TAP) in Greece. BP has a 20% interest in TAP, that will take
35% ANP-STP 15%). During the year work began on environmental gas through Greece and Albania into Italy. In December TAP entered
baseline surveys, with completion anticipated in the second half of into project financing arrangements with multiple lenders. BP's share
2019. of the funds received as a result of financing is $594 million.
In Oman BP operates the Khazzan field in Block 61 (BP 60%).
Asia
BP has activities in Abu Dhabi, Azerbaijan, China, India, Iraq, Kuwait, • In April BP announced that, together with its partner the Oman Oil
Oman and Russia. Company Exploration & Production (OOCEP), it had approved the
development of Ghazeer, the second phase of the Khazzan gas
In China we have a 30% equity stake in the Guangdong LNG
field in Oman. The Ghazeer project is expected to increase
regasification terminal and trunkline project with a total storage
production by 50% and will involve construction of a third gas
capacity of 640,000 cubic metres. The project is supplied under a
processing train to handle this. The project is currently on track to
long-term contract with Australia’s North West Shelf venture (BP
deliver first gas as planned in 2021.
16.67%).
• In January 2019 BP announced that together with Eni, they had
• BP has two PSCs for shale gas exploration, development and signed a heads of agreement (HoA) with the Ministry of Oil and
production in the Neijiang-Dazu block and Rong Chang Bei block in
Gas of the Sultanate of Oman to work jointly towards a significant
the Sichuan basin. The two blocks, both in the exploration phase,
new exploration opportunity in Oman. Under the HoA, the two
cover a total area of approximately 2,500 square kilometres. China
companies will work with the government of Oman towards the
National Petroleum Corporation (CNPC) is the operator. In 2018,
award of a new EPSA for Block 77 in central Oman. BP and Eni
drilling activity continued to progress in the two blocks in the
have entered discussions with the Ministry to finalise details of the
Sichuan basin.
EPSA. Block 77, with a total area of almost 3,100 square
In Azerbaijan, BP operates two PSAs, Azeri-Chirag-Gunashli (ACG) (BP kilometres, is located in central Oman, 30 kilometres east of the
30.37%) and Shah Deniz (BP 28.83%) and also holds a number of BP-operated Block 61.
other exploration leases.
In Abu Dhabi, BP holds a 10% interest in the ADNOC onshore
• In 2012 certain EU and US regulations concerning restrictive concession. We also have a 10% equity shareholding in ADNOC LNG
measures against Iran were issued, which impact the Shah Deniz and a 10% shareholding in the shipping company NGSCO. ADNOC
joint venture in which Naftiran Intertrade Co Ltd (NICO), a LNG supplied approximately 5.4 million tonnes of LNG (729bcfe
subsidiary of the National Iranian Oil Company, holds a 10% regasified) in 2018. Our interest in the ADNOC onshore concession
interest. The EU sanctions and certain US secondary sanctions in expires at the end of 2054.
respect of Iran were lifted or suspended as part of the Joint
• In March 2019 ADNOC and ADNOC LNG agreed to extend the
Comprehensive Plan of Action. However, in November the US
gas supply agreement to 2040. The new agreement will take
secondary sanctions were reinstated. For further information see
effect from 1 April 2019, and replaces an existing agreement
International trade sanctions on page 298.
expiring on 31 March 2019.
• In April we announced that we had signed a new PSA with the Our interest in the ADNOC offshore concession expired in March
State Oil Company of Azerbaijan Republic (SOCAR) for the joint 2018. The concession, together with all related rights and obligations,
exploration and development of Block D230 in the North Absheron has reverted back to the government of the Emirate of Abu Dhabi.
basin. The block lies 135 kilometres north-east of Baku in the
Caspian Sea, covering an area of 3,200 square kilometres. Under In 2016 BP signed an enhanced technical service agreement for south
the PSA, which is for 25 years, BP will be the operator during the and east Kuwait conventional oilfields, which includes the Burgan
exploration phase and hold a 50% interest, with SOCAR holding field, with Kuwait Oil Company. Target performance for the 2017-18
the remaining 50%. The signing of the PSA follows the plan was delivered and implementation of the 2018-19 plan is
memorandum of understanding for exploration of Block D230, underway.
which was agreed in May 2016. In India we have a participating interest in two oil and gas PSAs (KG
• In July we announced the start-up of the landmark Shah Deniz D6 30% and NEC25 33.33%) both operated by Reliance Industries
Stage 2 gas development in Azerbaijan, including its first Limited (RIL). We also have a stake in a 50:50 joint venture (India Gas
commercial gas delivery to Turkey. The BP-operated $28 billion Solutions Private Limited) with RIL for the sourcing and marketing of
project is the first subsea development in the Caspian Sea and the gas in India.
largest subsea infrastructure operated by BP worldwide. It is also • In April BP and RIL sanctioned the Satellite Cluster project in Block
the starting point for the Southern Gas Corridor series of pipelines KG D6. This is the second of three projects in the Block KG D6
that will deliver natural gas from the Caspian Sea direct to integrated development. The first of the projects, development of
European markets for the first time. the R-Series deep-water gas fields, was sanctioned in June 2017
BP holds a 30.1% interest in and operates the Baku-Tbilisi-Ceyhan oil and is currently under development. The Satellite Cluster is a dry
pipeline. The 1,768-kilometre pipeline transports oil from the BP- gas development and comprises four discoveries with a five-well
operated ACG oilfield and gas condensate from the Shah Deniz gas subsea development in Block KG D6, off the east coast of India. It is
field in the Caspian Sea, along with other third-party oil, to the eastern expected to come on stream in 2021.
Mediterranean port of Ceyhan. The pipeline has a capacity of In Iraq BP holds a 47.6% working interest and is the lead contractor in
1mmboe/d, with an average throughput in 2018 of 697mboe/d. the Rumaila technical service contract in southern Iraq. The technical
BP is technical operator of, and currently holds a 28.83% interest in, services contract runs to December 2034. Rumaila is one of the
the 693 kilometre South Caucasus Pipeline. The pipeline takes gas world’s largest oil fields, comprising five producing reservoirs.
from Azerbaijan through Georgia to the Turkish border and has a • In January 2018 BP entered into a letter of intent to work on the
capacity of 143mboe/d, with average throughput in 2018 of Kirkuk field which extends until 2019.
142mboe/d. BP (as operator of Azerbaijan International Operating
Company) also operates the Western Route Export Pipeline that In Russia in addition to its 19.75% equity interest in Rosneft, BP
transports ACG oil to Supsa on the Black Sea coast of Georgia, with holds a 20% interest in Taas-Yuryakh Neftegazodobycha (Taas)
an average throughput of 76mboe/d in 2018. together with Rosneft (50.1%) and a consortium comprising Oil India
Limited, Indian Oil Corporation Limited and Bharat PetroResources
BP also holds a 12% interest in the Trans Anatolian Natural Gas Limited (29.9%). Taas is developing the Srednebotuobinskoye oil and
Pipeline. In the first phase, which commenced in June, gas from gas condensate field in East Siberia (see Rosneft on page 34 for
Shah Deniz is transported from Georgia to Eskishehir in Turkey. The further details). Also with Rosneft, we hold a 49% interest in Yermak

Neftegaz LLC, which conducts exploration in the West Siberian and BP is also one of five participants in the Browse LNG venture
Yenisei-Khatanga basins. Yermak Neftegaz LLC currently holds seven (operated by Woodside) and holds a 17.33% interest.
exploration and production licences. The venture has carried out
further appraisal work on the Baikalovskoye field, an existing Rosneft
• The Browse project participants finalized evaluating a range of
development options for the project and have selected to develop
discovery in the Yenisei-Khatanga area of mutual interest.
Browse by connecting it via a 900 kilometre pipeline to the NWS
• In the second quarter, the Taas-Yuryakh expansion project venture's Karratha gas plant. A final investment decision is
completed commissioning of the main project facilities for the expected in 2021. This decision has resulted in the write-off of $136
Srednebotuobinskoye oil and gas condensate. million in relation to previous project development costs for
Browse.
• Also in the second quarter BP acquired a 49% stake in
LLC Kharampurneftegaz to develop subsoil resources jointly with • In October we announced the start-up of production at our Western
Rosneft within the Kharampurskoe and Festivalnoye licence areas in Flank B project (BP 16.67%), ahead of schedule.
Yamalo-Nenets.
• During the year, the Ocean Great White rig contract was cancelled
• In September Rosneft and BP also agreed to jointly explore two and a commercial arrangement entered into with the lessor
additional oil and gas licence areas located in Sakha (Yakutia). The whereby BP will utilize different rigs on projects in the future.
licences are expected to be held by a Yermak subsidiary. Completion In Papua Barat, Eastern Indonesia, BP operates the Tangguh LNG
of the deal, subject to external approvals, is expected in 2019. plant (BP 40.22%). The asset currently comprises 16 producing wells,
two offshore platforms, two pipelines and an LNG plant with two
Australasia
production trains. It has a total capacity of 7.6 million tonnes of LNG
BP has activities in Australia and Eastern Indonesia. per annum. Tangguh supplies LNG to customers in Indonesia,
In Australia BP is one of seven participants in the North West Shelf Mexico, China, South Korea, and Japan through a combination of
(NWS) venture, which has been producing LNG, pipeline gas, long, medium and short-term contracts.
condensate, LPG and oil since the 1980s. Six partners (including BP)
• The Tangguh expansion project is progressing on schedule with the
hold an equal 16.67% interest in the gas infrastructure and an equal
installation of two offshore platforms completed and the
15.78% interest in the gas and condensate reserves, with a seventh
construction of the onshore LNG production train and supporting
partner owning the remaining 5.32%. BP also has a 16.67% interest
facilities currently ongoing. Drilling on the first of 13 new
in some of the NWS oil reserves and related infrastructure. The NWS
production wells commenced in early 2019, and first production is
venture is currently the largest single source supplier to the domestic
expected in 2020. The project will add 3.8 million tonnes per
market in Western Australia and one of the largest LNG export
annum (mtpa) of production capacity to the existing facility,
projects in the region, with five LNG trains in operation. BP’s net
bringing total plant capacity to 11.4mtpa.
share of the capacity of NWS LNG trains 1-5 is 2.7 million tonnes of
LNG per year. • In November approval from the government of Indonesia to
relinquish BP’s 32% interest in the Chevron-operated West Papua I
was received.

Downstream plant capacity
The following tablea summarizes BP group’s interests in refineries and average daily crude distillation capacities as at 31 December 2018.
Crude distillation capacitiesb
BP share
Group interestc thousand barrels
Fuels value chain Country Refinery (%) per day
US
US North West US Cherry Point 100 236
US East of Rockies Whiting 100 430
Toledo 50 80
746
Europe
Rhine Germany Bayernoild 10 22
Gelsenkirchen 100 265
Lingen 100 95
Netherlands Rotterdam 100 377
Iberia Spain Castellón 100 110
869
Rest of world
Australia Australia Kwinana 100 152
New Zealand New Zealand Whangareid e 10.1 33
Southern Africa South Africa Durband 50 90
275
Total BP share of capacity at 31 December 2018 1,890
a
This does not include BP’s interest in Pan American Energy Group, which is reported through the Upstream segment.
b
Crude distillation capacity is gross rated capacity, which is defined as the highest average sustained unit rate for a consecutive 30-day period.
c
BP share of equity, which is not necessarily the same as BP share of processing entitlements.
d
Indicates refineries not operated by BP.
e
Reflects BP share of processing entitlement, which is not the same as BP share of equity.
Petrochemicals production capacitya

The following table summarizes BP group’s share of petrochemicals production capacities as at 31 December 2018.
BP share of capacity
thousand tonnes per annumb
Product
Group interestc Acetic Olefins and
Geographical area Site (%) PTA PX acid derivatives Others
US
Cooper River 100 1,400 — — — —
Texas Cityd 100 — 900 600 — 100
1,400 900 600 — 100
Europe
UK Hull 100 — — 500 — 200
Belgium Geel 100 1,400 700 — — —
Germany Gelsenkirchene 100 — — — 3,300 —
Mülheime 100 — — — — 200
1,400 700 500 3,300 400
Rest of world
Trinidad & Tobago Point Lisas 36.9 — — — — 700
China Chongqing 51 — — 200 — 100
Nanjing 50 — — 300 — —
Zhuhaif 91.9 2,500 — — — —
Indonesia Merak 100 500 — — — —
South Korea Ulsang 34-51 — — 300 — 100
Malaysia Kertih 70 — — 400 — —
Taiwan Mai Liao 50 — — 200 — —
Taichung 61.4 500 — — — —
3,500 — 1,400 — 900
6,300 1,600 2,500 3,300 1,400
Total BP share of capacity at 31 December 2018 15,100
a
Petrochemicals production capacity is the proven maximum sustainable daily rate (MSDR) multiplied by the number of days in the respective period, where MSDR is the highest average
daily rate ever achieved over a sustained period.
b
Capacities are shown to the nearest hundred thousand tonnes per annum.
c
Includes BP share of non-operated equity-accounted entities, as indicated.
d
For acetic acid, group interest is quoted at 100%, reflecting the capacity entitlement which is marketed by BP.
e
Due to the integrated nature of these plants with our Gelsenkirchen refinery, the income and expenditure of these plants is managed and reported through the fuels business.
f
BP Zhuhai Chemical Company Ltd is a subsidiary«of BP, the capacity of which is shown above at 100%.
g
Group interest varies by product.

Oil and gas disclosures for the In 2018 we progressed 1,306mmboe of proved undeveloped reserves
(745mmboe for our subsidiaries« alone) to proved developed
group reserves through ongoing investment in our subsidiaries’ and equity-
accounted entities’ upstream development activities. Total
Resource progression development expenditure, excluding midstream activities, was
$14,210 million in 2018 ($9,917 million for subsidiaries and $4,293
BP manages its hydrocarbon resources in three major categories:
million for equity-accounted entities). The major areas with
prospect inventory, contingent resources and reserves. When a
progressed volumes in 2018 were Russia, US, Azerbaijan, UAE and
discovery is made, volumes usually transfer from the prospect
Egypt. Revisions of previous estimates for proved undeveloped
inventory to the contingent resources category. The contingent
reserves are due to changes relating to field performance, well
resources move through various sub-categories as their technical and
results or changes in commercial conditions including price impacts.
commercial maturity increases through appraisal activity.
There were material net positive revisions to our proved undeveloped
At the point of final investment decision, most proved reserves will resources in Russia as a result of development drilling results and
be categorized as proved undeveloped (PUD). Volumes will material net negative revisions in the US Lower 48 due to changes in
subsequently be recategorized from PUD to proved developed (PD) our development plan to incorporate activity associated with the
as a consequence of development activity. When part of a well’s purchase of new assets. The following tables describe the changes to
proved reserves depends on a later phase of activity, only that portion our proved undeveloped reserves position through the year for our
of proved reserves associated with existing, available facilities and subsidiaries and equity-accounted entities and for our subsidiaries
infrastructure moves to PD. The first PD bookings will typically occur alone.
at the point of first oil or gas production. Major development projects Subsidiaries and equity-accounted entities volumes in mmboea
typically take one to five years from the time of initial booking of PUD Proved undeveloped reserves at 1 January 2018 8,060
to the start of production. Changes to proved reserves bookings may
Revisions of previous estimates 20
be made due to analysis of new or existing data concerning
production, reservoir performance, commercial factors and additional Improved recovery 311
reservoir development activity. Discoveries and extensions 646
Purchases 1,174
Volumes can also be added or removed from our portfolio through
acquisition or divestment of properties and projects. When we Sales (12)
dispose of an interest in a property or project, the volumes associated Total in year proved undeveloped reserves changes 2,139
with our adopted plan of development for which we have a final Proved developed reserves reclassified as
investment decision will be removed from our proved reserves upon undeveloped 15
completion of the transaction. When we acquire an interest in a Progressed to proved developed reserves by
property or project, the volumes associated with the existing development activities (e.g. drilling/completion) (1,306)
development and any committed projects will be added to our proved Proved undeveloped reserves at 31 December
reserves if BP has made a final investment decision and they satisfy 2018 8,908
the SEC’s criteria for attribution of proved status. Following the
acquisition, additional volumes may be progressed to proved reserves
Subsidiaries only volumes in mmboea
from non-proved reserves or contingent resources.
Proved undeveloped reserves at 1 January 2018 4,052
Non-proved reserves and contingent resources in a field will only be Revisions of previous estimates (272)
recategorized as proved reserves when all the criteria for attribution Improved recovery 297
of proved status have been met and the volumes are included in the
Discoveries and extensions 169
business plan and scheduled for development, typically within five
years. BP will only book proved reserves where development is Purchases 945
scheduled to commence after more than five years, if these proved Sales (12)
reserves satisfy the SEC’s criteria for attribution of proved status and Total in year proved undeveloped reserves changes 1,128
BP management has reasonable certainty that these proved reserves Proved developed reserves reclassified as
will be produced. undeveloped 12
At the end of 2018 BP had material volumes of proved undeveloped Progressed to proved developed reserves by
development activities (e.g. drilling/completion) (745)
reserves held for more than five years in Russia, Trinidad, the North
Sea, Egypt, Canada and the Gulf of Mexico. These are part of ongoing Proved undeveloped reserves at 31 December
infrastructure-led development activities for which BP has a historical 2018 4,447
track record of completing comparable projects in these countries. a
We have no proved undeveloped reserves held for more than five parts.
years in our onshore US developments. BP bases its proved reserves estimates on the requirement of
In each case the volumes are being progressed as part of an adopted reasonable certainty with rigorous technical and commercial
development plan where there are physical limits to the development assessments based on conventional industry practice and regulatory
timing such as infrastructure limitations, contractual limits including requirements. BP only applies technologies that have been field
gas delivery commitments, late life compression and the complex tested and have been demonstrated to provide reasonably certain
nature of working in remote locations, or where there are significant results with consistency and repeatability in the formation being
commitments on delivery to the relevant authority. evaluated or in an analogous formation. BP applies high-resolution
seismic data for the identification of reservoir extent and fluid
Over the past five years, BP has annually progressed a weighted
contacts only where there is an overwhelming track record of
average 19% (18% for 2017 five-year average) of our group proved
success in its local application. In certain cases BP uses numerical
undeveloped reserves (including the impact of disposals and price
simulation as part of a holistic assessment of recovery factor for its
acceleration effects in PSAs) to proved developed reserves. This
fields, where these simulations have been field tested and have been
equates to a turnover time of about five and a half years. We expect
demonstrated to provide reasonably certain results with consistency
the turnover time to remain near this level and anticipate the volume
and repeatability in the formation being evaluated or in an analogous
of proved undeveloped reserves held for more than five years to
formation. In certain deepwater fields BP has booked proved reserves
remain about the same.
before production flow tests are conducted, in part because of the
Proved reserves as estimated at the end of 2018 meet BP’s criteria significant safety, cost and environmental implications of conducting
for project sanctioning and SEC tests for proved reserves. We have these tests. The industry has made substantial technological
not halted or changed our commitment to proceed with any material improvements in understanding, measuring and delineating reservoir
project to which proved undeveloped reserves have been attributed. properties without the need for flow tests. To determine reasonable
certainty of commercial recovery, BP employs a general method of

reserves assessment that relies on the integration of three types of Compliance
data: International Financial Reporting Standards (IFRS) do not provide
• well data used to assess the local characteristics and conditions of specific guidance on reserves disclosures. BP estimates proved
reservoirs and fluids reserves in accordance with SEC Rule 4-10 (a) of Regulation S-X and
relevant Compliance and Disclosure Interpretations (C&DI) and Staff
• field scale seismic data to allow the interpolation and extrapolation Accounting Bulletins as issued by the SEC staff.
of these characteristics outside the immediate area of the local
well control By their nature, there is always some risk involved in the ultimate
development and production of proved reserves including, but not
• data from relevant analogous fields. limited to: final regulatory approval; the installation of new or
Well data includes appraisal wells or sidetrack holes, full logging additional infrastructure, as well as changes in oil and gas prices;
suites, core data and fluid samples. BP considers the integration of changes in operating and development costs; and the continued
this data in certain cases to be superior to a flow test in providing availability of additional development capital. All the group’s proved
understanding of overall reservoir performance. The collection of data reserves held in subsidiaries and equity-accounted entities are
from logs, cores, wireline formation testers, pressures and fluid estimated by the group’s petroleum engineers or by independent
samples calibrated to each other and to the seismic data can allow petroleum engineering consulting firms and then assured by the
reservoir properties to be determined over a greater volume than the group’s petroleum engineers.
localized volume of investigation associated with a short-term flow DeGolyer & MacNaughton (D&M), an independent petroleum
test. There is a strong track record of proved reserves recorded using engineering consulting firm, has estimated the net proved crude oil,
these methods, validated by actual production levels. condensate, natural gas liquids (NGLs) and natural gas reserves, as of
31 December 2018, of certain properties owned by Rosneft as part of
Governance our equity-accounted proved reserves. The properties evaluated by
BP’s centrally controlled process for proved reserves estimation D&M account for 100% of Rosneft’s net proved reserves as of
approval forms part of a holistic and integrated system of internal 31 December 2018. The net proved reserves estimates prepared by
control. It consists of the following elements: D&M were prepared in accordance with the reserves definitions of
Rule 4-10(a)(1)-(32) of Regulation S-X. All reserves estimates involve
• Accountabilities of certain officers of the group to ensure that there
some degree of uncertainty. BP has filed D&M’s independent report
is review and approval of proved reserves bookings independent of
on its reserves estimates as an exhibit to this Annual Report on
the operating business and that there are effective controls in the
Form 20-F filed with the SEC.
approval process and verification that the proved reserves
estimates and the related financial impacts are reported in a timely Netherland, Sewell & Associates (NSAI), an independent petroleum
manner. engineering consulting firm, has estimated the net proved crude oil,
condensate, natural gas liquids (NGLs) and natural gas reserves, as of
• Capital allocation processes, whereby delegated authority is 31 December 2018, of certain properties owned by BP in the US
exercised to commit to capital projects that are consistent with the Lower 48. The properties evaluated by NSAI account for 100% of BP’s
delivery of the group’s business plan. A formal review process net proved reserves in the US Lower 48 as of 31 December 2018. The
exists to ensure that both technical and commercial criteria are net proved reserves estimates prepared by NSAI were prepared in
met prior to the commitment of capital to projects. accordance with the reserves definitions of Rule 4-10(a)(1)-(32) of
• Group audit, whose role is to consider whether the group’s system Regulation S-X. All reserves estimates involve some degree of
of internal control is adequately designed and operating effectively uncertainty. BP has filed NSAI’s independent report on its reserves
to respond appropriately to the risks that are significant to BP. estimates as an exhibit to this Annual Report on Form 20-F filed with
the SEC.
• Approval hierarchy, whereby proved reserves changes above
certain threshold volumes require immediate review and all proved Our proved reserves are associated with both concessions (tax and
reserves require annual central authorization and have scheduled royalty arrangements) and agreements where the group is exposed to
periodic reviews. The frequency of periodic review ensures that the upstream risks and rewards of ownership, but where our
100% of the BP proved reserves base undergoes central review entitlement to the hydrocarbons« is calculated using a more complex
every three years. formula, such as with PSAs. In a concession, the consortium of which
we are a part is entitled to the proved reserves that can be produced
BP’s vice president of segment reserves is the petroleum engineer over the licence period, which may be the life of the field. In a PSA,
primarily responsible for overseeing the preparation of the reserves we are entitled to recover volumes that equate to costs incurred to
estimate. He has more than 35 years of diversified industry develop and produce the proved reserves and an agreed share of the
experience, with 13 years spent managing the governance and remaining volumes or the economic equivalent. As part of our
compliance of BP’s reserves estimation. He is a past member of the entitlement is driven by the monetary amount of costs to be
Society of Petroleum Engineers Oil and Gas Reserves Committee and recovered, price fluctuations will have an impact on both production
of the American Association of Petroleum Geologists Committee on volumes and reserves.
Resource Evaluation and is the current chair of the bureau of the
United Nations Economic Commission for Europe Expert Group on We disclose our share of proved reserves held in equity-accounted
Resource Classification. entities (joint ventures« and associates«), although we do not
control these entities or the assets held by such entities.
No specific portion of compensation bonuses for senior management
is directly related to proved reserves targets. Additions to proved BP’s estimated net proved reserves and proved
reserves is one of several indicators by which the performance of the
reserves replacement
Upstream segment is assessed by the remuneration committee for
the purposes of determining compensation bonuses for the executive 89% of our total proved reserves of subsidiaries at
directors. Other indicators include a number of financial and 31 December 2018 were held through joint operations«(88% in
operational measures. 2017), and 31% of the proved reserves were held through such joint
operations where we were not the operator (34% in 2017).
BP’s variable pay programme for the other senior managers in the
Upstream segment is based on individual performance contracts.
Individual performance contracts are based on agreed items from the
business performance plan, one of which, if chosen, could relate to
proved reserves.

d
Estimated net proved reserves of crude oil at Proved reserves in the Prudhoe Bay field in Alaska include an estimated 16 million barrels
on which a net profits royalty will be payable over the life of the field under the terms of the
31 December 2018a b c BP Prudhoe Bay Royalty Trust.
million barrels e
All of the reserves in Canada are bitumen.
Developed Undeveloped Total f
Includes 12 million barrels of liquids in respect of the 30% non-controlling interest in BP
UK 223 243 466 Trinidad and Tobago LLC.
g
Includes 356 million barrels of liquids in respect of the non-controlling interest in Rosneft
Rest of Europe — — — held assets in Russia including 24 million barrels held through BP’s interests in Russia other
USd 962 802 1,764 than Rosneft.
h
Includes 1,573 billion cubic feet of natural gas in respect of the 30% non-controlling
Rest of North Americae 43 190 234
interest in BP Trinidad and Tobago LLC.
South Americaf 8 5 14 i
Includes 1,211 billion cubic feet of natural gas in respect of the non-controlling interest in
Africa 223 36 259 Rosneft held assets in Russia including 480 billion cubic feet held through BP’s interests in
Russia other than Rosneft.
Rest of Asia 1,126 482 1,608
Australasia 30 5 34
Because of rounding, some totals may not agree exactly with the
Subsidiaries 2,615 1,763 4,378 sum of their component parts.
Equity-accounted entities 3,541 2,792 6,333
Total 6,156 4,555 10,711 Proved reserves replacement
Total hydrocarbon proved reserves at 31 December 2018, on an oil
Estimated net proved reserves of natural gas liquids at equivalent basis including equity-accounted entities, increased by 8%
31 December 2018a b (increase of 7% for subsidiaries and increase of 9% for equity-
million barrels accounted entities) compared with 31 December 2017. Natural gas
Developed Undeveloped Total represented about 43% (51% for subsidiaries and 33% for equity-
UK 8 6 14 accounted entities) of these reserves. The change includes a net
Rest of Europe — — — increase from acquisitions and disposals of 1,498mmboe (increase of
US 266 246 511 993mmboe within our subsidiaries and increase of 505mmboe within
our equity-accounted entities). Acquisition activity in our subsidiaries
Rest of North America — — —
occurred in the US and UK, and divestment activity in our subsidiaries
South America 2 25 27 in the US and UK. In our equity-accounted entities acquisitions
Africa 14 4 18 occurred in our Russian joint ventures other than Rosneft. There
Rest of Asia — — — were no divestments in our equity-accounted entities.
Australasia 5 — 5 The proved reserves replacement ratio« is the extent to which
Subsidiaries 295 280 576 production is replaced by proved reserves additions. This ratio is
Equity-accounted entities 114 54 169 expressed in oil equivalent terms and includes changes resulting from
Total 409 335 744 revisions to previous estimates, improved recovery, and extensions
and discoveries. For 2018, the proved reserves replacement ratio
Estimated net proved reserves of liquids« excluding acquisitions and disposals was 100% (143% in 2017 and
million barrels 109% in 2016) for subsidiaries and equity-accounted entities, 66% for
Developed Undeveloped Total subsidiaries alone and 161% for equity-accounted entities alone.
Subsidiariesf 2,910 2,044 4,954 There were increases (131mmboe) of reserves due to extension of
Equity-accounted entitiesg 3,655 2,846 6,502 the date of cessation of production across the group due to higher oil
and gas prices, but these were more than offset by decreases
Total 6,565 4,890 11,456
(140mmboe) in PSAs, principally in Azerbaijan, Indonesia and Iraq
Estimated net proved reserves of natural gas at resulting from decreased cost recovery volumes due to higher oil and
31 December 2018a b gas prices.
billion cubic feet In 2018 net additions to the group’s proved reserves (excluding
Developed Undeveloped Total production and sales and purchases of reserves-in-place) amounted
UK 439 343 782 to 1,381mmboe (576mmboe for subsidiaries and 805mmboe for
equity-accounted entities), through revisions to previous estimates,
Rest of Europe — — —
improved recovery from, and extensions to, existing fields and
US 6,270 5,056 11,326 discoveries of new fields. The subsidiary additions were through
Rest of North America — — — improved recovery from, and extensions to, existing fields and
South Americah 2,168 3,073 5,241 discoveries of new fields where they represented a mixture of proved
Africa 1,313 1,067 2,380 developed and proved undeveloped reserves. Volumes added in 2018
Rest of Asia 3,599 3,218 6,817 principally resulted from the application of conventional technologies
Australasia 2,630 1,179 3,809 and extensions of the cessation of production as a result of higher
prices. The principal proved reserves additions in our subsidiaries by
Subsidiaries 16,420 13,936 30,355
region were in UAE, Oman and the US. We had material reductions in
Equity-accounted entitiesi 9,515 9,369 18,884 our proved reserves in Iraq principally due to higher oil and gas prices.
Total 25,934 23,305 49,239 The principal reserves additions in our equity-accounted entities were
in PAE and Rosneft.
Estimated net proved reserves on an oil equivalent basis
million barrels of oil equivalent
14% of our proved reserves are associated with PSAs. The countries
Developed Undeveloped Total in which we operated under PSAs in 2018 were Algeria, Angola,
Azerbaijan, Egypt, India, Indonesia and Oman. In addition, the
Subsidiaries 5,741 4,447 10,188
technical service contract (TSC) governing our investment in the
Equity-accounted entities 5,296 4,462 9,757 Rumaila field in Iraq functions as a PSA.
Total 11,037 8,908 19,945
a
The group holds no licences due to expire within the next three years
Proved reserves exclude royalties due to others, whether payable in cash or in kind, where
the royalty owner has a direct interest in the underlying production and the option and
that would have a significant impact on BP’s reserves or production.
ability to make lifting and sales arrangements independently, and include non-controlling
interests in consolidated operations. We disclose our share of reserves held in joint
For further information on our reserves see page 217.
ventures and associates that are accounted for by the equity method although we do not
control these entities or the assets held by such entities.
b
The 2018 marker prices used were Brent« $71.43/bbl (2017 $54.36/bbl and 2016 $42.82/
bbl) and Henry Hub« $3.10/mmBtu (2017 $2.96/mmBtu and 2016 $2.46/mmBtu).
c

BP’s net production by country – crude oila and natural gas liquids
thousand barrels per day
BP net share of productionb
Natural gas
Crude oil liquids
2018 2017 2016 2018 2017 2016
Subsidiaries
UKc d 101 80 79 5 6 6
Norwayc — — 24 — — 4
Total Rest of Europe — — 24 — — 4
Total Europe 101 80 102 5 6 10
Alaskac 106 109 107 — — —
Lower 48 onshorec 18 10 12 37 34 36
Gulf of Mexico deepwater 261 251 216 23 21 20
Total US 385 370 335 60 56 56
Canadae 24 20 13 — — —
Total Rest of North America 24 20 13 — — —
Total North America 408 390 347 60 56 56
Trinidad & Tobagoc 7 12 10 9 10 8
Total South America 7 12 10 9 10 8
Angola 147 192 219 — — —
Egyptc 49 40 39 — — —
Algeria 9 9 5 11 10 5
Total Africa 204 241 263 11 10 5
Abu Dhabic 169 158 — — — —
Azerbaijan 72 90 105 — — —
Western Indonesiac — — 2 — — —
Iraq 54 73 96 — — —
India — 1 1 — — —
Oman 17 2 — — — —
Total Rest of Asia 313 325 204 — — —
Total Asia 313 325 204 — — —
Australiac 16 15 15 2 2 3
Eastern Indonesiac 2 1 2 — — —
Total Australasia 17 17 16 2 2 3
Total subsidiaries 1,051 1,064 943 88 85 82
Rosneft (Russia, Canada, Venezuela, Vietnam) 919 900 836 4 4 4
Abu Dhabi 16 99 101 — — —
Argentinac 52 60 62 — — 1
Boliviac 3 3 4 — — —
Egypt — — — 3 2 3
Norwayc 34 31 7 2 2 —
Russiac 14 5 4 — — —
Angola 1 1 — 3 4 1
Other — — 1 — — —
Total equity-accounted entities 1,040 1,099 1,015 12 12 8
Total subsidiaries and equity-accounted entitiesf 2,091 2,163 1,958 100 97 90
a
b
Production excludes royalties due to others whether payable in cash or in kind where the royalty owner has a direct interest in the underlying production and the option and ability to make
c
In 2018, BP acquired various interests in the Permian Basin, Eagle Ford and Haynesville Shales in Lower 48 onshore as a result of the acquisition of BHP’s US unconventional assets,
increased its interest in the Clair asset in the UK North Sea, and acquired an interest in LLC Kharampurneftegaz in Russia, and in certain US offshore assets. It also disposed of its interests
in the Greater Kuparuk Area in Alaska, the Magnus field in the UK North Sea, and in certain other assets in the UK North Sea and US onshore assets. In 2017, BP renewed its onshore
concession of the United Arab Emirates that grants BP 10% interest in ADCO onshore concession. It also decreased its interest in Magnus field in North Sea and completed the formation of
Pan American Energy Group (PAEG) (BP 50%, Bridas Corporation 50%), which is a combination of Pan American Energy and Axion Energy with an effective decrease in interest. In 2016, BP
increased its interests in Tangguh in Indonesia and the Culzean asset in the UK North Sea, and in certain US onshore assets. It disposed of its interests in the Valhall, Skarv and Ula assets in
the Norwegian North Sea and in return received an interest in Aker BP ASA, which operates in Norway. It also disposed of its interests in the Jansz-Io asset in Australia, and the Sanga Sanga
conventional concession in Indonesia. It also decreased its interests in certain Trinidad and US onshore assets.
d
Volumes relate to six BP-operated fields within ETAP. BP has no interests in the remaining three ETAP fields, which are operated by Shell.
e
All of the production from Canada in Subsidiaries is bitumen.
f
Includes 3 net mboe/d of NGLs from processing plants in which BP has an interest (2017 3mboe/d and 2016 3mboe/d).
Because of rounding, some totals may not agree exactly with the sum of their component parts.

BP’s net production by country – natural gas
million cubic feet per day
BP net share of productiona
2018 2017 2016
Subsidiaries
UKb 152 182 170
Norwayb — — 82
Total Rest of Europe — — 82
Total Europe 152 182 252
Lower 48 onshoreb 1,705 1,467 1,476
Gulf of Mexico deepwater 190 186 173
Alaska 5 5 6
Total US 1,900 1,659 1,656
Canada 7 9 10
Total Rest of North America 7 9 10
Total North America 1,907 1,667 1,666
Trinidad & Tobagob 2,136 1,936 1,689
Total South America 2,136 1,936 1,689
Egyptb 878 745 305
Algeria 183 205 208
Total Africa 1,061 949 513
Azerbaijan 256 232 245
Western Indonesiab — — 35
India 32 60 84
Oman 538 79 —
Total Rest of Asia 826 371 363
Total Asia 826 371 363
Australiab 437 426 451
Eastern Indonesiab 382 357 369
Total Australasia 819 783 820
Total subsidiariesc 6,900 5,889 5,302
Rosneft (Russia, Canada, Egypt, Venezuela, Vietnam) 1,286 1,308 1,279
Argentina 264 329 354
Bolivia 71 89 95
Norwayb 59 53 12
Angola 80 77 18
Western Indonesia — — 15
Total equity-accounted entitiesc 1,760 1,855 1,773
Total subsidiaries and equity-accounted entities 8,659 7,744 7,075
a
Production excludes royalties due to others whether payable in cash or in kind where the royalty owner has a direct interest in the underlying production and the option and ability to make
b
In 2018, BP acquired various interests in the Permian Basin, Eagle Ford and Haynesville Shales in Lower 48 onshore as a result of the acquisition of BHP’s US unconventional assets,
increased its interest in the Clair asset in the UK North Sea, and acquired an interest in LLC Kharampurneftegaz in Russia, and in certain US offshore assets. It also disposed of its interests
in the Greater Kuparuk Area in Alaska, the Magnus field in the UK North Sea, and in certain other assets in the UK North Sea and US onshore assets. In 2017, BP decreased its interest in
Magnus field in North Sea and completed the formation of Pan American Energy Group (PAEG) (BP 50%, Bridas Corporation 50%), which is a combination of Pan American Energy and
Axion Energy with an effective decrease in interest.In 2016, BP increased its interests in Tangguh in Indonesia and the Culzean asset in the UK North Sea, and in certain US onshore assets.
It disposed of its interests in the Valhall, Skarv and Ula assets in the Norwegian North Sea and in return received an interest in Aker BP ASA, which operates in Norway. It also disposed of its
interests in the Jansz-Io asset in Australia, and the Sanga Sanga concession in Indonesia. It also decreased its interests in certain Trinidad and US onshore assets.
c
Natural gas production volumes exclude gas consumed in operations within the lease boundaries of the producing field, but the related reserves are included in the group’s reserves.
Because of rounding, some totals may not agree exactly with the sum of their component parts.

The following tables provide additional data and disclosures in relation to our oil and gas operations.
Average sales price per unit of production (realizations«)a
$ per unit of production
Total
North South group
Europe America America Africa Asia Australasia average
Rest of
UK Europe US Americab Russia Asia
Subsidiaries
2018
Crude oilc 71.28 — 67.11 33.57 69.17 68.81 — 70.80 67.54 67.81
Natural gas liquids 31.63 — 25.81 — 35.74 39.14 — 92.47 52.14 29.42
Gas 7.71 — 2.43 — 3.08 4.82 — 3.85 7.97 3.92
2017
Crude oilc 53.67 — 49.98 36.80 55.44 53.61 — 52.88 53.26 51.71
Natural gas liquids 32.77 — 22.42 — 26.79 36.48 — — 39.39 26.00
Gas 5.09 — 2.36 — 2.25 3.82 — 3.44 6.14 3.19
2016
Crude oilc 42.80 40.16 39.65 26.11 45.64 40.83 — 39.29 41.52 39.99
Natural gas liquids 25.70 20.16 14.71 — 21.40 21.30 — — 32.70 17.31
Gas 4.50 4.19 1.90 — 1.72 3.89 — 3.39 5.71 2.84
Equity-accounted
entitiesd
2018
Crude oilc — 70.24 — — 62.35 — 62.46 39.49 — 62.24
Natural gas liquidse — — — — — — N/A — — —
Gas — 7.93 — — 4.36 — 1.70 — — 2.50
2017
Crude oilc — 55.08 — — 49.97 — 45.66 15.61 — 42.33
Natural gas liquidse — — — — — — N/A — — —
Gas — 5.78 — — 4.49 — 1.63 — — 2.47
2016
Crude oilc — 50.71 — — 48.88 — 36.36 12.92 — 34.04
Natural gas liquidse — — — — 34.51 — N/A — — 34.51
Gas — 5.16 — — 4.21 — 1.39 6.11 — 2.20
Average production cost per unit of productionf

$ per unit of production
Total
North South group
Europe America America Africa Asia Australasia average
Rest of
Subsidiaries
2018 13.76 — 9.63 13.10 3.08 7.31 — 5.72 2.35 7.15
2017 14.58 — 8.68 15.02 4.41 6.47 — 6.37 2.79 7.11
2016 14.80 13.72 10.20 21.79 4.21 9.34 — 7.08 2.62 8.46
Equity-accounted
entities
2018 — 12.15 — — 10.61 — 3.09 5.92 — 4.16
2017 — 10.33 — — 11.92 — 3.19 3.27 — 4.32
2016 — 10.41 — — 10.66 — 2.46 3.67 — 3.57
a
Units of production are barrels for liquids and thousands of cubic feet for gas. Realizations include transfers between businesses, except in the case of Russia.
b
All of the production from Canada in Subsidiaries is bitumen.
c
d
In certain countries it is common for equity-accounted entities’ agreements to include pricing clauses that require selling a significant portion of the entitled production to local governments
or markets at discounted prices.
e
Natural gas liquids for Russia are included in crude oil.
f
Units of production are barrels for liquids and thousands of cubic feet for gas. Amounts do not include ad valorem and severance taxes.

Environmental expenditure Provisions for environmental remediation and decommissioning are
usually established on a discounted basis, as required by IAS 37
$ million ‘Provisions, Contingent Liabilities and Contingent Assets’.
2018 2017 2016
Further details of decommissioning and environmental provisions
Operating expenditure 501 441 487
appear in Financial statements – Note 23.
Capital expenditure 449 487 564
Clean-ups 31 22 27 Environmental expenditure relating to the Gulf of
Additions to environmental Mexico oil spill
remediation provision 428 249 262
For full details of all environmental activities in relation to the Gulf of
Increase (decrease) in Mexico oil spill, see Financial statements – Note 2.
decommissioning provision 137 (228) (804)
Operating and capital expenditure on the prevention, control,
treatment or elimination of air and water emissions and solid waste is
Regulation of the group’s business
often not incurred as a separately identifiable transaction. Instead, it BP’s activities, including its oil and gas exploration and production,
forms part of a larger transaction that includes, for example, normal pipelines and transportation, refining and marketing, petrochemicals
operations and maintenance expenditure. The figures for production, trading, biofuels, wind, solar and shipping activities, are
environmental operating and capital expenditure in the table are subject to a broad range of EU, US, international, regional, and local
therefore estimates, based on the definitions and guidelines of the legislation and regulations, including legislation that implements
American Petroleum Institute. international conventions and protocols. These cover virtually all
aspects of BP’s activities and include matters such as licence
Environmental operating expenditure of $501 million in 2018 (2017 acquisition, production rates, royalties, environmental, health and
$441 million) showed an overall increase of 14% the largest element safety protection, fuel specifications and transportation, trading,
of which was due to higher expenditures associated with sustaining pricing, anti-trust, export, taxes, and foreign exchange.
and increasing production volumes in the Gulf of Mexico region.
Environmental capital expenditure in 2018 was lower overall than in Upstream contractual and regulatory framework
2017 largely due to lower spend resulting from the divestiture of the The terms and conditions of the leases, licences and contracts under
North Sea Forties Pipeline System and lower expenditure on Arundel, which our oil and gas interests are held vary from country to country.
Clair and Schiehallion fields. These leases, licences and contracts are generally granted by or
entered into with a government entity or state-owned or controlled
Clean-up costs were $31 million in 2018 (2017 $22 million)
company and are sometimes entered into with private property
representing increases in oil spill clean-up costs and other associated
owners. Arrangements with governmental or state entities usually
remediation and disposal costs as well as costs related to the
take the form of licences or production-sharing agreements«(PSAs),
replacement of underground storage tanks in the US.
although arrangements with US government entities are usually by
In addition to operating and capital expenditure, we also establish lease. Arrangements with private property owners are also usually in
provisions for future environmental remediation work. Expenditure the form of leases.
against such provisions normally occurs in subsequent periods and is
Licences (or concessions) give the holder the right to explore for,
not included in environmental operating expenditure reported for such
develop and produce a commercial discovery. Under a licence, the
periods.
holder bears the risk of exploration, development and production
Provisions for environmental remediation are made when a clean-up activities and provides the financing for these operations. In principle,
is probable and the amount of the obligation can be reliably the licence holder is entitled to all production, minus any royalties that
estimated. Generally, this coincides with the commitment to a formal are payable in kind. A licence holder is generally required to pay
plan of action or, if earlier, on divestment or on closure of inactive production taxes or royalties, which may be in cash or in kind. Less
sites. typically, BP may explore for, develop and produce hydrocarbons«
The extent and cost of future environmental restoration, remediation under a service agreement with the host entity in exchange for
and abatement programmes are inherently difficult to estimate. They reimbursement of costs and/or a fee paid in cash rather than
often depend on the extent of contamination, and the associated production.
impact and timing of the corrective actions required, technological PSAs entered into with a government entity or state-owned or
feasibility and BP’s share of liability. Though the costs of future controlled company generally require BP (alone or with other
programmes could be significant and may be material to the results contracting companies) to provide all the financing and bear the risk
of operations in the period in which they are recognized, it is not of exploration and production activities in exchange for a share of the
expected that such costs will be material to the group’s overall results production remaining after royalties, if any.
of operations or financial position.
In certain countries, separate licences are required for exploration and
Additions to our environmental remediation provision increased in production activities, and in some cases production licences are
2018 largely due to the scope reassessments of the remediation limited to only a portion of the area covered by the original exploration
plans of a number of our sites in the US and Canada. The charge for licence. Both exploration and production licences are generally for a
environmental remediation provisions in 2018 included $8 million in specified period of time. In the US, leases from the US government
respect of provisions for new sites (2017 $8 million and 2016 $7 typically remain in effect for a specified term, but may be extended
million). beyond that term as long as there is production in paying quantities.
In addition, we make provisions on installation of our oil and gas The term of BP’s licences and the extent to which these licences may
producing assets and related pipelines to meet the cost of eventual be renewed vary from country to country.
decommissioning. On installation of an oil or natural gas production BP frequently conducts its exploration and production activities in
facility, a provision is established that represents the discounted value joint arrangements« or co-ownership arrangements with other
of the expected future cost of decommissioning the asset. international oil companies, state-owned or controlled companies
In 2018, the net decrease in the decommissioning provision, similar and/or private companies. These joint arrangements may be
to the decrease in 2017, was a result of detailed reviews of expected incorporated or unincorporated arrangements, while the co-
future costs, partially offset by increases to the asset base. ownerships are typically unincorporated. Whether incorporated or
unincorporated, relevant agreements set out each party’s level of
We undertake periodic reviews of existing provisions. These reviews participation or ownership interest in the joint arrangement or co-
take account of revised cost assumptions, changes in ownership. Conventionally, all costs, benefits, rights, obligations,
decommissioning requirements and any technological developments. liabilities and risks incurred in carrying out joint arrangement or co-
ownership operations under a lease or licence are shared among the
joint arrangement or co-owning parties according to these agreed
ownership interests. Ownership of joint arrangement or co-owned

property and hydrocarbons to which the joint arrangement or co- Green Climate Fund. The process for withdrawal can be completed no
ownership is entitled is also shared in these proportions. To the extent earlier than 4 November 2020.
that any liabilities arise, whether to governments or third parties, or as At the United Nations climate change conference in Poland (COP24)
between the joint arrangement parties or co-owners themselves, in December 2018, the ‘Paris Rulebook’ was agreed. This rulebook
each joint arrangement party or co-owner will generally be liable to describes how the elements of the Paris Agreement will be
meet these in proportion to its ownership interest. In many upstream implemented when it comes into force in 2020. COP24 failed to
operations, a party (known as the operator) will be appointed agree on rules for implementing Article 6, which could enable
(pursuant to a joint operating agreement) to carry out day-to-day international carbon trading to assist in meeting NDCs. Discussions
operations on behalf of the joint arrangement or co-ownership. The on Article 6 have now been deferred to COP25 which will take place
operator is typically one of the joint arrangement parties or a co- in Chile in 2019.
owner and will carry out its duties either through its own staff, or by
contracting out various elements to third-party contractors or service More stringent national and regional measures relating to the
providers. BP acts as operator on behalf of joint arrangements and co- transition to a lower carbon economy can be expected in the future.
ownerships in a number of countries where it has exploration and These measures could increase BP’s production costs for certain
production activities. products, increase compliance and litigation costs, increase demand
for competing energy alternatives or products with lower-carbon
Frequently, work (including drilling and related activities) will be intensity, and affect the sales and specifications of many of BP’s
contracted out to third-party service providers who have the relevant products. Further, such measures could lead to constraints on
expertise and equipment not available within the joint arrangement or production and supply and access to new reserves, particularly due to
the co-owning operator’s organization. The relevant contract will the long term nature of many of BP’s projects. Current and
specify the work to be done and the remuneration to be paid and will announced measures and developments potentially affecting BP’s
typically set out how major risks will be allocated between the joint businesses include the following:
arrangement or co-ownership and the service provider. Generally, the
joint arrangement or co-owner and the contractor would respectively United States
allocate responsibility for and provide reciprocal indemnities to each In the US, the Obama administration adopted its Climate Action Plan
other for harm caused to and by their respective staff and property. in 2013 and used its existing statutory authority to implement that
Depending on the service to be provided, an oil and gas industry plan, including the Clean Air Act (CAA) and the Mineral Leasing Act
service contract may also contain provisions allocating risks and (MLA). BP's operations are affected by regulation in a number of
liabilities associated with pollution and environmental damage, ways under the CAA, for example:
damage to a well or hydrocarbon reservoirs and for claims from third
parties or other losses. The allocation of those risks vary among • Stricter GHG regulations, stricter limits on sulphur in fuels,
emissions regulations in the refinery sector and a revised lower
contracts and are determined through negotiation between the
ambient air quality standard for ozone, finalized by the EPA in
parties.
October 2015, are affecting our US operations.
In general, BP incurs income tax on income generated from
production activities (whether under a licence or PSA). In addition, • EPA regulations aimed at methane emissions are in place for
depending on the area, BP’s production activities may be subject to a new and modified sources. As discussed below, the Bureau of
range of other taxes, levies and assessments, including special Land Management (BLM) has issued a new waste prevention
petroleum taxes and revenue taxes. The taxes imposed on oil and gas rule which rescinded the prior rule regarding methane regulation
production profits and activities may be substantially higher than on federal lands.
those imposed on other activities, for example in Abu Dhabi, Angola, • States may also have separate, stricter air emission laws in
Egypt, Norway, the UK, the US, Russia and Trinidad & Tobago. addition to the CAA. Despite the US withdrawal from the Paris
Agreement, a number of US states, cities and private
Greenhouse gas regulation organizations remain committed to meeting Paris Agreement
In December 2015, nearly 200 nations at the United Nations climate goals. A number of states also belong to or are considering
change conference in Paris (COP21) agreed the Paris Agreement, for joining carbon trading markets (e.g. California).
implementation post-2020. The agreement came into force on
As noted below, some of these regulations may be suspended,
4 November 2016. This agreement applies to both developing and
revised or rescinded resulting in regulatory uncertainty and
developed countries, although in some instances allowances or
complex compliance challenges for our affected businesses
flexibilities are provided for developing countries. The Paris
Agreement aims to hold the increase in the global average On 28 March 2017, the Trump administration issued Executive
temperature to well below 2°C above pre-industrial levels and to Order (EO) 13783 rescinding major elements of the Climate Action
pursue efforts to limit the temperature increase to 1.5°C above pre- Plan, and instructing the Environmental Protection Agency (EPA) to
industrial levels. There is no quantitative long-term emissions goal. review and then commence the process of suspending, revising or
However, countries aim to reach global peaking of greenhouse gas rescinding certain regulations, including the Clean Power Plan (CPP)
(GHG) emissions as soon as possible and to undertake rapid which was an important element of the Obama administration’s
reductions thereafter, so as to achieve a balance between human Climate Action Plan, and the EPA new source methane rule.
caused emissions by sources and removals by sinks of GHGs in the On 21 August 2018, the EPA introduced the Affordable Clean
second half of this century. The Paris Agreement commits all parties Energy (ACE) Rule, which is intended to address GHG emissions
to submit Nationally Determined Contributions (NDCs) (i.e. pledges or from certain stationary sources, and which is intended to replace
plans of climate action) and pursue domestic measures aimed at the CPP. The CPP regulations are currently stayed pending
achieving the objectives of their NDCs. Developed country NDCs resolution of existing legal challenges; the EPA may decline to
should include absolute emission reduction targets, and developing defend certain of these legal challenges. When the ACE Rule is
countries are encouraged to move towards absolute emission finalized, it is likely to face legal challenges as well. The outcome
reduction targets over time. The Paris Agreement places binding with respect to these rules may affect electricity generation
commitments on countries to report on their emissions and progress practices and prices, reliability of electricity supply, and regulatory
made on their NDCs and to undergo international review of collective requirements affecting other GHG emission sources in other
progress. It also requires countries to submit revised NDCs every five sectors and have potential impacts on combined heat and power
years, which are expected to be more ambitious with each revision. installations.
Global assessments of progress will occur every five years, starting in
2023. In the decision adopting the Paris Agreement, an earlier In June 2016, the EPA finalized rules aimed at limiting methane
commitment by developed countries to mobilize $100 billion a year by emissions from new and modified sources in the oil and natural gas
2020 was extended through 2025, with a further goal with a floor of sector in the US by 40-45% from 2012 levels by 2025. In January
$100 billion to be set before 2025. On 1 June 2017, the US announced 2017 the BLM's methane rule, aimed at limiting methane
that it will withdraw from the Paris Agreement. This includes emissions from oil and gas operations on federal lands also came
suspending the implementation of the US’s NDC and funding for the into effect. EO 13783 instructed the Department of Interior (DOI) to

review and possibly suspend, revise or rescind the BLM methane particulates from the combustion of fuels in plants with a rated
rule. In September 2018, BLM finalized a new waste prevention thermal input between one and 50MW. It also includes
rule, which removed many of the provisions of the former BLM requirements to monitor emissions of carbon monoxide (CO) from
methane rule. The EPA rule and the new waste prevention rule are such plant. Its requirements are being phased in - the emission limit
being challenged by states and NGOs. The final outcome of the rule values set in the Directive applied from 20 December 2018 for new
revisions and legal challenges with respect to these EPA and BLM plants and by 2025 or 2030 for existing plants, depending on their
rules is uncertain. size.
The Energy Policy Act of 2005 and the Energy Independence and • The National Emission Ceiling Directive 2016 entered into force on
Security Act of 2007 impose a renewable fuel mandate (the federal 31 December 2016, replacing earlier legislation. It introduces
Renewable Fuel Standard) as well as state initiatives that impose stricter emissions limits from 2020 and 2030, with new indicative
low GHG emissions thresholds for transportation fuels (currently national targets applying from 2025. EU member states had to
adopted in California, through the California Low Carbon Fuel implement the Directive by 1 July 2018. NECD has been
Standard, and in Oregon). In October 2018, President Trump implemented in the UK by the National Emission Ceiling
directed the EPA to conduct rulemaking to extend to E15 gasoline Regulations 2018. Each EU Member State is also required to
the volatility allowance currently given to E10 gasoline under the produce a National Air Pollution Control Programme by 31 March
CAA. Current law allows E15 gasoline to be sold year-round, but 2019 setting out the measures it will take to ensure compliance
this rule will make it easier for E15 to meet the more stringent with the 2020 and 2030 reduction commitments.
summer volatility standards. This rulemaking will also address
“market reforms” of the RFS credit-trading programme, which is • The EU Fuel Quality Directive affects our production and marketing
the open market for renewables credit trading. EPA has indicated it of transport fuels. Revisions adopted in 2009 mandate reductions
hopes to have the rulemaking finalized by the summer 2019 driving in the life cycle GHG emissions per unit of energy and tighter
season. environmental fuel quality standards for petrol and diesel.
Under the GHG mandatory reporting rule (GHGMRR), annual Other

reports on GHG emissions must be filed with the EPA. In addition • Canada’s highest emitting province, Alberta, has regulations
to direct emissions from affected facilities, producers and targeting large final emitters (sites with over 100,000 tonnes of
importers/exporters of petroleum products, certain natural gas carbon dioxide equivalent per annum) with compliance obligations
liquids and GHG products are required to report product volumes being based on facility performance relative to product specific
and notional GHG emissions as if these products were fully benchmarks. Compliance is possible by improving emissions
combusted. intensity, the purchase of offsets or the payment of C$30/tonne to
the Climate Change and Emissions Management Fund. In addition,
A number of states, municipalities and regional organizations have
there is an economy-wide price of carbon policy that covers
responded to current and proposed federal changes in
emissions not in the scope of the existing regulations for large final
environmental regulation and a number of additional state and
emitters (C$30/tonne in 2019; then escalating in line with Federal
regional initiatives in the US will affect our operations. The California
backstop pricing). Additional requirements are in place relating to
cap and trade programme started in January 2012 and expanded to
electricity generation sources and limits on overall oil sands
cover emissions from transportation fuels in 2015. The State of
emissions. The Canadian federal government has announced
Washington adopted a carbon cap rule that was to become
climate change regulations, effective from January 2019, including
effective 2017, but the rule has been suspended pending review
a national backstop carbon price starting at C$20/tonne in 2019 and
before the state’s supreme court.
escalating to C$50/tonne by 2022 (or equivalent system for
European Union provinces with cap-and-trade systems), with implementation of the
• EU leaders in 2007 endorsed a set of measures to reduce GHG price and associated large emitters pricing system (modelled on
emissions and encourage renewables in the 2010 to 2020 period. the Alberta output-based-allocation system), use of any funds
These include an overall GHG reduction target of 20% by 2020. To generated, and outcome reporting being managed by each
meet this, a set of regulatory measures were adopted which province. Newfoundland & Labrador and Nova Scotia are
include: a collective national reduction target for emissions not implementing regulations that meet equivalency requirements of
covered by the EU Emissions Trading System (EU ETS) Directive; the Federal regulations via economy wide carbon taxes on fuels
binding national renewable energy targets of 20% renewable and large emitter programs (intensity based for Newfoundland &
energy used in renewable energy sources in the EU, including at Labrador and cap and trade for Nova Scotia).
least a 10% share of renewable energy in the transport sector • China is operating emission trading pilot programmes in five cities
under the Renewable Energy Directive; a legal framework to and three provinces. One of BP's subsidiaries and one of BP’s joint
promote carbon capture and storage (CCS); and a revised EU ETS venture« companies in China are participating in these schemes. A
Phase 3. plan to establish a nationwide carbon emissions trading market
• In October 2014 EU leaders adopted the climate and energy (initially covering the power sector only) was promulgated in
framework setting key targets for the year 2030 including at least December 2017 by the National Development and Reform
40% cuts in GHG emissions (from 1990 levels). The GHG reduction Commission, which will not supersede the above eight pilot
target is to be achieved by a 43% reduction of emissions from programmes immediately but allow those pilot schemes to be
sectors covered by the EU ETS, and a 30% GHG reduction by incorporated into the national scheme gradually. In 2018, the
Member States for all other GHG emissions. Measures to achieve Climate Change Bureau was transferred to the newly formed
the 2030 targets include a significant revision of the EU ETS for Ministry for Ecology & Environment as part of the overall ministerial
Phase 4 agreed in 2017, which addresses the surplus allowances in restructuring. The Climate Change Bureau remains in charge of the
the system and the amount of free allocation for sectors prone to nationwide Emission Trading Scheme with no changes to the 2017
international competition. In mid-2018 a 32% share of renewable implementation plan.
energy and a 32.5% increase in energy efficiency was agreed • In July 2016, China carried out pilot programmes on compensation
which must be met by EU Member States by 2030. The package for and trading of energy quotas in four provinces which may be
also sets a renewable energy target of 14% for the transportation further expanded in or after 2020. In January 2017, a nationwide
sector. pilot scheme on the issuance and voluntary purchase and trading of
• On 28 November 2018 the European Commission presented its renewable energy green power certificates was launched, and draft
long-term Energy and Climate Strategy that sets a “vision” towards regulation issued in 2018. The scheme is expected to undergo
a net-zero GHG emissions economy by the mid-twenty first further testing in 2019 before becoming mandatory. Generators will
century. be able to obtain certificates, which then can be sold to the two
national grid companies. No secondary trading is foreseen initially.
• The Medium Combustion Plants Directive (MCPD) applies to air
emissions of sulphur dioxide (SO2), nitrogen oxides (NOx) and

• China has also adopted more stringent vehicle tailpipe emission • The CAA regulates air emissions, permitting, fuel specifications
standards and vehicle efficiency standards to address air pollution and other aspects of our production, distribution and marketing
and GHG emissions. These standards will have an impact on activities.
transportation fuel product mix and overall demand. In addition,
China has also introduced a mandate for sales of new energy
• The Energy Policy Act of 2005 and the Energy Independence and
Security Act of 2007 affect our US fuel markets by, among other
vehicles (NEVs) commencing in 2020. This will accelerate NEV
things, imposing the limitations discussed above under
penetration into the light vehicle sector and impact light fuel
‘Greenhouse gas regulation’. EPA regulations impose light, medium
demand.
and heavy duty vehicle emissions standards for GHGs (both fuel
For information on the steps that BP is taking in relation to climate economy and tailpipe standards) as well as for nonroad engines
change issues and for details of BP’s GHG reporting, see and vehicles and permitting requirements for certain large GHG
Sustainability – Climate change on page 45. stationary emission sources. California also imposes Low Emission
Vehicle (LEV) and Zero Emission Vehicle (ZEV) standards on vehicle
Other environmental regulation manufacturers and a number of other states impose different
Current and proposed fuel and product specifications, emission stricter GHG emission limits on vehicles. These regulations may
controls (including control of vehicle emissions), climate change impact fuel demand and product mix in California and those states
programmes and regulation of unconventional oil and gas extraction adopting LEV and ZEV standards and may impact BP’s product mix
under a number of environmental laws may have a significant effect and demand for particular products.
on the production, sale and profitability of many of BP’s products.
• In August 2018 the US Department of Transportation and EPA
There are also environmental laws that require BP to remediate and issued a joint proposed rulemaking to establish new or revised fuel
restore areas affected by the release of hazardous substances or economy and tailpipe carbon dioxide emissions standards for
hydrocarbons associated with our operations or properties. These passenger cars and light trucks covering model years (MY) 2021
laws may apply to sites that BP currently owns or operates, sites that through 2026. The Trump administration’s proposed option would
it previously owned or operated, or sites used for the disposal of its lock in the 2020 standards until 2026. This would be a rollback from
and other parties’ waste. See Financial Statements – Note 23 for the Obama Administration’s rules. The agencies have said they
information on provisions for environmental restoration and intend to finalize this rulemaking in Spring 2019. The proposal
remediation. would also eliminate the waiver allowing California and other states
A number of pending or anticipated governmental proceedings to set their own LEV and ZEV standards. California and other states
against certain BP group companies under environmental laws could have announced their intention to litigate if such a rule is finalized.
result in monetary or other sanctions. Group companies are also • The Clean Water Act regulates wastewater and other effluent
subject to environmental claims for personal injury and property discharges from BP’s facilities, and BP is required to obtain
damage alleging the release of, or exposure to, hazardous discharge permits, install control equipment and implement
substances. The costs associated with future environmental operational controls and preventative measures.
remediation obligations, governmental proceedings and claims could
be significant and may be material to the results of operations in the • The Resource Conservation and Recovery Act regulates the
period in which they are recognized. We cannot accurately predict the generation, storage, transportation and disposal of wastes
effects of future developments, such as stricter environmental laws associated with our operations and can require corrective action at
or enforcement policies, or future events at our facilities, on the locations where such wastes have been disposed of or released.
group, and there can be no assurance that material liabilities and • The Comprehensive Environmental Response, Compensation, and
costs will not be incurred in the future. For a discussion of the group’s Liability Act (CERCLA) can, in certain circumstances, impose the
environmental expenditure, see page 291. entire cost of investigation and remediation on a party who owned
A significant proportion of our fixed assets are located in the US and or operated a site contaminated with a hazardous substance, or
the EU. US and EU environmental, health and safety regulations who arranged for disposal of a hazardous substance at a site. BP
significantly affect BP’s operations. Significant legislation and has incurred, or is likely to incur, liability under CERCLA or similar
regulation in the US and the EU affecting our businesses and state laws, including costs attributed to insolvent or unidentified
profitability includes the following: parties.
United States • BP is also subject to claims for remediation costs under other
• Since taking office in January 2017, the Trump administration has federal and state laws, and to claims for natural resource damages
issued a number of Executive Orders (EO) intended to reform the under CERCLA, the Oil Pollution Act of 1990 (OPA 90) (discussed
federal permitting and rulemaking processes to reduce regulatory below) and other federal and state laws. CERCLA also requires
burdens placed on manufacturing generally and the energy industry notification of releases of hazardous substances to national, state
specifically. These EOs immediately rescind certain policies and and local government agencies, as applicable. In addition, the
procedures and order the commencement of a broad process to Emergency Planning and Community Right-to-Know Act requires
identify other actions that may be taken to further reduce these reporting on the storage, use and releases of designated quantities
regulatory requirements. It is not clear how much or how quickly of certain listed hazardous substances to federal, state and local
these regulatory requirements will be reduced given statutory and government agencies, as applicable.
rulemaking constraints and the likely legal challenges to some of • The Toxic Substances Control Act (TSCA) regulates BP’s
these initiatives which can result in regulatory uncertainty and manufacture, import, export, sale and use of chemical substances
compliance challenges for our operations. and products. In June 2016, the US enacted legislation to
• The National Environmental Policy Act (NEPA) requires that the modernize and reform TSCA. The EPA has promulgated rules,
federal government gives proper consideration to the environment processes and guidance to implement the reforms. Key
prior to undertaking any major federal action that significantly components of the reform legislation include: (1) a reset of the
affects the environment, which includes the issuance of federal TSCA chemical inventory, (2) new chemical management
permits. The environmental reviews required by NEPA can delay prioritization efforts expanding risk assessment and risk
projects. State law analogues to NEPA could also limit or delay our management practices, (3) new confidentiality provisions, and
projects. On 15 August 2017 the Trump administration issued EO (4) new authority for the EPA to impose a fee structure. In 2017, the
13807 which directs federal agencies to take certain actions to EPA finalized details regarding the process and requirements for
streamline the NEPA process although the effect of EO 13807 on execution of the TSCA inventory reset.
our operations remains uncertain. In 2018 the Trump Administration • The Occupational Safety and Health Act imposes workplace safety
started the rulemaking process to reform the NEPA regulations and health requirements on BP operations along with significant
consistent with EO 13807. process safety management obligations, requiring continuous
evaluation and improvement of operational practices to enhance

safety and reduce workplace emissions at gas processing, refining • In October 2018 the European Council released an updated
and other regulated facilities. On 17 January 2017, the US proposal on setting CO2 reduction targets, from a 2021 baseline, of
Occupational Safety and Health Administration (OSHA) published 15% by 2025 and 35% by 2030 for passenger cars, and 15% by
an instruction guidance document for implementing and 2025 and 30% by 2030 for passenger vans and heavy duty
conducting a “National Emphasis Program” for process safety vehicles.
management (PSM) in covered facilities. Over the next several
years OSHA will pursue inspections through the National Emphasis • The EU Registration, Evaluation Authorization and Restriction of
Program to ensure compliance with PSM requirements in both Chemicals (REACH) Regulation 2006 requires registration of
refineries and chemical plants. chemical substances manufactured in or imported into the EU,
together with the submission of relevant hazard and risk data.
• The US Department of Transportation (DOT) regulates the transport REACH affects our manufacturing or trading/import operations in
of BP’s petroleum products such as crude oil, gasoline, the EU. Since coming into force in 2007, REACH implementation
petrochemicals and other hydrocarbon liquids. has followed a phase-in schedule defined by the EU, the final
phase of which was completed 31 May 2018. BP maintains
• The Maritime Transportation Security Act and the DOT Hazardous
compliance by checking whether imports are covered by the
Materials (HAZMAT) regulations impose security compliance
registrations of non-EU suppliers’ representatives, preparing and
regulations on certain BP facilities.
submitting registration dossiers to cover new manufactured and
• OPA 90 imposes operational requirements, liability standards and imported substances, and updating previously submitted
other obligations governing the transportation of petroleum registrations as required. Some substances registered previously,
products in US waters and is implemented through regulations including substances supplied to us by third parties for our use, are
issued by the EPA, the US Coast Guard, the DOT, the OSHA, the now subject to evaluation and review for potential authorization or
Bureau of Safety and Environmental Enforcement and various restriction procedures, and possible banning, by the European
states. Alaska and the West Coast states currently have the most Chemicals Agency and EU member state authorities. In addition,
demanding state requirements. BP’s facilities and operations in several EU countries have
undergone REACH compliance inspections by the competent
• The Outer Continental Shelf Land Act, the MLA and other statutes authority for the respective EU member state. An amendment to
give the Department of Interior (DOI) and the BLM authority to
the Annex of the Regulation on classification, labelling and
regulate operations and air emissions, including equipment and
packaging of substances and mixture (CLP Regulation) requires
testing, on offshore and onshore operations on federal lands
harmonized notification of information on hazardous materials
subject to DOI authority.
(certain lubricant and fuel formations) to EU member state poison
• The Endangered Species Act and Marine Mammal Protection Act centres. The uniform notification rules will apply as of January 2020
protect certain species from adverse human impacts. The species for consumer products, from 2021 for professional and 2024 for
and their habitat may be protected thereby restricting operations or industrial uses.
development at certain times and in certain places. With an
• Outside the EU, Turkey has published REACH-like regulations,
increasing number of species being protected, we have
known as KKDIK, as well as related implementation schedules and
experienced increasing restrictions on our activities.
substance registrations. BP is compiling and preparing the
European Union requisite information to meet the pre-registration requirements for
• The Industrial Emissions Directive (IED) 2010 provides the the KKDIK.
framework for granting permits for major industrial sites. It lays • The EU Offshore Safety Directive was adopted in 2013. Its purpose
down rules on integrated prevention and control of air, water and is to introduce a harmonized regime aimed at reducing the
soil pollution arising from industrial activities. As part of the IED potential environmental, health and safety impacts of the offshore
framework, additional emission limit values are informed by sector oil and gas industry throughout EU waters. The Directive has been
specific and cross-sector Best Available Technology (BAT) implemented in the UK primarily through the Offshore Installations
Conclusions, such as the BAT Conclusions for the refining sector, (Offshore Safety Directive) (Safety Case etc.) Regulations 2015.
for large combustion plants as well as common waste water and
waste gas treatment and management systems in the chemical • The Water Framework Directive (WFD) published in 2000 aims to
sector. These may result in requirements for BP to further reduce protect the quantity and quality of ground and surface waters of
its emissions, particularly its air and water emissions. the EU member states. The ongoing implementation of the WFD
and the related Environmental Quality Standards Directive 2008 as
• The EU regulation on ozone depleting substances 2009 (ODS well as the planned review of the WFD in 2019 is likely to require
Regulation) requires companies to reduce the use of ozone additional compliance efforts and increased costs for managing
depleting substances (ODSs) and phase out use of certain ODSs. freshwater withdrawals and discharges from BP’s EU operations.
BP continues to replace ODSs in refrigerants and/or equipment in
the EU and elsewhere, in accordance with the Montreal Protocol • The “Best Available Techniques Guidance Document on upstream
and related legislation. The Kigali Amendment to the Montreal hydrocarbon exploration and production” seeks to document best
Protocol (which aims to reduce hydrofluorocarbons) came into practice in the upstream sector. The guidance defines Best
force on 1 January 2019. In addition, the EU regulation on Available Techniques and best risk management approaches across
fluorinated GHGs with high global warming potential (the F-gas the upstream lifecycle, from exploration and appraisal through to
Regulations) require a phase-out of certain hydrofluorocarbons, decommissioning, and largely draws on experience and good
based on global warming potential. practice from existing standards as well as existing regulatory
regimes from Member States. While the document is non-binding,
• European regulations also establish passenger car performance the European Commission are encouraging regulatory authorities
standards for CO2 tailpipe emissions (European Regulation (EC) to utilize this guidance when issuing permits. The guidance is in the
No 443/2009). By 2021, the European passenger fleet emissions final stages of review and is expected to be published in 2019.
target for new vehicles will be 95 grams of CO2 per kilometre. This
target will be achieved by manufacturing fuel efficient vehicles and Regulations governing the discharge of treated water have also been
vehicles using alternative, low carbon fuels such as hydrogen and developed in countries outside of the US and EU. This includes
electricity. In addition, vehicle emission test cycles and vehicle type regulations in Trinidad and Angola. In Trinidad, BP is upgrading its
approval procedures are being updated to improve accuracy of water treatment facilities to meet consent levels agreed with the
emission and efficiency measurements. European vehicle CO2 regulators to apply water discharge rules arising from the Certificate
emission regulations also impact the fuel efficiency of vans. By of Environmental Clearance (CEC) Regulations 2001 and associated
2020, the EU fleet of newly registered vans must meet a target of Water Pollution Rules 2007. In Angola, BP has upgraded produced
147 grams of CO2 per kilometre, which is 19% below the 2012 water treatment systems to meet revised oil in water limits for
fleet average. produced water discharge under Executive Decree ED 97-14.

The Abidjan Convention has been now been ratified by more than 15 • The EU shipping monitoring, reporting and verification (MRV)
African nations, including Angola. The Convention, along with the regulation entered into force in July 2015 and is aimed at gathering
Additional Protocol published in 2012, sets environmental quality data on CO2 emissions based on ships’ fuel consumption. It is
standards for the discharge of chemicals to the marine environment. considered the first step of a staged approach for the inclusion of
BP currently operates produced water treatment to meet these maritime transport emissions in the EU’s GHG reduction
quality standards in Angola and is designing systems to meet the commitment. In parallel, through amendments to MARPOL Annex
standard for our future gas operations in Mauritania and Senegal. VI, the IMO Data Collection System (DCS) for collecting and
analysing fuel consumption data came into effect in March 2018.
Environmental maritime regulations
To meet its financial responsibility requirements, BP Shipping
BP’s shipping operations are subject to extensive national and maintains marine pollution liability insurance in respect of its operated
international regulations governing liability, operations, training, spill ships to a maximum limit of $1 billion for each occurrence through
prevention and insurance. These include: mutual insurance associations (P&I Clubs), although there can be no
• Liability and spill prevention and planning requirements governing, assurance that a spill will necessarily be adequately covered by
among others, tankers, barges, and offshore facilities are imposed insurance or that liabilities will not exceed insurance recoveries.
by OPA in US waters. OPA also mandates a levy on imported and
domestically produced oil to fund oil spill responses. Some states, Legal proceedings
including Alaska, Washington, Oregon and California, impose
additional liability for oil spills. Outside US territorial waters, BP Proceedings relating to the Deepwater Horizon oil
Shipping tankers are subject to international liability, spill response spill
and preparedness regulations under the UN’s International
Maritime Organization (IMO), including the International Introduction
Convention on Civil Liability for Oil Pollution Damage, the BP Exploration & Production Inc. (BPXP) was lease operator of
International Convention for the Prevention of Pollution from Ships Mississippi Canyon, Block 252 in the Gulf of Mexico (Macondo),
(MARPOL), the International Convention on Oil Pollution, where the semi-submersible rig Deepwater Horizon was
Preparedness, Response and Co-operation, and the International deployed at the time of the 20 April 2010 explosion and fire and
Convention on Civil Liability for Bunker Oil Pollution Damage. In resulting oil spill (the Incident). Lawsuits and claims arising from
April 2010, the Hazardous and Noxious Substance (HNS) Protocol the Incident were brought principally in US federal and state
2010 was adopted to address issues that have inhibited ratification courts.
of the International Convention on Liability and Compensation for Many of the lawsuits in federal court relating to the Incident were
Damage in Connection with the Carriage of Hazardous and Noxious consolidated by the Federal Judicial Panel on Multidistrict
Substances by Sea 1996. As at 31 December 2018, as the required Litigation into two multi-district litigation proceedings, one in
minimum number of contracting states had not been achieved, the federal district court in Houston for the securities, derivative and
HNS Convention had not entered into force. Employee Retirement Income Security Act (ERISA) cases (MDL
• A global sulphur cap of 0.5% will apply to marine fuel from January 2185) and another in federal district court in New Orleans for the
2020 under MARPOL. In order to comply, ships will either need to remaining cases (MDL 2179). A Plaintiffs’ Steering Committee
consume low sulphur marine fuels, operate on other low sulphur (PSC) was established to act on behalf of individual and business
fuels such as LNG or implement approved abatement technology plaintiffs in MDL 2179. All federal and state governmental claims
to enable them to meet the low sulphur emissions requirements in relation to the Incident have now been settled or dismissed
while continuing to use higher sulphur fuel. This new global cap will and the 2014 administrative agreement with the US
not alter the lower limits that apply in the sulphur oxides Emissions Environmental Protection Agency and BP’s obligations thereunder
Control Areas established by the IMO. Measures to support ended in March 2019. The remaining proceedings arising from the
consistent global implementation are expected to be finalized in Incident are discussed below.
2019.
PSC settlements
• Under the International Convention for the Control and
Management of Ships’ Ballast Water and Sediments 2004, which PSC settlements – Economic and Property Damages Settlement
entered into force in September 2017, ships in international traffic Agreement
are required to manage their ballast water and sediments to a In 2012 the Economic and Property Damages Settlement was
certain standard, according to a ship-specific ballast water entered into with the PSC to resolve certain economic and
management plan. property damage claims. It also resolved property damage in
certain areas along the Gulf Coast, as well as claims for additional
• The Convention for the Protection of the Marine Environment of payments under certain Master Vessel Charter Agreements
the North-East Atlantic (OSPAR), entered into force in March 1998, entered into in the course of the Vessels of Opportunity Program
is an international convention which aims to protect the marine implemented as part of the response to the Incident.
environment of the North-East Atlantic. OSPAR has 16 contracting
parties, including the UK Government. Work carried out in The economic and property damages claims process, which is
accordance with OSPAR is managed by the OSPAR Commission, under court supervision through the settlement claims process
which is made up of government representatives of the 15 established by the Economic and Property Damages Settlement,
contracting parties and the EU. OSPAR Recommendation 2001/1 continued during 2018. Only a very small number of business
relates to the management of produced water from offshore economic loss claims remain to be determined, although certain
installations in the North Sea. The 2001 recommendation set a business economic loss claims continue to be appealed by BP
target of a 15% reduction in the total quantity of oil in produced and/or the claimants.
water discharged by 2006 compared to 2000 levels and a For more information about BP’s current estimate of the total
performance standard for dispersed oil in produced water cost of the Economic and Property Damages Settlement, see
discharged into the sea of 30 mg/l. More recently, guidelines for Financial statements – Note 2.
the implementation of a risk-based approach to the management
of produced water discharges from offshore installations were PSC settlements – Medical Benefits Class Action Settlement
adopted (OSPAR Recommendation 2012/5). This approach supports In 2012 the Medical Benefits Class Action Settlement (Medical
a key goal of the 2001 recommendations, that by 2020 Contracting Settlement) was entered into with the PSC. It involves payments
Parties should achieve a reduction of oil in produced water to qualifying class members based on a matrix for certain
discharged into the sea to a level which will adequately ensure that Specified Physical Conditions (SPCs), as well as a 21-year
each of those discharges will present no harm to the marine Periodic Medical Consultation Program (PMCP) for qualifying
environment. class members, and also includes provisions regarding class
members pursuing claims for later-manifested physical conditions
(LMPCs).

The deadline for submitting SPC and PMCP claims was 12 dismissed with prejudice for their failure to comply with the
February 2015. The Medical Claims Administrator has reported court’s order. The district court has not yet ruled on the show
the total number of claims submitted is 37,226. As of 25 January cause submissions.
2019, 27,607 claims (comprising 22,833 SPC and 4,774 PMCP
only) have been approved for compensation totalling Individual securities litigation
approximately $67 million; 9,615 claims have been denied; and 4 Following court approval of the settlement of a securities class action
claims are pending determination. brought on behalf of a class of post-explosion American depository
share (ADS) holders in 2017, there remained individual cases filed in
In order to seek compensation from BP for an LMPC, class state and federal courts by pension funds, investment funds and
members must file a notice with the Medical Claims advisers. These were against BP entities and several current and
Administrator within 4 years after either (i) the date of first former officers and directors seeking damages for alleged losses
diagnosis of the LMPC or (ii) the effective date of the MSA (12 those funds suffered because of their purchases and/or holdings of
February 2014), whichever is later. As of 22 February 2019, there BP ordinary shares and, in certain cases, ADSs. The funds assert
are 2,159 pending lawsuits brought by class members claiming claims under English law and, for plaintiffs purchasing ADSs, federal
LMPCs. securities law. All of the cases, with the exception of one case that
has been stayed, were transferred to MDL 2185. As at 31 December
Other civil complaints – economic loss
2018, 28 actions on behalf of 113 plaintiffs remained pending in MDL
PSC settlement - Opt out and Excluded claims 2185.
In 2016, the vast majority of economic loss and property damage
claims from individuals and businesses that either opted out of Canadian class actions
the 2012 PSC settlement and/or were excluded from that Following various legal proceedings, on 26 February 2016, a plaintiff
settlement were either resolved or dismissed. Although several seeking to assert claims under Canadian law against BP on behalf of a
groups of plaintiffs whose claims were dismissed by the district class of Canadian residents who allegedly suffered losses because of
court for noncompliance with the district court’s prior orders filed their purchase of BP ordinary shares and ADSs filed a motion in the
appeals in the Fifth Circuit, only a small number of those Court of Appeal for Ontario to lift a stay on the action. The plaintiff’s
individual and business plaintiffs now have pending appeals. motion was granted on 29 July 2016. On 1 September 2017 the court
granted in part and denied in part BP’s motion for summary
BP-Branded Fuel Dealers judgment, limiting the case to three alleged misstatements and
On 23 March 2017, two plaintiffs filed an appeal to the Fifth Circuit narrowing the class period. On 3 April 2018, the Court of Appeal for
from the district court’s October 2012 ruling dismissing their Ontario affirmed that decision.
claims on the grounds that alleged losses by dealers of BP-
branded fuel allegedly caused by the reputation impact of the spill Non-US government lawsuits
on the BP brand are not compensable under OPA 90. On 3 July On 5 April 2011, the Mexican State of Yucatan submitted a claim
2018, the Fifth Circuit affirmed the district court’s ruling dismissing to the Gulf Coast Claims Facility (GCCF) alleging potential
their claims. damage to its natural resources and environment, and seeking to
recover the cost of assessing the alleged damage. This was
General Maritime Law Claims followed by a suit against BP which was transferred to MDL
On 19 July 2017 the district court held that maritime claims by 215 2179. On 5 April 2017, BP moved to dismiss the State of Yucatan’s
plaintiffs would be subject to further proceedings in MDL 2179 claims, and the court granted BP's motion to dismiss on 6 March
under OPA 90 and under general maritime law. The court 2018.
dismissed with prejudice all other claims for economic loss
brought by private plaintiffs under general maritime law. Five On 19 April 2013, the Mexican federal government filed a civil action
groups of plaintiffs filed appeals in the Fifth Circuit from the against BP and others in MDL 2179. The complaint sought a
dismissal of their claims, and two of those appeals remain determination that each defendant was liable under OPA 90 for
pending. damages that included the costs of responding to the spill, natural
resource damages allegedly recoverable by Mexico as an OPA 90
MDL 2179 - Other Economic Loss and Property Damage Claims trustee and the net loss of taxes, royalties, fees or net profits. The
On 11 January 2018, the district court issued an order requiring all claims in this civil action were resolved by agreement effective 15
remaining plaintiffs in MDL 2179 with economic loss or property February 2018 and dismissed on 28 March 2018.
damage claims to file by 11 April 2018 a verified sworn statement On 18 October 2012, before a Mexican Federal District Court located
regarding the actual damages each such plaintiff seeks in its in Mexico City, a class action complaint was filed against BP America
pending litigation and an explanation of how those alleged Production Company (BPAPC) and other BP subsidiaries. The
damages were causally related to the Incident. On 10 July 2018 plaintiffs, who allegedly are fishermen, are seeking, among other
the district court issued an order on those plaintiffs’ compliance things, compensatory damages for the class members who allegedly
with the January 2018 order and on 29 November 2018 ruled on suffered economic losses, as well as an order requiring BP to
several motions for reconsideration of its July 2018 compliance remediate environmental damage resulting from the Incident, to
order. In those two orders, the district court identified fewer than provide funding for the preservation of the environment and to
200 plaintiffs with economic loss or property damage claims that conduct environmental impact studies in the Gulf of Mexico for the
it deemed to have complied with its January 2018 order, and it next 10 years. On 15 May 2018, BP was formally served with the
dismissed the remaining economic loss or property damage post-class certification complaint. On 27 June 2018, BP answered the
claims with prejudice. complaint by seeking dismissal on various grounds including that no
Other civil complaints – personal injury oil reached Mexican waters or land and there was no economic or
The vast majority of post-explosion clean-up, medical monitoring environmental harm in Mexico.
and personal injury claims from individuals that either opted out On 3 December 2015 and 29 March 2016, Acciones Colectivas de
of the 2012 PSC settlement and/or were excluded from that Sinaloa (ACS) filed two class actions (which have since been
settlement have been dismissed. consolidated) in a Mexican Federal District Court on behalf of several
On 9 April 2018 the district court in MDL 2179 issued an order Mexican states against BPXP, BPAPC, and other purported BP
requiring the 981 plaintiffs whose claims for post-explosion clean- subsidiaries. In these class actions, plaintiffs seek an order requiring
up, medical monitoring and personal injury claims occurring after the BP defendants to repair the damage to the Gulf of Mexico, to pay
the Incident remain pending in MDL 2179 to file a sworn penalties, and to compensate plaintiffs for damage to property, to
statement providing detailed information regarding their claims. health and for economic loss. BPXP was formally served with the
On 20 September 2018, the district court issued an order action on 8 December 2017. BPXP opposed class certification and
requiring more than 150 plaintiffs whose responses to the 9 April sought dismissal on 1 February 2018, principally on the basis that that
2018 order BP deemed to be materially deficient to show cause no oil reached Mexican waters or land and there was no economic or
in writing by 11 October 2018 why their claims should not be environmental harm in Mexico. BPAPC was formally served with the

action in October 2018 and filed an opposition to class certification substantial. While it is not possible to predict the outcome of
and requested dismissal on 28 December 2018. these legal actions, Atlantic Richfield believes that it has valid
defences. It intends to defend such actions vigorously and
Other legal proceedings believes that the incurrence of liability is remote. Consequently,
BP believes that the impact of these lawsuits on the group’s
FERC and CFTC matters
results, financial position or liquidity will not be material.
Following an investigation by the US Federal Energy Regulatory
Commission (FERC) and the US Commodity Futures Trading Scharfstein v. BP West Coast Products, LLC
Commission (CFTC) of several BP entities, the Administrative A class action lawsuit was filed against BP West Coast Products, LLC
Law Judge of the FERC ruled on 13 August 2015 that BP (BPWCP) in Oregon State Court under the Oregon Unlawful Trade
manipulated the market by selling next-day, fixed price natural Practices Act on behalf of customers who used a debit card at ARCO
gas at Houston Ship Channel in 2008 in order to suppress the gasoline stations in Oregon during the period 1 January 2011 to 30
Gas Daily index and benefit its financial position. On 11 July 2016 August 2013, alleging that ARCO sites in Oregon failed to provide
the FERC issued an Order affirming the initial decision and sufficient notice of the 35 cents per transaction debit card fee. In
directing BP to pay a civil penalty of $20.16 million and to January 2014, the jury rendered a verdict against BPWCP and
disgorge $207,169 in unjust profits. On 10 August 2016, BP filed a awarded statutory damages of $200 per class member. On 25 August
request for rehearing with the FERC. BP strongly disagrees with 2015, the trial court determined the size of the class to be slightly in
the FERC’s decision and will ultimately appeal to the US Court of excess of two million members. On 31 May 2016 the trial court
Appeals if necessary. entered a judgment against BPWCP for the amount of $417.3 million.
On 31 May 2018 the Oregon Court of Appeals affirmed the trial
OSHA matters
court’s ruling. BP filed a Petition for Review to the Oregon Supreme
On 8 March 2010, the US Occupational Safety and Health
Court which was denied on 8 November 2018. In March 2019, BP and
Administration (OSHA) issued 65 citations to BP Products North
the Plaintiffs agreed to a settlement of the class action lawsuit,
America Inc. (BP Products) and BP-Husky Refining LLC (BP-
subject to final court approval. BP intends to file a petition for a writ of
Husky) for alleged violations of the Process Safety Management
certiorari to the US Supreme Court in order to preserve BP’s appeal
(PSM) standard at the Toledo refinery, with penalties of
rights pending final court approval of the settlement. BP’s provisions
approximately $3 million. These citations resulted from an
for litigation and claims includes a provision for this lawsuit.
inspection conducted pursuant to OSHA’s Petroleum Refinery
Process Safety Management National Emphasis Program. Both
BP Products and BP-Husky contested the citations. The outcome International trade sanctions
of a pre-trial settlement of a number of the citations and a trial of During the period covered by this report, non-US subsidiaries«, or
the remainder was a reduction in the total penalty in respect of other non-US entities of BP, conducted limited activities in, or with
the citations from the original amount of approximately $3 million persons from, certain countries identified by the US Department of
to $80,000. The OSH Review Commission granted OSHA’s State as State Sponsors of Terrorism or otherwise subject to US and
petition for review and briefing was completed in the first half of EU sanctions (Sanctioned Countries). Sanctions restrictions continue
2014. On 27 September 2018, the OSH Review Commission to be insignificant to the group’s financial condition and results of
issued its decision, which reduced the citations to two operations. BP monitors its activities with Sanctioned Countries,
remaining, and reduced the penalty to $7,000. OSHA has decided persons from Sanctioned Countries and individuals and companies
not to appeal this decision. subject to US and EU sanctions and seeks to comply with applicable
sanctions laws and regulations.
Prudhoe Bay leak
In March and August 2006, oil leaked from oil transit pipelines In May 2018, the US government announced its planned withdrawal
operated by BP Exploration (Alaska) Inc. (BPXA) at the Prudhoe from the Joint Comprehensive Plan of Action (JCPOA) under which
Bay unit on the North Slope of Alaska. On 12 May 2008, a BP the US and the EU had implemented temporary, limited and
p.l.c. shareholder filed a consolidated complaint alleging reversible relief of certain sanctions related to Iran. The US
violations of federal securities law on behalf of a putative class of government tasked OFAC with implementing the full re-imposition of
BP p.l.c. shareholders, based on alleged misrepresentations both primary and secondary sanctions in respect of Iran by the end of
concerning the integrity of the Prudhoe Bay pipeline before its a wind-down period. As a result of the JCPOA, BP had considered
shutdown on 6 August 2006. On 7 December 2015, the and developed possible business opportunities in relation to Iran,
complaint was dismissed with prejudice. On 5 January 2016, engaged in discussions with Iranian government officials and other
plaintiffs filed a notice of appeal of that decision to the Ninth Iranian nationals and attended conferences. BP will continue to
Circuit Court of Appeals. On July 31, 2018 the Ninth Circuit monitor and assess business opportunities in Iran which are
granted the parties’ motion to dismiss the appeal voluntarily compliant with EU and US laws applicable to BP including potentially
ending the litigation. attending meetings in connection with this purpose.
Lead paint matters On 30 November 2018, BP completed the sale of certain of its assets
Since 1987, Atlantic Richfield Company (Atlantic Richfield), a in the North Sea, including its ownership stake, and the transfer of its
subsidiary of BP, has been named as a co-defendant in numerous role as operator, in the North Sea Rhum field (Rhum) joint
lawsuits brought in the US alleging injury to persons and property arrangement to Serica Energy plc (Serica). Prior to that date, Rhum
caused by lead pigment in paint. The majority of the lawsuits was owned under a 50:50 unincorporated joint arrangement between
have been abandoned or dismissed against Atlantic Richfield. BP and Iranian Oil Company (U.K.) Limited (IOC).
Atlantic Richfield is named in these lawsuits as alleged BP has a 28.8% interest in and operates the Azerbaijan Shah Deniz
successor to International Smelting and Refining and another field (Shah Deniz) and a related gas pipeline entity, South Caucasus
company that manufactured lead pigment during the period Pipeline Company Limited (SCPC), and has a 23% non-operated
1920-1946. The plaintiffs include individuals and governmental interest in a related gas marketing entity, Azerbaijan Gas Supply
entities. Several of the lawsuits purport to be class actions. The Company Limited (AGSC). Naftiran Intertrade Co. Limited and NICO
lawsuits seek various remedies including compensation to lead- SPV Limited (collectively, NICO) have a 10% non-operating interest in
poisoned children, cost to find and remove lead paint from each of Shah Deniz and SCPC and an 8% non-operating interest in
buildings, medical monitoring and screening programmes, public AGSC. Shah Deniz, SCPC and AGSC continue in operation as they
warning and education of lead hazards, reimbursement of were excluded from the main operative provisions of the EU
government healthcare costs and special education for lead- regulations as well as from the application of the US sanctions, and
poisoned citizens and punitive damages. No lawsuit against fall within the exception for certain natural gas projects under
Atlantic Richfield has been settled nor has Atlantic Richfield been Section 603 of the Iran Threat Reduction and Syria Human Rights Act
subject to a final adverse judgment in any proceeding. The of 2012 (ITRA).
amounts claimed and, if such suits were successful, the costs of
implementing the remedies sought in the various cases could be On 3 December 2018 BP entered into an agreement with, among
others, SOCAR and NICO pursuant to which SOCAR shall pay to BP

Exploration Shah Deniz Limited (BPXSD), as the Shah Deniz Operator, delivery at BP’s Rotterdam refinery, the Forties blend crude oil was
an amount in respect of compensation for NICO’s waiver of its right comingled with other products for refining, and therefore BP is
to lift its share of Shah Deniz condensate. Such amounts shall be unable to ascertain an amount of gross revenue or gross profit
used to cover cash calls to NICO in respect of operating costs due attributable to it.
from NICO to BPXSD. On 30 November 2018, OFAC issued a new
licence in relation to these arrangements.
• During 2018, BPEOC received £223,693 ($298,456 equivalent) (net
of tariffs) from BPEOC Forties Pipeline System in respect of
BP holds an interest in a non-BP operated Indian joint venture« that monies owed to IOC in relation to the purchase of IOC’s share of
sold produced crude oil to an Indian entity in which NICO holds a Onshore Raw Gas at the Kinneil terminal of the Forties Pipeline
minority, non-controlling stake. System. BP and IOC agreed to set off the £223,693 ($298,456
Both the US and the EU have enacted strong sanctions against Syria, equivalent) against IOC’s share of operating costs incurred or to be
including a prohibition on the purchase of Syrian-origin crude and a US incurred by BPEOC as operator of the Rhum field under the Rhum
prohibition on the provision of services to Syria by US persons. The joint operating agreement.
EU sanctions against Syria include a prohibition on supplying certain • During 2018, BPEOC received £2.79 million ($3.73 million
equipment used in the production, refining or liquefaction of equivalent) (net of tariffs) from a non-US third party in respect of
petroleum resources, as well as restrictions on dealing with the the sale to such non-US third party of certain NGLs redelivered
Central Bank of Syria and numerous other Syrian financial institutions. from the St Fergus terminal. These NGLs had been acquired by
Following the imposition in 2011 of further US and EU sanctions BPEOC from IOC at the St. Fergus terminal. BP and IOC agreed to
against Syria, BP terminated all sales of crude oil and petroleum set off the £2.79 million ($3.73 million equivalent) against IOC’s
products into Syria, though BP continues to supply aviation fuel to share of operating costs incurred by BPEOC as operator of the
non-governmental Syrian resellers outside of Syria. Rhum field under the Rhum joint operating agreement.
BP sells lubricants in Cuba through a 50:50 joint arrangement and • As noted above, on 30 November 2018, BP completed the sale of
trades in small quantities of lubricants. its ownership stake in the Rhum joint arrangement and transferred
its role as operator to Serica. Prior to the sale, on 5 October 2018,
During 2014 the US and the EU imposed sanctions on certain Russian
Serica and BP received a conditional licence from OFAC relating to
activities, individuals and entities, including Rosneft. Certain sectoral
the ongoing operation of the Rhum field. The licence was valid until
sanctions also apply to entities in which entities on the relevant
31 October 2019 and was conditional upon arrangements being put
sectoral sanctions list own a certain percentage interest, being either
in place before 5 November 2018 relating to the interests in Rhum
33% or 50% depending on certain criteria. In August 2017, Russia
held by IOC. An updated licence from OFAC on substantially the
related sanctions were passed in the US which target among other
same terms and a letter of comfort permitting all non-US persons
things: (i) Russian energy export pipelines; (ii) privatisation of state
to support Rhum activities in compliance with US secondary
owned assets in Russia; and (iii) certain international offshore Arctic,
sanctions were issued on 2 November 2018. On the same date the
deepwater and/or shale exploration and production oil projects. We
conditions in such OFAC licence in respect of the interest in Rhum
are not aware of any material adverse effect on our current income
held by IOC were met in full. These conditions were satisfied
and investment in Russia or elsewhere as a consequence of those
through arrangements which provide that all benefits accruing from
sanctions.
and relating to IOC’s interest in Rhum will be held in escrow, by a
BP maintains bank accounts and has registered and paid required trust and management company (Rhum Management Company)
fees to maintain registrations of patents and trademarks in certain set up for this purpose, for such period as US sanctions apply. The
Sanctioned Countries. arrangements are designed to ensure that neither IOC nor any
BP has equity interests in non-operated joint arrangements« with air direct or indirect parent company of IOC (including any member of
fuel sellers, resellers, and fuel delivery services around the world. the Government of Iran) will derive any economic benefit from
From time to time, the joint arrangement operator or other partners Rhum, or exercise any decision-making powers in respect of
may sell or deliver fuel to airlines from Sanctioned Countries or flights Rhum, during that period. From satisfaction of the OFAC licence
to Sanctioned Countries, without BP's involvement. conditions on 2 November 2018, BP dealt with the Rhum
Management Company in respect of Rhum joint venture matters.
BP has no control over the activities non-controlled associates may
undertake in Sanctioned Countries or with persons from Sanctioned • In December 2018, BP made a cash transfer of £2.69 million ($3.59
Countries. million equivalent) to Rhum Management Company. This transfer
represented the net amount of IOC funds in the Rhum joint
Disclosure pursuant to Section 219 of ITRA venture account which had not, to that date, been set off against
To our knowledge, none of BP’s activities, transactions or dealings are IOC’s share of operating costs incurred by BPEOC as operator of
required to be disclosed pursuant to ITRA Section 219, with the the Rhum field under the Rhum joint operating agreement.
following possible exceptions: • BP does not expect to enter into any further similar arrangements
• Prior to 30 November 2018, Rhum, located in the UK sector of the with IOC or any member of the Government of Iran in relation to
North Sea, was operated by BP Exploration Operating Company the Rhum field. BP will continue to purchase from Serica’s liftings
Limited (BPEOC), a non-US subsidiary of BP, and Rhum was owned from Rhum or provide services to Serica as the operator of Rhum.
under a 50:50 unincorporated joint arrangement between BPEOC • On 17 July 2018 BP Iran Limited terminated its lease of an office in
and Iranian Oil Company (U.K.) Limited (IOC) which was initially Tehran. The office had been used for administrative activities. In
established in 1974. During 2018, BP recorded gross revenues of 2018, taxes, including rental tax payments associated with the
$177.3 million related to its interests in Rhum. BP had a net profit Tehran office, with an aggregate US dollar equivalent value of
of $87.7 million for the year ended 31 December 2018. approximately $11,000, were paid from a BP trust account held
• BP has sought to carry out its role as operator of the Rhum joint with Tadvin Co. to Iranian public entities. No gross revenues or net
arrangement in compliance with US sanctions and has obtained a profits were attributable to these activities.
series of specific OFAC licences relating to the ongoing operation • During 2018, certain BP employees visited Iran for the purpose of
of the Rhum field. meetings with Iranian government officials and other Iranian
• In November 2017, BPEOC entered into an agreement with IOC for nationals and attending conferences. Payments were made to
the sale and purchase of an IOC entitlement to Forties blend crude Iranian public entities for visas and taxes in relation to such visits
oil. The parties agreed to set off the purchase price - £29.89 million with an aggregate US dollar equivalent value of approximately
($39.88 million equivalent) - against IOC’s share of operating costs $3,000. In addition, certain BP employees met with Iranian
incurred or to be incurred by BPEOC as operator of the Rhum field government officials and other Iranian nationals outside of Iran. No
under the Rhum joint operating agreement. 604,976 net barrels of gross revenues or net profits were attributable to these activities,
Forties blend crude oil was loaded at a North Sea terminal in save where otherwise disclosed. BP will continue to monitor and
January 2018 and delivered to BP’s Rotterdam refinery. Upon assess business opportunities in Iran which are compliant with EU

and US laws applicable to BP including potentially attending directors whom the board has determined to be independent, in the
meetings in connection with this purpose. manner described above.
The BP board governance principles prescribe the composition, main
Material contracts tasks and requirements of each of the committees (see the board
On 4 April 2016 the district court approved the Consent Decree committee reports on pages 75-86). BP has not, therefore, adopted
among BP Exploration & Production Inc., BP Corporation North separate charters for each committee.
America Inc., BP p.l.c., the United States and the states of Alabama, Under US securities law and the listing standards of the NYSE, BP is
Florida, Louisiana, Mississippi and Texas (the Gulf states) which fully required to have an audit committee that satisfies the requirements
and finally resolved any and all natural resource damages (NRD) of Rule 10A-3 under the Exchange Act and Section 303A.06 of the
claims of the United States, the Gulf states, and their respective NYSE Listed Company Manual. BP’s audit committee complies with
natural resource trustees and all Clean Water Act (CWA) penalty these requirements. The BP audit committee does not have direct
claims, and certain other claims of the United States and the Gulf responsibility for the appointment, reappointment or removal of the
states. independent auditors. Instead, it follows the UK Companies Act 2006
Concurrently, the definitive Settlement Agreement that BP entered by making recommendations to the board on these matters for it to
into with the Gulf states (Settlement Agreement) with respect to put forward for shareholder approval at the AGM.
State claims for economic, property and other losses became One of the NYSE’s additional requirements for the audit committee
effective. states that at least one member of the audit committee is to have
BP has filed the Consent Decree and the Settlement Agreement as ‘accounting or related financial management expertise’. The board
exhibits to its Annual Report on Form 20-F 2018 filed with the SEC. determined that Brendan Nelson possesses such expertise and also
For further details of the Consent Decree and the Settlement possesses the financial and audit committee experiences set forth in
Agreement, see Legal proceedings in BP Annual Report and Form 20- both the UK Corporate Governance Code and SEC rules (see Audit
F 2015. committee report on page 75). Mr Nelson is the audit committee
financial expert as defined in Item 16A of Form 20-F.
Property, plant and equipment Shareholder approval of equity compensation plans
BP has freehold and leasehold interests in real estate and other The NYSE rules for US companies require that shareholders must be
tangible assets in numerous countries, but no individual property is given the opportunity to vote on all equity-compensation plans and
significant to the group as a whole. For more on the significant material revisions to those plans. BP complies with UK requirements
subsidiaries of the group at 31 December 2018 and the group that are similar to the NYSE rules. The board, however, does not
percentage of ordinary share capital see Financial statements – Note explicitly take into consideration the NYSE’s detailed definition of
37. For information on significant joint ventures« and associates« of what are considered ‘material revisions’.
the group see Financial statements – Notes 16 and 17.
Code of ethics
Related-party transactions The NYSE rules require that US companies adopt and disclose a code
of business conduct and ethics for directors, officers and employees.
Transactions between the group and its significant joint ventures and
BP has adopted a code of conduct, which applies to all employees
associates are summarized in Financial statements – Note 16 and
and members of the board, and has board governance principles that
Note 17. In the ordinary course of its business, the group enters into
address the conduct of directors. In addition BP has adopted a code
transactions with various organizations with which some of its
of ethics for senior financial officers as required by the SEC. BP
directors or executive officers are associated. Except as described in
considers that these codes and policies address the matters
this report, the group did not have any material transactions or
specified in the NYSE rules for US companies.
transactions of an unusual nature with, and did not make loans to,
related parties in the period commencing 1 January 2018 to 15 March
2019. Code of ethics
The company has adopted a code of ethics for its group chief
Corporate governance practices executive, chief financial officer, group controller, group head of audit
and chief accounting officer as required by the provisions of
In the US, BP ADSs are listed on the New York Stock Exchange
Section 406 of the Sarbanes-Oxley Act of 2002 and the rules issued
(NYSE). The significant differences between BP’s corporate
by the SEC. There have been no waivers from the code of ethics
governance practices as a UK company and those required by NYSE
relating to any officers.
listing standards for US companies are listed as follows:
BP also has a code of conduct, which is applicable to all employees,
Independence officers and members of the board. This was updated (and published)
BP has adopted a robust set of board governance principles, which in July 2014.
reflect the UK Corporate Governance Code approach to corporate
governance. As such, the way in which BP makes determinations of Controls and procedures
directors’ independence differs from the NYSE rules.
BP’s board governance principles require that all non-executive
Evaluation of disclosure controls and procedures
directors be determined by the board to be ‘independent in character The company maintains ‘disclosure controls and procedures’, as such
and judgement and free from any business or other relationship term is defined in Exchange Act Rule 13a-15(e), that are designed to
which could materially interfere with the exercise of their judgement’. ensure that information required to be disclosed in reports the
The BP board has determined that, in its judgement, all of the non- company files or submits under the Exchange Act is recorded,
executive directors are independent. In doing so, however, the board processed, summarized and reported within the time periods
did not explicitly take into consideration the independence specified in the Securities and Exchange Commission rules and
requirements outlined in the NYSE’s listing standards. forms, and that such information is accumulated and communicated
to management, including the company’s group chief executive and
Committees chief financial officer, as appropriate, to allow timely decisions
BP has a number of board committees that are broadly comparable in regarding required disclosure.
purpose and composition to those required by NYSE rules for In designing and evaluating our disclosure controls and procedures,
domestic US companies. For instance, BP has a chairman’s (rather our management, including the group chief executive and chief
than executive) committee and remuneration (rather than financial officer, recognize that any controls and procedures, no
compensation) committee. BP also has an audit committee, which matter how well designed and operated, can provide only reasonable,
NYSE rules require for both US companies and foreign private not absolute, assurance that the objectives of the disclosure controls
issuers. These committees are composed solely of non-executive

and procedures are met. Because of the inherent limitations in all that have materially affected or are reasonably likely to materially
control systems, no evaluation of controls can provide absolute affect our internal control over financial reporting.
assurance that all control issues and instances of fraud within the
company, if any, have been detected. Further, in the design and
evaluation of our disclosure controls and procedures our management
Principal accountant's fees and
necessarily was required to apply its judgement in evaluating the services
costs and benefits of possible control and procedure design options.
The audit committee has established policies and procedures for the
Also, we have investments in unconsolidated entities. As we do not
engagement of the independent registered public accounting firm,
control these entities, our disclosure controls and procedures with
Deloitte LLP, to render audit and certain assurance services. The
respect to such entities are necessarily substantially more limited
policies provide for pre-approval by the audit committee of specifically
than those we maintain with respect to our consolidated subsidiaries.
defined audit, audit-related, non-audit and other services that are not
Because of the inherent limitations in a cost-effective control system,
prohibited by regulatory or other professional requirements. Deloitte
misstatements due to error or fraud may occur and not be detected.
is engaged for these services when its expertise and experience of
The company’s disclosure controls and procedures have been
BP are important. Most of this work is of an audit nature. The policy
designed to meet, and management believes that they meet,
has been updated such that non-audit tax services provided by the
reasonable assurance standards.
audit firm from 2017 onwards are prohibited.
The company’s management, with the participation of the company’s
Under the policy, pre-approval is given for specific services within the
group chief executive and chief financial officer, has evaluated the
following categories: advice on accounting, auditing and financial
effectiveness of the company’s disclosure controls and procedures
reporting matters; internal accounting and risk management control
pursuant to Exchange Act Rule 13a-15(b) as of the end of the period
reviews (excluding any services relating to information systems
covered by this annual report. Based on that evaluation, the group
design and implementation); non-statutory audit; project assurance
chief executive and chief financial officer have concluded that the
and advice on business and accounting process improvement
company’s disclosure controls and procedures were effective at a
(excluding any services relating to information systems design and
reasonable assurance level.
implementation relating to BP’s financial statements or accounting
Management’s report on internal control over records); due diligence in connection with acquisitions, disposals and
joint arrangements« (excluding valuation or involvement in
financial reporting prospective financial information); provision of, or access to, Deloitte
Management of BP is responsible for establishing and maintaining publications, workshops, seminars and other training materials;
adequate internal control over financial reporting. BP’s internal control provision of reports from data gathered on non-financial policies and
over financial reporting is a process designed under the supervision information; provision of the independent third party audit in
of the principal executive and financial officers to provide reasonable accordance with US Generally Accepted Government Auditing
assurance regarding the reliability of financial reporting and the Standards, over the company’s Conflict Minerals Report – where such
preparation of BP’s financial statements for external reporting a report is required under the SEC rule ‘Conflict Minerals’, issued in
purposes in accordance with IFRS. accordance with Section 1502 of the Dodd Frank Act; and assistance
As of the end of the 2018 fiscal year, management conducted an with understanding non-financial regulatory requirements. BP
assessment of the effectiveness of internal control over financial operates a two-tier system for audit and non-audit services. For audit
reporting in accordance with the criteria in the UK Financial Reporting related services, the audit committee has a pre-approved aggregate
Council’s Guidance on Risk Management, Internal Control and level, within which specific work may be approved by management.
Related Financial and Business Reporting relating to internal control Non-audit services are pre-approved for management to authorize per
over financial reporting. Based on this assessment, management has individual engagement, but above a defined level must be approved
determined that BP’s internal control over financial reporting as of by the chairman of the audit committee or the full committee. In
31 December 2018 was effective. response to the revised regulatory guidelines of the UK Financial
Reporting Council, the audit committee reviewed and updated its
Management’s assessment of the effectiveness of internal control policies with effect from 1 January 2017 and in 2018 further updated
over financial reporting excluded Petrohawk Energy Corporation, its policies to clarify the engagement of the incoming auditor,
which was acquired on 31 October 2018. Petrohawk financial Deloitte, and the outgoing auditor (and auditor of Rosneft) Ernst &
statements constitute 10.3% and 4.0% of net and total assets Young to ensure independence. The defined maximum level for pre-
respectively, 0.2% of revenues, and 0.05% of net income of the approval has been reduced in line with FRC guidance on ‘non-trivial’
consolidated financial statement amounts as of and for the year engagements. The audit committee has delegated to the chairman of
ended 31 December 2018. This exclusion is in accordance with the the audit committee authority to approve permitted services provided
general guidance issued by the SEC that an assessment of a recent that the chairman reports any decisions to the committee at its next
business combination may be omitted from management’s report on scheduled meeting. Any proposed service not included in the
internal control over financial reporting in the first year of approved service list must be approved in advance by the audit
consolidation. committee chairman and reported to the committee, or approved by
The company’s internal control over financial reporting includes the full audit committee in advance of commencement of the
policies and procedures that pertain to the maintenance of records engagement.
that, in reasonable detail, accurately and fairly reflect transactions and The audit committee evaluates the performance of the auditor each
dispositions of assets; provide reasonable assurances that
year. The audit fees payable to Deloitte are reviewed by the
transactions are recorded as necessary to permit preparation of committee in the context of other global companies for cost
financial statements in accordance with IFRS and that receipts and
effectiveness. The committee keeps under review the scope and
expenditures are being made only in accordance with authorizations
results of audit work and the independence and objectivity of the
of management and the directors of BP; and provide reasonable
auditor. External regulation and BP policy requires the auditor to
assurance regarding prevention or timely detection of unauthorized
rotate its lead audit partner every five years. See Financial statements
acquisition, use or disposition of BP’s assets that could have a
– Note 36 and Audit committee report on page 79 for details of fees
material effect on our financial statements. BP’s internal control over for services provided by the auditor.
financial reporting as of 31 December 2018 has been audited by
Deloitte, an independent registered public accounting firm, as stated
in their report appearing on page 127 of BP Annual Report and Form Directors’ report information
20-F 2018. This section of BP Annual Report and Form 20-F 2018 forms part of,
and includes certain disclosures which are required by law to be
Changes in internal control over financial reporting included in, the Directors’ report.
There were no changes in the group’s internal control over financial
reporting that occurred during the period covered by the Form 20-F Indemnity provisions

In accordance with BP’s Articles of Association, on appointment each effective. The federal government and the Gulf states may jointly
director is granted an indemnity from the company in respect of elect to accelerate the payments under the Consent Decree in the
liabilities incurred as a result of their office, to the extent permitted by event of a change of control or insolvency of BP p.l.c., and the Gulf
law. These indemnities were in force throughout the financial year and states individually have similar acceleration rights under the
at the date of this report. In respect of those liabilities for which Settlement Agreement. For further details of the Consent Decree and
directors may not be indemnified, the company maintained a the Settlement Agreement, see Legal proceedings in BP Annual
directors’ and officers’ liability insurance policy throughout 2018. Report and Form 20-F 2015.
During the year, a review of the terms and scope of the policy was
undertaken. The policy was renewed during 2018 and continued into Greenhouse gas emissions
2019. Although their defence costs may be met, neither the The disclosures in relation to greenhouse gas emissions are included
company’s indemnity nor insurance provides cover in the event that in Sustainability – Climate change on page 45.
the director is proved to have acted fraudulently or dishonestly.
Certain subsidiaries are trustees of the group’s pension schemes.
Each director of these subsidiaries«is granted an indemnity from the
Disclosures required under Listing
company in respect of liabilities incurred as a result of such a
subsidiary’s activities as a trustee of the pension scheme, to the
Rule 9.8.4R
extent permitted by law. These indemnities were in force throughout The information required to be disclosed by Listing Rule 9.8.4R can
the financial year and at the date of this report. be located as set out below:
Information required Page
Financial risk management objectives and policies (1) Amount of interest capitalized 159
The disclosures in relation to financial risk management objectives (2) – (11) Not applicable
and policies, including the policy for hedging, are included in How we (12), (13) Dividend waivers 302
manage risk on page 53, Liquidity and capital resources on page 277 (14) Not applicable
and Financial statements – Notes 29 and 30.
Exposure to price risk, credit risk, liquidity risk and

cash flow risk
The disclosures in relation to exposure to price risk, credit risk,
liquidity risk and cash flow risk are included in Financial statements –
Note 29.
Important events since the end of the financial year

Disclosures of the particulars of the important events affecting BP
which have occurred since the end of the financial year are included in
the Strategic report as well as in other places in the Directors’ report.
Likely future developments in the business

An indication of the likely future developments in the business of the
company is included in the Strategic report.
Research and development

An indication of the activities of the company in the field of research
and development is included in Innovation in BP on page 40.
Branches
As a global group our interests and activities are held or operated
through subsidiaries, branches, joint arrangements« or associates«
established in – and subject to the laws and regulations of – many
different jurisdictions.
Employees
The disclosures concerning policies in relation to the employment of
disabled persons and employee involvement are included in
Sustainability – Our people on page 51.
Employee share schemes

Certain shares held as a result of participation in some employee
share plans carry voting rights. Voting rights in respect of such shares
are exercisable via a nominee. Dividend waivers are in place in
respect of unallocated shares held in employee share plan trusts.
Change of control provisions

On 5 October 2015, the United States lodged with the district court in
MDL 2179 a proposed Consent Decree between the United States,
the Gulf states, BP Exploration & Production Inc., BP Corporation
North America Inc. and BP p.l.c., to fully and finally resolve any and all
natural resource damages claims of the United States, the Gulf states
and their respective natural resource trustees and all Clean Water Act
penalty claims, and certain other claims of the United States and the
Gulf states. Concurrently, BP entered into a definitive Settlement
Agreement with the five Gulf states (Settlement Agreement) with
respect to state claims for economic, property and other losses. On
4 April 2016, the district court approved the Consent Decree, at which
time the Consent Decree and Settlement Agreement became

Cautionary statement including 2012 PSC settlement payments; plans and expectations
regarding sales commitments of BP and its equity-accounted entities;
In order to utilize the ‘safe harbor’ provisions of the United States expectations regarding underlying production and capital investment;
Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’) and the plans and expectations with respect to gearing including to target
general doctrine of cautionary statements, BP is providing the gearing within a 20-30% band; expectations regarding oil prices;
following cautionary statement. This document contains certain expectations regarding the return on average capital employed;
forecasts, projections and forward-looking statements - that is, expectations with respect to the cash break even point; plans and
statements related to future, not past, events and circumstances - expectations regarding the US onshore, including to increase the
with respect to the financial condition, results of operations and liquid hydrocarbon proportion and to upgrade and reposition BPX
businesses of BP and certain of the plans and objectives of BP with Energy; plans with regard to BP’s exploration budget; plans and
respect to these items. These statements may generally, but not expectations regarding the resiliency of downstream businesses;
always, be identified by the use of words such as ‘will’, ‘expects’, ‘is expectations regarding the effective tax rate in 2019; plans to produce
expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, 900,000boe/d from new major projects by 2021 and expectations
‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions. In regarding operating cash margins of this production; plans to start up
particular, among other statements, (i) certain statements in the five major projects in 2019; plans and expectations with respect to
Chairman’s letter (pages 6-7), the Group chief executive’s letter (page expected project start-ups between 2019 and 2021; plans and
8), the Strategic report (inside cover and pages 1-56), Additional expectations regarding investment, development, and production
disclosures (pages 273-304) and Shareholder information (pages levels and the timing thereof with respect to projects and
305-314), including but not limited to statements under the headings partnerships in Australia, Azerbaijan, Brazil, China, Egypt, India,
‘The changing energy mix’, ‘How we run our business’, ‘Our strategy’ Indonesia, Libya, Mexico, Mauritania, Russia, São Tomé and Príncipe,
and ‘Global energy markets’ and including but not limited to Senegal, Turkey, Trinidad & Tobago, Oman, the UK North Sea, the Gulf
statements regarding plans and prospects relating to near- and long- of Mexico, and the continental United States; expectations regarding
term growth, organic capital expenditure, organic growth, the the Trans Anatolian Natural Gas Pipeline; plans and expectations
strength of BP’s balance sheet, maintaining a robust cash position, regarding social investment; plans and expectations regarding
working capital, operating cash flow and margins, capital discipline, relationships with governments, customers, partners, suppliers and
growth in sustainable free cash flow and shareholder distributions communities; plans and expectations regarding the dual energy
and future dividend and optional scrip dividend payments; plans and challenge and the energy transition, including BP’s progressive and
expectations regarding share buybacks, including to offset the impact pragmatic approach and planned investments; plans and expectations
of dilution from the scrip programme since the third quarter 2017 by regarding shareholder resolutions; plans and expectations with
the end of 2019; expectations regarding world energy demand, respect to BP’s public reporting of ambitions, plans and progress;
including the growth in relative demand for renewables, oil and gas, plans and expectations regarding innovation in BP, including the
and the proportional growth of renewables; expectations with respect development of BPme, Wolfspar, a land seismic recording system,
to the world energy mix, production, consumption and emissions to APEX, Plant Operations Advisor and wind energy storage systems;
2040; plans and expectations regarding BP’s portfolio, including plans and expectations regarding plant reliability and base decline,
having a distinctive portfolio, BP’s active management of the portfolio including for base decline to remain between 3-5%; plans and
and the flexibility of the portfolio; plans and expectations with respect expectations regarding the Tangguh gas facility; expectations
to disciplined investment; plans and expectations with respect to the regarding discounts for North American heavy crude oil, refining
Upstream, including growing advantaged oil and gas, being margins and refining turnarounds; plans to undertake joint exploration
competitive in every basin and producing resilient and competitive and development with Rosneft, including to explore oil and gas
barrels; plans and expectations with respect to BP’s transformation licence areas in Sakha (Yakutia); expectations regarding pensions and
agenda; plans and expectations to deliver 2021 financial targets; other post-retirement benefits; expectations regarding payments
expectations with respect to reserves bookings from new under contractual obligations; plans and expectations regarding
discoveries; plans and expectations regarding BP’s quality of additions to BP’s fleet of oil tankers and LNG tankers; expectations
execution, including to get more from a unit of capital compared to regarding the actions of contractors and partners and their terms of
peers; plans and expectations with respect to BP’s refining and service; BP’s aim to maintain a diverse workforce, create an inclusive
petrochemicals portfolio; plans and expectations with respect to environment and ensure equal opportunity; policies and goals related
creating distinctive retail offers in the Downstream; plans and to risk management plans; plans regarding activities, dealings and
expectations with regard to new technologies, including their transactions relating to Iran; plans and projections regarding oil and
efficiency and impact on production; plans and expectations with gas reserves, including the turnover time of proved undeveloped
respect to BP’s investments in Chargemaster, StoreDot and reserves to proved developed reserves; expectations regarding the
FreeWire, including for BP to become the leading fuel provider for costs of environmental restoration programmes; expectations
both conventional and electric vehicles and supporting electric vehicle regarding the renewal of leases; expectations regarding the future
adoption; plans and expectations with respect to BP’s investment in value of assets; expectations regarding future regulations and policy,
solar energy and biofuels, including to invest $200 million in their impact on BP’s business and plans regarding compliance with
Lightsource BP over a three-year period; plans and expectations with such regulations; and expectations regarding legal and trial
respect to the commercial optimization programme; plans and proceedings, court decisions, potential investigations and civil actions
expectations to run safe and reliable operations; plans and by regulators, government entities and/or other entities or parties, and
expectations regarding BP’s acquisition of onshore-US oil and gas the timing of such proceedings and BP’s intentions in respect
assets from BHP, including expectations regarding the funding and thereof; and (ii) certain statements in Corporate governance (pages
timing of further purchase price payments, future performance and 57-86) and the Directors’ remuneration report (pages 87-109) with
operations and related divestments; plans and expectations to reduce regard to the anticipated future composition of the board of directors
emissions in operations and the low carbon future, including to target and the effects thereof; the board’s goals and areas of focus,
zero net growth in operational emissions to 2025 and the Advancing including changes to KPIs and those goals stemming from the
Low Carbon accreditation programme; plans and expectations with board’s annual evaluation; plans and expectations regarding directors’
respect to evaluating the creation of a joint venture with SOCAR; share ownership and remuneration; plans regarding the governance
plans and expectations regarding BP’s low carbon businesses, and remuneration processes; and goals, activities and areas of focus
including in Brazil and India; plans and expectations with respect to of board committees, are all forward looking in nature.
Fulcrum BioEnergy’s commercial operations; plans to grow third-party
By their nature, forward-looking statements involve risk and
technology licensing income; plans and expectations regarding
uncertainty because they relate to events and depend on
charges in Other businesses and corporate in 2019 and proceeds
circumstances that will or may occur in the future and are outside the
from divestments and disposals, including to have more than $10
control of BP. Actual results may differ materially from those
billion of divestments over the next two years; expectations regarding
expressed in such statements, depending on a variety of factors,
the determination of business economic loss claims in respect of the
including: the specific factors identified in the discussions
2012 PSC settlement and expectations with respect to the timing and
accompanying such forward looking statements; the receipt of
amount of future payments relating to the Gulf of Mexico oil spill

relevant third party and/or regulatory approvals; the timing and level of
maintenance and/or turnaround activity; the timing and volume of
refinery additions and outages; the timing of bringing new projects
onstream; the timing, quantum and nature of certain acquisitions and
divestments; future levels of industry product supply, demand and
pricing, including supply growth in North America; OPEC quota
restrictions; production-sharing agreements effects; operational and
safety problems; potential lapses in product quality; economic and
financial market conditions generally or in various countries and
regions; political stability and economic growth in relevant areas of
the world; changes in laws and governmental regulations and
policies, including related to climate change; changes in social
attitudes and customer preferences; regulatory or legal actions
including the types of enforcement action pursued and the nature of
remedies sought or imposed; the actions of prosecutors, regulatory
authorities and courts; delays in the processes for resolving claims;
amounts ultimately determined to be payable and the timing of
payments relating to the Gulf of Mexico oil spill; exchange rate
fluctuations; development and use of new technology; recruitment
and retention of a skilled workforce; the success or otherwise of
partnering; the actions of competitors, trading partners, contractors,
subcontractors, creditors, rating agencies and others; our access to
future credit resources; business disruption and crisis management;
the impact on our reputation of ethical misconduct and non-
compliance with regulatory obligations; trading losses; major
uninsured losses; decisions by Rosneft’s management and board of
directors; the actions of contractors; natural disasters and adverse
weather conditions; changes in public expectations and other
changes to business conditions; wars and acts of terrorism;
cyberattacks or sabotage; and other factors discussed elsewhere in
this report including under Risk factors (pages 55-56). In addition to
factors set forth elsewhere in this report, those set out above are
important factors, although not exhaustive, that may cause actual
results and developments to differ materially from those expressed or
implied by these forward-looking statements.
Statements regarding competitive position
Statements referring to BP’s competitive position are based on the
company’s belief and, in some cases, rely on a range of sources,
including investment analysts’ reports, independent market studies
and BP’s internal assessments of market share based on publicly
available information about the financial results and performance of
market participants.

Shareholder 306 Share pricings and listings
information 306 Dividends
306 Shareholder taxation information
308 Major shareholders
309 Annual general meeting
309 Memoradum and Articles of Association
Purchases of equity securities by the issuer

312
and affiliated purchasers
313 Fees and charges payable by ADS holders
313 Fees and payments made by the Depositary to the issuer
313 Documents on display
314 Shareholding administration
314 Exhibits
Shareholder information

BPForm 20-F
Report 279
305
Share prices and listings make the Scrip Programme offer available in respect of any particular
dividend. Should the directors decide not to offer the Scrip
Markets and market prices Programme in respect of any particular dividend, cash will be paid
automatically instead.
The primary market for BP’s ordinary shares is the London Stock
Exchange (LSE) (trading symbol 'BP'). BP’s ordinary shares are a Future dividends will be dependent on future earnings, the financial
constituent element of the Financial Times Stock Exchange 100 Index. condition of the group, the Risk factors set out on page 55 and other
matters that may affect the business of the group set out in Our
Trading of BP’s shares on the LSE is primarily through the use of the strategy on page 10 and in Liquidity and capital resources on page
Stock Exchange Electronic Trading Service (SETS), introduced in 1997 277.
for the largest companies in terms of market capitalization whose
primary listing is the LSE. Under SETS, buy and sell orders at specific The following table shows dividends announced and paid by the
prices may be sent electronically to the exchange by any firm that is a company per ADS for the past five years.
member of the LSE, on behalf of a client or on behalf of itself acting
Dividends per ADSa March June September December Total
as a principal. The orders are then anonymously displayed in the order
book. When there is a match on a buy and a sell order, the trade is 2013 UK pence 36.01 35.01 34.58 34.80 140.40
executed and automatically reported to the LSE. Trading is continuous US cents 54 54 54 57 219
from 8.00am to 4.30pm UK time but, in the event of a 20% 2014 UK pence 34.24 34.84 35.76 38.26 143.10
movement in the share price either way, the LSE may impose a US cents 57 58.5 58.5 60 234
temporary halt in the trading of that company’s shares in the order
2015 UK pence 40.00 39.18 39.29 39.81 158.28
book to allow the market to re-establish equilibrium. Dealings in
ordinary shares may also take place between an investor and a US cents 60 60 60 60 240
market maker, via a member firm, outside the electronic order book. 2016 UK pence 42.08 41.50 45.35 47.59 176.52
US cents 60 60 60 60 240
In the US, BP’s securities are traded on the New York Stock Exchange
(NYSE) in the form of ADSs (trading symbol 'BP'), for which 2017 UK pence 48.95 46.54 45.73 44.66 185.88
JPMorgan Chase Bank, N.A. is the depositary (the Depositary) and US cents 60 60 60 60 240
transfer agent. The Depositary’s principal office is 383 Madison 2018 UK pence 43.01 44.66 47.58 48.15 183.40
Avenue, Floor 11, New York, NY, 10179, US. Each ADS represents six US cents 60 60 61.50 61.50 243
ordinary shares. ADSs are listed on the NYSE. ADSs are evidenced by a
Dividends announced and paid by the company on ordinary and preference shares are
American depositary receipts (ADRs), which may be issued in either provided in Financial statements – Note 10.
certificated or book entry form.
BP's securities are also traded in the form of a global depositary There are currently no UK foreign exchange controls or restrictions on
certificate representing BP ordinary shares on the Frankfurt, Hamburg remittances of dividends on the ordinary shares or on the conduct of
and Dusseldorf Stock Exchanges. the company’s operations, other than restrictions applicable to certain
countries and persons subject to EU economic sanctions or those
On 11 March 2019, 922,206,611 ADSs (equivalent to approximately sanctions adopted by the UK government which implement
5,533,239,666 ordinary shares or some 27.31% of the total issued resolutions of the Security Council of the United Nations.
share capital, excluding shares held in treasury) were outstanding and
were held by approximately 81,329 ADS holders. Of these, about
80,393 had registered addresses in the US at that date. One of the
Shareholder taxation information
registered holders of ADSs represents some 1,207,639 underlying This section describes the material US federal income tax and UK
holders. taxation consequences of owning ordinary shares or ADSs to a US
holder who holds the ordinary shares or ADSs as capital assets for tax
On 11 March 2019 there were approximately 235,594 ordinary purposes. It does not apply, however, inter alia to members of special
shareholders. Of these shareholders, around 1,540 had registered classes of holders some of which may be subject to other rules,
addresses in the US and held a total of some 4,112,535 ordinary including: tax-exempt entities, life insurance companies, dealers in
shares. securities, traders in securities that elect a mark-to-market method of
Since a number of the ordinary shares and ADSs were held by accounting for securities holdings, investors liable for alternative
brokers and other nominees, the number of holders in the US may minimum tax, holders that, directly or indirectly, hold 10% or more of
not be representative of the number of beneficial holders or their the company’s voting stock, holders that hold the shares or ADSs as
respective country of residence. part of a straddle or a hedging or conversion transaction, holders that
purchase or sell the shares or ADSs as part of a wash sale for US
Dividends federal income tax purposes, or holders whose functional currency is
not the US dollar. In addition, if a partnership holds the shares or
BP’s current policy is to pay interim dividends on a quarterly basis on ADSs, the US federal income tax treatment of a partner will generally
its ordinary shares. depend on the status of the partner and the tax treatment of the
Its policy is also to announce dividends for ordinary shares in US partnership and may not be described fully below.
dollars and state an equivalent sterling dividend. Dividends on BP A US holder is any beneficial owner of ordinary shares or ADSs that is
ordinary shares will be paid in sterling and on BP ADSs in US dollars. for US federal income tax purposes (1) a citizen or resident of the US,
The rate of exchange used to determine the sterling amount (2) a US domestic corporation, (3) an estate whose income is subject
equivalent is the average of the market exchange rates in London to US federal income taxation regardless of its source, or (4) a trust if
over the four business days prior to the sterling equivalent a US court can exercise primary supervision over the trust’s
announcement date. The directors may choose to declare dividends administration and one or more US persons are authorized to control
in any currency provided that a sterling equivalent is announced. It is all substantial decisions of the trust.
not the company’s intention to change its current policy of
This section is based on the tax laws of the United States, including
announcing dividends on ordinary shares in US dollars.
the Internal Revenue Code of 1986, as amended, its legislative
Information regarding dividends announced and paid by the company history, existing and proposed US Treasury regulations thereunder,
on ordinary shares and preference shares is provided in Financial published rulings and court decisions, and the taxation laws of the
statements – Note 10. UK, all as currently in effect, as well as the income tax convention
A Scrip Dividend Programme (Scrip Programme) was approved by between the US and the UK that entered into force on 31 March
shareholders in 2010 and was renewed for a further three years at the 2003 (the ‘Treaty’). These laws are subject to change, possibly on a
2018 AGM. It enables BP ordinary shareholders and ADS holders to retroactive basis. This section further assumes that each obligation
elect to receive dividends by way of new fully paid BP ordinary shares under the terms of the deposit agreement relating to BP ADSs and
(or ADSs in the case of ADS holders) instead of cash. The operation of any related agreement will be performed in accordance with its
the Scrip Programme is always subject to the directors’ decision to terms.

For purposes of the Treaty and the estate and gift tax Convention (the For US federal income tax purposes, a dividend must be included in
‘Estate Tax Convention’) and for US federal income tax and UK income when the US holder, in the case of ordinary shares, or the
taxation purposes, a holder of ADRs evidencing ADSs will be treated Depositary, in the case of ADSs, actually or constructively receives
as the owner of the company’s ordinary shares represented by those the dividend and will not be eligible for the dividends-received
ADRs. Exchanges of ordinary shares for ADRs and ADRs for ordinary deduction generally allowed to US corporations in respect of
shares generally will not be subject to US federal income tax or to UK dividends received from other US corporations. US ADS holders
taxation other than stamp duty or stamp duty reserve tax, as should consult their own tax adviser regarding the US tax treatment
described below. of the dividend fee in respect of dividends. Dividends will be income
from sources outside the US and generally will be ‘passive category
Investors should consult their own tax adviser regarding the US
income’ or, in the case of certain US holders, ‘general category
federal, state and local, UK and other tax consequences of owning
income’, each of which is treated separately for purposes of
and disposing of ordinary shares and ADSs in their particular
computing a US holder’s foreign tax credit limitation.
circumstances, and in particular whether they are eligible for the
benefits of the Treaty in respect of their investment in the shares or As noted above in UK taxation, a US holder will not be subject to UK
ADSs. withholding tax. Accordingly, the receipt of a dividend will not entitle
the US holder to a foreign tax credit.
Taxation of dividends
The amount of the dividend distribution on the ordinary shares that is
UK taxation paid in pounds sterling will be the US dollar value of the pounds
Under current UK taxation law, no withholding tax will be deducted sterling payments made, determined at the spot pounds sterling/US
from dividends paid by the company, including dividends paid to US dollar rate on the date the dividend distribution is includible in income,
holders. A shareholder that is a company resident for tax purposes in regardless of whether the payment is, in fact, converted into US
the UK or trading in the UK through a permanent establishment dollars. Generally, any gain or loss resulting from currency exchange
generally will not be taxable in the UK on a dividend it receives from fluctuations during the period from the date the pounds sterling
the company. A shareholder who is an individual resident for tax dividend payment is includible in income to the date the payment is
purposes in the UK is subject to UK tax but until 5 April 2016, was converted into US dollars will be treated as ordinary income or loss
entitled to a tax credit on cash dividends paid on ordinary shares or and will not be eligible for the preferential tax rate on qualified
ADSs of the company equal to one-ninth of the cash dividend. dividend income. The gain or loss generally will be income or loss
from sources within the US for foreign tax credit limitation purposes.
From 6 April 2016 the dividend tax credit was replaced by a new tax-
free dividend allowance and dividends paid by the company on or Distributions in excess of the company’s earnings and profits, as
after 6 April 2016 do not carry a UK tax credit. The dividend allowance determined for US federal income tax purposes, will be treated as a
was £5,000 but this has been reduced to £2,000 as of 6 April 2018. return of capital to the extent of the US holder’s basis in the ordinary
shares or ADSs and thereafter as capital gain, subject to taxation as
The dividend allowance of £2,000 means there is no UK tax due on
described in Taxation of capital gains – US federal income taxation
the first £2,000 of dividends received. Dividends above this level are
section below.
subject to tax at 7.5% for basic tax payers, 32.5% for higher rate tax
payers and 38.1% for additional rate tax payers. In addition, the taxation of dividends may be subject to the rules for
passive foreign investment companies (PFIC), described below under
Although the first £2,000 of dividend income is not subject to UK
‘Taxation of capital gains – US federal income taxation’. Distributions
income tax, it does not reduce the total income for tax purposes.
made by a PFIC do not constitute qualified dividend income and are
Dividends within the dividend allowance still count towards basic or
not eligible for the preferential tax rate applicable to such income.
higher rate bands, and may therefore affect the rate of tax paid on
dividends received in excess of the £2,000 allowance. For instance, if Taxation of capital gains
an individual has an annual gross salary of £50,000 and also receives
a dividend of £12,000 they will be subject to the following scenario. UK taxation
The individual's personal allowance and the basic rate tax band will be A US holder may be liable for both UK and US tax in respect of a gain
used up by the gross salary. The remaining part of the salary and the on the disposal of ordinary shares or ADSs if the US holder is
whole of the dividend will be subject to tax at the higher rate, (1) resident for tax purposes in the United Kingdom at the date of
although the dividend allowance will reduce the amount of dividend disposal, (2) if he or she has left the UK for a period not exceeding
subject to tax. The dividend of £12,000 will be reduced by the five complete tax years between the year of departure from and the
dividend allowance of £2,000 leaving taxable dividend income of year of return to the UK and acquired the shares before leaving the
£10,000. The dividend will be taxed at 32.5% so that the total tax UK and was resident in the UK in the previous four out of seven tax
payable on the dividends is £3,250. years before the year of departure, (3) a US domestic corporation
resident in the UK by reason of its business being managed or
How the shareholder pays the tax arising on the dividend income
controlled in the UK or (4) a citizen of the US that carries on a trade or
depends on the amount of dividend income and salary they receive in
profession or vocation in the UK through a branch or agency or a
the tax year. If less than £2,000 they will not need to report anything
corporation that carries on a trade, profession or vocation in the UK,
or pay any tax. If between £2,000 and £10,000, the shareholder can
through a permanent establishment, and that has used, held, or
pay what they owe by: contacting the helpline; asking HMRC to
acquired the ordinary shares or ADSs for the purposes of such trade,
change their tax code – the tax will be taken from their wages or
profession or vocation of such branch, agency or permanent
pension or through completion of the ‘Dividends’ section of their tax
establishment. However, such persons may be entitled to a tax credit
return, where one is being filed. If over £10,000 they will be required
against their US federal income tax liability for the amount of UK
to file a self-assessment tax return and should complete the
capital gains tax or UK corporation tax on chargeable gains (as the
‘Dividends’ section with details of the amounts received.
case may be) that is paid in respect of such gain.
US federal income taxation Under the Treaty, capital gains on dispositions of ordinary shares or
A US holder is subject to US federal income taxation on the gross ADSs generally will be subject to tax only in the jurisdiction of
amount of any dividend paid by the company out of its current or residence of the relevant holder as determined under both the laws
accumulated earnings and profits (as determined for US federal of the UK and the US and as required by the terms of the Treaty.
income tax purposes). Dividends paid to a non-corporate US holder
that constitute qualified dividend income will be taxable to the holder Under the Treaty, individuals who are residents of either the UK or the
at a preferential rate, provided that the holder has a holding period in US and who have been residents of the other jurisdiction (the US or
the ordinary shares or ADSs of more than 60 days during the 121-day the UK, as the case may be) at any time during the six years
period beginning 60 days before the ex-dividend date and meets other immediately preceding the relevant disposal of ordinary shares or
holding period requirements. Dividends paid by the company with ADSs may be subject to tax with respect to capital gains arising from
respect to the ordinary shares or ADSs will generally be qualified a disposition of ordinary shares or ADSs of the company not only in
dividend income. the jurisdiction of which the holder is resident at the time of the
disposition but also in the other jurisdiction.

For gains on or after 23 June 2010, the UK Capital Gains Tax rate will agreement to transfer ADSs in the form of ADRs give rise to a liability
be dependent on the level of an individual’s taxable income. Where to stamp duty reserve tax.
total taxable income and gains after all allowable deductions are less Purchases of ordinary shares, as opposed to ADSs, through the
than the upper limit of the basic rate income tax band of £34,500 (for CREST system of paperless share transfers will be subject to stamp
2018/19), the rate of Capital Gains Tax will be 10%. For gains (and any duty reserve tax at 0.5%. The charge will arise as soon as there is an
parts of gains) above that limit the rate will be 20%. agreement for the transfer of the shares (or, in the case of a
From 6 April 2008, entitlement to the annual exemption is based on conditional agreement, when the condition is fulfilled). The stamp
an individual’s circumstances (taking into account Domicile status, duty reserve tax will apply to agreements to transfer ordinary shares
remittance basis of taxation and number of years in the UK). For even if the agreement is made outside the UK between two non-
individuals who are entitled to the exemption for 2018/19, this has residents. Purchases of ordinary shares outside the CREST system
been set at £11,700. Corporation tax on chargeable gains is levied at are subject either to stamp duty at a rate of £5 per £1,000 (or part,
19 per cent for companies from 1 April 2017. unless the stamp duty is less than £5, when no stamp duty is
charged), or stamp duty reserve tax at 0.5%. Stamp duty and stamp
US federal income taxation duty reserve tax are generally the liability of the purchaser.
A US holder who sells or otherwise disposes of ordinary shares or
ADSs will recognize a capital gain or loss for US federal income tax A subsequent transfer of ordinary shares to the Depositary’s nominee
purposes equal to the difference between the US dollar value of the will give rise to further stamp duty at the rate of £1.50 per £100 (or
amount realized on the disposition and the US holder’s tax basis, part) or stamp duty reserve tax at the rate of 1.5% of the value of the
determined in US dollars, in the ordinary shares or ADSs. Any such ordinary shares at the time of the transfer. For ADR holders electing
capital gain or loss generally will be long-term gain or loss, subject to to receive ADSs instead of cash, after the 2012 first quarter dividend
tax at a preferential rate for a non-corporate US holder, if the US payment, HM Revenue & Customs no longer seeks to impose 1.5%
holder’s holding period for such ordinary shares or ADSs exceeds one stamp duty reserve tax on issues of UK shares and securities to non-
year. EU clearance services and depositary receipt systems.
Gain or loss from the sale or other disposition of ordinary shares or US Medicare Tax
ADSs will generally be income or loss from sources within the US for A US holder that is an individual or estate, or a trust that does not fall
foreign tax credit limitation purposes. The deductibility of capital into a special class of trusts that is exempt from such tax, is subject
losses is subject to limitations. to a 3.8% tax on the lesser of (1) the US holder’s ‘net investment
income’ (or ‘undistributed net investment income’ in the case of an
We do not believe that ordinary shares or ADSs will be treated as
estate or trust) for the relevant taxable year and (2) the excess of the
stock of a passive foreign investment company (PFIC) for US federal
US holder’s modified adjusted gross income for the taxable year over
income tax purposes, but this conclusion is a factual determination
a certain threshold (which in the case of individuals is between
that is made annually and thus is subject to change. If we are treated
$125,000 and $250,000, depending on the individual’s
as a PFIC, unless a US holder elects to be taxed annually on a mark-
circumstances). A holder’s net investment income generally includes
to-market basis with respect to ordinary shares or ADSs, any gain
its dividend income and its net gains from the disposition of shares or
realized on the sale or other disposition of ordinary shares or ADSs
ADSs, unless such dividend income or net gains are derived in the
would in general not be treated as capital gain. Instead, a US holder
ordinary course of the conduct of a trade or business (other than a
would be treated as if he or she had realized such gain rateably over
trade or business that consists of certain passive or trading activities).
the holding period for ordinary shares or ADSs and would be taxed at
If you are a US holder that is an individual, estate or trust, you are
the highest tax rate in effect for each such year to which the gain was
urged to consult your tax advisers regarding the applicability of the
allocated, in addition to which an interest charge in respect of the tax
Medicare tax to your income and gains in respect of your investment
attributable to each such year would apply. Certain ‘excess
in the shares or ADSs.
distributions’ would be similarly treated if we were treated as a PFIC.
Additional tax considerations Major shareholders

Scrip Programme The disclosure of certain major and significant shareholdings in the
The company has an optional Scrip Programme, wherein holders of share capital of the company is governed by the Companies Act 2006,
BP ordinary shares or ADSs may elect to receive any dividends in the the UK Financial Conduct Authority’s Disclosure Guidance and
form of new fully paid ordinary shares or ADSs of the company Transparency Rules (DTR) and the US Securities Exchange Act of
instead of cash. Please consult your tax adviser for the consequences 1934.
to you. Register of members holding BP ordinary shares as at
UK inheritance tax 31 December 2018
The Estate Tax Convention applies to inheritance tax. ADSs held by an Percentage of
total
individual who is domiciled for the purposes of the Estate Tax Percentage of ordinary share
Convention in the US and is not for the purposes of the Estate Tax Number of total capital
ordinary ordinary excluding shares
Convention a national of the UK will not be subject to UK inheritance Range of holdings shareholders shareholders held in treasury
tax on the individual’s death or on transfer during the individual’s 1-200 53,495 22.63 0.01
lifetime unless, among other things, the ADSs are part of the
201-1,000 79,856 33.77 0.22
business property of a permanent establishment situated in the UK
used for the performance of independent personal services. In the 1,001-10,000 90,654 38.34 1.41
exceptional case where ADSs are subject to both inheritance tax and 10,001-100,000 10,801 4.57 1.11
US federal gift or estate tax, the Estate Tax Convention generally 100,001-1,000,000 948 0.40 1.77
provides for tax payable in the US to be credited against tax payable Over 1,000,000a 689 0.29 95.48
in the UK or for tax paid in the UK to be credited against tax payable Totals 236,443 100.00 100.00
in the US, based on priority rules set forth in the Estate Tax a
Includes JPMorgan Chase Bank, N.A. holding 27.32% of the total ordinary issued share
Convention. capital (excluding shares held in treasury) as the approved depositary for ADSs, a
breakdown of which is shown in the table below.
UK stamp duty and stamp duty reserve tax
The statements below relate to what is understood to be the current
practice of HM Revenue & Customs in the UK under existing law.
Provided that any instrument of transfer is not executed in the UK and
remains at all times outside the UK and the transfer does not relate to
any matter or thing done or to be done in the UK, no UK stamp duty
is payable on the acquisition or transfer of ADSs. Neither will an

Register of holders of American depositary shares (ADSs) as at
31 December 2018a
Annual general meeting
Number of Percentage of Percentage of The 2019 AGM will be held on Tuesday 21 May 2019 at 11.00am. A
Range of holdings ADS holders total ADS holders total ADSs separate notice convening the meeting is distributed to shareholders,
1-200 48,763 59.44 0.28 which includes an explanation of the items of business to be
201-1,000 21,504 26.21 1.11 considered at the meeting.
1,001-10,000 11,266 13.73 3.17 All resolutions for which notice has been given will be decided on a
10,001-100,000 501 0.61 0.91 poll. Deloitte LLP have expressed their willingness to continue in
100,001-1,000,000 7 0.01 0.13 office as auditors and a resolution for their reappointment is included
in the Notice of BP Annual General Meeting 2019.
Over 1,000,000b 1 0.00 94.40
Totals 82,042 100.00 100.00
a
One ADS represents six 25 cent ordinary shares.
Memorandum and Articles of
b
One holder of ADSs represents 1,169,280 underlying shareholders.
Association
As at 31 December 2018 there were also 1,286 preference
shareholders. Preference shareholders represented 0.42% and The following summarizes certain provisions of the company’s
ordinary shareholders represented 99.58% of the total issued Memorandum and Articles of Association and applicable English law.
nominal share capital of the company (excluding shares held in This summary is qualified in its entirety by reference to the UK
treasury) as at that date. Companies Act 2006 (the Act) and the company’s Memorandum and
Articles of Association. The Memorandum and Articles of Association
As at 31 December 2018, we had been notified pursuant to DTR5 are available online at bp.com/usefuldocs.
that BlackRock, Inc. held 6.84% of the voting rights attached to the
issued share capital of the company. The company’s Articles of Association may be amended by a special
resolution at a general meeting of the shareholders. At the annual
Between 1 January 2019 and 11 March 2019, we received notification general meeting (AGM) held on 17 April 2008 shareholders voted to
of the following interests pursuant to DTR5. On 12 February 2019, adopt new Articles of Association, largely to take account of changes
BlackRock, Inc. notified BP that it held 7.29% of the voting rights in UK company law brought about by the Act. Further amendments to
attached to the issued share capital of the company. On 19 February the Articles of Association were approved by shareholders at the
2019, BlackRock, Inc. notified BP that it held 7.28% of the voting AGM held on 15 April 2010 and shareholders voted to adopt new
rights attached to the issued share capital of the company. Articles of Association at the AGM held on 16 April 2015. At the AGM
We are also aware that, as at 11 March 2019, BlackRock, Inc. held held on 21 May 2018 shareholders voted to adopt new Articles of
6.61% and The Vanguard Group, Inc. held 3.45% of the ordinary Association to reflect developments in market practice and to provide
issued share capital of the company. clarification and additional flexibility where necessary or appropriate.
Under the US Securities Exchange Act of 1934 BP is aware of the Objects and purposes
following interests as at 11 March 2019:
BP is a public company limited by shares, incorporated under the
Percentage of name BP p.l.c. and is registered in England and Wales with the
ordinary share capital
Holding of excluding shares held registered number 102498. The provisions regulating the operations
Holder ordinary shares in treasury
of the company, known as its ‘objects’, were historically stated in a
JPMorgan Chase Bank N.A., company’s memorandum. The Act abolished the need to have object
depositary for ADSs, through provisions and so at the AGM held on 15 April 2010 shareholders
its nominee Guaranty
Nominees Limited 5,533,239,667 27.31 approved the removal of its objects clause together with all other
provisions of its Memorandum that, by virtue of the Act, are treated
BlackRock, Inc. 1,339,183,607 6.61 as forming part of the company’s Articles of Association.
The company’s major shareholders do not have different voting rights.
Directors and secretary
The company has also been notified of the following interests in
The business and affairs of BP shall be managed by the directors. The
preference shares as at 11 March 2019:
company’s Articles of Association provide that directors may be
Holding of 8%
cumulative first Percentage appointed by the existing directors or by the shareholders in a general
Holder preference shares of class meeting. Any person appointed by the directors will hold office only
The National Farmers Union Mutual until the next general meeting, notice of which is first given after their
Insurance Society Limited 945,000 13.10 appointment and will then be eligible for re-election by the
Hargreaves Lansdown Asset shareholders. A director may be removed by BP as provided for by
Management Limited 628,471 8.70 applicable law and shall vacate office in certain circumstances as set
Canaccord Genuity Group Inc. 587,885 8.10 out in the Articles of Association. In addition the company may, by
Prudential plc special resolution, remove a director before the expiration of his/her
528,150 7.30
period of office and, subject to the Articles of Association, may by
Holding of 9% ordinary resolution appoint another person to be a director instead.
cumulative second Percentage There is no requirement for a director to retire on reaching any age.
Holder preference shares of class
The National Farmers Union Mutual The Articles of Association place a general prohibition on a director
Insurance Society Limited 987,000 18.00 voting in respect of any contract or arrangement in which the director
has a material interest other than by virtue of such director’s interest
Prudential plc 644,450 11.80 in shares in the company. However, in the absence of some other
material interest not indicated below, a director is entitled to vote and
to be counted in a quorum for the purpose of any vote relating to a
resolution concerning the following matters:
Safra Group 320,000 5.80
• The giving of security or indemnity with respect to any money lent
Hargreaves Lansdown Asset or obligation taken by the director at the request or benefit of the
Management Limited 317,789 5.80 company or any of its subsidiary undertakings.
Canaccord Genuity Group Inc. 283,135 5.20 • Any proposal in which the director is interested, concerning the
As at 11 March 2019, the total preference shares in issue comprised underwriting of company securities or debentures or the giving of
only 0.42% of the company’s total issued nominal share capital any security to a third party for a debt or obligation of the company
(excluding shares held in treasury), the rest being ordinary shares. or any of its subsidiary undertakings.

• Any proposal concerning any other company in which the director Dividend rights; other rights to share in company profits;
is interested, directly or indirectly (whether as an officer or capital calls
shareholder or otherwise) provided that the director and persons If recommended by the directors of BP, shareholders of BP may, by
connected with such director are not the holder or holders of 1% resolution, declare dividends but no such dividend may be declared in
or more of the voting interest in the shares of such company. excess of the amount recommended by the directors. The directors
may also pay interim dividends without obtaining shareholder
• Any proposal concerning the purchase or maintenance of any approval. No dividend may be paid other than out of profits available
insurance policy under which the director may benefit. for distribution, as determined under IFRS and the Act. Dividends on
• Any proposal concerning the giving to the director of any other ordinary shares are payable only after payment of dividends on BP
indemnity which is on substantially the same terms as indemnities preference shares. Any dividend unclaimed after a period of 10 years
given or to be given to all of the other directors or to the funding by from the date of declaration of such dividend shall be forfeited and
the company of his expenditure on defending proceedings or the reverts to BP. If the company exercises its right to forfeit shares and
doing by the company of anything to enable the director to avoid sells shares belonging to an untraced shareholder then any
incurring such expenditure where all other directors have been entitlement to claim dividends or other monies unclaimed in respect
given or are to be given substantially the same arrangements. of those shares will be for a period of twelve months after the sale.
The company may take such steps as the directors decide are
• Any proposal concerning an arrangement for the benefit of the appropriate in the circumstances to trace the member entitled and
employees and directors or former employees and former directors the sale may be made at such time and on such terms as the
of the company or any of its subsidiary undertakings, including but directors may decide.
without being limited to a retirement benefits scheme and an
employees’ share scheme, which does not accord to any director The directors have the power to declare and pay dividends in any
any privilege or advantage not generally accorded to the employees currency provided that a sterling equivalent is announced. It is not the
or former employees to whom the arrangement relates. company’s intention to change its current policy of paying dividends
in US dollars. At the company’s AGM held on 15 April 2010,
The Act requires a director of a company who is in any way interested shareholders approved the introduction of a Scrip Dividend
in a contract or proposed contract with the company to declare the Programme (Scrip Programme) and to include provisions in the
nature of the director’s interest at a meeting of the directors of the Articles of Association to enable the company to operate the Scrip
company. The definition of ‘interest’ includes the interests of Programme. The Scrip Programme was renewed at the company’s
spouses, children, companies and trusts. The Act also requires that a AGM held on 21 May 2018 for a further three years. The Scrip
director must avoid a situation where a director has, or could have, a Programme enables ordinary shareholders and BP ADS holders to
direct or indirect interest that conflicts, or possibly may conflict, with elect to receive new fully paid ordinary shares (or BP ADSs in the
the company’s interests. The Act allows directors of public companies case of BP ADS holders) instead of cash. The operation of the Scrip
to authorize such conflicts where appropriate, if a company’s Articles Programme is always subject to the directors’ decision to make the
of Association so permit. BP’s Articles of Association permit the scrip offer available in respect of any particular dividend. Should the
authorization of such conflicts. The directors may exercise all the directors decide not to offer the scrip in respect of any particular
powers of the company to borrow money, except that the amount dividend, cash will automatically be paid instead. The directors may
remaining undischarged of all moneys borrowed by the company shall determine in relation to any scrip dividend plan or programme how
not, without approval of the shareholders, exceed two times the the costs of the programme will be met, the minimum number of
amount paid up on the share capital plus the aggregate of the amount ordinary shares required in order to be able to participate in the
of the capital and revenue reserves of the company. Variation of the programme and any arrangements to deal with legal and practical
borrowing power of the board may only be affected by amending the difficulties in any particular territory.
Articles of Association.
Apart from shareholders’ rights to share in BP’s profits by dividend (if
Remuneration of non-executive directors shall be determined in the any is declared or announced), the Articles of Association provide that
aggregate by resolution of the shareholders. Remuneration of the directors may set aside:
executive directors is determined by the remuneration committee.
This committee is made up of non-executive directors only. There is • A special reserve fund out of the balance of profits each year to
no requirement of share ownership for a director’s qualification. make up any deficit of cumulative dividend on the BP preference
shares.
The Articles of Association provide entitlement to the directors’
pensions and death and disability benefits to the directors’ relations • A general reserve out of the balance of profits each year, which
and dependants respectively. shall be applicable for any purpose to which the profits of the
company may properly be applied. This may include capitalization of
The circumstances in which a director’s office will automatically
such sum, pursuant to an ordinary shareholders’ resolution, and
terminate include: when a director ceases to hold an executive office
distribution to shareholders as if it were distributed by way of a
of the company and the directors resolve that he should cease to be
dividend on the ordinary shares or in paying up in full unissued
a director; if a medical practitioner provides an opinion that a director
ordinary shares for allotment and distribution as bonus shares.
has become incapable of acting as a director and may remain so
incapable for a further three months and the directors resolve that he Any such sums so deposited may be distributed in accordance with
should cease to be a director; and if all of the other directors vote in the manner of distribution of dividends as described above.
favour of a resolution stating that the person should cease to be a Holders of shares are not subject to calls on capital by the company,
director. provided that the amounts required to be paid on issue have been
The company secretary has express powers to delegate any of the paid off. All shares are fully paid.
powers or discretions conferred on him or her.
Share transfers and share certificates
The directors may permit transfers to be effected other than by an
instrument in writing and that share certificates will not be required to
be issued by the company if they are not required by law.
The company may charge an administrative fee in the event that a
shareholder wishes to replace two or more certificates representing
shares with a single certificate or wishes to surrender a single
certificate and replace it with two or more certificates. All certificates
are sent at the member’s risk.

Voting rights Without prejudice to any special rights previously conferred on the
The Articles of Association of the company provide that voting on holders of any class of shares, BP may issue any share with such
resolutions at a shareholders’ meeting will be decided on a poll other preferred, deferred or other special rights, or subject to such
than resolutions of a procedural nature, which may be decided on a restrictions as the shareholders by resolution determine (or, in the
show of hands. If voting is on a poll, every shareholder who is present absence of any such resolutions, by determination of the directors),
in person or by proxy has one vote for every ordinary share held and and may issue shares that are to be or may be redeemed.
two votes for every £5 in nominal amount of BP preference shares
held. If voting is on a show of hands, each shareholder who is
Variation of rights
present at the meeting in person or whose duly appointed proxy is The rights attached to any class of shares may be varied with the
present in person will have one vote, regardless of the number of consent in writing of holders of 75% of the shares of that class or on
shares held, unless a poll is requested. the adoption of a special resolution passed at a separate meeting of
the holders of the shares of that class. At every such separate
Shareholders do not have cumulative voting rights. meeting, all of the provisions of the Articles of Association relating to
For the purposes of determining which persons are entitled to attend proceedings at a general meeting apply, except that the quorum with
or vote at a shareholders’ meeting and how many votes such persons respect to a meeting to change the rights attached to the preference
may cast, the company may specify in the notice of the meeting a shares is 10% or more of the shares of that class, and the quorum to
time, not more than 48 hours before the time of the meeting, by change the rights attached to the ordinary shares is one third or more
which a person who holds shares in registered form must be entered of the shares of that class.
on the company’s register of members in order to have the right to
attend or vote at the meeting or to appoint a proxy to do so. Shareholders’ meetings and notices
Shareholders must provide BP with a postal or electronic address in
Holders on record of ordinary shares may appoint a proxy, including a
the UK to be entitled to receive notice of shareholders’ meetings.
beneficial owner of those shares, to attend, speak and vote on their
Holders of BP ADSs are entitled to receive notices under the terms of
behalf at any shareholders’ meeting, provided that a duly completed
the deposit agreement relating to BP ADSs. The substance and
proxy form is received not less than 48 hours (or such shorter time as
timing of notices are described above under the heading Voting rights.
the directors may determine) before the time of the meeting or
adjourned meeting or, where the poll is to be taken after the date of Under the Act, the AGM of shareholders must be held once every
the meeting, not less than 24 hours (or such shorter time as the year, within each six month period beginning with the day following
directors may determine) before the time of the poll. the company’s accounting reference date. All general meetings shall
be held at a time and place determined by the directors. If any
Record holders of BP ADSs are also entitled to attend, speak and
shareholders’ meeting is adjourned for lack of quorum, notice of the
vote at any shareholders’ meeting of BP by the appointment by the
time and place of the adjourned meeting may be given in any lawful
approved depositary, JPMorgan Chase Bank N.A., of them as proxies
manner, including electronically. Powers exist for action to be taken
in respect of the ordinary shares represented by their ADSs. Each
either before or at the meeting by authorized officers to ensure its
such proxy may also appoint a proxy. Alternatively, holders of BP
orderly conduct and safety of those attending.
ADSs are entitled to vote by supplying their voting instructions to the
depositary, who will vote the ordinary shares represented by their The directors have power to convene a general meeting which is a
ADSs in accordance with their instructions. hybrid meeting, that is to provide facilities for shareholders to attend
a meeting which is being held at a physical place by electronic means
Proxies may be delivered electronically.
as well (but not to convene a purely electronic meeting).
Corporations who are members of the company may appoint one or
The provisions of the Articles of Association in relation to satellite
more persons to act as their representative or representatives at any
meetings permit facilities being provided by electronic means to allow
shareholders’ meeting provided that the company may require a
those persons at each place to participate in the meeting.
corporate representative to produce a certified copy of the resolution
appointing them before they are permitted to exercise their powers.
Limitations on voting and shareholding
Matters are transacted at shareholders’ meetings by the proposing There are no limitations, either under the laws of the UK or under the
and passing of resolutions, of which there are two types: ordinary or company’s Articles of Association, restricting the right of non-resident
special. or foreign owners to hold or vote BP ordinary or preference shares in
An ordinary resolution requires the affirmative vote of a majority of the company other than limitations that would generally apply to all of
the votes of those persons voting at a meeting at which there is a the shareholders and limitations applicable to certain countries and
quorum. A special resolution requires the affirmative vote of not less persons subject to EU economic sanctions or those sanctions
than three quarters of the persons voting at a meeting at which there adopted by the UK government which implement resolutions of the
is a quorum. Any AGM requires 21 clear days’ notice. The notice Security Council of the United Nations.
period for any other general meeting is 14 clear days subject to the
company obtaining annual shareholder approval, failing which, a 21 Disclosure of interests in shares
clear day notice period will apply. The Act permits a public company to give notice to any person whom
the company believes to be or, at any time during the three years
Liquidation rights; redemption provisions prior to the issue of the notice, to have been interested in its voting
In the event of a liquidation of BP, after payment of all liabilities and shares requiring them to disclose certain information with respect to
applicable deductions under UK laws and subject to the payment of those interests. Failure to supply the information required may lead to
secured creditors, the holders of BP preference shares would be disenfranchisement of the relevant shares and a prohibition on their
entitled to the sum of (1) the capital paid up on such shares plus, transfer and receipt of dividends and other payments in respect of
(2) accrued and unpaid dividends and (3) a premium equal to the those shares and any new shares in the company issued in respect of
higher of (a) 10% of the capital paid up on the BP preference shares those shares. In this context the term ‘interest’ is widely defined and
and (b) the excess of the average market price over par value of such will generally include an interest of any kind whatsoever in voting
shares on the LSE during the previous six months. The remaining shares, including any interest of a holder of BP ADSs.
assets (if any) would be divided pro rata among the holders of
ordinary shares.

Called-up share capital security into, shares in the company up to an aggregate nominal
Details of the allotted, called-up and fully-paid share capital at amount as set out in the Notice of Meeting 2018. These authorities
31 December 2018 are set out in Financial statements – Note 31. In were given for the period until the next AGM in 2019 or 21 August
accordance with institutional investor guidelines, the company deems 2019, whichever is the earlier. These authorities are renewed annually
it appropriate to grant authority to the directors to allot shares and at the AGM.
other securities and to disapply pre-emption rights by way of
shareholders resolutions at each AGM in place of authority granted by
Company records and service of notice
virtue of the company's Articles of Association. At the AGM on 21 In relation to notices not covered by the Act, the reference to notice
May 2018, authorization was given to the directors to allot shares in by advertisement in a national newspaper also includes
the company and to grant rights to subscribe for, or to convert any advertisements via other means such as a public announcement.
Purchases of equity securities by the issuer and affiliated purchasers

In November 2017 BP began a share repurchase or buyback programme (the programme). The sole purpose of the programme is to reduce the
issued share capital of the company to offset the ongoing dilutive effect of scrip dividends over time, as announced by the company on 31
October 2017. Authorization for the programme was renewed at the company’s 2018 AGM covering the period until the date of the company's
2019 AGM. The maximum number of ordinary shares to be purchased will not exceed 1.99 billion ordinary shares, which is the maximum
number of ordinary shares permitted to be purchased by the company pursuant to the authority granted by shareholders at the company's
2018 AGM . The shares purchased will be cancelled.
The following table provides details of ordinary share purchases made (1) under the programme and (2) by the Employee Share Ownership
Plans (ESOPs) and other purchases of ordinary shares and ADSs made to satisfy the requirements of certain employee share-based payment
plans.
Number of Maximun
shares approximate
purchased Number of dollar value of
by ESOPs or for shares shares yet to
certain purchased as be purchased
Total number Average price employee part of the under the
of shares paid per share share-based buyback programme
purchaseda $ plansb programmec $ million
2018
January Nil N/A
February 6 – February 28 12,574,000 6.69 24,000 12,550,000 N/A
March 8 – March 21 5,500,000 6.62 Nil 5,500,000 N/A
April Nil N/A
May 1 – May 11 7,765,798 7.50 463,650 7,302,148 N/A
June 6 – June 27 3,230,500 7.66 Nil 3,230,500 N/A
July Nil N/A
August 3 – August 30 6,788,050 7.24 Nil 6,788,050 N/A
September 4 – September 21 12,497,354 7.22 Nil 12,497,354 N/A
October Nil N/A
November 1 – November 28 2,603,190 6.84 269,000 2,334,190 N/A
December Nil N/A
2019
January Nil N/A
February 5 – February 21 2,753,983 7.10 120,000 2,633,983 N/A
March 11 717,995 7.14 Nil 717,995 N/A
a
All share purchases were of ordinary shares of 25 cents each and/or ADSs (each representing six ordinary shares) and were on/open market transactions.
b
Transactions represent the purchase of ordinary shares by ESOPs and other purchases of ordinary shares and ADSs made to satisfy requirements of certain employee share-based payment
plans.
c
The company announced its intent to commence the programme on 31 October 2017 and announced further details and commencement of the programme on 15 November 2017. At the
AGM on 21 May 2018, authorization was given to the company to repurchase up to 1.99 billion ordinary shares, for the period ending on the date of the AGM in 2019 or 21 August 2019,
whichever is the earlier. This authorization is renewed annually at the AGM. The total number of ordinary shares repurchased during 2018 under the programme was 50,202,242 at a cost of
$355 million (including fees and stamp duty) representing 0.25% of BP’s issued share capital excluding shares held in treasury on 31 December 2018. All ordinary shares repurchased in 2018
under the programme were cancelled in order to reduce BP’s issued share capital.

Fees and charges payable by ADS holders
The Depositary collects fees for delivery and surrender of ADSs directly from investors depositing shares or surrendering ADSs for the purpose
of withdrawal or from intermediaries acting for them. The Depositary collects fees for making distributions to investors by deducting those fees
from the amounts distributed or by selling a portion of the distributable property to pay the fees.
The charges of the Depositary payable by investors are as follows:
Type of service Depositary actions Fee
Depositing or substituting the Issuance of ADSs against the deposit of shares, $5.00 per 100 ADSs (or portion thereof)
underlying shares including deposits and issuances in respect of: evidenced by the new ADSs delivered.
• Share distributions, stock splits, rights, merger.
• Exchange of securities or other transactions or event
or other distribution affecting the ADSs or deposited
securities.
Selling or exercising rights Distribution or sale of securities, the fee being an $5.00 per 100 ADSs (or portion thereof).
amount equal to the fee for the execution and delivery of
ADSs that would have been charged as a result of the
deposit of such securities.
Withdrawing an underlying Acceptance of ADSs surrendered for withdrawal of $5.00 for each 100 ADSs (or portion thereof)
share deposited securities. evidenced by the ADSs surrendered.
Expenses of the Depositary Expenses incurred on behalf of holders in connection Expenses payable are subject to agreement
with: between the company and the Depositary by
• Stock transfer or other taxes and governmental billing holders or by deducting charges from one
charges. or more cash dividends or other cash
• Delivery by cable, telex, electronic and facsimile distributions.
transmission.
• Transfer or registration fees, if applicable, for the
registration of transfers of underlying shares.
• Expenses of the Depositary in connection with the
conversion of foreign currency into US dollars (which
are paid out of such foreign currency).
Dividend fees ADS holders who receive a cash dividend are charged a The Deposit Agreement provides that a fee of
fee which BP uses to offset the costs associated with $0.05 or less per ADS can be charged. The
administering the ADS programme. current fee is $0.02 per BP ADS per calendar
year (equivalent to $0.005 per BP ADS per
quarter per cash distribution).
Global Invest Direct (GID) Plan New investors and existing ADS holders can buy or sell Cost per transaction is $2.00 for recurring, $2.00
BP ADSs by enrolling in BP’s GID Plan, sponsored and for one-time automatic investments, and $5.00
administered by the Depositary. for investment made by check, plus $0.12
commission per share.
Fees and payments made by the Documents on display

Depositary to the issuer BP Annual Report and Form 20-F 2018 is available online at bp.com/
annualreport. To obtain a hard copy of BP’s complete audited financial
The Depositary has agreed to reimburse certain company expenses statements, free of charge, UK based shareholders should contact BP
related to the company’s ADS programme and incurred by the Distribution Services by calling +44 (0) 870 241 3269 or by emailing
company in connection with the ADS programme arising during the [email protected]. If based in the US or Canada
year ended 31 December 2018. The Depositary reimbursed to the shareholders should contact Issuer Direct by calling +1 888 301 2505
company, or paid amounts on the company’s behalf to third parties, or or by emailing [email protected].
waived its fees and expenses, of $16,582,418.54 for the year ended
The company is subject to the information requirements of the US
31 December 2018.
Securities Exchange Act of 1934 applicable to foreign private issuers.
The table below sets out the types of expenses that the Depositary In accordance with these requirements, the company files its Annual
has agreed to reimburse and the fees it has agreed to waive for Report and Form 20-F and other related documents with the SEC. The
standard costs associated with the administration of the ADS SEC maintains an internet site at http://www.sec.gov that contains
programme relating to the year ended 31 December 2018. reports and other information regarding issuers, including BP, that file
Category of expense reimbursed, Amount reimbursed, waived or electronically with the SEC. BP's SEC filings are also available at
waived or paid directly to third parties paid directly to third parties for the
year ended 31 December 2018 bp.com/sec. BP discloses in this report (see Corporate governance
$ practices (Form 20-F Item 16G) on page 300) significant ways (if any)
Fees for delivery and surrender of BP in which its corporate governance practices differ from those
ADSs 647,683.39 mandated for US companies under NYSE listing standards.
Dividend feesa 15,934,735.15
Total 16,582,418.54
a
Dividend fees are charged to ADS holders who receive a cash distribution, which BP uses
to offset the costs associated with administering the ADS programme.
Under certain circumstances, including removal of the Depositary or
termination of the ADR programme by the company, the company is
required to repay the Depositary certain amounts reimbursed and/or
expenses paid to or on behalf of the company during the 12-month
period prior to notice of removal or termination.

Shareholding administration Exhibits
If you have any queries about the administration of shareholdings, The following documents are filed in the Securities and Exchange
such as change of address, change of ownership, dividend payments, Commission (SEC) EDGAR system, as part of this Annual Report on
the Scrip Programme or to change the way you receive your company Form 20-F, and can be viewed on the SEC’s website.
documents (such as the BP Annual Report and Form 20-F and Notice Exhibit 1 Memorandum and Articles of Association
of BP Annual General Meeting) please contact the BP Registrar or the of BP p.l.c.*******†
BP ADS Depositary.
Exhibit 4.1 The BP Executive Directors’ Incentive
Ordinary and preference shareholders Plan******†
The BP Registrar, Link Asset Services Exhibit 4.3 Amended Director’s Secondment
The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU, UK Agreement for
Freephone in UK 0800 701107 R W Dudley*****†
From outside the UK +44 (0)371 277 1014 Exhibit 4.4 Amended Director’s Service Contract and
Fax +44 (0)1484 601512 Secondment Agreement for R W
Dudley**†
ADS holders Exhibit 4.7 Director’s Service Contract for Dr B
The BP ADS Depositary, JPMorgan Chase Bank, N.A. Gilvary***†
PO Box 64504, St Paul, MN 55164-0504, US Exhibit 4.10 The BP Share Award Plan 2015*******†
Toll-free in US and Canada +1 877 638 5672
Exhibit 8 Subsidiaries (included as Note 37 to the
From outside the US and Canada +1 651 306 4383 Financial Statements)
2019 shareholder calendara Exhibit 11 Code of Ethics*†
30 April 2019 First quarter results announced Exhibit 12 Rule 13a – 14(a) Certifications†
10 May 2019 Record date (to be eligible for the first quarter Exhibit 13 Rule 13a – 14(b) Certifications#†
interim dividend)
Exhibit 15.1 Consent of DeGolyer and MacNaughton†
21 May 2019 Annual general meeting
Exhibit 15.2 Report of DeGolyer and MacNaughton†
21 Jun 2019 First quarter interim dividend payment for 2019
Exhibit 15.3 Consent of Netherland, Sewell &
5 Jul 2019 8% and 9% preference shares record date Associates†
30 Jul 2019 Second quarter results announced Exhibit 15.4 Report of Netherland, Sewell &
Associates†
31 Jul 2019 8% and 9% preference shares dividend payment
Exhibit 15.5 Consent Decree*******†
9 Aug 2019 Record date (to be eligible for the second quarter
interim dividend) Exhibit 15.6 Gulf states Settlement
Agreement*******†
20 Sep 2019 Second quarter interim dividend payment for 2019
Exhibit 15.7 Consent of Ernst & Young LLP†
29 Oct 2019 Third quarter results announced
Exhibit 15.8 Consent of Deloitte LLP (included on page
8 Nov 2019 Record date (to be eligible for the third quarter 127)
interim dividend)
Exhibit 101 Interactive data files
20 Dec 2019 Third quarter interim dividend payment for 2019
a
All future dates are provisional and may be subject to change. For the full calendar see
bp.com/financialcalendar. * Incorporated by reference to the company’s Annual Report on Form 20-F for
the year ended 31 December 2009.
** Incorporated by reference to the company’s Annual Report on Form 20-F for
*** Incorporated by reference to the company’s Annual Report on Form 20-F for
***** Incorporated by reference to the company’s Annual Report on Form 20-F for
****** Incorporated by reference to the company’s Annual Report on Form 20-F for
******* Incorporated by reference to the company’s Annual Report on Form 20-F for
# Furnished only.
† Included only in the annual report filed in the Securities and Exchange
Commission EDGAR system.
The total amount of long-term securities of BP p.l.c. and its

subsidiaries under any one instrument does not exceed 10% of their
total assets on a consolidated basis.
The company agrees to furnish copies of any or all such instruments
to the SEC on request.

Glossary
Abbreviations PTA
Purified terephthalic acid.
ADR
American depositary receipt. RC
Replacement cost.
ADS
American depositary share. 1 ADS = 6 ordinary shares. SEC
The United States Securities and Exchange Commission.
Barrel (bbl)
159 litres, 42 US gallons. Definitions
Unless the context indicates otherwise, the definitions for the
bcf/d
following glossary terms are given below.
Billion cubic feet per day.
Non-GAAP measures are sometimes referred to as alternative
bcfe performance measures.
Billion cubic feet equivalent.
Adjusted effective tax rate (ETR)
b/d Non-GAAP measure. The adjusted ETR is calculated by dividing
Barrels per day. taxation on an underlying replacement cost (RC) basis excluding the
boe/d impact of reductions in the rate of the UK North Sea supplementary
Barrels of oil equivalent per day. charge (in 2016 and 2015) by underlying RC profit or loss before tax.
Taxation on an underlying RC basis is taxation on a RC basis for the
GAAP period adjusted for taxation on non-operating items and fair value
Generally accepted accounting practice. accounting effects. Information on underlying RC profit or loss is
provided below. BP believes it is helpful to disclose the adjusted ETR
Gas
because this measure may help investors to understand and evaluate,
Natural gas.
in the same manner as management, the underlying trends in BP’s
GHG operational performance on a comparable basis, period on period. The
Greenhouse gas. nearest equivalent measure on an IFRS basis is the ETR on profit or
loss for the period. A reconciliation to GAAP information is provided
GWh on page 320.
Gigawatt hour.
We are unable to present reconciliations of forward-looking
HSSE information for adjusted ETR to ETR on profit or loss for the period,
Health, safety, security and environment. because without unreasonable efforts, we are unable to forecast
accurately certain adjusting items required to present a meaningful
IFRS comparable GAAP forward-looking financial measure. These items
International Financial Reporting Standards. include the taxation on inventory holding gains and losses, non-
KPIs operating items and fair value accounting effects, that are difficult to
Key performance indicators. predict in advance in order to include in a GAAP estimate.
LNG Associate
Liquefied natural gas. An entity over which the group has significant influence and that is
neither a subsidiary nor a joint arrangement of the group. Significant
LPG influence is the power to participate in the financial and operating
Liquefied petroleum gas. policy decisions of the investee but is not control or joint control over
those policies.
mb/d
Thousand barrels per day. Brent
A trading classification for North Sea crude oil that serves as a major
mboe/d
benchmark price for purchases of oil worldwide.
Thousand barrels of oil equivalent per day.
Capital expenditure
mmb/d or Mb/d
Total cash capital expenditure as stated in the group cash flow
Million barrels per day.
statement.
mmboe/d
Consolidation adjustment – UPII
Million barrels of oil equivalent per day.
Unrealized profit in inventory arising on inter-segment transactions.
mmBtu
Commodity trading contracts
Million British thermal units.
BP’s Upstream and Downstream segments both participate in
mmcf/d regional and global commodity trading markets in order to manage,
Million cubic feet per day. transact and hedge the crude oil, refined products and natural gas
that the group either produces or consumes in its manufacturing
mmte or Mte operations. These physical trading activities, together with associated
Million tonnes. incremental trading opportunities, are discussed in Upstream on page
MteCO2 22 and in Downstream on page 28. The range of contracts the group
Million tonnes of CO2 equivalent. enters into in its commodity trading operations is described below.
Using these contracts, in combination with rights to access storage
MW and transportation capacity, allows the group to access advantageous
Megawatt. pricing differences between locations, time periods and arbitrage
between markets.
NGLs
Natural gas liquids.
PSA
Production-sharing agreement.

Exchange-traded commodity derivatives Divestment proceeds
Contracts that are typically in the form of futures and options traded Disposal proceeds as per the group cash flow statement.
on a recognized exchange, such as Nymex and ICE. Such contracts
are traded in standard specifications for the main marker crude oils, Dividend yield
such as Brent and West Texas Intermediate; the main product grades, Sum of the four quarterly dividends announced in respect of the year
such as gasoline and gasoil; and for natural gas and power. Gains and as a percentage of the year-end share price on the respective
losses, otherwise referred to as variation margin, are generally settled exchange.
on a daily basis with the relevant exchange. These contracts are used Effective tax rate (ETR) on replacement cost (RC) profit or loss
for the trading and risk management of crude oil, refined products, Non-GAAP measure. The ETR on RC profit or loss is calculated by
and natural gas and power. Realized and unrealized gains and losses dividing taxation on a RC basis by RC profit or loss before tax.
on exchange-traded commodity derivatives are included in sales and Information on RC profit or loss is provided below. BP believes it is
other operating revenues for accounting purposes. helpful to disclose the ETR on RC profit or loss because this measure
Over-the-counter contracts excludes the impact of price changes on the replacement of
Contracts that are typically in the form of forwards, swaps and inventories and allows for more meaningful comparisons between
options. Some of these contracts are traded bilaterally between reporting periods. The nearest equivalent measure on an IFRS basis is
counterparties or through brokers, others may be cleared by a central the ETR on profit or loss for the period. A reconciliation to GAAP
clearing counterparty. These contracts can be used both for trading information is provided on page 320.
and risk management activities. Realized and unrealized gains and Fair value accounting effects
losses on over-the-counter (OTC) contracts are included in sales and Non-GAAP adjustments to IFRS profit or loss. We use derivative
other operating revenues for accounting purposes. Many grades of instruments to manage the economic exposure relating to inventories
crude oil bought and sold use standard contracts including US above normal operating requirements of crude oil, natural gas and
domestic light sweet crude oil, commonly referred to as West Texas petroleum products. Under IFRS, these inventories are recorded at
Intermediate, and a standard North Sea crude blend – Brent, Forties, historical cost. The related derivative instruments, however, are
Oseberg and Ekofisk (BFOE). Forward contracts are used in required to be recorded at fair value with gains and losses recognized
connection with the purchase of crude oil supplies for refineries, in the income statement. This is because hedge accounting is either
products for marketing and sales of the group’s oil production and not permitted or not followed, principally due to the impracticality of
refined products. The contracts typically contain standard delivery and effectiveness-testing requirements. Therefore, measurement
settlement terms. These transactions call for physical delivery of oil differences in relation to recognition of gains and losses occur. Gains
with consequent operational and price risk. However, various means and losses on these inventories are not recognized until the
exist and are used from time to time, to settle obligations under the commodity is sold in a subsequent accounting period. Gains and
contracts in cash rather than through physical delivery. Because the losses on the related derivative commodity contracts are recognized
physically settled transactions are delivered by cargo, the BFOE in the income statement, from the time the derivative commodity
contract additionally specifies a standard volume and tolerance. contract is entered into, on a fair value basis using forward prices
Gas and power OTC markets are highly developed in North America consistent with the contract maturity.
and the UK, where commodities can be bought and sold for delivery BP enters into physical commodity contracts to meet certain
in future periods. These contracts are negotiated between two parties business requirements, such as the purchase of crude for a refinery
to purchase and sell gas and power at a specified price, with delivery or the sale of BP’s gas production. Under IFRS these physical
and settlement at a future date. Typically, the contracts specify contracts are treated as derivatives and are required to be fair valued
delivery terms for the underlying commodity. Some of these when they are managed as part of a larger portfolio of similar
transactions are not settled physically as they can be achieved by transactions. Gains and losses arising are recognized in the income
transacting offsetting sale or purchase contracts for the same statement from the time the derivative commodity contract is
location and delivery period that are offset during the scheduling of entered into.
delivery or dispatch. The contracts contain standard terms such as
delivery point, pricing mechanism, settlement terms and specification IFRS require that inventory held for trading is recorded at its fair value
of the commodity. Typically, volume, price and term (e.g. daily, using period-end spot prices, whereas any related derivative
monthly and balance of month) are the main variable contract terms. commodity instruments are required to be recorded at values based
on forward prices consistent with the contract maturity. Depending
Swaps are often contractual obligations to exchange cash flows on market conditions, these forward prices can be either higher or
between two parties. A typical swap transaction usually references a lower than spot prices, resulting in measurement differences.
floating price and a fixed price with the net difference of the cash
flows being settled. Options give the holder the right, but not the BP enters into contracts for pipelines and other transportation,
obligation, to buy or sell crude, oil products, natural gas or power at a storage capacity, oil and gas processing and liquefied natural gas
specified price on or before a specific future date. Amounts under (LNG) that, under IFRS, are recorded on an accruals basis. These
these derivative financial instruments are settled at expiry. Typically, contracts are risk-managed using a variety of derivative instruments
netting agreements are used to limit credit exposure and support that are fair valued under IFRS. This results in measurement
liquidity. differences in relation to recognition of gains and losses.
The way that BP manages the economic exposures described above,
Spot and term contracts
and measures performance internally, differs from the way these
Spot contracts are contracts to purchase or sell a commodity at the
activities are measured under IFRS. BP calculates this difference for
market price prevailing on or around the delivery date when title to
consolidated entities by comparing the IFRS result with
the inventory is taken. Term contracts are contracts to purchase or
management’s internal measure of performance. Under
sell a commodity at regular intervals over an agreed term. Though
management’s internal measure of performance the inventory,
spot and term contracts may have a standard form, there is no
transportation and capacity contracts in question are valued based on
offsetting mechanism in place. These transactions result in physical
fair value using relevant forward prices prevailing at the end of the
delivery with operational and price risk. Spot and term contracts
period. The fair values of derivative instruments used to risk manage
typically relate to purchases of crude for a refinery, products for
certain oil, gas and other contracts, are deferred to match with the
marketing, or third-party natural gas, or sales of the group’s oil
underlying exposure and the commodity contracts for business
production, oil products or gas production to third parties. For
requirements are accounted for on an accruals basis. We believe that
accounting purposes, spot and term sales are included in sales and
disclosing management’s estimate of this difference provides useful
other operating revenues when title passes. Similarly, spot and term
information for investors because it enables investors to see the
purchases are included in purchases for accounting purposes.
economic effect of these activities as a whole. A reconciliation to
GAAP information is provided on page 320.

In addition, from 2018 fair value accounting effects include changes in Joint arrangement
the fair value of the near-term portions of LNG contracts that fall An arrangement in which two or more parties have joint control.
within BP’s risk management framework. LNG contracts are not
considered derivatives, because there is insufficient market liquidity, Joint control
and they are therefore accrual accounted under IFRS. However, oil Contractually agreed sharing of control over an arrangement, which
and natural gas derivative financial instruments (used to risk manage exists only when decisions about the relevant activities require the
the near-term portions of the LNG contracts) are fair valued under unanimous consent of the parties sharing control.
IFRS. The fair value accounting effect reduces timing differences Joint operation
between recognition of the derivative financial instruments used to A joint arrangement whereby the parties that have joint control of the
risk manage the LNG contracts and the recognition of the LNG arrangement have rights to the assets, and obligations for the
contracts themselves, which therefore gives a better representation liabilities, relating to the arrangement.
of performance in each period. Comparative information has not been
restated on the basis that the effect was not material. Joint venture
A joint arrangement whereby the parties that have joint control of the
Free cash flow arrangement have rights to the net assets of the arrangement.
Operating cash flow less net cash used in investing activities, as
presented in the group cash flow statement. Liquids
Comprises crude oil, condensate and natural gas liquids. For the
Full dividend Upstream segment, it also includes bitumen.
Full dividend is cash dividend plus cash equivalent value of scrip
dividend. LNG train
An LNG train is a processing facility used to liquefy and purify natural
Gearing gas in the formation of LNG.
See Net debt and net debt ratio definition.
Major projects
Gross debt ratio Have a BP net investment of at least $250 million, or are considered
Gross debt ratio is defined as the ratio of gross debt to the total of to be of strategic importance to BP or of a high degree of complexity.
gross debt plus shareholders' equity.
Net debt and net debt ratio (gearing)
Henry Hub Non-GAAP measures. Net debt is calculated as gross finance debt, as
A distribution hub on the natural gas pipeline system in Erath, shown in the balance sheet, plus the fair value of associated
Louisiana, that lends its name to the pricing point for natural gas derivative financial instruments that are used to hedge foreign
futures contracts traded on the New York Mercantile Exchange and currency exchange and interest rate risks relating to finance debt, for
the over-the-counter swaps traded on Intercontinental Exchange. which hedge accounting is applied, less cash and cash equivalents.
Hydrocarbons The net debt ratio is defined as the ratio of net debt to the total of net
Liquids and natural gas. Natural gas is converted to oil equivalent at debt plus total shareholders’ equity. All components of equity are
5.8 billion cubic feet = 1 million barrels. included in the denominator of the calculation. BP believes these
measures provide useful information to investors. Net debt enables
Inorganic capital expenditure investors to see the economic effect of gross debt, related hedges
A subset of capital expenditure and is a non-GAAP measure. and cash and cash equivalents in total. The net debt ratio enables
Inorganic capital expenditure comprises consideration in business investors to see how significant net debt is relative to equity from
combinations and certain other significant investments made by the shareholders. The derivatives are reported on the balance sheet
group. It is reported on a cash basis. BP believes that this measure within the headings ‘Derivative financial instruments’. See Financial
provides useful information as it allows investors to understand how statements – Note 27 for information on gross debt, which is the
BP’s management invests funds in projects which expand the group’s nearest equivalent measure to net debt on an IFRS basis.
activities through acquisition. An analysis of organic capital We are unable to present reconciliations of forward-looking
expenditure by segment and region, and a reconciliation to GAAP information for net debt ratio to gross debt ratio, because without
information is provided on page 275. unreasonable efforts, we are unable to forecast accurately certain
Inventory holding gains and losses adjusting items required to present a meaningful comparable GAAP
The difference between the cost of sales calculated using the forward-looking financial measure. These items include fair value
replacement cost of inventory and the cost of sales calculated on the asset (liability) of hedges related to finance debt and cash and cash
first-in first-out (FIFO) method after adjusting for any changes in equivalents, that are difficult to predict in advance in order to include
provisions where the net realizable value of the inventory is lower in a GAAP estimate.
than its cost. Under the FIFO method, which we use for IFRS Net generating capacity
reporting, the cost of inventory charged to the income statement is The sum of the rated capacities of the assets/turbines that have
based on its historical cost of purchase or manufacture, rather than its entered into commercial operation, including BP’s share of equity-
replacement cost. In volatile energy markets, this can have a accounted entities. The gross data is the equivalent capacity on a
significant distorting effect on reported income. The amounts gross-joint venture basis, which includes 100% of the capacity of
disclosed represent the difference between the charge to the income equity-accounted entities where BP has partial ownership.
statement for inventory on a FIFO basis (after adjusting for any
related movements in net realizable value provisions) and the charge Non-operating items
that would have arisen based on the replacement cost of inventory. Charges and credits are included in the financial statements that BP
For this purpose, the replacement cost of inventory is calculated discloses separately because it considers such disclosures to be
using data from each operation’s production and manufacturing meaningful and relevant to investors. They are items that
system, either on a monthly basis, or separately for each transaction management considers not to be part of underlying business
where the system allows this approach. The amounts disclosed are operations and are disclosed in order to enable investors better to
not separately reflected in the financial statements as a gain or loss. understand and evaluate the group’s reported financial performance.
No adjustment is made in respect of the cost of inventories held as Non-operating items within equity-accounted earnings are reported
part of a trading position and certain other temporary inventory net of incremental income tax reported by the equity-accounted
positions. See Replacement cost (RC) profit or loss definition below. entity. An analysis of non-operating items by segment and type is
shown on page 276.

Operating cash flow relating to the lubricants and petrochemicals businesses, are not
Net cash provided by (used in) operating activities as stated in the included in RMI. BP believes that disclosing the amounts of RMI and
group cash flow statement. When used in the context of a segment paid-up RMI is useful to investors as it enables them to better
rather than the group, the terms refer to the segment’s share thereof. understand and evaluate the group’s inventories and liquidity position
by enabling them to see the level of discretionary inventory held by
Operating cash flow excluding Gulf of Mexico oil spill payments IST and to see builds or releases of liquid trading inventory.
Non-GAAP measure. It is calculated by excluding post-tax operating
cash flows relating to the Gulf of Mexico oil spill as reported in Paid-up RMI excludes RMI which has not yet been paid for. For
Financial statements – Note 2 from net cash provided by operating inventory that is held in storage, a first-in first-out (FIFO) approach is
activities as reported in the group cash flow statement. BP believes used to determine whether inventory has been paid for or not. Unpaid
net cash provided by operating activities excluding amounts related to RMI is RMI which has not yet been paid for by BP. RMI, RMI at fair
the Gulf of Mexico oil spill is a useful measure as it allows for more value, Paid-up RMI and Unpaid RMI are non-GAAP measures. A
meaningful comparisons between reporting periods. The nearest reconciliation of total inventory as reported on the group balance
equivalent measure on an IFRS basis is net cash provided by sheet to paid-up RMI is provided on page 322.
operating activities. Realizations
Organic free cash flow is operating cash flow excluding Gulf of Realizations are the result of dividing revenue generated from
Mexico oil spill payments less organic capital expenditure. hydrocarbon sales, excluding revenue generated from purchases
made for resale and royalty volumes, by revenue generating
Operating cash margin hydrocarbon production volumes. Revenue generating hydrocarbon
Operating cash margin is operating cash flow divided by the production reflects the BP share of production as adjusted for any
applicable number of barrels of oil equivalent produced, at $52/bbl flat production which does not generate revenue. Adjustments may
oil prices. Expected operating cash margins are calculated over the include losses due to shrinkage, amounts consumed during
period 2016-2025. processing, and contractual or regulatory host committed volumes
such as royalties. For the Upstream segment, realizations include
Operating management system (OMS)
transfers between businesses.
BP’s OMS helps us manage risks in our operating activities by setting
out BP’s principles for good operating practice. It brings together BP Refining availability
requirements on health, safety, security, the environment, social Represents Solomon Associates’ operational availability, which is
responsibility and operational reliability, as well as related issues, defined as the percentage of the year that a unit is available for
such as maintenance, contractor relations and organizational learning, processing after subtracting the annualized time lost due to
into a common management system. turnaround activity and all planned mechanical, process and
regulatory downtime.
Organic capital expenditure
A subset of capital expenditure and is a non-GAAP measure. Organic Refining marker margin (RMM)
capital expenditure comprises capital expenditure less inorganic The average of regional indicator margins weighted for BP’s crude
capital expenditure. BP believes that this measure provides useful refining capacity in each region. Each regional marker margin is based
information as it allows investors to understand how BP’s on product yields and a marker crude oil deemed appropriate for the
management invests funds in developing and maintaining the group’s region. The regional indicator margins may not be representative of
assets. An analysis of organic capital expenditure by segment and the margins achieved by BP in any period because of BP’s particular
region, and a reconciliation to GAAP information is provided on page refinery configurations and crude and product slate.
275.
Refining net cash margin per barrel
We are unable to present reconciliations of forward-looking Refining net cash margin is defined by Solomon Associates as the net
information for organic capital expenditure to total cash capital margin achieved after subtracting cash operating expenses and
expenditure, because without unreasonable efforts, we are unable to adding any refinery revenue from other sources. Net cash margin is
forecast accurately the adjusting item, inorganic capital expenditure, expressed in US dollars per barrel of net refinery input.
that is difficult to predict in advance in order to derive the nearest
GAAP estimate. Refinery utilization
Refinery utilization is calculated as annual throughput (thousands of
Organic sources of cash and organic uses of cash barrels per day) divided by crude distillation capacity.
Non-GAAP measure. Organic sources of cash is the sum of operating
cash flow, excluding Gulf of Mexico oil spill payments, and proceeds Replacement cost (RC) profit or loss
of loan repayments. Organic uses of cash is the sum of organic Reflects the replacement cost of inventories sold in the period and is
capital expenditure, dividends and share buybacks. The nearest arrived at by excluding inventory holding gains and losses from profit
equivalent measure on an IFRS basis for organic sources of cash is or loss. RC profit or loss is the measure of profit or loss that is
net cash provided by operating activities and the nearest equivalent required to be disclosed for each operating segment under IFRS.
measures on an IFRS basis for organic uses of cash are total cash RC profit or loss for the group is a non-GAAP measure. Management
capital expenditure, dividends paid to BP shareholders and net issue believes this measure is useful to illustrate to investors the fact that
(repurchase) of shares. crude oil and product prices can vary significantly from period to
period and that the impact on our reported result under IFRS can be
Production-sharing agreement (PSA) / Production-sharing significant. Inventory holding gains and losses vary from period to
contract period due to changes in prices as well as changes in underlying
An arrangement through which an oil and gas company bears the inventory levels. In order for investors to understand the operating
risks and costs of exploration, development and production. In return, performance of the group excluding the impact of price changes on
if exploration is successful, the oil company receives entitlement to the replacement of inventories, and to make comparisons of
variable physical volumes of hydrocarbons, representing recovery of operating performance between reporting periods, BP’s management
the costs incurred and a stipulated share of the production remaining believes it is helpful to disclose this measure. The nearest equivalent
after such cost recovery. measure on an IFRS basis is profit or loss attributable to BP
Readily marketable inventory (RMI) shareholders. See Financial statements – Note 5. A reconciliation to
RMI is inventory held and price risk-managed by our integrated supply GAAP information is provided on page 274.
and trading function (IST) which could be sold to generate funds if RC profit or loss per share
required. It comprises oil and oil products for which liquid markets are Non-GAAP measure. Earnings per share is defined in Financial
available and excludes inventory which is required to meet operational statements – Note 11. RC profit or loss per share is calculated using
requirements and other inventory which is not price risk-managed. the same denominator. The numerator used is RC profit or loss
RMI is reported at fair value. Inventory held by the Downstream fuels attributable to BP shareholders rather than profit or loss attributable
business for the purpose of sales and marketing, and all inventories to BP shareholders. BP believes it is helpful to disclose the RC profit

or loss per share because this measure excludes the impact of price or loss in order to enable a full understanding of the events and their
changes on the replacement of inventories and allows for more financial impact. BP believes that underlying RC profit or loss is a
meaningful comparisons between reporting periods. The nearest useful measure for investors because it is a measure closely tracked
equivalent measure on an IFRS basis is basic earnings per share by management to evaluate BP’s operating performance and to make
based on profit or loss for the period attributable to BP shareholders. financial, strategic and operating decisions and because it may help
A reconciliation to GAAP information is provided on page 320. investors to understand and evaluate, in the same manner as
management, the underlying trends in BP’s operational performance
Reserves replacement ratio on a comparable basis, year on year, by adjusting for the effects of
The extent to which the year’s production has been replaced by these non-operating items and fair value accounting effects.
proved reserves added to our reserve base. The ratio is expressed in
oil-equivalent terms and includes changes resulting from discoveries, The nearest equivalent measure on an IFRS basis for the group is
improved recovery and extensions and revisions to previous profit or loss for the year attributable to BP shareholders. The nearest
estimates, but excludes changes resulting from acquisitions and equivalent measure on an IFRS basis for segments is RC profit or loss
disposals. before interest and taxation. Underlying profit in the group chief
executive’s letter on page 8 refers to full year underlying RC profit for
Return on average capital employed the group. A reconciliation to GAAP information is provided on page
Non-GAAP measure. Return on average capital employed (ROACE) is 274.
underlying replacement cost profit, after adding back non-controlling
interest and interest expense net of tax (for the comparative periods Underlying replacement cost (RC) profit or loss per share
interest expense was net of notional tax at an assumed 35%), divided Non-GAAP measure. Earnings per share is defined Financial
by average capital employed, excluding cash and cash equivalents and statements – Note 11. Underlying RC profit or loss per share is
goodwill. Interest expense is finance costs excluding the unwinding calculated using the same denominator. The numerator used is
of the discount on provisions and other payables before tax. BP underlying RC profit or loss attributable to BP shareholders rather
believes it is helpful to disclose the ROACE because this measure than profit or loss attributable to BP shareholders. BP believes it is
gives an indication of the company's capital efficiency. The nearest helpful to disclose the underlying RC profit or loss per share because
GAAP measures of the numerator and denominator are profit or loss this measure may help investors to understand and evaluate, in the
for the period attributable to BP shareholders and average capital same manner as management, the underlying trends in BP’s
employed respectively. The reconciliation of the numerator and operational performance on a comparable basis, period on period. The
denominator is provided on page 321. nearest equivalent measure on an IFRS basis is basic earnings per
share based on profit or loss for the period attributable to BP
We are unable to present forward-looking information of the nearest shareholders. A reconciliation to GAAP information is provided on
GAAP measures of the numerator and denominator for ROACE, page 320.
because without unreasonable efforts, we are unable to forecast
accurately certain adjusting items required to calculate a meaningful Upstream plant reliability
comparable GAAP forward-looking financial measure. These items BP-operated Upstream plant reliability is calculated taking 100% less
include inventory holding gains or losses and interest net of tax, that the ratio of total unplanned plant deferrals divided by installed
are difficult to predict in advance in order to include in a GAAP production capacity. Unplanned plant deferrals are associated with
estimate. the topside plant and where applicable the subsea equipment
(excluding wells and reservoir). Unplanned plant deferrals include
Subsidiary breakdowns, which does not include Gulf of Mexico weather related
An entity that is controlled by the BP group. Control of an investee downtime.
exists when an investor is exposed, or has rights, to variable returns
from its involvement with the investee and has the ability to affect Upstream unit production cost
those returns through its power over the investee. Upstream unit production cost is calculated as production cost
divided by units of production. Production cost does not include ad
Tier 1 process safety events valorem and severance taxes. Units of production are barrels for
Losses of primary containment from a process of greatest liquids and thousands of cubic feet for gas. Amounts disclosed are for
consequence - causing harm to a member of the workforce, costly BP subsidiaries only and do not include BP’s share of equity-
damage to equipment or exceeding defined quantities. This accounted entities.
represents reported incidents occurring within BP’s operational HSSE
reporting boundary. That boundary includes BP’s own operated Wellwork
facilities and certain other locations or situations. Activities undertaken on previously completed wells with the primary
objective to restore or increase production.
Tight oil and gas
Natural oil and gas reservoirs locked in hard sandstone rocks with low West Texas Intermediate (WTI)
permeability, making the underground formation extremely tight. A light sweet crude oil, priced at Cushing, Oklahoma, which serves as
a benchmark price for purchases of oil in the US.
UK National Balancing Point
A virtual trading location for sale, purchase and exchange of UK Working capital
natural gas. It is the pricing and delivery point for the Intercontinental Movements in inventories and other current and non-current assets
Exchange natural gas futures contract. and liabilities as stated in the group cash flow statement.
Unconventionals Trade marks
Resources found in geographic accumulations over a large area, that
Trade marks of the BP group appear throughout this report. They
usually present additional challenges to development such as low
include: ACTIVE, Aral, ARCO, BP, BPme, BP Ultimate, Castrol, Castrol
permeability or high viscosity. Examples include shale gas and oil,
EDGE BIO-SYNTHETIC, Castrol GTX ECO, Castrol Opitgear, PTAir
coalbed methane, gas hydrates and natural bitumen deposits. These
typically require specialized extraction technology such as hydraulic Trade marks:
fracturing or steam injection. Butamax – a registered trade mark of Butamax Advance Biofuels LLC.
Underlying production Fulcrum and Fulcrum BioEnergy – registered trade marks of Fulcrum
Production after adjusting for acquisitions and divestments and BioEnergy, Inc.
entitlement impacts in our production-sharing agreements.
M&S Simply Food – a registered trade mark of Marks & Spencer plc.
Underlying RC profit or loss MyAuchan – a registered trade mark of Auchan.
Non-GAAP measure. RC profit or loss after adjusting for non-
operating items and fair value accounting effects. See page 276 and REWE to Go – a registered trade mark of REWE.
320 for additional information on the non-operating items and fair
value accounting effects that are used to arrive at underlying RC profit

Non-GAAP measures reconciliations
Non-GAAP information on fair value accounting effects
The impacts of fair value accounting effects, relative to management’s internal measure of performance, and a reconciliation to GAAP
information is set out below. Further information on fair value accounting effects is provided on page 316.
$ million
2018 2017 2016
Upstream
Unrecognized (gains) losses brought forward from previous perioda (419) (393) 263
Favourable (adverse) impact relative to management’s measure of performance (39) 27 (637)
Exchange translation gains (losses) on fair value accounting effects 3 2 (19)
Unrecognized (gains) losses carried forward (455) (364) (393)
Downstreamb
Unrecognized (gains) losses brought forward from previous perioda (151) (71) 377
Favourable (adverse) impact relative to management’s measure of performance 95 (135) (448)
Unrecognized (gains) losses carried forward (56) (206) (71)
Favourable (adverse) impact relative to management’s measure of performance – by region

Upstream
US (35) 192 (379)
Non-US (4) (165) (258)
(39) 27 (637)
Downstreamb
US (155) (29) (321)
Non-US 250 (106) (127)
95 (135) (448)
56 (108) (1,085)
Taxation credit (charge) 12 12 329
68 (96) (756)
a
2018 brought forward fair value accounting effect balances include a $55-million adjustment between Upstream and Downstream as part of the transfer of the NGL business between
segments. 2016 brought forward fair value accounting effect balances include a $33-million adjustment between Upstream and Downstream as part of the transfer of certain emission
trading balances between these segments.
b
Fair value accounting effects arise solely in the fuels business.
Reconciliation of non-GAAP information

$ million
2018 2017 2016
Upstream
RC profit (loss) before interest and tax adjusted for fair value accounting effects 14,367 5,194 1,211
Impact of fair value accounting effects (39) 27 (637)
RC profit (loss) before interest and tax 14,328 5,221 574
Downstream
RC profit before interest and tax adjusted for fair value accounting effects 6,845 7,356 5,610
Impact of fair value accounting effects 95 (135) (448)
RC profit before interest and tax 6,940 7,221 5,162
Total group
Profit (loss) before interest and tax adjusted for fair value accounting effects 19,322 9,582 655
Impact of fair value accounting effects 56 (108) (1,085)
Profit (loss) before interest and tax 19,378 9,474 (430)
Reconciliation of basic earnings per ordinary share to RC profit (loss) per share and to underlying RC profit
per share
Per ordinary share – cents
2018 2017 2016 2015 2014
Profit (loss) for the yeara 46.98 17.20 0.61 (35.39) 20.55
Inventory holding (gains) losses, before tax 4.01 (4.32) (8.52) 10.31 33.78
Taxation charge (credit) on inventory holding gains and losses (0.99) 1.14 2.58 (3.10) (10.43)
RC profit (loss) for the year 50.00 14.02 (5.33) (28.18) 43.90
Net (favourable) adverse impact of non-operating items and fair value
accounting effects, before tax 16.93 18.94 35.99 82.23 44.79
accounting effects (3.23) (1.65) (16.87) (21.83) (22.69)
Underlying RC profit for the year 63.70 31.31 13.79 32.22 66.00
a
Profit attributable to BP shareholders.

Reconciliation of effective tax rate (ETR) to ETR on RC profit or loss and adjusted ETR
Taxation (charge) credit
$ million
2018 2017 2016 2015 2014
Taxation on profit or loss for the year (7,145) (3,712) 2,467 3,171 (947)
Adjusted for taxation on inventory holding gains and losses 198 (225) (483) 569 1,917
Taxation on a RC profit or loss basis (7,343) (3,487) 2,950 2,602 (2,864)
Adjusted for taxation on non-operating items and fair value
accounting effects 522 1,184 3,162 4,000 4,171
Adjusted for the impact of US tax reform 121 (859) — — —
Adjusted for the impact of the reduction in the rate of the UK North
Sea supplementary charge — — 434 915 —
Adjusted taxation (7,986) (3,812) (646) (2,313) (7,035)
Effective tax rate

%
2018 2017 2016 2015 2014
ETR on profit or loss for the year 43 52 107 33 19
Adjusted for inventory holding gains and losses (1) 3 (31) 1 7
ETR on RC profit or loss 42 55 76 34 26
Adjusted for non-operating items and fair value accounting effects (5) (9) (69) (15) 10
Adjusted for the impact of US tax reform 1 (8) — — —
Adjusted for the impact of the reduction in the rate of the UK North
Sea supplementary charge — — 16 12 —
Adjusted ETR 38 38 23 31 36
Return on average capital employed (ROACE)

$ million
2018 2017 2016 2015 2014
Profit (loss) for the year attributable to BP shareholders 9,383 3,389 115 (6,482) 3,780
Inventory holding (gains) losses, net of tax 603 (628) (1,114) 1,320 4,293
Non-operating items and fair value accounting effects, net of tax 2,737 3,405 3,584 11,067 4,063
Underlying RC profit 12,723 6,166 2,585 5,905 12,136
Interest expense, net of taxa 1,583 924 635 576 546
Non-controlling interests 195 79 57 82 223
Adjusted underlying RC profit 14,501 7,169 3,277 6,563 12,905
Total equity 101,548 100,404 96,843 98,387 112,642
Gross debt 65,799 63,230 58,300 53,168 52,854
Capital employed (2018 average $165,491 million) 167,347 163,634 155,143 151,555 165,496
Less: Goodwill 12,204 11,551 11,194 11,627 11,868
Cash and cash equivalents 22,468 25,586 23,484 26,389 29,763
132,675 126,497 120,465 113,539 123,865
Average capital employed excluding goodwill and cash and cash
equivalents 129,586 123,481 117,002 118,702 133,882
ROACE 11.2 % 5.8% 2.8% 5.5% 9.6%
a
Calculated on a post-tax basis (for 2017 interest expense was net of notional tax at an assumed 35%).

Readily marketable inventory (RMI)
Readily marketable inventory (RMI) is oil and oil products inventory held and price risk-managed by BP`s integrated supply and trading function
(IST) which could be sold to generate funds if required. Details of RMI balances and a reconciliation to GAAP information is set out below.
Further information on RMI, RMI at fair value, paid-up RMI and unpaid RMI is provided on page 318.
2018 2017
RMI at fair value 4,202 5,661
Paid-up RMI 1,641 2,688
Reconciliation of non-GAAP information

2018 2017
Reconciliation of total inventory to paid-up RMI
Inventories as reported on the group balance sheet 17,988 19,011
Less: (a) inventories which are not oil and oil products and (b) oil and oil product inventories which are not risk-
managed by IST (14,066) (13,929)
RMI on IFRS basis 3,922 5,082
Plus: difference between RMI at fair value and RMI on an IFRS basis 280 579
RMI at fair value 4,202 5,661
Less: unpaid RMI at fair value (2,561) (2,973)
Paid-up RMI 1,641 2,688
The Directors’ report on pages 57-86, 110-111, 210-237 and 273-322 was approved by the board and signed on its behalf by Jens Bertelsen,
company secretary on 29 March 2019.
BP p.l.c.
Registered in England and Wales No. 102498

Signatures
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the
undersigned to sign this annual report on its behalf.
BP p.l.c.
(Registrant)
/s/ Jens Bertelsen

Company secretary
29 March 2019

Cross reference to Form 20-F
Page
Item 1. Identity of Directors, Senior Management and Advisors n/a
Item 2. Offer Statistics and Expected Timetable n/a
Item 3. Key Information
A. Selected financial data 274, 306
B. Capitalization and indebtedness n/a
C. Reasons for the offer and use of proceeds n/a
D. Risk factors 55-56
Item 4. Information on the Company
A. History and development of the company 2-3, 19-42, 151-160, 165, 168-170, 278-283, 291, 309
B. Business overview 2-36, 43-54, 139, 156-159, 279-283, 291-296, 301
C. Organizational structure 200, 325
D. Property, plants and equipment 21, 26-27, 36, 137, 165, 169-170, 235-237, 279-290, 300
Item 4A. Unresolved Staff Comments None
Item 5. Operating and Financial Review and Prospects
A. Operating results 16-17, 19-36, 55-56, 130, 133-150, 151-153, 156-159, 168-170, 179, 181-191, 275-277,
291-296, 298-299
B. Liquidity and capital resources 16, 20, 132-133, 140, 165, 170-173, 179-185, 232-234, 277-278
C. Research and development, patent and licenses 9, 40, 44, 159
D. Trend information 9-11, 18, 19-21, 25-27, 30
E. Off-balance sheet arrangements 180-181, 277-278
F. Tabular disclosure of contractual commitments 278
G. Safe harbor 303-304
Item 6. Directors, Senior Management and Employees
A. Directors and senior management 58-67, 71
B. Compensation 16-17, 87-109, 198
C. Board practices 58-62, 68-86, 198
D. Employees 51, 199
E. Share ownership 51, 87-109, 172-178, 198-199
Item 7. Major Shareholders and Related Party Transactions
A. Major shareholders 308-309
B. Related party transactions 168-170, 300
C. Interests of experts and counsel n/a
Item 8. Financial Information
A. Consolidated statements and other financial information 126-128, 129-209, 296-298, 306
B. Significant changes n/a
Item 9. The Offer and Listing
A. Offer and listing details 306
B. Plan of distribution n/a
C. Markets 306
D. Selling shareholders n/a
E. Dilution n/a
F. Expenses of the issue n/a
Item 10. Additional Information
A. Share capital n/a
B. Memorandum and articles of association 309-312
C. Material contracts 300
D. Exchange controls 306
E. Taxation 306-308
F. Dividends and paying agents n/a
G. Statements by experts n/a
H. Documents on display 313
I. Subsidiary information n/a
Item 11. Quantitative and Qualitative Disclosures about Market Risk 181-185
Item 12. Description of securities other than equity securities
A. Debt Securities n/a
B. Warrants and Rights n/a
C. Other Securities n/a
D. American Depositary Shares 313
Item 13. Defaults, Dividend Arrearages and Delinquencies None
Item 14. Material Modifications to the Rights of Security Holders and Use of None
Proceeds
Item 15. Controls and Procedures 126-127, 300-301
Item 16A. Audit Committee Financial Expert 62, 75, 300
Item 16B. Code of Ethics 300
Item 16C. Principal Accountant Fees and Services 80, 199, 301
Item 16D. Exemptions from the Listing Standards for Audit Committees None
Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 312
Item 16F. Change in Registrant’s Certifying Accountant n/a
Item 16G. Corporate governance 300
Item 17. Financial Statements n/a
Item 18. Financial Statements 129-209
Item 19. Exhibits 314

Information about this report
Registered office and our worldwide This document constitutes the Annual Report and Accounts in accordance with UK requirements
headquarters: and the Annual Report on Form 20-F in accordance with the US Securities Exchange Act of 1934,
for BP p.l.c. for the year ended 31 December 2018. A cross reference to Form 20-F requirements
BP p.l.c. is included on page 324.
1 St James’s Square
This document contains the Strategic report on the inside front cover and pages 1-56 and the
London SW1Y 4PD
Directors’ report on pages 57-86, 110-111, 210-237 and 273-322. The Strategic report and the
UK
Directors’ report together include the management report required by DTR 4.1 of the UK
Tel +44 (0)20 7496 4000
Financial Conduct Authority’s Disclosure Guidance and Transparency Rules. The Directors’
remuneration report is on pages 87-109. The consolidated financial statements of the group are
Registered in England and Wales
on pages 113-209 and the corresponding reports of the auditor are on pages 114-128. The parent
No. 102498.
company financial statements of BP p.l.c. are on pages 238 -271.
London Stock Exchange symbol ‘BP.’
The Directors’ statements (comprising the Statement of directors’ responsibilities; Risk
Our agent in the US: management and internal control; Longer-term viability; Going concern; and Fair, balanced and
understandable), the independent auditor’s report on the annual report and accounts to the
BP America Inc. members of BP p.l.c., the parent company financial statements of BP p.l.c. and corresponding
501 Westlake Park Boulevard auditor’s report and a non-GAAP measure of operating cash flow excluding Gulf of Mexico oil
Houston, Texas 77079 spill payments« in the tables on pages 13, 16, 19 and 20 do not form part of BP’s Annual Report
US on Form 20-F as filed with the SEC.
Tel +1 281 366 2000
BP Annual Report and Form 20-F 2018 may be downloaded from bp.com/annualreport. No
material on the BP website, other than the items identified as BP Annual Report and Form 20-F
2018, forms any part of this document. References in this document to other documents on the
BP website, such as BP Energy Outlook, BP Sustainability Report, Advancing the energy
transition, BP Statistical Review of World Energy and BP Technology Outlook are included as an
aid to their location and are not incorporated by reference into this document.
BP p.l.c. is the parent company of the BP group of companies. The company was incorporated in
1909 in England and Wales and changed its name to BP p.l.c. in 2001. Where we refer to the
company, we mean BP p.l.c. Unless otherwise stated, the text does not distinguish between the
activities and operations of the parent company and those of its subsidiaries«, and information
in this document reflects 100% of the assets and operations of the company and its subsidiaries
that were consolidated at the date or for the periods indicated, including non-controlling
interests.
BP’s primary share listing is the London Stock Exchange. In the US, the company’s securities are
traded on the New York Stock Exchange (NYSE) in the form of ADSs (see page 306 for more
details) and in Germany in the form of a global depositary certificate representing BP ordinary
shares traded on the Frankfurt, Hamburg and Dusseldorf Stock Exchanges.
The term ‘shareholder’ in this report means, unless the context otherwise requires, investors in
the equity capital of BP p.l.c., both direct and indirect. As BP shares, in the form of ADSs, are
listed on the NYSE, an Annual Report on Form 20-F is filed with the SEC. Ordinary shares are
ordinary fully paid shares in BP p.l.c. of 25 cents each. Preference shares are cumulative first
preference shares and cumulative second preference shares in BP p.l.c. of £1 each.
Acknowledgements
Design: SALTERBAXTER MSLGROUP
Typesetting: BP and SALTERBAXTER MSLGROUP
Printing: Pureprint Group Limited, UK, ISO 14001, FSC® certified and CarbonNeutral®
Photography: Aaron Tait, Andrew Gombert, Arnhel De Serra, Bob Wheeler, Christopher Churchill,
Graham Trott, Marc Morrison, Richard Davies, Rupert Warren, Stuart Conway, Yesenia Rodriguez
Paper: This document is printed on Revive 100 Offset paper and board. Revive 100 Offset is
paper from 100% recycled pulp, a large percentage of which is de-inked. It is manufactured at a
mill with ISO 9001 and 14001 accreditation and is FSC® (Forest Stewardship Council®) certified.
This document has been printed using vegetable inks.

BP’s corporate reporting suite includes
information about our financial and operating
performance, sustainability performance and
also on global energy trends and projections.
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Details of our financial Details of our sustainability How the energy world is Five-year financial and
and operating performance performance with additional changing, our low carbon operating data in PDF
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Provides our projections of World Energy 2019 How technology could Join the conversation,
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bp.com/statisticalreview
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You can order BP’s UK and rest of world Feedback You can also telephone
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Growing the business

and advancing the

BP Annual Report and Form 20-F 2018

Find out more on page 10.

BP Annual Report and Form 20-F 2018 1

We are a global energy business Scale

BP in action Completed a significant

Opened more than

2 See Glossary BP Annual Report and Form 20-F 2018

Completed a deal to Invested in PowerShare – a Chinese More on our

 Investments in electric vehicle

Took delivery of British

Fuelled the first non-stop

Lightsource BP delivered its

BP Annual Report and Form 20-F 2018 See Glossary 3

Business model foundations

Safe and reliable operations Talented people

2 Developing and extracting oil and gas

4 BP Annual Report and Form 20-F 2018

3 Transporting and trading 4 Manufacturing and marketing

6 Venturing 5 Generating renewable energy

 anufacturing and marketing fuels

BP Annual Report and Form 20-F 2018 5

I am of the view that more energy with

Dear fellow shareholder,

Strengthening organizational culture and capability

6 See Glossary BP Annual Report and Form 20-F 2018

BP Annual Report and Form 20-F 2018 7

Our strategy is delivering value for you,

Advancing the energy transition

This ultimately contributed to us maintaining a healthy balance sheet

8 BP Annual Report and Form 20-F 2018

Strategic report – overview

Energy consumption – 2040 projections

Actual energy mix

Evolving transition 1 Evolving transition

2040 This scenario assumes that

2040 over the recent past.

1 Evolving transition 2 Rapid transition

BP Annual Report and Form 20-F 2018 9

Society is demanding solutions

See Upstream on page 24.

See Upstream analysis by region on page 279.

See Upstream on page 22.

Major project start-ups

See Upstream on page 22.

10 See Glossary BP Annual Report and Form 20-F 2018

Convenience partnerships Harnessing battery power Using wearable technologies

Growing retail in new markets Advancing solar Cloud-based technologies

BP Annual Report and Form 20-F 2018 11

of demand in a low carbon world. We have strong incumbent positions

See Our low carbon ambitions on page 46.

12 See Glossary BP Annual Report and Form 20-F 2018

2018 outcome Guidance 2019-2021

 roup return on average

operating cash flow across the businesses and organic capital 5 5

Other sources and uses of cashb ($ billion)

Organic sources Organic uses

BP Annual Report and Form 20-F 2018 See Glossary 13

Investments in electric vehicle

anufacturing and marketing fuels

roup return on average