bp 2006 turkey country sustainability report

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  • 1. BP in Turkey Sustainability Report 2006

2. The BP group 1 A message from our Head of BP plc is the parent company of the BP group, one of the largest groups of oil andCountry: Integrating gas companies in the world. BP provides energy from oil and gas and from otherSustainability low-carbon sources for transportation, heat and light, and retail brands and products2 What responsibility means for used in everyday life. We operate globally, with business activities and customers in BP around 100 countries and approximately 97,000 employees. We have exploration 3 Highlights in 2006 and production interests in 26 countries. Just under 40% of our fixed assets are 4 Responsible operations located in the US and around 25% in the UK and the rest of Europe.5 BP- at-a-glance 7 Our business activities In 2006, the BP group produced the equivalent of almost 4 million barrels of oil and12 Financial and economic gas per day for customers across the world. The groups capital spending totaled performance $17.2 billion in 2006. On the US Securities and Exchange Commission (SEC) basis of 13 Dialogue and engagement reserves reporting, our reserve replacements ratio was 113% in 2006.a 16 Health and safety 19 Environmentally sound This report: its scope and processoperations In BP, we define sustainability as the capacity to endure as a group, by renewing assets; creating and delivering better products and services that meet the evolving 21 Security and human rights needs of society; attracting successive generations of employees; contributing to a 23 Cultural heritage sustainable environment; and retaining the trust and support of our customers,24 Our people shareholders and the communities in which we operate.26 Our role in society 27 The social and environmental This is the first account of our sustainability performance in Turkey and covers context activities and developments in 2006. It has been prepared in accordance with BPs 28 BP and climate change country sustainability reporting guidelines. The report brings together information 29 Promoting good governance from the diverse range of BP activities in the country. This includes description of31 Enterprise development our activities in Turkey carried out under the auspices of the BTC Co., in which BP is33 Education the major shareholder, but otherwise does not cover in detail the operations of 35 Access to energy companies in which BP Turkey has an equity holding or commercial interest.36 Community and environmentalinvetsment programmes As it is our first report of this kind in Turkey, background details about our operations44 Performance data prior to 2006 are provided where necessary to set the context. Unless otherwise45 Independent assurance statement indicated, data relates to 2006. Where data is provided, we indicate whether it46 Glossarry of terms relates to BTC or to our other activities in Turkey. 47 Further informationThe report has been prepared by our business in Turkey, which has its headquarters in Istanbul. In preparing the report, we have conducted research and discussions with a wide variety of staff in BP Turkey and across the BP group. We have used a formal process to determine which issues are of most significance to internal and external parties to ensure that the report presents a balanced and reasonable view of our performance. a On a combined basis of subsidiaries and equity-accounted entities, excluding acquisitions and disposals.Cover: BTC Ceyhan Marine TerminalIn this report, references to BP and the BP A message from the group auditor, Ernst & Younggroup shall mean BP p.l.c., its subsidiariesand affiliates and, unless otherwise stated, We have reviewed the BP in Turkey Sustainability Report 2006 in order to the text does not distinguish between the provide assurance to BP management that the data, statements and operations and activities of BP p.l.c. andthose of its subsidiaries and affiliates. Unless assertions made regarding the sustainability performance of BP in Turkey are specified otherwise, references in this report supported by evidence or explanation. Our scope of work and conclusions canto us, we, and our shall refer to theactivities of BP in Turkey. Unless indicated be found on page 45.otherwise, all currency amounts aredenominated in US dollars.A glossary of terms used in this report is provided on page 46 3. A message from our Head of Country: Integrating sustainabilityIt gives me great pleasure to present this, our first Turkey are already benefiting local communities. Our customer- sustainability report for BP in Turkey. facing businesses in transport fuels and lubricants areOur activities in the country are diverse, encompassing theimportant players in the increasingly competitive Turkish fuels transportation of oil and gas, the storage, handling andmarket. manufacture of fuel products, and their distribution, sale and 2006 was an eventful year for BP in Turkey. Highlights marketing across the country and internationally. Our retailincluded the transition to full operations on BTC, marking the presence and the successful development of the Baku-Tbilisi-end of over a decade of work involving thousands of people. Ceyhan (BTC) pipeline have contributed to our strongOur retail and lubricants businesses tackled increasing reputation in Turkey. competition and responded to a number of demandingTurkey is an important country for BP. The BTC pipeline andregulatory changes. We managed these while achieving strong assets, the majority of which lie within Turkey, are among thefinancial results with a good health and safety performance, groups most important strategic assets. Our activities toconcern for which underpins our work, every day. promote safe and efficient shipping through the Turkish StraitsBP has been present in Turkey for nearly 100 years. The are important for the safe passage of our own products. Given company here has sustained itself through periods of the countrys pivotal position linking the west to the energy-tremendous change. Our aim is to continue to build a business rich areas of the Caucasus, Russia, and the Middle East, thesein which sustainability is integral to everything we do. Turkey efforts have wider international significance too.again is poised at the brink of further political and socialIn turn, we believe that BP is important for Turkey. The change. By building a truly sustainable business, we hope to range of our activities here makes us unique among westerncontribute constructively to Turkeys development and to grow oil companies. As the principal shareholder in BTC Co. and theand prosper within it. operator of BTC assets in Azerbaijan and Georgia, we play aYour feedback on our performance, and on this report, will central role in connecting Azerbaijans oil and gas reservoirs to be an important input to our efforts. Turkeys Ceyhan terminal and gas markets. The gas we supply to the Turkish market from our Shah Deniz field in the Caspian, is important for Turkish energy security and provides a commercial counter-weight to other gas supplies on which the country depends. Transit fees from BTC will also provide aTahir Uysal reliable source of national revenue, and the community andHead of Country, BP Turkey environmental investment projects we are undertaking in February 2008 Sustainability Report 2006 1 4. What responsibility means for BPThis report is structured according to the framework we use in BP to describe the different aspects of corporate responsibility. According to this framework, our activities fall into two categories: those in which we have control and those where we have an influence. Our sphere of control covers our operations, while our sphere of influence extends beyond our operations to many aspects of society and the environment. Chapter 1: Responsible operations Sphere of control Operating responsibly has two levels. At its core it requires compliance with laws and regulations. At a second, higher, level, we seek to act as a progressive operator by setting our own standards which go further than the law requires. We believe that a company with aspirations to succeed in the long term must have universal standards of individual and collective behaviour that are applied in every activity, everywhere around the world. In a large, diverse organization such as BP, this continues to be our primary challenge. Chapter 1 reports on our performance in this sphere during 2006.Chapter 2: Our role in society Sphere of influence In this sphere, we seek to take a lead in significant areas, such as climate change and development, where our experience, assets and capabilities enable us to seek to be a positive influence. Our role in addressing climate change goes well beyond minimizing our own emissions to include contributing to the policy debate, supporting research and developing new, cleaner technologies in power and transport. Through our BP Alternative Energy business, we are investing in power generated from renewable and alternative sources and in 2006 we set up a biofuels business to explore, develop and market new generations of low-carbon transport fuels. In terms of social and economic development, our main contribution is typically in the form of government revenues, jobs, skills and products. However, we also have a wider role to play in promoting sound governance and contributing to the progress of our host communities. Chapter 2 covers our progress in these areas during 2006. 2 BP in Turkey 5. Highlights in 2006 AchievementsStrong business performance Turnover from our principal business operationsSafe and secure operations Our safety in Turkey increased by approximatelyperformance across our businesses 16% in 2006, and total investment was good in 2006, with no fatalities and increased by approximately 27%. Weno major environmental incidents. The maintained our strong market position risks arising from the transition from in fuels and lubricants

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