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BP in Turkey Sustainability Report 2006

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Page 1: BP 2006 Turkey country sustainability report

BP in TurkeySustainability Report 2006

Page 2: BP 2006 Turkey country sustainability report

In this report, references to ‘BP’ and the ‘BPgroup’ shall mean BP p.l.c., its subsidiariesand affiliates and, unless otherwise stated,the text does not distinguish between theoperations and activities of BP p.l.c. andthose of its subsidiaries and affiliates. Unlessspecified otherwise, references in this reportto ‘us’, ‘we’, and ‘our’ shall refer to theactivities of BP in Turkey. Unless indicatedotherwise, all currency amounts aredenominated in US dollars.

Cover: BTC Ceyhan Marine Terminal

1 A message from our Head of Country: Integrating Sustainability

2 What responsibility means for BP

3 Highlights in 20064 Responsible operations

5 BP- at-a-glance7 Our business activities12 Financial and economic

performance13 Dialogue and engagement16 Health and safety19 Environmentally sound

operations21 Security and human rights23 Cultural heritage24 Our people

26 Our role in society27 The social and environmental

context28 BP and climate change29 Promoting good governance31 Enterprise development33 Education 35 Access to energy36 Community and environmental

invetsment programmes44 Performance data45 Independent assurance statement 46 Glossarry of terms47 Further information

A message from the group auditor, Ernst & Young

We have reviewed the BP in Turkey Sustainability Report 2006 in order to

provide assurance to BP management that the data, statements and

assertions made regarding the sustainability performance of BP in Turkey are

supported by evidence or explanation. Our scope of work and conclusions can

be found on page 45.

The BP groupBP plc is the parent company of the BP group, one of the largest groups of oil andgas companies in the world. BP provides energy from oil and gas and from otherlow-carbon sources for transportation, heat and light, and retail brands and productsused in everyday life. We operate globally, with business activities and customers inaround 100 countries and approximately 97,000 employees. We have explorationand production interests in 26 countries. Just under 40% of our fixed assets arelocated in the US and around 25% in the UK and the rest of Europe.

In 2006, the BP group produced the equivalent of almost 4 million barrels of oil andgas per day for customers across the world. The group’s capital spending totaled$17.2 billion in 2006. On the US Securities and Exchange Commission (SEC) basis ofreserves reporting, our reserve replacements ratio was 113% in 2006.a

This report: its scope and processIn BP, we define ‘sustainability’ as the capacity to endure as a group, by renewingassets; creating and delivering better products and services that meet the evolvingneeds of society; attracting successive generations of employees; contributing to asustainable environment; and retaining the trust and support of our customers,shareholders and the communities in which we operate.

This is the first account of our sustainability performance in Turkey and coversactivities and developments in 2006. It has been prepared in accordance with BP’scountry sustainability reporting guidelines. The report brings together informationfrom the diverse range of BP activities in the country. This includes description ofour activities in Turkey carried out under the auspices of the BTC Co., in which BP isthe major shareholder, but otherwise does not cover in detail the operations ofcompanies in which BP Turkey has an equity holding or commercial interest.

As it is our first report of this kind in Turkey, background details about our operationsprior to 2006 are provided where necessary to set the context. Unless otherwiseindicated, data relates to 2006. Where data is provided, we indicate whether itrelates to BTC or to our other activities in Turkey.

The report has been prepared by our business in Turkey, which has its headquartersin Istanbul. In preparing the report, we have conducted research and discussionswith a wide variety of staff in BP Turkey and across the BP group. We have used aformal process to determine which issues are of most significance to internal andexternal parties to ensure that the report presents a balanced and reasonable view ofour performance.

a On a combined basis of subsidiaries and equity-accounted entities, excluding acquisitions and disposals.

A glossary of terms used in this report is provided on page 46

Page 3: BP 2006 Turkey country sustainability report

Sustainability Report 2006 1

A message from our Head of Country:Integrating sustainability

It gives me great pleasure to present this, our firstsustainability report for BP in Turkey.

Our activities in the country are diverse, encompassing thetransportation of oil and gas, the storage, handling andmanufacture of fuel products, and their distribution, sale andmarketing across the country and internationally. Our retailpresence and the successful development of the Baku-Tbilisi-Ceyhan (BTC) pipeline have contributed to our strongreputation in Turkey.

Turkey is an important country for BP. The BTC pipeline andassets, the majority of which lie within Turkey, are among thegroup’s most important strategic assets. Our activities topromote safe and efficient shipping through the Turkish Straitsare important for the safe passage of our own products. Giventhe country’s pivotal position linking the west to the energy-rich areas of the Caucasus, Russia, and the Middle East, theseefforts have wider international significance too.

In turn, we believe that BP is important for Turkey. Therange of our activities here makes us unique among westernoil companies. As the principal shareholder in BTC Co. and theoperator of BTC assets in Azerbaijan and Georgia, we play acentral role in connecting Azerbaijan’s oil and gas reservoirs toTurkey’s Ceyhan terminal and gas markets. The gas we supplyto the Turkish market from our Shah Deniz field in the Caspian,is important for Turkish energy security and provides acommercial counter-weight to other gas supplies on which thecountry depends. Transit fees from BTC will also provide areliable source of national revenue, and the community andenvironmental investment projects we are undertaking in

Turkey are already benefiting local communities. Our customer-facing businesses in transport fuels and lubricants areimportant players in the increasingly competitive Turkish fuelsmarket.

2006 was an eventful year for BP in Turkey. Highlightsincluded the transition to full operations on BTC, marking theend of over a decade of work involving thousands of people.Our retail and lubricants businesses tackled increasingcompetition and responded to a number of demandingregulatory changes. We managed these while achieving strongfinancial results with a good health and safety performance,concern for which underpins our work, every day.

BP has been present in Turkey for nearly 100 years. Thecompany here has sustained itself through periods oftremendous change. Our aim is to continue to build a businessin which sustainability is integral to everything we do. Turkeyagain is poised at the brink of further political and socialchange. By building a truly sustainable business, we hope tocontribute constructively to Turkey’s development and to growand prosper within it.

Your feedback on our performance, and on this report, willbe an important input to our efforts.

Tahir UysalHead of Country, BP TurkeyFebruary 2008

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2 BP in Turkey

What responsibility means for BP

This report is structured according to the framework we use in BP todescribe the different aspects of corporate responsibility. According tothis framework, our activities fall into two categories: those in which wehave control and those where we have an influence. Our ‘sphere ofcontrol’ covers our operations, while our ‘sphere of influence’ extendsbeyond our operations to many aspects of society and the environment.

Chapter 1: Responsible operationsSphere of controlOperating responsibly has two levels. At its core itrequires compliance with laws and regulations. At asecond, higher, level, we seek to act as a ‘progressiveoperator’ by setting our own standards which gofurther than the law requires. We believe that acompany with aspirations to succeed in the long termmust have universal standards of individual andcollective behaviour that are applied in every activity,everywhere around the world. In a large, diverseorganization such as BP, this continues to be ourprimary challenge. Chapter 1 reports on ourperformance in this sphere during 2006.

Chapter 2: Our role in societySphere of influence In this sphere, we seek to take a lead in significantareas, such as climate change and development, whereour experience, assets and capabilities enable us toseek to be a positive influence. Our role in addressingclimate change goes well beyond minimizing our ownemissions to include contributing to the policy debate,supporting research and developing new, cleanertechnologies in power and transport. Through our BPAlternative Energy business, we are investing in powergenerated from renewable and alternative sources andin 2006 we set up a biofuels business to explore,develop and market new generations of low-carbontransport fuels. In terms of social and economicdevelopment, our main contribution is typically in theform of government revenues, jobs, skills and products.However, we also have a wider role to play inpromoting sound governance and contributing to theprogress of our host communities. Chapter 2 coversour progress in these areas during 2006.

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Sustainability Report 2006 3

Highlights in 2006

Achievements

Challenges

Strong business performance Turnoverfrom our principal business operationsin Turkey increased by approximately16% in 2006, and total investmentincreased by approximately 27%. Wemaintained our strong market positionin fuels and lubricants despite toughercompetition created by mergers andnew entrants to these markets (seepage 9).

Commissioning of the BTC pipeline TheBTC pipeline delivered its first oil inJune 2006. This is the largest non-OPEC source of oil supply to bebrought on stream in 15 years and hasbeen a major feat of projectmanagement and engineering (seepage 9).

Successful transition from project tooperations on BTC The completion ofthe BTC project construction saw thesmooth transition into operations (seepage 7).

Safe and secure operations Our safetyperformance across our businesseswas good in 2006, with no fatalities andno major environmental incidents. Therisks arising from the transition fromproject to operations on the BTCproject were managed successfully(see page 16).

Community and Environmentalinvestment Our investmentprogrammes linked to BTC continuedtheir work supporting socio-economicdevelopment in communities along thepipeline route and protecting the naturalenvironment. An independentevaluation of the communityinvestment programme providedpositive feedback, and a second phaseof projects was initiated (see page 27).

The National Marker initiative We wererequired to make changes to ouroperations and procedures in order tomeet the obligations of the newnational fuel marker system, introducedby government to protect fuel qualityand reduce volumes of smuggled fuel.The timescale for introducing thesechanges was extremely challenging(see page 14).

Responding to regulatory change Anumber of regulatory changes wereintroduced in 2006, such as theintroduction of new licensingrequirements, and measures relating toproduct quality and labour law.

Responding to these changes hadsignificant implications in terms ofcosts of compliance (see page 14).

Black Sea exploration withdrawalFollowing completion of initialexploration activity, we withdrew fromfurther oil exploration in the Black Sea,but managed this process sensitively(see page 35).

Gas delivery Delivery of gas into theTurkish domestic market began in 2007rather than 2006 as originally planned,after technical problems with wellstart-up and network connection (seepage 35).

Downstream business restructuring Aspart of a Europe-wide businessrestructuring programme, we reducedthe number of staff employed in ourrefining and marketing operations inpursuit of increased operating efficiency2006 (see page 24).

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4 BP in Turkey Sustainability Report 2006 4

Responsible operations1.1 BP at-a-glance1.2 Our business activities 1.3 Financial and economic performance 1.4 Dialogue and engagement1.5 Health and safety1.6 Environmentally sound operations1.7 Security and human rights1.8 Cultural heritage1.9 Our people

BP Gemlik Lubricants Plant

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Sustainability Report 2006 5

Responsible operations

1.1 BP at-a-glanceThis section provides a high-level overview of BP’s organizationalstructure, corporate governance policies and management framework.It outlines the way in which our vision and strategy are developed andhow we seek to deliver against those objectives. The activities of BPTurkey are described within this group context.

BP is a global group, with interest andactivities in Exploration and Production,Refining and Marketing, and Gas, Powerand Renewables.

Our business in Turkey forms part ofthe BP Africa, Middle East and Caspianregion. Our activities here encompass awide range of BP businesses, describedin more detail in pages 7-11.

Our operations in country are supportedby activities carried out at group levelwhich aim to achieve coherence acrossthe company, manage risk effectively andachieve economies of scale. Technologicalsupport is provided by the group’sresearch and engineering activities.Technology helps the group access theenergy resources we need to providefuture security of energy supply andsupports the group in its goal ofminimizing the environmental impact of itsenergy production and consumption.

BP also works with a number of non-BP companies and other entities in jointventures (JVs). From a group perspective,many of these JVs are large andsignificant businesses in their own right,established as separate companies withtheir own boards and governanceprocesses, in which BP is a shareholder.In all cases, BP implements its ownstandards and policies in those JVs it

operates and where the joint ventureagreement permits. Where BP is not theoperator or where BP is the shareholder ina JV, BP encourages adoption of or workstowards standards and policiescomparable with BP’s own.

. Vision and strategy The BP group strategyis captured within five-year and annualplans. The strategy seeks to achieve theprincipal goal set by the board – namelymaximizing shareholder value on a long-term basis. Segments and business unitsdevelop their own strategies in line withthe group strategy.

In Turkey, our customer-facingoperations adopt key components of therefining and marketing strategy in seekingto increase brand loyalty in our lubricantsbusiness and by presenting distinctiveoffers, achieving good market share,margin, and efficiency improvements inour retail market. In our upstreamactivities, managing the BTC assets is afundamental part of our strategy in Turkeyand will remain a key activity for manyyears to come.

Governance and management framework Our corporate governance andmanagement systems provide aframework for determining what we are

trying to deliver and how we go about thatdelivery. The systems are designed toenable the business to achieve itscommercial goals – through strategy,planning and execution – while operatingsafely, ethically and responsibly byapplying values, standards and controls.

In terms of how we deliver, our action isshaped by: • Executive limitations: These define the

boundaries between the board and thegroup chief executive (GCE) and thoseactivities and conditions the boardconsiders unacceptable. The boarddelegates authority to the GCE forperformance within these limitations.

• Brand attributes: Our brand attributesare to be performance-driven,progressive, innovative and green.

• Group values: Group values arestatements that lay out courses ofaction and goals, often aspirational,against which we can test ourperformance and shape the reputationof the group. They include aspirationsto have no accidents, conductenvironmentally sound operations, treatemployees fairly, have an inclusive andmeritocratic organization, pursuemutually advantageous relationshipsand promote respect for human rights.

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6 BP in Turkey

• The BP code of conduct: The code ofconduct translates certain group valuesinto specific mandatory principles andexpectations for all employees withinBP.

• Group standards: These set out clearexpectations, processes and principlesto be followed worldwide. The code ofconduct and standards for drivingsafety, credit, business continuityplanning, and the group investmentassessment and approval proceduresare fully operational. Four others havebeen approved and are now beingexecuted: control of work, integritymanagement, digital security andsecurity; and three are currently beingdefined: marine operations; people; andmanagement information.

• Control processes: These consist ofpractical frameworks which enableimplementation of the system ofinternal control.

• Individual performance objectives:These define an individual’s expectedcontribution to deliver the annual plan.They lay down the individual’s targets,objectives, resources, and activities. This report provides insight into the

operation of these values, standards andcontrols in the context of our activities inTurkey.

Page 9: BP 2006 Turkey country sustainability report

The BTC export system We are themajor shareholder in the BTC Co.which owns the BTC pipeline andaccompanying assets in Turkey. Inaccordance with the Host GovernmentAgreement (HGA), the BTC facilitiesand pipeline in Turkey are managed byBIL (BOTAS International Limited) asubsidiary of the state-owned BOTAScompany. On behalf of all the projectpartners in the BTC Co. we workclosely with BIL to try and ensure thesafe and efficient operations of thesemajor investments in Turkey.

The official inauguration of theTurkish section of the BTC oil exportpipeline, the new Ceyhan marineexport terminal and the full BTCpipeline export system was held inJuly 2006. This milestone marked thecompletion of a major engineeringproject, lasting over 12 years. It is oneof the longest pipelines in the world.

The 1,076 kilometre Turkish sectionof the BTC export system includesfour pump stations, two meteringstations and the Ceyhan exportterminal which itself consists of sevenone million barrel capacity crude oilstorage tanks and a two and halfkilometre-long jetty to allow

simultaneous loading of two tankersof up to 300,000 deadweight tonnes.The pipeline is helping to relieve thegrowth in oil-related traffic andassociated environmental risksthrough the Istanbul straits, as well asstrengthening economic and politicallinks between Turkey, Georgia,Azerbaijan and the west.

2006 was an important year oftransition, marking the change fromproject to operations on BTC. Fromthe loading of the first tanker atCeyhan in July 2006 to the end of2006, some 80 vessels were loaded totransport oil from BTC to internationalmarkets. Flow rates through thepipeline have steadily increased andthe pipeline now brings around600,000 barrels of oil per day to theworld market.

Throughout the construction phaseof BTC, and continuing intooperations, high regard has been paidto managing the environmental andsocial impact of the pipeline. This hasincluded concern for safe andenvironmentally-sound operations (seesections 1.5 and 1.6), and additionalinvestment projects to protect theenvironment and support communities

along the pipeline route (see section2.7).

1.2 Our business activitiesOur activities in Turkey cover most aspects of the oil and gas value chainfrom exploration and production through to the sale and use of petroleumproducts in retail and commercial markets. While our own explorationactivity in Turkey has been limited, we are the major shareholder in theBTC Company, responsible for the BTC and SCP pipelines which deliver oiland gas from Azerbaijan. We are involved in the manufacture, storage,handling and carriage of products into and throughout Turkey, and theirsale and marketing to a range of customers.

Sustainability Report 2006 7

Responsible operations

2006 was an important year oftransition, marking the change from project to operations on BTC.

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8 BP in Turkey

BTC in Turkey

More than half the length and facilities, and much of the complexity of the BTC

pipeline lies within Turkey’s territory.

Pipeline length 1,076 km 61% of the total pipeline lengthPipe diameter 46”,42” and 34”Land parcels 18,200 65% of the totalMetering stations 2 4 in the pipeline overallValve stations 51 51% of the total numberIntermediate pigging station 2 3 in the pipeline overallPump stations 4 Half the total numberRoad and railways crossings 300 42% of the total number Watercourse crossings 600 46% of the total number

Kayseri

BTC pipeline

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Sustainability Report 2006 9

BTC commissioning

The official inauguration of the full BTC pipeline export system took place in July 2006at the Ceyhan terminal on the Mediterranean coast of Turkey. The event, hosted by theTurkish government, was attended by their Excellencies Ahmet Necdet Sezer, Presidentof Turkey; the Turkish Prime Minister, Recep Tayyip Erdogan; President Ilham Aliyev ofthe Republic of Azerbaijan; and the President of Georgia, Mikheil Saakashvili; togetherwith visiting senior government and state officials, senior executives of BTC ownercompanies and business representatives.

Addressing the inauguration ceremony at Ceyhan, former BP CEO Lord Brownethanked all those involved: “The commissioning of the Baku-Tbilisi-Ceyhan pipeline is a

significant step in the long history of the oil industry. It reintegrates significant oil supplies from the Caspian into the globalmarket for the first time in a century. On behalf of BP, I would like to express our thanks to all those who made it possibleto get to this point.

I’d like to thank the thousands of extraordinary people from the three countries directly involved – Azerbaijan, Georgia andTurkey - and the people from many others beyond whose support and involvement was indispensable - the members of theworkforce, the inhabitants of local communities, the companies, governments, international institutions, our partners and, ofcourse, our own staff. BTC is the first great engineering project of the 21st century.”

Responsible operations

Gas and power BP supplies natural gasto Turkey through the SCP pipeline,transported from the Shah Deniz field inthe Caspian. At the Turkish border withGeorgia, gas enters the Turkish gasdistribution network owned andoperated by BOTAS. We will provideapproximately 6.6 billion cubic metresof gas per year to the Turkish market,representing approximately 15% ofdomestic supply. The liberalization ofthe gas and electricity markets inTurkey may create opportunities forgas sales, storage and distribution and

is likely to increase the demand for gasin Turkey, including the possibility ofmore gas-fired power generation.

Retail fuels and lubricants We are amajor fuel retailer in Turkey, withapproximately 590 retail sites acrossthe country. All sites are dealer-ownedand dealer-operated, supplying BPproducts and with BP standardsnigarously applied. We have the thirdlargest market share, providingapproximately 15% of the market formotor fuels.

The retail fuel market in Turkey ishighly competitive and became more soin 2006 with the entry of new retailersin the market and further consolidationof existing players through mergers.Our main competitors are the formerstate-owned company Petrol Ofisi,Opet, and a joint venture formed in2006 bringing together Shell and TurkPetrol. The privatization in 2005 ofTÜPRAS, the major refining organizationin Turkey, was finalized in 2006.

In Castrol, we have a very well-known and respected brand, present in

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10 BP in Turkey

Turkey for decades. We are the leadingsupplier of lubricants to the automotivesector, and have significant presence inthe marine and industrial markets. Weown and operate a modern lubricantsplant at Gemlik, in Marmara, builtoriginally in the 1960s but substantiallymodernized through a major investmentin the year 2000. The plant employsapproximately 100 people, includingcontractors. Motor oils, transmissionfluids, grease, marine lubricants andhydraulic system fluids are producedand filled at the plant. The plant has anannual blending and filling capacity ofapproximately 150,000 tonnes.

Logistics The storage handling andtransport of fuels are crucial parts of ouroperations in Turkey. Our businessesrely on the efficient transport of productinto and out of our terminals, whereproducts are handled and stored. Most

of the terminals are at coastal locationsand receive product by pipeline orvessel. We are the major shareholderand operator of the ATAS fuel terminalin the south-east of the country. Wealso work as JV partners (with Shell,ExxonMobil, and Total) in otherterminals at Cekisan Limited andAmbarl› Limited and store fuels at thirdparty terminals.

A major conversion project at ATASbegun in 2004 is continuing there toreconfigure the former refinery into atrading terminal. Storage facilities, road,rail and ship loading and unloadingfacilities will enable the facility tosupport marketing operations insouthern Turkey.

From our terminals, fuels are loadedinto BP-owned or dealer-operated trucksfor onward transportation to ournetwork of retail sites and to industrialcustomers across the country. The

majority of product is transported tocustomers by road, although use is alsomade of rail. We also trade fuels withcompetitors.

Safe transportation is also importantin the Turkish Straits which is aninternational transit route for oil thatlinks the west with the Caspian region,the Caucasus, Russia and markets inthe Middle East. Notwithstanding theflow of oil through the BTC pipelinefrom 2006 onwards, substantialvolumes of BP-owned or produced oilare regularly transported through theBosphorus. We have a team ofspecialists from BP Marine based inTurkey whose role is to provideassurance on the safety of ports andvessels across the region.

LPG (liquefied petroleum gas) The LPGmarket in Turkey is one of the largest inEurope, dominated by residential,

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Sustainability Report 2006 11

Responsible operations

commercial and auto LPG segments.The rapid expansion of the natural gaspipeline grid has had a significantimpact, leading to shrinkage of the bulksector and bottled markets in someregions of the country, although theauto gas market has grown. LPG Turkeyowns the single biggest undergroundstorage LPG tank in the country, and the

country’s largest LPG import andstorage terminal, in the Dortyol region.Our business imported approximately9% of total LPG imports into thecountry in 2006.

Air BP Air BP has been present inTurkey since 1958. We currentlyoperate in JVs with ExxonMobil and

Shell, providing jet fuel at airports inIstanbul, Izmir, Antalya and Bodrum.We also provide fuel through a jointoperation with ExxonMobil at Ankaraand Dalaman airports. We soldapproximately 85,000 tonnes of fuel oilin 2006, and conducted our operationswithout any reported day away fromwork cases, recordable injuries or spills.

BP Logistics in Turkey

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12 BP in Turkey

1.3 Financial and economic performance We have a significant economic impact in Turkey, not only in terms ofthe revenues we generate but also in relation to the taxes we pay andthe jobs we create directly through the staff we employ. We have amajor indirect impact in the economy, on the local companies we workwith and through the skills and capabilities that we transfer.

The table below sets out the financialperformance of BP Petrolleri A.fi. thelegal entity which reports annually toregulatory authorities in Turkey, andwhich represents approximately 90% ofthe total turnover relating to our activitiesin Turkey, excluding BTC.

The total investment figure relatesprincipally to capital expenditure on

tangible and intangible assets such asplant infrastructure, machinery,equipment and other investmentsmade in retail stations.

The value of imports derives fromimports of oil, while the value of exportsis derived principally from intra-companysales of fuel and LPG to our internationalbusinesses.

Turkey operationsa ($ million) 2005 2006Turnover 3,117,998,165 3,628,828,715 Total investment 47,256,069 59,806,324Value of imports 639,000,000 660,455,445Value of exports 65,993,315 56,564,009

Financial performance

a BP Petrolleri A.fi.

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Customer relations Understanding andresponding to the needs of ourcustomers is crucial to our continuingsuccess. In our fuels and lubricantsbusinesses, our advertising, productmarketing and sales promotion activitiesemphasize the quality and diversity ofour product and service offering. Severalof our products have characteristicswith environmental attributes, such asthe lower emissions derived from usingBP Ultimate fuel, or the increased fuelefficiency gained by use of advancedlubricants such as the ‘0’ viscosity fuelCastrol Elixion, which tests have shownyields lubricant savings of 5%compared with regular grade lubricants.

Emphasizing safety in our productsand services is also an important part ofour customer offer. For example, ourCastrol customer offer targeting fleetowners, re-launched in 2006, includesfree safe driving training for Castrolfleet customers, satellite vehicletracking information to enable bettermonitoring of data such as hours drivenand driver behaviour, and fuel-efficientdriving training.

We also work to maintain strongrelationships with our network ofdealers, re-sellers (these are individuals

or organizations that typically have theirown customer portfolio), largeindustrial customers (in sectors such aspower generation, construction, andmining), fleet customers, andwholesalers.

In the lubricants business, similarly,we have important relationships withmany different types of customer. Weare the leading supplier of lubricants tothe automotive sector in Turkey, andalso supply the marine and industrialsectors.

BIL and BOTAS We have closerelationships with BIL, the designatedoperators of the BTC pipeline, relatedassets and terminal in Turkey. One ofour key roles now that the BTC systemis in operation, is gaining assurance onbehalf of shareholders that the assetsare being managed and maintained inaccordance with the operatingagreement. To do this, we have set upvarious mechanisms including theplacement of a senior and experiencedBTC manager as BIL technical director,a number of other staff secondments,as well as regular interaction amongoperations managers along the lengthof the pipeline.

Sustainability Report 2006 13

1.4 Dialogue and engagementWe interact on a regular basis with a wide range of groups – includinggovernment, local communities, non-governmental organizations, andthe media. Our aim is to ensure that dialogue and engagement withthese groups builds relationships which create mutual advantage – thatis, benefits for those with whom we do business as well as forourselves.

Responsible operations

We work tomaintain strongrelationships with our networkof dealers, re-sellers andindustrialcustomers.

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14 BP in Turkey

Government relations The diversity of ouractivities in Turkey means that we haveworking relationships with manybranches of government. We engagewith central government on strategicissues such as energy marketliberalisation, fuel supply and distribution.In common with the rest of thepetroleum industry, we implemented thenew national marker initiative for fuel,introduced in 2006 by the Energy MarketRegulatory Authority (EMRA). Weengage with coastal authorities on issues

of safety and security around the Ceyhanterminal. We work closely with theauthorities in Istanbul to protect thesafety and environmental integrity of theTurkish Straits. Through our communityand environmental investmentprogrammes in BTC, we have developedrelationships with hundreds of village,district and provincial authorities,collaborating with them on specificprojects in their localities.

The development of a comprehensivenational regulatory structure, often driven

by the need to meet EU standards, hashad a significant impact on the petroleumindustry. A number of regulatorydevelopments introduced in 2004 and2005 continued to affect our business.

A significant administrative challengewas created in 2006 by new licensinglegislation, requiring the submission andapproval of licenses for all activitiescarried out in the petroleum sector. Theimplementation of a national markersystem to prevent the illegal importationof fuel also had significant implications.Introducing the marker, a chemicaladditive injected to liquid fuels at acustom’s entry point or refinery exit, isincurring significant financial andworkload costs created by the need tomake operational changes at ourterminals. Transport, storage andhandling of the fuel marker involvesadditional health and securityarrangements, creating potential financialand health risks.

Important changes were made tolabour law in 2006, includingamendments which tightened provisionson the use of contractors, which had thegoal of creating greater fairness andequality of treatment betweenemployees and contractors. As with any

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legislative change, these alterationscreated financial and operational costs ofcompliance.

Community engagement Effort has beenmade throughout the BTC project toengage with local communities and otherinterested parties such as NGOs,government ministries, and the local andnational media. Contact during operationsis continuing through community andenvironmental investment projects andthrough routine contact with localcommunities around our assets

Ninety-eight meetings were held byBTC with stakeholder groups in Turkey in2006. BIL held a series of meetings withgovernors, municipal authorities, thegendarmerie, business associations,NGOs and the media, across sevenprovinces. BIL also held meetings withover 250 communities after assumingresponsibility for operations at the end ofJuly 2006. This effort followed visits byBOTAS and contractor community liaisonstaff to 126 communities along thepipeline right of way, a village around theCeyhan marine terminal, and 15 project-affected villages in the vicinity of pumpstations.

Projects and operations of the scale of

BTC can create unrealistically-highexpectations among local communities,and can bring impacts which causedisruption and difficulty for certaincommunities. A complaints andcompensation procedure sets out a clearprocess for recording, responding to andtracking complaints, such as those whicharise from concerns over access to landor property or infrastructure damage. Inthe course of 2006, complaints wereraised by the local fishing communitiesfrom Yumurtal›k and Golovas› allegingvarious construction and operational-related impacts in the vicinity of theCeyhan terminal. BTC Co has conductedextensive studies using specialists fromAnkara University to determine thecompensation package that has beenreceived by all eligible fishermen. Thefishermen have applied to the courtsand we are continuing to examine theseclaims as part of the ongoing legalprocess. We continue to work with thefishermen to build a more positiverelationship.

The Social Resettlement Action PlanPanel (SRAP), established to provideindependent monitoring for lenders ofBTC’s management of socialcommitments, have examined the

management of land-related issues,infrastructure damage, security andcommunity liaison during their eight visitsto the pipeline, the last of whichoccurred in June 2007. In their 2006review, SRAP noted that ‘communitieswere generally satisfied withreinstatement of community roads,culverts, irrigation systems and the likeand also commented on the effectivehandling of grievance tracking and closeout. The panel commented on the needto focus on making the communityorganization that have evolved during theconstruction phase self-reliant -anobservation that has been followed- up insubsequent action on CIP.

Sustainability Report 2006 15

Responsible operations

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Safety performance We are pleased toreport that we experienced no fatalitiesin the course of 2006 and our recordableinjury frequency declined in the course of2006. However, we experienced anincrease in our total vehicle accident rate.Summary information on our safetyperformance is set out in the tablebelow. More detail (including notesexplaining key terms) is provided in theperformance data table on page 44.

The transition from project tooperations on BTC has requiredmanaging the risks associated withchange, such as the introduction of newcontractors, as well as the differenthealth and safety concerns which arisefrom continuous operations. Experiencehas shown that changes like this canlead to deterioration in safetyperformance. Across the project as awhole, we are pleased to report that the

days away from work case frequencyhas been consistently better thaninternational pipeline and offshoreconstruction industry performance. Weregret to report the death of one BOTASmember of staff during BTC constructionin January 2006. A full investigation wascarried out to understand the causes ofthis tragic accident and to ensure that allactions are taken to prevent anyrecurrence.

Safety and operational integrity AcrossBP operations in 2006, we have soughtto improve existing safety practices fromthe operational level upwards, not onlyprioritizing practical steps such asrelocating staff and assessing assets formajor accident risks but also workingtowards the long-term development ofour safety management systems andcapabilities.

Risk assessment work was carried outin Turkey in 2006. For example, analysiscarried out in our storage and handlingoperations examined the steps thatmight occur in a serious accident and thepossible mitigation actions that could betaken. We have also worked toimplement the group control of workstandard, which seeks to reduce thenumber and frequency of injuries and

1.5 Health and safety Ensuring the health and safety of all those involved in or affected byour operations requires constant attention on personal and processsafety. In Turkey, the nature of our business means that much of oureffort is focused on using our influence to try to ensure that ourpartners, contractors and dealers operate to high safety standards. Inour own operations, we strive for our safety practices to be fit-for-purpose and aligned with the long-term development of groupsystems.

Comparison of BTC and international industry safety performanceBTC statistics BTC statistics BTC statistics IPLOCAb statistics

for 2004 for 2005 for 2006a for 2004

Contractors submitting data 11 9 5 56Total man-hours 63,784,499 23,477,749 3,407,082 650,123,559Fatalities 6 1 1 34DAFWC 30 13 1 2,247DAFWC frequency 0.10 0.11 0.06 0.69a Project phase only.b IPLOCA: International Pipeline and Offshore Constructors Association.

16 BP in Turkey

Safety performance summarya

2005 2006

Fatalities 0 0Days away from work case frequency (DAFWC) 0.05 0Total recordable injury frequency 0.32 0.23Man hours worked 3,694,803 3,481,002a The information in this table does not include data related to BTC.

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fatalities that occur as a result ofworkplace incidents.

Gaining assurance We use a number ofmechanisms to gain assurance thathealth and safety are being managedeffectively in those operations where wehave influence but do not own andoperate them ourselves. In our retailfuels business, regular audits are carriedout of our dealers’ health and safetyperformance, assessing aspects such asforecourt safety, storage of hazardousmaterials and use of personal protectiveequipment. In our logistics operations,we screen contractors’ safetyperformance before appointing them andthen work with them to maintain orimprove safety performance.

In our BTC operations, HSSEstandards based on our managementsystem framework ‘Getting HSE Right’are embedded within our operatingagreement with BIL, as are the BP

‘Golden Rules of Safety’ which provide guidance for safe operationsfor eight high-risk activities such asworking at heights, energy isolationand lifting. We have an operationsassurance team who work with theircounterparts at BIL, assessingperformance and providing technicalsupport on safety matters wherenecessary.

The most important aspect of all ofthese processes is building the supportand confidence of our contractors andpartners to help them develop a culturein which concern for safety is integral toeverything they do. Providing training is akey element of building mutualconfidence. We have provided training onvarious aspects of driver safety, forexample, across our businesses inTurkey. Training on specific risks, such asthe use of scaffolding to guard againstthe dangers of working at heights, wasalso conducted in 2006.

Road safety Improving driving and roadsafety has long been an importantpriority for BP, as road traffic accidentshave been the largest single cause ofworkforce fatalities (30%) across thegroup over the past eight years. Turkey israted as a high-risk area on the BPdriving safety standard scale not onlybecause the nature of our businessinvolves the delivery of large volumes ofproduct – the majority transported byroad – but mainly due to the worseningsafety record on Turkey’s roads. Nationalstatistics show the number of recordedtraffic accidents rose from approximately795,000 in 2003 to more than 1 million in2005 – nearly 3,000 per day - with morethan 3,200 people killed in trafficaccidents in 2005.

We take various actions to try toensure the technical safety of ouroperations and to work on developingbetter awareness of the importance ofsafety on the roads. Approximately fiftypercent of ground fuel is transported by aBP-operated fleet managed by atransportation department active in Turkeysince 1998. Vehicles in the fleet aresubject to inspection to ensure they are fitfor the transportation of dangerous goodby road. Driver recruitment includesmedical testing and practical driving

Responsible operations

Sustainability Report 2006 17

Road safety performancea

2005 2006

Total vehicle accidents 6 6Total vehicle accident rate 0.28 0.43Kilometres driven 21,309,906 14,088,808a The information in this table does not include data related to BTC.

We use a numberof mechanisms togain assurance thathealth and safetyare being managedeffectively.

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testing. Once recruited, drivers receivetraining covering anti-skid, anti-rollover, fire-fighting and defensive driving. In 2006, webegan the installation of vehicle datarecorders (VDRs) for all professional drivers,including sales staff and tanker drivers ofsecondary transport. VDRs use satellitetechnology to monitor and record vehiclelocations and driver behaviour, coveringaspects such as speed, breaking andacceleration patterns, and rest timesPreliminary data shows that this has alreadyhad an effect in reducing instances of drivingat excessive speed.

For dealer-owned and operated drivers,responsible for the transport of theremaining 50% of ground fuels, we have acomprehensive set of road tanker standards,

which have developed from our ‘Safe PassProgramme’. This initiative set minimumrequired standards and was first launched in1998.Our standards include a range oftechnical requirements covering aspectssuch as air and brake systems, fuel tanks,tyres, hazard warnings, fire extinguishers,and personal protective equipment.

On BTC activities, driver, passenger andcommunity training on road safety has beengiven. In the initial six-month phase ofoperations (as at the end of 2006), BTCrecorded zero recordable injuries, asignificant achievement considering thetwofold increase in the number of man-hours and the increase in all health andsafety targets.

We recognize that improving road safety

is a challenge across Turkish society andhave supported broader initiatives to developawareness. Since 2004, for example, wehave run a programme called ‘Smart Steps’which aims to increase awareness of road,family and school safety issues amongchildren. Originally introduced tocommunities along the BTC pipeline route,the programme has been implemented incity areas including Ankara. We haveworked with the Ministry of Education todevelop and disseminate the initiative.

We have supported a road safetychildren’s theatre, an initiative geared at 5-9year olds, about road safety. The script andlyrics cover topics such as how to cross astreet, where to sit in the car, and the useof seat belts. In 2007, the initiativecelebrated its tenth year, and we estimate ithas reached more than 1 million children inTurkey. In 2006, approximately 29,000children attended the play, through visits toapproximately 180 schools.

Health Taking steps to protect health isan important aspect of how we treat ourworkforce as well as a significant factorin ensuring business continuity.

We prepared a pandemic responseplan in 2006. We carried out medicalscreening of professional drivers.Dedicated health professionals are in postat major sites to provide a first line ofmedical response. Guidance has beenprovided on issues such as stressmanagement.

18 BP in Turkey

BTC health and safety performance (operations phase)2005 performance 2006 performance

BP BIL BP BILMan-hours 605,971 1,342,040 1,244,352 1,958,959Kilometres driven 2,446,826 507,070 6,029,156 3,568,746Fatalities 0b 0 0b 0b

Days away from work case 0b n/a 0b 0b

Recordable injury frequency 0.99a n/a 0b 0b

High potential incident frequency 0b n/a 0b 0.10a

Total vehicle accident rate 1.23b n/a 0.995a 0.56a

Total vehicle accidents 3 n/a 6 2a Figures above target.b Figures below target.

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Sustainability Report 2006 19

Managing our impacts Safeguarding thenatural environment has been a featureof work on the BTC pipeline since theproject’s inception. Before anyconstruction work was started on thepipeline, an environmental and socialimpact assessment (ESIA) was carriedout which gathered more than 11,000pages of information on geological,biological, cultural and social factorsover a 500 metre wide strip followingthe whole of the proposed pipelineroute. The findings of this studyresulted in refinement of the routewhere necessary and provided data andrecommendations which have beentranslated into mitigation measures toreduce any foreseeable environmentaland social impacts resulting fromconstruction and operations.

The transition to operations in 2006involved a number of changes such asdifferent environmental impacts arisingfrom different activity sets. Since thestart of operations, comprehensivemonitoring has occurred, coveringambient air emissions, noise, stackemissions and aqueous discharges. Wehave focused on gaining assurance thatthe commitments made in the ESIA arebeing fulfilled. For example, work wasbegun on additional studies required by

the environmental and social actionplans – covering wastewaterdischarges, special land areareinstatement, landscape plans,groundwater sustainability studies, andthe annual survey of marine turtles.Afauna study, vegetation and diversitysurveys and a sediment quality studywere also carried out.

Work has involved preparing detailedprocedures to support theenvironmental management plans wedeveloped in 2005 for operations,covering emissions to air and water,waste, ecology, and cultural heritage.Our work has involved reviewing sites,and supporting BIL operational staff onenvironmental and social issues. Weare helping BIL in the development ofan ISO 140001 compliant managementsystem for the Ceyhan terminal.

Minimizing risk to the Turkish straitsThe existence of the BTC pipelinereduces shipments of oil through theIstanbul straits, one of the busiestwaterways in the world, characterizedby their narrowness and complexcurrents. The straits are of majoreconomic and environmentalsignificance; oil transits through themrepresent approximately 2.5% of total

world oil production and their closurewould have an immediate impact oninternational oil markets.

We work closely with the authoritiesin Turkey to protect the environmentalintegrity of the straits. Our TurkishStraits transit procedures policyexceeds regulatory requirements bymandating the use of pilotage to guideall vessels carrying BP hydrocarboncargo, irrespective of the size of thevessel or whether they are BPoperated, time chartered, voyagechartered or under contract. We alsoundertake to meet the costs of thesepilotage services. Our policy requires alltransits through the straits to beundertaken in double-hulled vesselsand for transit to be undertaken onlyduring hours of daylight for vesselswhose length exceeds 200 metres (inline with local regulations). The policystates that all masters of BP operatedand time-chartered vessels shall haveundertaken bridge resourcemanagement training on a simulatorthat includes the Bosphorus andDardanelles module.

In addition to these requirements,we maintain regular contact with theVessel Traffic Service (VTS), which hasresponsibility for the safe management

1.6 Environmentally sound operationsOne of BP’s group values is to seek to drive down the environmentalimpact of its operations. We see this as being an integral part ofoperating responsibly. We aim not only to comply with legalrequirements but to reduce the impacts of our operations by using andsafeguarding natural resources carefully.

Responsible operations

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20 BP in Turkey

of the straits. We also maintainrelationships with the coastal safetyadministration and the Under-secretariat of Maritime Affairs to helpsecure safe operations around theTurkish Straits and the Ceyhan marineterminal.

Marine assurance An integral part ofBP’s worldwide marine assuranceactivity is located in Istanbul, reflectingTurkey’s importance as a location forinternational oil transit.The team notonly vets ports and terminalsthroughout the region, but alsoassesses the safety, technical integrity,and ownership details of vessels thatmight be used for BP business. Theteam provides training on operatingpractices and marine technology to BPoperators and third parties. We are anactive participant in marine industryworking groups focusing on ensuringsafe shipping operations.

Maintaining product quality Ensuringthe quality of our products, whichinclude many well-known brands inTurkey, and maintaining their integrityis a fundamental requirement. Acrossthe country, the petroleum industry hasneeded to upgrade facilities such as

sampling and testing laboratories, toensure that fuels meet tighteningTurkish standards.

We introduced BP Ultimate in Turkeyin 2005, a series of advancedperformance fuels which haveoutstanding engine cleaning power, andimprove engine performance byburning more evenly and completelythan ordinary engine fuels, and help toreduce exhaust emissions. Ultimate isavailable at BP stations across thecountry. In 2006, a second generationof BP Ultimate with additives wasintroduced; fuels that further improveperformance and reduce emissions.

Sustainable mobility In April 2006, BPwas the main sponsor of the secondBusiness World and SustainableDevelopment Congress, held inIstanbul. The conference, whichfocussed on issues of sustainablemobility, reflected our interest incontributing to meeting the demand forand managing the consequences ofgreater mobility, driven by populationgrowth and prosperity. The conferencegathered interested parties fromacademia, private companies,government, and NGOs. It resulted ininitiatives focused specifically on

transport (such as projects seekingsolutions to problems of noise,congestion and energy use) and alsoprovided impetus for the TurkishBusiness Council for SustainableDevelopment to develop a programmeof actions seeking to integratesustainable development into Turkishbusiness and public life.

We are also supporting EMBARQ,the World Resource Institute’s Centrefor Sustainable Transport. EMBARQ’saim is to build partnerships betweengovernment, business and civil societyto develop sustainable solutions tourban mobility issues.

We have supported EMBARQ’semissions inventory project in Turkeywhich is examining transportationemissions in Istanbul to quantifytransport-based emissions perkilometre, identifying key pollutants andtheir sources by vehicle and fuel. Thestudy results can then be generalizedto determine calculations for othercities throughout Turkey. Based on theresults, EMBARQ will recommendaction items for Istanbul. Ourinvolvement is helping us learn moreabout how the city tackles transportissues and the role we can play insupport.

We introduced BP Ultimate,a series of advancedperformance fuels whichhave outstanding enginecleaning power, and help toreduce exhaust emissions.

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Responsible operations

1.7 Security and human rights Doing business in Turkey requires consideration of national and regionalsecurity issues because of the country’s strategic geographical positionand its geo-political importance. The security of our assets, which haveeconomic significance for economies east and west, is an importantconsideration within this context. Ensuring the security of our people andothers affected by our operations, within a proper framework of respect forthe law and human rights, is a constant requirement. We have a clearly-defined framework for managing security and human rights challenges inTurkey supported by group-wide standards, tools and expertise.

Asset and personal security We keep thesecurity of our assets under regularreview and view any potential securitybreach as serious. This means identifyingand assessing risks such as those thatmight arise from sabotage or an act ofterrorism, through to events such asattempts to tap the BTC pipeline. Wehave been increasingly aware of thethreat to our assets given the tensionscaused by conflict in the region.

We are mindful of other types ofrisk which affect individuals, such asthose arising from crime or the theft ofproperty or information. We providebriefings to visitors to Turkey designedto protect their personal security while inthe country.

Security for the BTC pipeline isprovided by the Turkish gendarmerie,under the terms of the Host GovermentAggreement (HGA). The principalchallenge is to protect the operationalintegrity and safety of the pipeline, andin particular to prevent illegal tapping.Regrettably, there have been instancesof this in 2006 and 2007. None of thetaps were leaking to the environment atthe time they were discovered, althoughin some cases small spills had occurredwhile the tap was being made. In these

cases, trained on-site spill responseteams responded to the incident. We aresharing information with thegendarmerie to prevent their recurrence.We support moves by the Turkishgovernment to amend the existingPetroleum Market Law to provide forstiffer penalties for illegal tapping.

The group security standard Ourframework for managing security takesaccount of the requirements of the BPGroup Security Standard issued in 2006.The standard mandates key securitydelivery expectations andaccountabilities for all businesses,regions and functions across the group.Its six elements provide a framework forthe protection of BP’s people,operations, assets and reputation.

Emergency response In line with thegroup crisis management framework,we have an incident management planfor Turkey that describes responsestrategies and defines roles andresponsibilities for dealing withincidents, emergencies, or crises. Theplan covers all BP operations carried outin country. In the context of this, ourpandemic response plan sets out how

we would respond to a pandemic threatat World Health Organization phase 4and above.

We carry out emergency responsetraining exercises, focusing on major riskscenarios. We undertook a table-topexercise in 2005 relating to a shippingincident in the Istanbul straits andsubsequently ran a major trainingexercise in 2007 involving a scenariofeaturing an oil spill and fatalities aroundthe Ceyhan terminal. To improve co-ordination, we set up a new crisismanagement centre in our Istanbuloffices in 2006. We work closely withcoastal and shipping authorities in theIstanbul straits and around Ceyhan tohelp ensure effective co-ordination.

In our retail operations, we trainattendants on how to respond toemergency situations, like a fire, andappropriate product handling.

Human rights International oil companieshave faced criticism from human rightsorganizations for failing to take sufficientaction to prevent human rights abuses inareas where host authorities takeresponsibility for security.

BP is one of the founding membersof the Voluntary Principles on Security

Sustainability Report 2006 21

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22 BP in Turkey

and Human Rights, designed to helpcompanies in the extractive industriesmaintain the safety and security of theiroperations within a framework thatupholds respect for human rights. Wesee our support for human rights as partof a broader picture in which civil societyand long- term regional stability aresupported through promoting respect forhuman rights and the rule of law.

We have sought to ensure thevoluntary principles are applied inTurkey. Underpinning our effort was theconclusion in 2003 of the BTC JointStatement and the Trilateral SecurityProtocol. These enshrined thecommitment to a range of internationalnorms (including but not limited to thevoluntary principles) in agreementssigned by the governments ofAzerbaijan, Georgia and Turkey.

Since then, we have taken severalactions to monitor compliance withthese commitments. In 2006, weundertook an external security reviewwhich included an assessment ofcompliance. This included considerationof the ability of public security providersto respond to situations of violence in alawful manner. We have monitored theperformance of our private security

providers and assessed their allocationof responsibilities and training plan. Wehave carried out an independent reviewin 2006 to assess compliance with thecommitments made on employmentstandards in Turkey. The BP Turkeyleadership team have been guided byexperts from group security on thevoluntary principles, in 2007.

We have had no instances broughtto our attention of human rights abusesor violations or of complaints abouthuman rights abuse. As outlined insection 1.4 of this report, we have aclear complaints and grievanceprocedure in place for any suchcomplaints to be raised, tracked, andresponded to. The independent SocialResettlement Action Plan expert panel,in their report to BP of 2007, concludedthat ‘in no instance was it mentionedthat this increase in security forcespresence was generating problems suchas harassment. In several cases,villagers mentioned increased securityforce presence as a positivedevelopment, either because they felttheir own security was enhanced, orbecause the Jandarma was able to keepthe road to the village accessible at alltimes, particularly in winter.’

We see our supportfor human rights aspart of a broaderpicture in which civilsociety and long-term regionalstability aresupported throughpromoting respectfor human rightsand the rule of law.

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Sustainability Report 2006 23

Design and construction of the BTCpipeline posed a vast engineeringchallenge. The route was definedthrough a process which aimed tominimise the social and environmentalimpacts during construction andthroughout its operational life.Environmental and social impactassessments carried out in all threecountries included surveys along theroute and consultation withgovernments, regulators, academics,NGOs, and individual communities.

Cultural heritage management As part ofthe Turkish impact assessment, acultural heritage management plan wasdeveloped. Its aim was to ensure that allhistorical assets, above and belowground, were identified using surveytechniques which conformed tointernationally-agreed standards. Teamsof archaeologists from AnkaraUniversity, the Middle East TechnicalUniversity and Gazi University werecommissioned to walk the entirepipeline route in Turkey to identify anypreviously unrecorded potentialarchaeological sites.

Extensive planning like this helped toensure the pipeline route avoided many

potentially sensitive areas. A protocolsigned with the Turkish government in2002 sought to ensure that historicalassets were protected, in line withinternational conventions. Procedureswere developed for excavation, siteprotection and registration.

Excavation finds The archaeologicalexcavations carried out in Turkey on thepipeline route have confirmed theregion’s kaleidoscope of cultural lifespanning prehistory to the middle ages.At Büyükard›ç, Erzincan, excavationrevealed a single period early iron-agesite and buildings; at Kayranl›kgözü,south of Göksun, excavations uncovereda previously undetected roman bath. AtSazpegler in Ardahan, handmadeceramics and coins testify tosettlements from the Byzantine empire.

Excavations carried out typically lastedfrom one to four months. More than 800workers – art historians, anthropologists,geophysicists, surveyors and restorers –were employed between 2003-04. Workwas led by the Gazi University ResearchCentre for Archaeology and BOTAS’team of archaeologists. More than 370sites were recorded and registered withthe Ministry of Culture and Tourism.

Raising awareness Our aim has not onlybeen to protect the artefacts uncoveredduring the pipeline construction processbut also to display them. The project hasworked with museums along thepipeline route to show salvagedartefacts. Findings and analysis from theexcavation work are also beingpublished. We believe these efforts willcontribute to a deeper and widerunderstanding of Turkey’s rich history.

Responsible operations

1.8 Cultural heritage The BTC pipeline winds its way through historically-fertile Azerbaijan,Georgia and Turkey, countries considered to be among the world’s mostarchaeologically wealthy. We undertook extensive study and consultationwhen determining the pipeline route so as to minimize its passagethrough areas of cultural and historical significance. We uncovered anumber of new archaeological finds which have been sensitively excavatedand managed. This work has added to the knowledge of many aspects ofTurkey’s rich and varied past.

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24 BP in Turkey

Engaging our people Our principalmeans of engaging effectively with ouremployees is through developing anopen and inclusive work environmentin which people are treated fairly andwith respect. Our commitment tocreate this is underpinned by a numberof basic people-related processes.These include regular performancefeedback and appraisal, developmentplanning, and the provision of learningand development opportunities.

A number of formal mechanisms areused to communicate and engage withour employees. This includes the groupPeople Assurance Survey (PAS), asurvey carried out every two years thatprovides insight into employeesentiment about their working life inBP. We supplemented the PAS in 2006with a staff survey carried out in 2007by an independent externalorganization which focused on issuesparticular to our business.

We inform our employees about thecompany’s internal as well as externalnews through email communications,‘town hall meetings’, magazines,events, and visits to Turkey by seniormanagement from across theorganization.

Staff rationalization in 2006 Arestructuring of the European refiningand marketing business wasundertaken in 2006 which aimed tosimplify the business’s structure andprovide a sustainable platform fromwhich the business could grow infuture. In common with BP businessesin some other countries, this resultedin a programme of staff rationalizationin Turkey in 2006. A total of 115employees left the company. Effortswere made to manage this difficultprocess as sensitively as possible,offering voluntary redundancy and stafftransfers where possible.

Work-life balance One aspect of therationalization programme was theneed to ensure the skills andcompetencies of individuals wereproperly aligned with their job andfuture responsibilities. To support this,we provided a range of trainingmodules for team leaders and staff. Werecognize that the reduction in staffcreated uncertainty in the organizationand increased workload for somemembers of the workforce. However,efforts have been taken to make jobdescriptions are clear and give all

employees the opportunity to thriveand ensure they maintain a sensiblework-life balance.

Learning and development In additionto on-the-job and discipline-specifictraining provided to our workforce, weoffer a range of broader learning anddevelopment courses on behalf of thebusinesses operating in Turkey. Thesecover a range of topics includingnegotiation skills, managing highperformance, and enhancingperformance through influence.

The BP code of conduct Our coderepresents BP’s commitment tointegrity, defining what is expected ofevery BP employee in five areas:health, safety, security and theenvironment; employees; businesspartners; governments andcommunities; and company assets andfinancial integrity. It is a company-wideframework that sets out how weshould behave when faced withchoices about our behaviour at work,ranging from basic rules on safety todetailed expectations regardingcompetition and anti-trust issues. Itwas developed in line with international

1.9 Our People BP seeks to offer rewarding careers, exciting challenges, equality ofopportunity and a working environment characterized by fairness anddecency. One of our core values is to engage the creative talents of ouremployees. We aim to nurture the capabilities of our people, treat themand reward them fairly, make clear the expectations the group has of themand promote inclusion within a meritocratic organization of people fromdiverse backgrounds.

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Sustainability Report 2006 25

best practice and shows employeeswhere to find more detailed standardson specific issues.

In 2005, the code of conduct wastranslated into Turkish and distributedto employees together with a video inTurkish with case studies andguidance. Employees were asked tosign a certificate confirming they hadreceived the code and had reviewed it.The code was discussed during townhall meetings in 2006. We continued toenforce the code where breaches hadoccurred and reminded people of itsapplicability. For example, we broughtpeople’s attention to the need toadhere to the provisions of the code inrelation to gifts and entertainment,which specifies that all gifts orentertainment offered, accepted, ordeclined should be logged in theorganization’s gifts and entertainmentregister. We have also incorporated astandard clause on ethical conductwithin the terms and conditions of ourlegal agreements and use thiswhenever appropriate.

Compliance and ethics certification Wealso carried out the annual complianceand ethics certification process in

which the business unit produces acertificate indicating the extent towhich it has complied with laws,regulations and the code of conduct.Under this process, line managerscertify the behaviour of teams undertheir direction, following a teamdiscussion. The certificates includedetails of any breaches of complianceand report progress on any issuesraised during the previous year. Theprocess continues to the head ofcountry, who submits a certificate togroup on behalf of BP Turkey.

OpenTalk OpenTalk is BP’sindependent global employee concernsprogramme which allows individuals toraise question or concerns –confidentially and anonymously – aboutissues of compliance, ethics or thecode of conduct. Concerns andinquiries received by OpenTalk arehandled by an independent operatorbefore being forwarded to BP forinvestigation and response. In 2006,reminders were given of OpenTalk attown halls in Turkey to continue toraise awareness and encourage BP andjoint venture employees to use theservice.

Responsible operations

Our principal means ofengaging effectively withour employees is throughdeveloping an open andinclusive workenvironment.

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26 BP in Turkey26 BP in Turkey

Our role in society2.1 The social and environmental context 2.2 BP and climate change 2.3 Promoting good governance 2.4 Enterprise development 2.5 Education2.6 Access to energy 2.7 Community and environmental investment programmes

Photograph caption will go here lorem ipsum dolor sit amet vellum.26 BP in TurkeyBP road safety children's play: on stage with children

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Contributing to economic developmentBP’s main contribution to economic andsocial development derives from theproducts and services we supply, thetaxes we pay and the jobs we createdirectly through the staff we employ. Wecontribute indirectly through the localcompanies we contract with, andthrough the skills and capabilities wehelp to develop. Making thesecontributions sustainable meansoperating a business with robusteconomic foundations in a manner thatenhances the natural and social capitalon which we draw.

Protecting the environment Turkey’slocation, climate and geological historyhave endowed the country with some ofthe richest biodiversity on earth. TheBTC pipeline route in Turkey holdsexamples of 17% of the country’s 3,000endemic flora species and 28% of its158 globally threatened species of fauna.The temperate forests of the Caucasusare considered among the mostbiologically rich on earth, and Turkey’slagoons and wetlands are among themost important in the Mediterraneanbasin. At the junction of Europe andAsia, Turkey lies on two major routes for

migrating birds. Many other examplestestify to the variety of Turkey’s naturalenvironment.

Pressures on this environment,however, are growing – increasedexploitation and habitat loss hasincreased the number of nationally-rareor globally-endangered plants. Systemsfor protecting sensitive areas are notfully-established. Uncontrolled tourism,sand extraction, and illegal fishing havecontributed to wetland destruction. Localand national economic development hasincreased resource consumption, oftenin unsustainable ways.

Supporting social development For manyrural communities in Turkey, incomelevels are low and opportunities foreconomic advancement seem limited.Physical and social infrastructure isunder-developed, hampering the capacityfor communities to help themselves.

In BP’s operations in Turkey andaround the world, we approach thesechallenges through measures designedto ensure our operations are carried outin an environmentally-sound manner andrespond to community needs. In additionto environmentally and socially soundoperations, BP is trying to add a new

dimension to environmental and socialmanagement through providingadditional benefits to the environmentand communities. In Turkey, we havelaunched community and environmentalinvestment programmes in addition toour environmental and socialmanagement of our routine operations.These focus on specific community andenvironmental needs.

But there is another environmentalissue which represents a significantchallenge for societies in every countryin the world: climate change. For thisreason, we begin this section of thereport by setting out the group’s thinkingon climate change and providing anoverview of our global marketing of low-carbon power and transport.

Sustainability Report 2006 27

2.1 The social and environmental context Turkey is among the world’s most rapidly industrializing countries. Ithas achieved several consecutive years of strong economic growth andmodernization. The quality of life for many of its citizens has increasedmarkedly. Yet it is also a country which presents sharp contrasts ofinequality between urban and rural areas and rich and poor. Pressureson the natural environment, one of the richest and most diverse onearth, are growing. Pursuing economic growth, while protecting thecountry’s tremendous social and environmental diversity, is a majorpolitical and social challenge.

Our role in society

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28 BP in Turkey

2.2 BP and climate change

As a global energy company we have aresponsibility to play a part in addressingthe threat of climate change. In 2006, welaunched a biofuels business that willprovide low-carbon solutions fortransport. We also announced plans toinvest $500 million over 10 years tocreate a dedicated Energy BiosciencesInstitute, which will explore theapplication of bioscience and theproduction of new and cleaner energy.

Our track record for action on climatechange stretches back to 1997 and weare widely known as the first oilcompany to publicly acknowledge theissue. Today we take precautionaryaction to limit GHG emissions and tocombat climate change. We first setvoluntary targets to reduce emissionsfrom our operations in 1998 andachieved these original goals ahead ofschedule. We continue to take action toreduce these emissions.

In response to increasing demand forenergy with a low carbon footprint wehave made a major commitment todevelop low carbon sources of energy. In2005, we launched BP AlternativeEnergy – a profitable business thatprovides low-carbon power generationsolutions based on solar, wind, hydrogen

power and gas power. We continue to market a range of

cleaner fuels and lubricants around theworld. These fuels have been available inTurkey since 2005. In 2006, weintroduced BP Ultimate fuels to SouthAfrica and Russia at significant levels androlled out our Ultra Low Sulphur Diesel inthe US. We are working with severalpartners to develop lubricants thatsupport improvements in engineconstruction and emissions systems thatare intended to improve fuel efficiencyand reduce pollution.

We fund a significant amount ofresearch on ways of providing low-carbon energy and have made carbon atheme of our corporate advertising inseveral countries throughout 2006.

Climate change is high on the globalpolicy agenda and we are activelyinvolved in the debate. We support theview that to reduce the risks of theworst impacts of climate change, theCO2 equivalent of GHG concentration inthe atmosphere should be limited withinthe range 450-550ppm. We also argue infavour of mandatory emission caps andpolicies that set a price for carbon in away that can change behaviour andencourage innovation.

1997BP publicly acknowledges, at Stanford, theneed for precautionary action to cut GHGemissions after exiting the Global ClimateCoalition

1998BP sets target to cut emissions from ouroperations to 10% below 1990 levels by2010. We achieved this target nine yearsearly, in 2001, by introducing energyefficiency projects and cutting flaring ofunwanted gas.

February 2006BP announces hydrogen power plant withcarbon capture in California.

June 2006BP pledges $500m to establish EnergyBiosciences Institute research programme

November 2006BP Solar doubles manufacturing capacityworldwide from 100MW to 200MWcompared with 2004.

December 2006BP is involved in wind power projects inthe US, which have a potential generatingcapacity of 15,000MW.

2012BP goal to improve energy efficiency by 10-15% versus 2001 baseline.

2015BP goal to invest $8 billion in AlternativeEnergy business and deliver GHGreductions of 24 Mte a year.

BP and climate change - our journey

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Sustainability Report 2006 29

Our role in society

2.3 Promoting good governance Turkey is a maturing industrialised country with a well-functioningdemocracy, media and legal institutions. We engage with governmentand civil society and seek to ensure that all activities associated withBP are performed openly and according to the highest standards ofintegrity. We apply such standards to our own business affairs in linewith the BP code of conduct. We aim to use our influence to ensurethat high standards of financial, operational, and personal conduct areapplied in other spheres where we have a role to play.

We believe taking actions in a way thatis open and transparent – includingsteps like publishing this report – helpto foster a climate of good governance.

We have sought to be transparentabout our operations in Turkey in manyways. Levels of disclosure on the BTCproject, for example, have beenunprecedented for a project of its type.We have structured the Communityand Environmental Investmentprogrammes so that proposals forproject funding are evaluated byindependent experts. We haveencouraged a culture of openness inour reporting of health and safetyincidents, encouraging contractors toreport incidents and near misses.

These are just some of manyexamples, described further below.

Transparency in BTC A notable featureof the BTC project has been the extentto which it has been subject to internaland external monitoring, publicdisclosure and community engagement.The project’s transparency has beencommended by the CaspianDevelopment Advisory Panel (CDAP),appointed four years ago to provideindependent advice on the project.CDAP have commented that they are‘aware of no other extractive industryproject that has voluntarily opened itselfto the kind of scrutiny that BP hasempowered CDAP to undertake’. The

Page 32: BP 2006 Turkey country sustainability report

diagram illustrates the many layers ofscrutiny, with the majority nowcontinuing into operations.

A good illustration of the extent oftransparency and engagement has beenthe project’s environmental and socialimpact assessments and publicconsultation and disclosure plans. InAzerbaijan, Georgia and Turkey,communication with communities alongthe pipeline route during constructionwas extensive and remains an importantaspect of operations.

Promoting sustainable development Wesee effective stewardship of natural andhuman resources as an integral part ofgood governance.

As BP Turkey, we are one of thefounding companies and a member ofthe board of the Turkey Business Councilfor Sustainable Development (TBCSD),established in 2004. The TBCSD isaffiliated with the World BusinessCouncil for Sustainable Development(WBCSD). As part of our membership,we support TBCSD activities in Turkey,including sustainable developmenttraining, conferences, and publishingmaterials to promote and increaseawareness of sustainable development.

30 BP in Turkey

Exte

rnal

Operation phase

Inte

rnal

Layer 6

Layer 5

Layer 4

Layer 3

Layer 15

Layer 14

Layer 13

Layer 12

Layer 11

Layer 10

Layer 7

Layer 9

Layer 8

Layer 1

Layer 2

IRM

BTC shareholder assurance

BP corporation / BU assurance

BTC Co. project assurance Operations management

Azerbaijani regulatorymonitoring

NGO monitoring & capacity

building (Az)

NGO monitoring & capacity

building (Geo)

NGO stakeholderengagement

(Tur)

Long term stakeholder

dialogue (Az, Geo, Tur)

Georgianregulatorymonitoring

Turkishregulatorymonitoring

Regulatorymonitoring

(Az, Geo, Tur)

BTC assurance team (Az)

Construction contractors (Az)

Construction contractors (Geo)

Construction contractors (Tur)

BTC assurance team (Geo)

BTC assurance team (Tur)

CLEE APLR RUDF

CAO

Construction phase

Notes:APLR – Association for Protection of Landowners Rights. CAO – Compliance Adviser Ombudsman.CLEE – Centre for Legal and Economic Enterprise.

IRM – Independent Resource Mechanism.RUDF – Rural and Urban Development Foundation.SRAP – Social and Resettlement Action Plan.

Caspian Development Advisory Panel

Assurance statement: Ernst & Young

Lenders group environmental and social monitoring

SRAP expert panel monitoring

Security monitoring and implementation

Human rights monitoring

BTC assuranceteam (Tur)

Layers of monitoring and assuarence

Page 33: BP 2006 Turkey country sustainability report

Many of the Community InvestmentProgramme projects in Turkey havesought to develop local economiccapacity. Sixty-nine community basedorganizations, many of which are formedas cooperatives, were established tosupport agro-businesses along thepipeline route. Each of these is engagedin economic activity, such as millkcollection, fruit processing and foddercrop production, as a result of thetechnical and financial support providedby BTC’s Community InvestmentProgramme.

One initiative has involved support fororganic farming production in villages inErzurum. This has led to the successfulestablishment of 20 strawberry farmsand the cultivation of approximately 14tonnes of organic strawberries, sold tolocal farmers. Similar projects are beingcarried out along the pipeline route forother products, including organic grass,canola, and organic honey.

A project to encourage vegetableproduction in Kars has led to plans forcommercial production which willsupplement incomes. It has also helpeddiversify family nutrition within thevillages involved, where analysis founddiets highly dependent on animal

products. A women’s co-operative,Erkad›n, set up in Erzincan has aimed toimprove womens’ social and culturallives and promote their more active rolein economic life. The co-operative hasproduced clothes, linen, tablecloths andwork and school overalls with memberspaid according to the quantity of workproduced.

One mini-programme underEnvironmental Investment Programme,called the small investments fund, aimsto encourage ecologically-sustainableenterprises. One of the small projectsrun under this programme has led to theestablishment of a local fisheryco-operative in which the members useecologically-sustainable fishery methodsand have stopped harming monk sealsand sea turtles which have beentraditionally believed to harm the nets ofthe fishermen and competed for the fish.The markets for the fish are sensitiveconsumers in large cities who pay higherprices to food produced in anenvironmentally-sound manner.

All of these initiatives are designed tosupport the capacity of localcommunities to generate sustainablesources of income for themselves. As afurther step towards greater self-

sufficiency, we provided training in 2006to help community organizations bid forproject funds from other sources such asthe European Union or UNDP.

Sustainability Report 2006 31

Our role in society

2.4 Enterprise development In our activities in rural Turkey, we have sought to support thedevelopment of local enterprise. This has meant providing equipmentand training in support of productivity improvements in the agricultureand livestock sectors and has also focused on generating new sourcesof employment and income generation in local communities.Enterprise development is about more than economic improvement; itis about community benefit – helping people develop skills whichenable them to prosper as individuals and contribute to thesustainability of their community.

All of these initiatives aredesigned to support thecapacity of localcommunities to generatesustainable sources ofincome for themselves.

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32 BP in Turkey

Milk Collection by the Damal Co-operative, Ardahan

Stockbreeding and milk production are keysources of income in the Damal district ofArdahan, one of the least-developed areas ofTurkey. Although these activities arecritically important for the local economy,inadequate infrastructure for animalhusbandry, basic methods and approaches,infertile lineage, and the lack of producerorganizations all contribute to poorproductivity. As a result, income generated islow.

To tackle these problems, the InternationalBlue Crescent Foundation (IBC, theimplementing partner of the CommunityInvestment Programme in Ardahan), has

been laying the technical groundwork for the community to take steps forward by supporting the Damal Co-operative formilk collection.

A feasibility study and work plan, including detailed financial flows, has been developed by the co-operative with the closesupervision and assistance of IBC and the BTC CIP consultant. Following the establishment of the co-operative by thevillagers, a loan of $65,000 and a collection tanker were provided. In parallel, training on financial management, legalresponsibilities, and organizational development was given. Assistance with marketing helped the co-operative makesuccessful contact with a diary products firm to sell the milk.

Two hundred and sixty seven tons of milk were collected by the cooperative and sold for more than $100,000. This hasenabled the co-operative not only to pay back the loan provided by CIP but to record a small profit. Its success has had apositive impact on other villages. Hasköy, a large village in central Ardahan, has also established a co-operative to collect andsell milk. Plans to support this co-operative in 2007 are under development.

Page 35: BP 2006 Turkey country sustainability report

Support for ‘schools in need’ Weworked with Ça¤dafl Yaflam›Destekleme Derne¤i, a local NGOsupporting education, on their ‘schools inneed’ programme. This aims to providefunding for small to medium-sizedreconstruction and renewal projects inschools, especially in disadvantaged ruralareas.

Under the programme, we identified aboarding primary school in the EasternTurkish province of Siirt, which needednew classroom equipment, a new play-garden, and a water tank. Financialsupport was provided by BP Turkey.

Support for science and technologylearning Since 2005, TÜB‹TAK, theagency responsible for advising theTurkish Government on science andtechnology, has organized the Formula-GSolar Car Race, in which solar energy isused to power racing cars. Cars aredesigned and manufactured by Turkishuniversity students, young engineers andtechnicians. Participating teams use theircreativity and problem-solving skills toimprove their designs. In 2006, wesponsored a team of students from Y›ld›zTechnical University in the developmentof one such solar-powered car.

Sustainability Report 2006 33

Our role in society

2.5 Education In our activities in rural Turkey, we have sought to support thedevelopment of local enterprise. This has meant providing equipmentand training in support of productivity improvements in the agricultureand livestock sectors and has also focused on generating new sourcesof employment and income generation in local communities.Enterprise development is about more than economic improvement; itis about community benefit – helping people develop skills whichenable them to prosper as individuals and contribute to thesustainability of their community.

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34 BP in Turkey

Establishment of Computer Class in Gölovas› Village

A Community Investment Programme project in Adana province supported the creation of acomputer class in the Gölovas› village primary school, as requested by villagers. The computerclass is comprised of 20 computers plus one computer for the instructor and a projector.

A broad partnership was required to make this happen. The CIP implementing partner, ParConsultancy, constructed an additional room adjacent to the school building; the Ministry ofEducation provided the computers; the Ministry of Transport provided computer desks and theschool administration covered costs incurred for tasks such as painting. The CIP projectcontributed $11,000 with additional third-party contributions of $12,600. A BTC Turkeyrepresentative and delegates from all relevant public institutions at district level, including thesub-governor, attended the opening ceremony of the class. The class facilities will be atdisposal of villagers outside school hours.

School rehabilitation A number ofprojects under the BTC CommunityInvestment Programme have involvedschool rehabilitation. Work has includedthe renovation of some 89 villageschool buildings, other educationalfacilities, the establishment of morethan 30 computer classes, and theprovision of training on issues relevantto students (such as health andhygiene, or awareness-raising on theenvironment).

Approximately 21,800 students wereengaged in these training programmes.Some 620 students (most of whomwere girls, and often from the mostconservative regions along the pipelineroute) were supported in applying forthe open school programme, whichencourages school attendance. Theprojects were designed andimplemented with school administrationas well as the Ministry of Educationdistrict and provincial directors.

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Sustainability Report 2006 35

Our role in society

2.6 Access to energyGrowing demand for energy, driven by economic growth and anincreasingly affluent population, is increasing the pressure for secureand reliable sources of fuel. The government’s programme of marketliberalization is gradually increasing competition in gas, retail fuels andelectricity. We play an important role in the national energy scene byproviding gas and supplying fuel to customers throughout the country.The country’s location between the gas-rich Middle East and Caspianregions and Europe means Turkey has a key role internationally inproviding secure supplies of energy worldwide.

Increasing demand for energy Demandfor energy in Turkey has risen steadily inrecent years, driven principally byconsistent growth in GDP. According tothe BP Statistical Review of WorldEnergy 2007, primary energyconsumption, in million tonnes of oilequivalent (mtoe), has increasedsignificantly in Turkey over the pastdecade, from 66.7 mtoe in 1996 to 94.7mtoe in 2006.

The 6.1% increase in primary energyconsumption in Turkey from 2005-06was more than two and a half times theworld average. In particular, Turkey’sdemand for gas has grown rapidly,nearly doubling in the last five years.Gas use is high in the electricity sector,with an increasing proportion of thepopulation able to heat their homes with gas.

The rapid growth in car use, despitehigh taxes resulting in Turkey havingsome of the most highly-priced fuels inthe world at the pump, indicates agrowing demand for mobility and thecapacity for growth in retail fuelmarkets. Our goal is to achievesustainable growth at good marginwhile operating efficiently. Our existing

network of retail outlets is already oneof the most extensive in the country.

Market liberalization The energy market inTurkey has changed significantly in thepast decade and continues to evolve, withlegislation paving the way for liberalizationof the gas and electricity sectors passedin 2001, for fuels marketing at the end of2003 and for LPG in 2004. In our view,challenges remain in translating legalprovisions into market realities andsuccessfully creating a fully-liberalizedmarket. But gradual progress is beingmade. The privatization of state-owneddomestic refineries in 2006, for example,may result in an increase in refiningcapacity, which has declined since 1999.

Gas delivery We help to meet thegrowing energy demand in Turkishmarkets by delivering gas from the ShahDeniz field in Azerbaijan. Within Turkey,BOTAS assume ownership oftransmission of the gas through itsnetwork.

First delivery of gas into Turkey wasdelayed following start-up issues withproduction and network connection.Thedelivery of gas from Shah Deniz, which

began in 2007, is a boost to supplydiversification and enhances the country’senergy security. Continuing liberalizationof the gas market is likely to increaseinvestment in gas, particularly in theresidential and power generation sectors.

Exploration and Production Oil is scarce inTurkey, with a few small-scale wells inthe south east region. In 2006, wewithdrew from offshore explorationactivity in the Black Sea but otheroperators have signed agreements withTPAO (the Turkish PetroleumCorporation) to drill for oil in deep-waterareas. The government is developinglegislation to provide incentives for furtheronshore and offshore exploration.

Our goal is to achievesustainable growth atgood margin whileoperating efficiently.

Page 38: BP 2006 Turkey country sustainability report

36 BP in Turkey

2.7 Community and environmental investment programmes

We have developed community and environmental investmentprogrammes, connected to the BTC project. The programmes havebeen developed from assessing needs, understanding the actionsrequired to protect the natural environment and to support socio-economic development in communities along the pipeline route. Wehave partnered with national and local NGO’s and fostered communityparticipation. Although diverse, these projects are united by the goal ofbuilding the capacity and spirit of the communities where we work.

The Community and EnvironmentalInvestment Programmes (CIP and EIP)CIP and EIP initiate and support projectsdesigned to contribute to the promotionof sustainable social and economicdevelopment, and the conservation ofbiodiversity. They are additional to themitigation measures related to pipelineconstruction, and have their own staffand budgets.

The programmes are managed by BTC

Co., which is operated by BP in Turkey,who oversee the investmentprogrammes on behalf of the jointventure partners. Initiatives are supportedby local and international experts.Projects, which are selected after scrutinyby independent experts from national andlocal government and international donorssuch as the European Commission andthe UNDP, are developed and carried out

by implementing partners, who compriseNGOs, academic institutions andconsultancies and communityorganizations. Projects seek toincorporate elements of capacity-building,technology transfer, and linkages tosimilar programmes where possible, suchas an NGO capacity-building initiativesupported by the International FinanceCorporation.

CIP and EIP initiateand support projectsdsigned to contributeto the promotion ofsustainable socialand economicdevelopment, andthe conservation ofbiodiversity.

Page 39: BP 2006 Turkey country sustainability report

Sustainability Report 2006 37

EKAD (Ecological Research Society)

Raising local awareness of the importance of theCeyhan-Yumurtal›k region for green turtles and through

running education and communication activities,obtaining the support of local people in reducing threats

to turtles.

250,000Sea turtles 2003-05

METU (Middle East TechnicalUniversity) Marine StudiesInstitute

UNDP (United NationsDevelopment Programme)

KAD (Bird Research Society)Tour du ValatÇetko (The Association for theProtection of the Environmentand Consumers)

Do¤a Bel (National Society forthe Conservation andDocumentation of Nature)

EIP total budgeta

TEMA (Turkish Foundation forErosion Prevention, Afforestationand Protection of Natural Assets)METU (Middle East TechnicalUniversity)

Istanbul University Researchand Assistance Foundation

Do¤a Derne¤i (Nature Society)BirdLife InternationalRSPB (Royal Society for theProtection of Birds)

Do¤a Derne¤i (Nature Society)BirdLife InternationalRSPB (Royal Society for theProtection of Birds)

Surveying monk seal habitat areas to gather informationabout the status of the species and the factors

threatening it, and to develop plans for futureconservation.

Studying the species throughout its range in themountains of northeast Turkey to develop a plan for

effective species protection.

Determining the existence and distribution of IBAs in theregion of the BTC pipeline, and to enhance local capacity

to monitor these. Working with local authorities andgovernment to ensure effective co-operation and develop

a legal basis for the conservation of IBAs.

Identifying and protecting Turkey’s floral heritage,ensuring the entire genetic resource and its wild

environment are available for future generations, andcontrolling the widespread unsustainable collection of

wild plants.

Identifying the flora and fauna not represented in the currentforest protected area network, and proposing candidate

areas for legal protection of change in land management anddeveloping a basis for the formation of the conservation plan

for the Caucasus Mixed Forest Ecoregion.

Supporting ecologically sustainable enterprise projectswhich bring financial, social, and/or cultural benefits to

the BTC region.

Raising awareness of the importance and economicvalue of wetlands and developing management tools for

the conservation and wise future use of the area throughthe development of a management plan.

Producing and developing effective awareness raisingmaterials which will encourage the economic use of

natural resources compatible with the conservation ofbiodiversity, contributing to the creation of committed

public opinion.

Developing a management plan for Yaln›zçam forests,building governmental instutiuonal capacity through

training, and carrying out forest restoration activities.

135,000Mediterraneanmonk seal

Publicawareness

and community

involvement

Forestenhancement

Wetlandmanagement

Smallinvestments

fund

LesserCaucasus

forests gapanalysis

Important plant areas

Important birdareas (IBAs)

2004-06

2005-08

2004-07

2004-06

2004-06

2003-05

2003-05

2003-05

220,000

1,340,000

4,000,000

500,000

325,000

380,000

260,000

290,000

300,000

2003-04

Implementing partners Project AimsTotal budget ($)Project theme Project duration

Our role in society

EIP project summaries

aIncluding the in-kind contributions of the implementing partners.

OR-KOOP, ODOPEM andKTÜ (Black Sea TechnicalUniversity)

Caucasian

black grouse

Page 40: BP 2006 Turkey country sustainability report

38 BP in Turkey

Forest enhancement in Ardahan-Yaln›zçam

The temperate forests of the Caucasus lie in a bio-geographic corridor betweenthe Mediterranean and Central Asia and are considered to be among the mostbiologically rich on earth.

Following years of un-co-ordinated and largely uncontrolled use, theYaln›zçam forests have been reduced to a series of fragmented patches, largelydue to over-grazing, erosion, tree-felling and clearing for agriculture.

People see they are destroying the very resource on which they depend, butreversing the decline requires the support of all forest users. Throughencouraging participation at all levels, this project has aimed to develop anecosystem-based management plan presenting clear guidelines for sustainableforest use.

In 2006, under the auspices of an EIP project, a forest management planwas drafted and a consultation programme developed to seek feedback on theplan. Project villages were awarded $700,000 of European Union funds inaddition to a $35,000 grant from the Small Grants Programme of GlobalEnvironmental Facility managed by UNDP. Three projects have commenced,taking initial steps to restoring and improving the forests for the long-term.

EIP projects EIP projects have focusedon the ten provinces along the BTCpipeline route – Ardahan, Kars, Erzurum,Erzincan, Gümüflhane, Sivas, Kayseri,Kahramanmarafl, Osmaniye and Adana. Money outstanding from theconstruction phase budget is beingtransferred to the operations organizationto successfully complete theconstruction phase projects in 2007.Matching funds were sought throughvarious ways which led into third party

support to EIP projects of about$3,000,000 in total. Four new projectsunder the operations phase wereinititated during late 2006. These were:• Conservation Priority Analysis for theEastern Mediterranean and EasternAnatolian Ecoregions, implemented byDKM (Nature Conservation Centre).• Eksisu: For Nature and For People(Eksisu Wetlands management),implemented by Do¤a Derne¤i (NatureSociety), SÜRKAL (Sustainable Urban and

Rural Development Association), DHKD(Conservation Wildlife Association).• Biogas and Fertiliser Generation inKahramanmarafl, implemented byKahramanmarafl Chamber of Commerseand Industry.• Kaçkar Mountains Forest Conservationand Sustainable Rural Development,implemented by TEMA (TurkishFoundation for Erosion Prevention,Afforestation and Protection of NaturalAssets).

Page 41: BP 2006 Turkey country sustainability report

EIP operations phase expenditure in Turkey, 2006

Actual $185,000

Sustainability Report 2006 39

Important Bird Areas (IBAs) in Turkey

Turkey has an exceptionally rich and diverse avifauna – 457 species of bird have been recorded of which at least 305 breed.It is considered by experts to be the fourth most important country in Europe for species of global conservation concern.

The IBA programme aims to identify, monitor, and protect a global network of important bird areas for conservation.Areas are selected according to the bird species and populations they support, using internationally-agreed criteria.

The EIP IBA project in Turkey was begun in 2003 and aimed to determine the existence and distribution of IBAs in theregion of the BTC pipeline. It also sought to enhance local capacity to monitor IBAs, through the provision of training and

awareness-raising, and to develop an ‘IBA caretaker network’ to cover the region. One example of the impact the project has had has been in relation to plans for

the economic development of the Kirmitli wetlands. Here, it has been recognized that for the long-term future of the area, strategies

need to be developed to ensure that the current grazing of the wetlands and plannedchanges to the water regime are not detrimental to birds or the area’s newlyrecognized economic value. These potential conflicts indicate a clear need for localadministrations and local people to develop a shared vision for the site whichmaintains a balance between meeting the needs of people and the conservation ofbiodiversity.

As a result, the K›rm›tl› municipality and Do¤a Derne¤i, the project implementingpartner, have worked together to develop a project focused on bird watchingtourism. Support for the development of the site, as an example of best practicewhich meets international standards, will be provided through partnership withBirdLife International, the instigator of the IBA initiative.

Construction phase EIP budget and expenditures in Turkey 2003-2006

EIP budget $3,450,000 38% of the EIP budget acrossall three countries

Total budget spent $2,375,000 46% of the total budget spent across (end 2006) all three countries

EIP construction phase expenditure in Turkey, 2006

Planned $585,000 32% of planned expenditure across all three countries

Actual $600,000 34% of actual expenditure across all three countries

Page 42: BP 2006 Turkey country sustainability report

40 BP in Turkey

The Community Investment Programme(CIP) The primary objective of CIP is topromote sustainable social andeconomic development in settlementswithin four kilometres of the BTCpipeline corridor. The programmes’sfocus and aims were developed fromthe findings of the BTC ESIA and theresettlement action plan required bylenders.

Our aim has been to focus theprogramme’s activities so that it clearlyaddresses need. For example,consultation with donors and NGOsrevealed that the most disadvantagedregions in terms of basic income, accessto services, and dependency onagriculture, are in northeast Anatolia. The

first phase of the programme thereforefocused on the provinces of Ardahan,Kars, Erzincan and Gümüflhane in 2003.The second phase was initiated in 2004in the central and southern part of thepipeline regions, building on thisexperience.

More than 300 ‘quick impact’ projectswere initiated which sought to meet animmediate community need and toovercome suspicion of the programmeamong local communities. Theseincluded school and well repairs, wastemanagement and recycling projects, andhelped to build trust in the programme.

Long-term development projects havealso been carried out which have soughtto improve income-earning and

economic opportunity, support thedevelopment and improvement of theagricultural and livestock sector, andsupport the capacity of communities toorganize and carry out community-drivendevelopment initiatives.

The programme has partnered withTurkish organisations, such asexperienced NGOs to develop Turkishcapacity solutions to Turkish problems.Projects are considered jointinvestments with villagers, communityleaders, NGOs, local authorities, privatecompanies and donors all contributing –either through funding or capacitybuilding – to create locally appropriateand lasting solutions. Projects have beenundertaken in a total of 331 villages.

Page 43: BP 2006 Turkey country sustainability report

Sustainability Report 2006 41

CIP construction phase expenditure in Turkey, 2006

Planned $4,448,213 64% of planned expenditure across all three countries

Actual $4,188,694 61% of actual expenditure across all three countries

Implementing partner

a $522,288 was retained as a CIP contingency fund to be used to close gaps in existing project budgets. From this, $500,000 was transferred to CIP projects in2006, resulting in total CIP spend in 2006 of $8,927,712.

Project aimsBTC support ($)Project area Project duration

IBC (International BlueCrescent)

Creating income earning and economic opportunities,improving the agricultural and livestock sectors,

increasing awareness of and access to socialinfrastructure and supporting community-based

development.

1,050,000Ardahan 2003-05

SÜRKAL (Sustainable Rural& Urban DevelopmentAssociation)

SÜRKAL (Sustainable Rural& Urban DevelopmentAssociation)

Increasing productivity and income, communitymobilization and empowerment, and building capacity

and skill enhancement.

Improving income levels and quality of life, focusing onwomen and girls, supporting the development of organic

agriculture and contributing to infrastructure improvementin the area.

Creating income earning and economic opportunities,developing the agricultural sector, increasing

awareness of and access to social infrastructure andsupporting community-based development.

Increasing household incomes through developingexisting and alternative resources, training to enable

local problem-solving, promoting local co-operation andmechanisms for development, and contributing to the

training of women.

Improving household incomes and welfare, developingsocial infrastructure and promoting community

participation and decision-making.

Developing diversified livelihoods through a long-termprogramme of social and economic development for

communities along the pipeline route.

Kars

Atatürk University Erzurum

PAR Consulting Erzincan andGümüflhane

PAR Consulting Kayseri

G&G Consulting

Total budgeta

Mediterranean(Kahramanmarafl,

Osmaniye, Adana)

Sivas

2003-06

2003-05

2004-06

2004-06

2004-06

2003-05

1,300,900

1,391,277

849,225

1,998,900

8,477,712

994,000

893,350

Construction phase CIP budget and expenditures in Turkey 2003-2006

CIP budget $9,000,000 36% of the CIP budget across all three countries

Total budget spent (end 2006) $8,927,712 36% of the total budget spent across all three countries

CIP project summaries

Page 44: BP 2006 Turkey country sustainability report

42 BP in Turkey

A comprehensive set of indicators was used to monitor the programme’s activities, some of which are illustrated in the table below.

CIP benefits (end 2006) Indicator Performance

Number of communities benefiting 331Number of local/national NGOs as implementing 5 national NGOs; many local NGOs and co-operatives assistingpartnersWomen in community action groups Varies from 5% to 50% according to the region. Number of medical facilities improved 11Number of education facilities improved 94 (in addition 622 students applied to the open schoo programme) Number of water supply systems improved 120 potable water; 13 irrigation systemsInfrastructure projects achieving greater than 25% community contribution 95%Number of medical staff trained 399Number of people receiving direct medical support Over 34,000Number of micro loans issues 337Average value of micro loan (US$) 840Number of demonstration farms 541Number of farmers trained Over 37,000 (also 404 beekeepers)Number of livestock vaccinated Over 500,000Weight of high-quality seed provided 1,011 tonnesNumber of co-operative established 69 (including co-operatives, village associations and informal

CBOs. Twenty four existing co-operatives also included in the capacity-building programme.

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Sustainability Report 2006 43

CIP-2 Feedback through the constructionphase of CIP indicated that the CIPprogramme appeared to be achievingsustainable development goals andbusiness value in terms of creatinggoodwill and support among communitiesalong the pipeline route. A final andindependent evaluation completed in 2006found that ‘with very few geographicaland topical exceptions, the individual

investments in all project areas haveproved successful, delivering bothimprovements to people’s quality of lifeand reputation gains to BTC’. Theevaluators concluded that CIP was ontrack to achieve its purpose and goal.Their report highlighted possible areas forimprovement and maderecommendations for future action suchas establishing a simpler contractor and

reporting system for implementingpartners.

Taking these views into account, asecond programme (CIP-2) was developedto cover the beginning of the operationsphase of the BTC pipeline from 2006-2008. This has focused on the themes ofincome generation and capacity-building toprovide for long-term continuation of theinitiatives being taken.

Erkad›n Womens’ Co-operative: Empowering Women in Rural Development

The Erkad›n Womens’ Environment, Culture and Enterprise Co-operative was founded as a women’s co-operative ofErzincan in 2005 with the support of BTC CIP Erzincan and Gümüflhane Sustainable Rural Development Project. The co-operative aimed its work at improving womens’ social and cultural lives by having them play a more active role ineconomic life.

The co-operative, which has approximately 60 members, is comprised of three workshops in different villages, coveringtextiles, cheese and confectionery production. Home-based production of hand-made products is also undertaken. Insome villages, use is made of municipal buildings or schools as a location for the work. As part of the CIP project

support, training was provided on aspects of textile and clothingproduction.

Members receive payment according to the quantity of workproduced, with the co-operative maintaining its own records ofpayment.

Initially household textile, combed fabric, baby products andclothes, work and school overalls, tablecloths, bathing cloths,trousseau products, linen, overall, wool products and many otheritems were produced. By end of 2006, the textile workshop haddelivered more than 120,000 items to a textile company. It isexpected that by the end of the project the workshop will be ableto cover its costs and continue to grow in the longer-term.

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44 BP in Turkey

Performance dataa

2005 2006

Health and SafetyFatalities - employees 0 0Fatalities – contractors 0 0Days away from work cases (DAFWC)b- workforcec 1 0Days away from work cases frequency (DAFWCF)d – workforce 0.05 0Total recordable injuriese 6 4Recordable injury frequencyf 0.32 0.23Man-hours worked 3,694,803 3,481,002Total vehicle accidents 6 6Total vehicle accident rateg 0.28 0.43Kilometres driven 21,309,906 14,088,808Number of spills 0 0Volume of oil spilled (litres) 0 0Volume unrecovered (litres) 0 0Unrecovered oil per 100,000 barrels of oil equivalent 0 0

Environmenth

GHG (direct/100%) 35,682 76,015GHG (direct/equity share) 17,744 22,853

Number of employees (as at 31 December 2006) 579

Notes: a The data presented here does not include BTC data which is reported separately within the BP Business

Unit reporting structure. b DAFWC: an injury or illness is classified as a Day Away from Work Case (DAFWC) if as a consequence of it

the member of the workforce could not have worked on any day after the injury or illness, irrespective ofwhether there was scheduled work, or when a physician or other licensed health care professionalrecommends that the member of the BP workforce stay at home but the individual comes to work anyway.

c The workforce comprises all BP employees, all BP contractors and all BP directors. d DAFWCFf workforce: the number of injury DAFWCs to the BP workforce for every 200,000 hours worked

in the same period. e A recordable injury is an injury and illness incident that results in a fatality,DAFWC, restricted work or job

transfer, or medical treatment beyond first aid. f Recordable injury frequency: the total number of recordable injuries to the workforce for every 200,000

hours worked in the same period. g Total vehicle accident rate: the sum of all light vehicle, heavy vehicle and all mobile plant accidents per one

million kilometers driven.h Data on greenhouse gas emissions from our activities in Turkey is not currently collected at a country level

in Turkey but is included in the BP group GHG emissions reported annually in the BP Group SustainabilityReport. The estimated GHG emissions include data from the following reporting units in Turkey: BTC,Turkey fuels, Mersin (2005), and Turkey Black Sea.

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Independent assurance statementThis report has been substantiated by Ernst & Young, the BP groupauditors. The primary purpose of the report substantiation process isto test that the assertions, claims and data set out in the text regardingBP’s sustainability performance are supported by evidence. Thisprocess is intended to give assurance about the report contents froman independent third party.

Independent assurance statement to BPmanagement The BP in TurkeySustainability Report 2006 (the Report)has been prepared by the management ofBP Turkey, who are responsible for thecollection and presentation of informationwithin it. Our responsibility, in accordancewith BP management’s instructions is tocarry out a limited assurance engagementon the Report as outlined below, in orderto provide conclusions on the claims, dataand coverage of issues within it.

Our responsibility in performing ourassurance activities is to the managementof BP p.l.c. only and in accordance withthe terms of reference agreed with them.We do not therefore accept or assumeany responsibility for any other purpose orto any other person or organization. Anyreliance any such third party may place onthe Report is entirely at its own risk.

What we did to form our conclusions Ourassurance engagement has been plannedand performed in accordance with theInternational Federation of Accountants’International Standard for AssuranceEngagements Other Than Audits orReviews of Historical Financial Information(ISAE3000). Our scope of work is to carryout a limited assurance engagement onthe claims and data contained within theReport.

The Report has been evaluated againstthe following criteria: • Whether the Report covers the key

sustainability issues relevant to BP inTurkey in 2006 which were raised inthe media, BP Turkey’s own review ofmaterial sustainability issues, andselected internal documentation.

• Whether sustainability claims made inthe Report are consistent with theexplanation and evidence provided byrelevant BP managers.

• Whether the sustainability data

presented in the Report are consistentwith the relevant business unit leveldata records. In order to form our conclusions weundertook the steps outlined below.

1. Reviewed a selection of external mediareports and internal documents relatingto the sustainability performance of BPin Turkey in 2006 as a check on thescope and appropriateness ofstatements made in the Report.

2. Reviewed BP Turkey’s process fordetermining the key issues to beincluded in the Report.

3. Reviewed information or explanationabout the Report’s sustainabilityperformance data and statements.Whilst we reviewed documentation tosupport the sustainability datacontained within the Report, we didnot test the data processes forgathering, collating and reporting dataat country or site level.

Level of assurance Our evidence gatheringprocedures have been designed to obtaina limited level of assurance on which tobase our conclusions. The extent ofevidence gathering procedures performedis less than that of a reasonable assuranceengagement (such as a financial audit) andtherefore a lower level of assurance isprovided. Our conclusions On the basis of ourreview and in accordance with the termsof reference for our work we provide thefollowing conclusions on the Report. Ourconclusions should be read in conjunctionwith the above section on ‘What we didto form our conclusions’. 1. Does the Report cover the key

issues?Based on our review of media,selected internal documents, and BPTurkey’s process for determining keyissues, we are not aware of any key

sustainability issues that have beenexcluded from the Report.

2. Are the data and statementsregarding BP Turkey’s sustainabilityperformance contained within theReport supported by evidence orexplanation?We are not aware of anymisstatements in the assertions anddata presented by BP managementwithin the Report regarding BPTurkey’s sustainability performance.

Our independence Our assurance teamhas been drawn from our globalenvironment and sustainability network,which undertakes similar engagements tothis with a number of significant UK andinternational businesses. As auditors toBP p.l.c., Ernst & Young are required tocomply with the independencerequirements set out in the Institute ofChartered Accountants in England &Wales (ICAEW) Guide to ProfessionalEthics. Ernst & Young’s independencepolicies, which address and in certainplaces exceed the requirements of theICAEW, apply to the firm, partners andprofessional staff. These policies prohibitany financial interests in our clients thatwould or might be seen to impairindependence. Each year, partners andstaff are required to confirm theircompliance with the firm’s policies.

We confirm annually to BP whetherthere have been any events including theprovision of prohibited services that couldimpair our independence or objectivity.There were no such events or services in2006.

Ernst & Young LLP London, February, 2008

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46 BP in Turkey

Glossary of terms

bcf/d Billion cubic feet of gas per day

BIL Botas International Limited

Boe/d Barrels of oil equivalent per day

BTC Baku-Tbilisi-Ceyhan

CBO Community-based organization

CO2 Carbon dioxide

EMRA Energy Markets Regulatory Authority

EMS Environmental management system

ESIA Environmental and social impact assessment

GDP Gross domestic product

GHG Greenhouse gas

HGA Host government agreement

HSSE Health, safety, security and environment

IBA Important Bird Area

IM Integrity management

JV Joint venture

LPG Liquefied petroleum gas

MAR Major accident risk

mtoe Million tonnes of oil equivalent

NGO Non-governmental organization

OMS Operating management system

PAS People assurance survey

SCP South Caucasus Pipeline

SME Small and medium-sized enterprise

TBCSD Turkey Business Council for Sustainable Development

UNDP United Nations Development Programme

VDR Vehicle data recorder

VTS Vessel Traffic Service

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Sustainability Report 2006 47

Further information

In 2006, we have continued to embedour three levels of sustainabilityreporting: the BP group sustainabilityreport, selected country reports andselected local site reports.

Group reporting Our group websiteprovides a full information resource forpeople interested in finding out moreabout BP’s approach to sustainability andresponsibility. The site includes detailedinformation and data about the group’ssustainability performance, including theBP Sustainability Report 2006(www.bp.com/sustainability andwww.bp.com).

A range of case studies is availableonline. These provide specific examplesof how we put our commitments intopractice around the world. They covertopics including health, safety andsecurity, employees, diversity andinclusion, education, conservation, BPand development, responsibleoperations, enterprise development,revenue management, and businessethics. They have been substantiated byErnst & Young(www.bp.com/casestudies).

The website also includes detailedcharting tools that allow you to viewBP’s performance data on issues such

as health, safety and the environmentthrough an intuitive and easy to usecharting function with an accessibleformatting option. Charts can becreated as images and raw datadownloaded(www.bp.com/hsechartingtool).

Our environmental mapping tool aims toprovide greater transparency on theissues we face at local level by allowingaccess to environmental managementinformation about individual BP sites.This shows where all major BP operatedfacilities with ISO certification arelocated and identifies which issues aresignificant for management at each site.The tool enables the user to reviewdetails of how BP sites are addressingfour environmental aspects – airemissions (non greenhouse gas),freshwater use, wastewater and waste –as well as whether or not they border orlie within an IUCN category I-VIprotected area. Plotting these sites onbackground maps that illustrate regionalenvironmental conditions helps to putsite information into local context,especially in relation to environmentallysensitive areas.(www.bp.com/hsemappingtool).

Country sustainability reports In 2006,we produced separate country

sustainability reports describing ouractivities in 2005 in Azerbaijan, Georgia,and Germany. As with this report, theiraim is to provide a detailed insight intoour operations in the context of aparticular region or market. They havebeen produced to a consistent templatein terms of structure, content and designand have adopted standardizedprocesses for content development andexternal verification. (www.bp.com/countrysustainabilityreports and www.bp.com/worldwide).

Verified site reports Our website alsocontains more than 60 verified sitereports, providing detailed accounts ofhealth, safety, environmental, and socialperformance around the world. Webelieve independently verified sitereports provide local transparency on ourprogress towards our stated aspirations(www.bp.com/sitereports).

Speeches on corporate responsibility Wepublish a range of speeches on ourgroup website. In 2006, these includedsubjects such as technology andinnovation, energy security, businessand poverty, alternative energy, climatechange and low carbon power.(www.bp.com/speeches).

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48 BP in Turkey

Contact details and acknowledgements

We would welcome your feedback onthe performance and plans outlined inthis report. You can write to us at theaddress below, marked for the attentionof the Communications and ExternalAffairs team.

BP TurkeySari Kanarya Sok. K2 PlazaKozyatagi, Istanbul, TurkeyTelephone: +90 216 571 2000Fax: +90 216 571 2004

Design and production:

Design and typesetting: Baymatbaa Design, Ahi Evren Cad. Ata Center No:3 Maslak, Istanbul, TurkeyPrinting: Birlik Matbaas›,100. Y›l Mah. Mas-Sit Matbaac›lar Sitesi4. Cd. No:135 Ba¤c›lar, ‹stanbul, Turkey

Production Notes

This Sustainability Report is printed on100% recycled paper.