BP in the Gulf of Mexicobp.com/sustainability

Verified Environmental Statement2013 - 2015

On the cover: BP’s Thunder Horse

Independent verificationBP is committed to the quality and clarity of the data presented in this report, which is verified by an independent third party.

About our reportIn this Verified Environmental Statement, we look at the environmental impacts of our offshore exploration and production activities in the Gulf of Mexico over the calendar years 2013, 2014 and 2015. The report provides insight into our performance and management approach in four key areas of environmental impact: emissions to the atmosphere, permitted discharges to water, spills, and waste management. Unless otherwise stated, the data are limited to facilities at BP’s major offshore operating sites in the Gulf of Mexico and include data from production and drilling activities.

Contents 4 Letter from BP Gulf of Mexico regional president

5 BP HSSE Policy Statement

6 BP Global Operations Organization Policy Statement

7 About BP

8 Who we are

9 What we do

10 Where we work

11 How we work

12 Environmental Performance

13 Identifying our impacts

14 Atmospheric emissions

16 Permitted water discharges

17 Spills

18 Waste

20 Way Forward

21 Verification Statement

22 BP in the Gulf of Mexico in figures

Letter from BP Gulf of Mexico regional presidentThis Verified Environmental Statement outlines the environmental performance of BP’s Gulf of Mexico major operating sites from 2013 through 2015. BP is the largest leaseholder of deepwater assets in the Gulf of Mexico. We have a long history of development in the region and, we hope, a promising future.

During the period covered in this report BP continued to emerge from a period of great challenge in the Gulf region, and we continued to focus with deep determination on the priorities of becoming an even safer, stronger and simpler company. To meet these goals we continued to make progress towards implementing greater standardization and clearer checks and balances to assure that we properly manage process safety, operational integrity and environmental risk in a systematic way.

Charting environmental performance This Verified Environmental Statement addresses the environmental performance of our operations in the Gulf of Mexico, with a focus on the atmospheric emissions, permitted water discharges, spills and waste of our producing platforms and drilling activities. Factors affecting some of our reporting metrics over the period included:

• Production fluctuations associated with planned maintenance and improvement activity.

• A slowing of new projects being initiated due to market conditions.

• The divestment of our Holstein, Horn Mountain, and Marlin platforms.

During this period we made improvements in how we manage environmental aspects. However, we know we still have a great deal of work to do in our operations. Much of this work has been completed or is well underway, including work to reinforce our ability to help prevent and respond to spills. We also recognize the need to press for further environmental advances, and we continue to review and improve how we manage our existing and potential environmental impacts.

Building reliable operations Deepwater operations are complex but our operational goals are simple: no accidents, no harm to people, and no damage to the environment. As we pursue these aspirations, our commitment is to continuously improve in the areas of safety and environmental performance, driven by a systematic approach to managing our operations.

Before taking on the leadership of BP’s Gulf of Mexico business in 2013, I spent two years as head of BP’s Global Deepwater Response team, which was responsible for sharing lessons from the 2010 oil spill with others around the globe. Nowhere have we examined those lessons more closely than here in the Gulf of Mexico. Turning learnings into action, we are striving to: (1) have higher predictability in terms of reliable operations and (2) be more progressive in terms of pursuing the technology and practices necessary to decrease the environmental footprint of our operations. I hope that this Verified Environmental Statement gives you some meaningful insight into our approach.

Richard Morrison Regional President, BP Gulf of Mexico

Richard MorrisonRegional President, BP Gulf of Mexico

We continued to focus with deep determination on the priorities of becoming an even safer, stronger and simpler company.

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BP’s Commitment to health, safety, security and environmental (HSSE) performance Our HSSE goals are simply stated – no accidents, no harm to people and no damage to the environment. We strive to be a safety leader in our industry, a world-class operator, a good corporate citizen and a great employer. Nothing is more important to us than the health, safety and security of our workforce and the communities in which we operate, and behaving responsibly towards our shared environment. We must be vigilant, disciplined and always looking out for one another. We are committed to: – Complying with applicable laws and company policies and procedures. – Systematically managing our operating activities and risks. – Reporting our HSSE performance. − Learning from internal and external HSSE events. Everyone who works for BP has a part to play in meeting our HSSE commitment.

Bob Dudley, Group Chief Executive 29 September 2014

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Our goals are simply stated: no accidents, no harm to people and no damage to the environment.

Delivery of these goals underpins the delivery of the Global Operations Organization (GOO) vision to be a good operator that consistently delivers safe, compliant and reliable operations by working in a systematic and disciplined way, as One Team.

We are committed to:

• Systematically applying the Operating Management System (OMS) across our business to deliver safe, compliant and reliable operations.

• Complying with applicable laws and regulations, and conforming to other requirements as set out in the OMS and company policies, practices and procedures, including our commitment to health, safety, security and environmental performance and BP’s Code of Conduct.

• Consulting, listening and responding openly to employees and those that work with us.

• Working with others – our partners, suppliers, competitors and regulators – to raise the standards of our industry.

• Openly reporting our Health, Safety and Environmental (HSE) performance, good and bad.

• Recognizing those who contribute to improve HSE and operating performance.

• Continuously improving our performance by strengthening the leadership, capability and capacity of our organization.

• Supporting those who stop work that they consider unsafe or likely to cause loss of containment, causing damage to the environment.

Working safely is a legal requirement and a condition of employment. We expect all staff and contractors working on BP operations to understand and comply with this Operating Policy.

We expect all staff and contractors to stop work when there is an unsafe act or behaviour, non-compliance with applicable laws or regulations, or when unable to meet BP requirements or HSE commitments. We expect all supervisors to verify that their staff and contractors know what is expected of them.

These expectations exist to protect our staff and contractors, the environment and to safeguard the integrity of our operation. Failure to comply with these expectations may result in disciplinary action up to and including termination.

Fawaz Bitar, Head of Operations December 2014

Global Operations Organization Operating Policy

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About BPBP is one of the world’s leading international oil and gas companies. We aim to help meet the global demand for energy in a responsible way.

Our goals

In this section

We strive to be a safety leader in our industry, a world-class operator, a responsible corporate citizen and a good employer.

We expect all our contractors and their employees to act in a way that is consistent with our code of conduct.

We are committed to meeting our regulatory obligations.

Focusing our operations and embedding our values to be an even safer, stronger BP.

The place of the Gulf of Mexico in our global portfolio.

Managing the impacts of our activities through our operating management system.

More information online at: bp.com/OMS

Operators perform oversight process checks prior to start up of facility

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Who we areWe believe we have a positive role to play in shaping the long-term future of energy.BP, through our heritage companies, has been part of America’s energy industry for nearly 150 years. We are one of the leading producers and suppliers of oil and natural gas in the US with primary production operations in Alaska, Colorado, New Mexico, Oklahoma, Texas, Wyoming and US Gulf of Mexico. Since 2008 we have invested $77.5 billion in American energy development – more than in any other country.

In addition to America, BP operates across six continents to provide our customers with fuel for transportation, energy for heat and light, lubricants to keep engines moving and petrochemicals for everyday items as diverse as paints, clothes and packaging.

Our Gulf of Mexico portfolioThe Gulf of Mexico continues to be a key element of our US strategy. BP has been the largest investor in deepwater Gulf of Mexico over the past 10 years. We are one of the largest deepwater leaseholders in the Gulf of Mexico, with ownership in more than 400 blocks in water depths of 1,300 feet or greater. BP and our heritage companies have been exploring the region’s deepwater for more than a quarter century. Some of our discoveries – such as Atlantis, Thunder Horse and Mad Dog – are among the largest fields ever found in the Gulf of Mexico. BP believes the deepwater Gulf of Mexico will be a vital part of the America’s energy future for many years to come.

In 2015, BP produced 249,000 net barrels of oil equivalent per day. We expect to invest on average $2 billion each year in the Gulf of Mexico over the next decade, focusing on deepwater exploration and development. We intend to remain an active participant in all facets of the region – as explorer, developer, operator and interest owner.

Our partners and contractorsWe hold our major Gulf of Mexico platforms in partnership with other companies. During the time frame of this report, we operate four production platforms and have interests in four other deepwater Gulf ventures operated by others. Data in this report relate only to platforms operated by BP during the reporting period, unless otherwise noted.

Where we are not the operator but own an equity interest in a platform or drilling rig, we work to influence the environmental management of the facility by encouraging environmental practices that follow similar principles to our own. We expect our contractors and sub- contractors to meet and maintain BP’s environmental standards. We have taken additional steps to ensure that we set clear expectations for our contractors, assess their delivery and intervene when our requirements are not met.

Our peopleWe believe success comes from the energy of our people. Developing oil and gas in a challenging deepwater environment requires the dedication of highly skilled people from diverse backgrounds. From geologists and geophysicists, to safety and environmental compliance specialists, to engineers and rig operators, BP directly employs about 1,500 people in our Gulf of Mexico business (as of December 2015) and supports tens of thousands of additional jobs in the region.

Ensuring that our people embrace the company values set by BP leadership in 2011 - safety, respect, excellence, courage and one team - is critical to our performance. We make these values part of our day-to-day behavior by embedding them into our processes and management systems.

1,500+employed in the Gulf of Mexico

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Atlantis: Operating in more than 7,000 feet of water, Atlantis’s production capacity is approximately 200,000 barrels of oil and 180 million cubic feet of gas per day.

Mad Dog: Located in 4,500 feet of water, Mad Dog has the capacity to produce up to 80,000 barrels of oil and 60 million cubic feet of natural gas per day.

Na Kika: Serving multiple fields, Na Kika is located in 6,340 feet of water. It is designed to process up to 130,000 barrels of oil and 550 million cubic feet of natural gas per day.

Thunder Horse: Located in 6,050 feet of water, Thunder Horse is designed to process up to 250,000 barrels of oil and 200 million cubic feet of natural gas per day.

What we doOur Gulf of Mexico operations are part of BP’s upstream business in which we find, extract and produce oil and natural gas.We undertake each of these steps in ways consistent with our operating management system, and health, safety, security and environment policies.

ExplorationBefore making a decision to drill for oil and gas in the deepwater Gulf of Mexico, we examine data from a variety of tools including geoscience sources, seismic testing, and 3-D projections to help guide our search for oil and gas reservoirs beneath the seabed.

Depending on the data, we may drill an exploration well to confirm the presence of hydrocarbons, followed by an appraisal well, if needed, to determine if the reserves are commercially viable.

Our operating management system guides our exploration and development plans as we identify potential risks from our activities and implement strategies to minimize our impacts.

Before we begin a drilling program in the Gulf of Mexico, we perform regional and site specific surveys of the area to help ensure that we identify and avoid areas of concern, that include, for example, biological communities of concern, archaeological sites or potential hazards that may affect exploration drilling activities.

This information is used in the environmental impact analyses (EIAs) conducted prior to drilling operations that are submitted as part of the permit application submitted to US regulators for approval of the planned work. These EIAs identify impact-producing factors that include, but are not limited to, sound, air emissions and discharges to water associated with the operation.

DevelopmentOnce we confirm the presence of commercially viable reserves and obtain the required permits to develop those reserves, we construct wells and facilities that will become the source of future production. Operating in the deepwater Gulf of Mexico is challenging; we must build fit-for-purpose platforms and other structures that can operate in these sometimes harsh ocean conditions.

ProductionOffshore oil and gas platforms support the personnel and equipment needed to ensure continuous production of oil and gas. Onboard equipment includes utility systems for power generation and for the disposal of gases and liquids which would otherwise pose safety or environmental risks.

Reservoir liquids extracted by an offshore platform are initially separated into oil, gas and water. Some of the gas is used on-site as fuel gas to generate power; the remainder of the gas, and all of the crude oil is sent by pipeline to onshore processing facilities.

Our offshore Gulf of Mexico oil and gas production has remained relatively consistent, with 249 mboed (thousand barrels of oil equivalent per day) produced in 2015 (BP net share of production).

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A 3-D seismic image gives geoscientists insight into rock layers beneath the seafloor of the Gulf of Mexico.

Finding and producing oil and gas in deepwater reservoirs create many engineering and technical challenges. The oil and gas reservoir itself can be as much as 35,000 feet (10,660 meters) below sea level and under kilometers of hard rock, thick salt and tightly-packed sands. High pressures (20,000 pounds per square inch and higher), high temperatures (300 degrees Fahrenheit and higher), water depths of nearly 10,000 ft and swift underwater loop currents add to the challenges.

BP is integrating engineering, technology and operations to help overcome these challenges and work safely and efficiently in deepwater environments in the Gulf of Mexico and around the world.

Where we workBP produced oil and gas from fields in the deepwater Gulf of MexicoDuring the period covered by this report, we produced oil and natural gas from four BP- operated platforms in the Gulf of Mexico: Atlantis, Mad Dog, Na Kika, and Thunder Horse (see map).

The four BP production platforms extract oil and gas from below the ocean floor and process them in preparation for pipeline transport to onshore facilities.

Platform divestmentPrior to 2013, BP operated eight platforms. BP’s portfolio was halved when four of these platforms (Holstein, Horn Mountain, Marlin and Pompano) were divested. Plains Exploration and Production Company (PXP) assumed ownership of Holstein, Horn Mountain and Marlin platforms in November 2012. BP continued to assist with the operation of those platforms on behalf of PXP until April 2013.

From 2013 onwards, we have focused our Gulf of Mexico production and development activity on our four major platforms (Atlantis, Thunder Horse, Na Kika and Mad Dog) and on unlocking the exploration potential of our strong leasehold position.

In addition to our operated platforms, we also produce oil and gas from four non-operated platforms in the Gulf of Mexico. However, this report covers only data from our operated platforms.

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Gulf of MexicoBP Platforms

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How we workRigorous management of risk helps to protect the people at the front line, the places in which we operate and the value we create.How we work in the Gulf of Mexico is guided by BP’s internal Operating Management System (OMS), and is supported by external oversight.

Our operating management systemThe BP OMS provides the basis for managing our businesses in a systematic way, by integrating BP requirements in areas such as health, safety, security, the environment, social responsibility, operational reliability, maintenance, contractor relations and organizational learning.

The OMS is a framework across all of BP’s operations that is designed to drive safe, reliable and compliant operations, including environmentally sound operations.

The OMS framework addresses eight interdependent ‘elements of operating’ under the areas of people, plant, process and performance. We undertake regular assessments of our operations to assess our performance against requirements set out in OMS. Then we put in place plans to close gaps and identify steps to help reduce the level of risk at our sites.

BP updates the group OMS requirements as needed to reflect our priorities and experiences and the opportunities for further improvement identified by the annual OMS reviews. For example, we have been updating our group procedures around oil spill preparedness and response, crisis and continuity planning and learning from incidents.

OMS and the environmentWe aspire to manage and minimize our environmental impacts throughout the lifecycle of our operations.

Our OMS section on risk requires each major operating site to have an environmental management system that sets out how we identify, assess, and reduce potential risks and environmental impacts in order to put in place mitigation measures and operational controls and procedures.

We assess our environmental performance in the Gulf of Mexico and review progress annually with our Gulf of Mexico leadership in conformance with OMS requirements. We set improvement targets, such as leak reduction or pollution prevention, and develop plans to meet these targets.

Enhanced scrutinyBP introduced a new safety and operational risk (S&OR) organization in 2011, whose head reports directly to the group chief executive.

S&OR sets our company-wide requirements for safety and operational risk management. It works alongside our businesses to scrutinize and strengthen their efforts towards conformance with our operating management system – and intervene if needed.

Drillers picking up a single joint of drill pipe from the deck to start a trip in the hole, on the drill floor on board the Mad Dog platform, in the Gulf of Mexico, USA.

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Environmental PerformanceBP is working to manage our environmental impacts in the Gulf of Mexico. We provide information on our key environmental impact areas, summarizing the issue, our management approach and our performance.

Our goals

In this section

We identify potential environmental impacts and seek to avoid or minimize them.

We establish annual objectives to improve environmental performance.

We put plans in place to mitigate environmental risks associated with our projects and operations.

Tracking environmental impacts.

Improving our ability to respond to spills.

Working with others to share lessons learned.

For more information visit online at: bp.com/environmentbp.com/sustainability

Thunder Horse ACE control room, Houston

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Identifying our impactsWe systematically monitor and manage the impacts of our activities to minimize our environmental footprint - from planning a facility through to dismantling it when activities cease.

Oil and gas production activities can have implications on the environment including air, water, and wildlife. Prior to embarking on a project, BP carefully reviews all existing environmental concerns and the potential impacts of the project on the environment. BP’s environmental requirements for new projects are designed to help ensure that all reasonably foreseeable potential aspects such as waste disposal, emissions reduction and discharges into water are assessed before a project gets underway, and carefully monitored and managed until the project’s end.

Our Gulf of Mexico teams work to improve environmental performance at every phase of our operations by investigating new technologies and processes, seeking ways to improve efficiency, enhancing management of the environment and expanding the capabilities of our workforce.

We recognize that working in the sometimes harsh environment of the Gulf of Mexico carries risks. We make every effort to manage these risks, and we prepare to respond to mitigate the risks should they materialize. We continue to maintain and develop environmental capability, including emergency response training for our personnel. This training is repeated several times each year, uses a variety of scenarios, and is always intensive. The training includes simulations of large-scale scenarios, such as an oil spill, and reinforces the preparedness of these personnel to fill roles within the environmental unit of an incident management team (IMT). The IMT directs initial emergency response during incidents such as an oil spill. When the IMT is activated, the environmental unit liaises with regulators and coordinates the IMT’s approach to potential environmental impacts in areas such as resources at risk, wildlife, monitoring, shoreline clean-up and assessment, waste management, alternate response technology and scientific support.

Our environmental impactsThis report addresses four key areas of environmental impact resulting from our offshore Gulf of Mexico operations: emissions to the atmosphere, permitted discharges to water, spills, and waste management. Data from these areas are listed in the table at the end of the report. Some of the data are also presented in chart format within the body of this report.

The scope of potential environmental impacts from our production platforms varies depending on factors such as the size and type of the platform, production capacity and the nature of the oil and gas reservoir itself.

Seeking solutionsTo ensure that we properly address the potential safety and environmental impacts of our operations in the Gulf of Mexico, we analyse key data to see where opportunities for improvement may exist.

This includes analysis of our process safety performance. Process safety is a disciplined framework for managing the integrity of hazardous operating systems by applying good design principles, engineering and operating practices. It deals with the prevention and control of incidents that have the potential to release hazardous materials or energy that could result in injury, property damage, lost production and environmental impact.

Our safety and operational risk team holds regular process safety performance reviews with our Gulf of Mexico leadership to assess loss of primary containment (LOPC) incidents and other data. LOPC events are unplanned or uncontrolled releases of materials such as hydrocarbons or chemicals, both those that reach water and those that do not.

These reviews help us to improve training, identify possible alternative materials and consider the appropriate revision of processes.

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Atmospheric emissionsBP seeks to prevent and reduce air emissions in order to reduce potential harm to human health and the environment.

Our Gulf of Mexico operations generate emissions to the air. These emissions are primarily the result of combustion of fossil fuels to produce electricity. Natural gas generated by our production (known as fuel gas) supplies most of the power on our platforms. Low sulphur diesel is used for platform emergency equipment, by support vessels and by mobile offshore drilling units. Emissions sources include: combustion turbines and diesel engines driving electrical generators, auxiliary diesel engines, storage tanks, fugitive emissions from valves and pipe fittings, and flaring and venting.

In offshore operations, flaring is the controlled burning of gas found in oil and gas reservoirs. Flaring is an important part of a platform or rig’s safety system. It is sometimes necessary as a safety release during emergencies or at certain points in regular operations as well as during maintenance or initial commissioning of a well.

Identifying key emissionsWe are committed to reducing the generation of greenhouse gases (GHGs) believed to contribute to global warming, including carbon dioxide (CO2) and methane. We report our emissions of both CO2 and methane as ‘CO2 equivalent’ (CO2e).

We also monitor and report non-greenhouse gas emissions, such as nitrogen oxides (NOx), sulfur oxides (SOx) and ozone-depleting substances.

BP determines its emissions by measuring amounts and key characteristics of the fuel we burn and the gas we flare or vent. We also apply emission factors published by government agencies or equipment manufacturers.

Natural gas creates fewer emissions than diesel. This is significant for our platforms where we primarily use fuel gas from onsite production to run equipment. Some platform turbines are dual fuel, switching to diesel when fuel gas is unavailable, such as when production is shut down.

We have conducted air quality modelling of some assets (e.g., of Thunder Horse operations in 2013), which has demonstrated that our operations do not have significant impacts on ambient air quality. However, we continue to look for ways to reduce our emissions to air such as by facilitating the use of ultra-low sulfur diesel (ULSD) for offshore support vessels. When combusted, ULSD creates fewer SOx emissions and results in less pollution of the air.

Tracking our performanceWe monitor flaring closely in accordance with consents granted by the regulator. Due to divestments of some platforms in 2013, and due to there being fewer process upsets in 2015, flaring decreased by 41%, from 54,873 tonnes in 2013 to 32,312 tonnes in 2015.

GHG emissions increased marginally in 2014, partly because of increased drilling and production. However, by 2015 GHG emissions had decreased below 2013 levels, reflecting a decrease in drilling activities. Normalized GHG emissions

400000

2013 2014 2015

Greenhouse gases emissions (CO2e tonnes)

800000

200000

600000

2013 2014 2015

Flaring (tonnes)

60000

50000

10000

40000

30000

20000

2013 2014 2015

SOx (tonnes)

7

6

8

9

5

1

4

3

2

Data in the environmental performance section are gross for BP’s major operating sites in the offshore Gulf of Mexico, unless otherwise stated. Greenhouse gas emissions data are net and presented on a BP equity share basis from BP-operated and non-operated entities in which BP has a share. The data cover the calendar years 2013 to 2015 and are reported as of September 2016.

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(GHGs per 1,000 barrels of oil equivalent of production) declined steadily from their highest levels during the period covered by this report, in 2013 (11.6 tonnes GHG/1000 boe) to 8.21 tonnes GHG/1000 boe) by 2015 – a decrease of more than 29%.

Emissions of NOx and Ozone-depleting substances displayed the same pattern as GHG emissions, reflecting the initial increase in drilling and production in 2014 and subsequent decrease in these activities during 2015. However, during this same period, SOx emissions decreased continuously, reflecting the movement toward ULSD and an overall downturn in diesel use.

2013 2014 2015

NOx (tonnes)

8000

6000

10000

12000

4000

2000

2013 2014 2015

Ozone-depleting substances (kg)

1200

1000

1400

1600

600

400

200

We work in a challenging business where risks to safety, operational integrity and environmental impact are closely linked. We have strengthened our drilling standards, training processes and maintenance programs as outlined below to help us reduce the risk of an accident that could have an environmental impact.

New drilling standardsBP implemented enhanced drilling standards for operations in the Gulf of Mexico. These standards on blowout preventers, cementing and oil spill response capabilities exceeded existing federal regulatory requirements and strengthened oversight of contractors.

State-of-the-art trainingWe are reinforcing the capabilities of our deepwater rig teams with the aim of helping to reduce the risk of safety incidents and environmental impacts. In 2012, BP established the Global Wells Institute to provide core and specialty wells training programs under one roof. This initiative included the construction of a state-of-the-art well control and drilling simulator in Houston to support practical learning and testing programs for deepwater rig teams. The applied program uses the simulator’s advanced software to create customized simulations that prepare teams for their next drilling assignment.

Expanded maintenanceOver the reporting period, our Gulf operations carried out planned maintenance of 4 turnarounds as part of our drive to maintain the safety and environmental integrity of our assets. Turnarounds are standard practice in the oil and gas industry and are planned, periodic shutdowns (either total or partial) of a facility in order to perform maintenance and repairs, and to inspect, test and replace materials and equipment.

When we enhance the safety and integrity of our operations, we also enhance their environmental reliability. We took significant steps to enhance safety and operational integrity in our Gulf of Mexico operations over the reporting period.

Operations Technician, Jeremy Guidry (left) and Process Engineer, Elyse Landry (right), in the Lower Compression Module discussing pre-start up safety reviews onboard BP’s Atlantis Platform in the Gulf of Mexico, USA

Data in the environmental performance section are gross for BP’s major operating sites in the offshore Gulf of Mexico, unless otherwise stated. Greenhouse gas emissions data are net and presented on a BP equity share basis from BP-operated and non-operated entities in which BP has a share. The data cover the calendar years 2013 to 2015 and are reported as of September 2016.

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Permitted water dischargesBP aims to minimize the environmental impact of discharges to water and takes a proactive approach to mitigating impacts.

The EPA’s National Pollutant Discharge Elimination System (NPDES) permitting system sets monitoring requirements, limits and prohibitions on discharges to protect the marine environment. We monitor and treat water discharges from our offshore Gulf of Mexico operations in accordance with these regulatory requirements.

The biggest source of water discharges from our offshore operations is produced water - water from underground formations that is brought to the surface when oil and gas are extracted. Because produced water may contain hydrocarbons and chemicals, it must be treated prior to release to minimize effects on the environment. Our produced water treatment systems remove oil, gas and solids from the water using equipment such as two- and three-phase separators, hydro-cyclones, de-sanders, induced gas floatation systems and treatment chemical injection systems.

Other types of discharges that we treat and monitor include ballast water, process wastewater such as boiler or cooling water, chemically treated seawater used for pressure testing and corrosion prevention, sanitary wastewater, and deck drainage.

Increasing our understandingWe monitor our water treatment processes and discharges from our offshore operations in order to identify aspects of discharged water quality that need to be improved, and we model our discharges to understand potential impacts to the environment. We continue to study and modify wastewater treatment plants on our platforms to improve their efficiency.

Tracking our performanceOur production facilities discharged 5,331,630 tonnes of produced water in 2015, containing approximately 82 tonnes of oil, compared to 3,241,954 tonnes of produced water in 2013, containing approximately 43.75 tonnes of oil. This increase in produced water discharged was due to an increase in net oil production (new wells being brought on-line) and due to aging of older wells. The amount of production chemicals discharged as part of our water discharges also increased from 4,064.6 tonnes in 2013 to 8,162 tonnes in 2015.

2013 2014 2015

7000

6000

8000

9000

5000

1000

4000

3000

2000

Discharge of productionchemicals (tonnes)

2013 2014 2015

70

60

80

90

50

10

40

30

20

Oil discharged in producedwater (tonnes)

2013 2014 2015

4000000

3000000

5000000

6000000

2000000

1000000

Produced water discharged (tonnes)

Holding a glass beaker containing a water sample during testing of the wastewater system in the laboratory

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SpillsBP processes are designed to prevent spills, and ensure we are prepared to respond to mitigate the impacts of accidental spills if they do occur.Loss of primary containment (LOPC) incidents are releases of hydrocarbons, chemicals or other liquid material (excluding non-hazardous releases such as water) from a container such as a tank, vessel, pipe or other equipment used for containment or transfer of the liquid. In most instances we have additional secondary containment measures in place to prevent material from LOPCs from reaching the environment. However, if an LOPC results in a material reaching Gulf waters, it is classified as a spill. We report all spills and investigate the causes for such releases, take corrective action to prevent recurrences, and share lessons learned to further reduce the likelihood of a similar spill occurring in the future.

Understanding and mitigating the risksIdentifying and assessing potential risks and impacts of spills – such as harm to marine life – help us to continue to ensure that we have appropriate spill response and crisis management plans. These plans are backed up by the tools and the people required to mount an effective response to an incident in order to mitigate potential impacts.

We aim to minimize risk by applying good design principles and engineering practices and focusing on prevention through training and awareness initiatives, review of process safety systems, and regular inspection and maintenance programs, such as the turnaround activities that were carried out on a number of our Gulf of Mexico platforms during the reporting period of this report.

Investigating root causesWe record and investigate spills which occur in reportable quantities to determine the root cause – be it worker error, equipment failure, process deficiency or other cause. We learned a great deal from the 2010 spill and made advances in response technology and systems. We continue to focus on incorporating what we have learned into further strengthening technical requirements for BP operations that drill in deep water, and we are sharing our knowledge with the industry and regulators.

Tracking our performanceWe rigorously track and investigate spills to help understand common issues or trends that may be occurring across the region. The figures reported here reflect liquid hydrocarbon spills of any size and chemical spills with volumes that meet the reportable quantities set by regulators. The figures reflect spills for which BP is listed as the responsible party.

There were no chemical spills in reportable quantities during the entire reporting period. The number of hydrocarbon releases increased from 92 in 2013 to in 104 in 2014 and then declined to 85 by 2015. In 2013 we spilled a total of 9,395 gallons of hydrocarbon, with three spills greater than 420 gallons, of which the biggest spill released 3,822 gallons of synthetic based mud into the Gulf of Mexico. Hydrocarbon spill volumes have decreased since 2013, to 124 gallons spilled in 2014 and 446 gallons spilled in 2015. We continue to emphasize process safety and a cycle of learning from incidents to improve our performance over time by applying good design principles and engineering practices and focusing on prevention through training and awareness initiatives, review of process safety systems, and regular inspection and maintenance programs.

2013 2014 2015

Spill volume (gallons)

8000

6000

10000

12000

4000

2000

2013 2014 2015

Number of spills

80

60

100

120

40

20

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WasteWe are committed to reducing waste from our offshore operations and managing the waste we do produce so that it will not pose harmful risk to the workforce, communities or the environment.Aided by our operating management system, we manage the storage, transport, and disposal of waste from our facilities in compliance with federal and state laws.

Solid waste must be transported back to land for disposal. Minimizing waste production through reducing, reusing and recycling efforts is essential. Waste that cannot be reused or recycled is disposed at licensed facilities that have been reviewed and found to have appropriate engineering and site management processes for the waste they receive.

Managing non-hazardous wasteThe majority of waste generated by our offshore facilities qualifies as non-hazardous (>99%), some of which is recycled/recovered for other uses and the remainder disposed. Our non-hazardous waste includes items such as scrap metal; maintenance wastes such as used oil, oily rags and filters (where the oil meets non-hazardous requirements); drilling muds and cuttings, and municipal trash generated by personnel living on the platforms. All of our platforms participate in the Recycle the Gulf program. The program redirects municipal trash (such as cardboard, plastic, aluminum and tin) from landfill disposal. During 2013-2015 we sent 317.15 metric tons of waste to Recycle the Gulf. We also work with waste contractors to recycle materials such as plastic buckets and scrap metal.

Reuse efforts included work with a local port commission to redirect excess dry cement from our operations to a coastal restoration program for use in erosion control. We also sent used liquids, such as ethylene glycol and oily water, to a facility that recycles the liquid by reclaiming the oil and ethylene glycol for resale.

In 2012, all of our platforms implemented an enhanced hazardous waste segregation process for absorbent materials, such as absorbents and oil rags, to minimize the potential comingling of waste types and help to ensure safe handling. Improving our segregation process has the potential to expand recycling efforts at our platforms.

Managing hazardous wasteExamples of hazardous waste from our offshore operations include certain paint wastes, drilling chemicals, production chemical residue, and certain laboratory wastes. We send most hazardous waste to shore for proper disposal at licensed sites. However, some hazardous wastes – such as batteries and fluorescent lightbulbs – meet the EPA definition for ‘universal wastes’ that can be recycled at licensed facilities. Some liquids are disposed through waste-to-energy programs.

Workers sorting through a delivery of food and drinks for the crew onboard the Atlantis platform in the Gulf of Mexico, USA.

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Tracking our performanceThe data reported here include waste from drilling and other activities performed by third parties providing services to BP. Some waste classed as ‘exploration and production exempt’ by the EPA (such as used well completion fluids) is captured in the non-hazardous waste categories while some (such as drilling mud) is captured in the drilling wastes data in the figures section at the end of this report.

The percentage of our waste categorized as hazardous waste decreased from 1.09% in 2013 to less than 0.20% of our overall waste in 2015. Over the same period we experienced an increase in non-hazardous waste disposed from approximately 88.36% in 2013 to 99.56% in 2015. These changes are attributable in part to improved management processes with regard to hazardous wastes and increased drilling and maintenance by the end of the period.

We saw a decline in the rate of non-hazardous waste recovered/recycled over the reporting period. This reduction is due to the smaller number of drilling rigs and projects that were undertaken in 2014 and 2015.

2013 2014 2015

50000

40000

60000

70000

30000

20000

10000

Non-hazardous waste disposedoffsite (tonnes)

2013 2014 2015

600

500

700

800

400

300

200

100

Non-hazardous waste recovered/recycled offsite (tonnes)

2013 2014 2015

80

60

100

120

140

40

20

Hazardous waste disposed (tonnes)

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Way forwardThe Gulf of Mexico is one of the world’s most significant energy- producing basins.

The Gulf of Mexico region is a key element of BP’s global portfolio, and we are privileged to work here. This privilege comes with great responsibility: to ensure that we develop the Gulf’s energy safely and with care for the environment.

As outlined in this report, we demonstrate that commitment by striving for continuous improvement of our environmental performance in accordance with our operating management system and the ISO 14001 standard.

Our production operations will continue to adhere to the ISO14001 standard, and we will hold ourselves accountable to the highest standards of compliance and environmental performance.

We will use results from audits and other verification processes to help ensure that we have the appropriate systems and tools in place to effectively manage our environmental footprint in the Gulf of Mexico as we move forward.

We are also committed to continuing to report our environmental performance publicly through reports such as this externally verified environmental statement.

Aleida Rios

Vice President,

Global Operations Organization, BP Gulf of Mexico

Our enduring objective is to sustain an environment of safe, compliant and reliable operations in the Gulf of Mexico.

As we pursue this objective, we are committed to continuously improving the leadership, capability and capacity of our organization.

Atlantis platform receives a delivery

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ERM  Certification  and    Verification  Services,  Inc.    The  Towers  at  Wildwood  Plaza  3200  Windy  Hill  Road  SE    Suite  1500W,  Atlanta,  GA  30339  Telephone:    678-­‐560-­‐5992  Facsimile:    678-­‐560-­‐5993  E-­‐mail:  post@ermcvs.com        

                 

         Registered  office  ERM  Certification  and    Verification  Services  Limited  2nd  Floor,  Exchequer  Court  33  St  Mary  Axe  London      EC3A  8AA    Registered  number    3147043  England    VAT  Registration  404  6180  80    ERM  CVS  is  an  independent  member  of  the    worldwide  Environmental  Resources    Management  Group  of  Companies  

Verification  Statement        ERM  CERTIFICATION  AND  VERIFICATION  SERVICES,  INC      November  10,  2016      BP  Gulf  of  Mexico  200  Wetlake  Park  Boulevard  Houston,  Texas    77079    ERM  CVS  has  independently  reviewed  the  BP  Gulf  of  Mexico  Verified  Environmental  Statement  2013-­‐2015  and  conclude  it  represents  a  true  and  fair  reflection  of  the  environmental  programs  and  performance  from  2013  through  2015.    We  have  found  no  data  or  conclusions  in  this  report  which  we  have  been  unable  to  substantiate  and  verify  through  internal  review  of  the  appropriate  systems  that  underpin  this  report.      

   Jeff  S.  Rose  Partner  Head  of  Certification  Charleston,  SC      

ERM  Certification  and    Verification  Services,  Inc.    The  Towers  at  Wildwood  Plaza  3200  Windy  Hill  Road  SE    Suite  1500W,  Atlanta,  GA  30339  Telephone:    678-­‐560-­‐5992  Facsimile:    678-­‐560-­‐5993  E-­‐mail:  post@ermcvs.com        

                 

         Registered  office  ERM  Certification  and    Verification  Services  Limited  2nd  Floor,  Exchequer  Court  33  St  Mary  Axe  London      EC3A  8AA    Registered  number    3147043  England    VAT  Registration  404  6180  80    ERM  CVS  is  an  independent  member  of  the    worldwide  Environmental  Resources    Management  Group  of  Companies  

Verification  Statement        ERM  CERTIFICATION  AND  VERIFICATION  SERVICES,  INC      November  10,  2016      BP  Gulf  of  Mexico  200  Wetlake  Park  Boulevard  Houston,  Texas    77079    ERM  CVS  has  independently  reviewed  the  BP  Gulf  of  Mexico  Verified  Environmental  Statement  2013-­‐2015  and  conclude  it  represents  a  true  and  fair  reflection  of  the  environmental  programs  and  performance  from  2013  through  2015.    We  have  found  no  data  or  conclusions  in  this  report  which  we  have  been  unable  to  substantiate  and  verify  through  internal  review  of  the  appropriate  systems  that  underpin  this  report.      

   Jeff  S.  Rose  Partner  Head  of  Certification  Charleston,  SC      

Verification statement

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BP in the Gulf of Mexico in figuresData on our environmental performance from 2013 to 2015a.

NOTES:a Data are gross and are limited to facilities at BP’s major operating sites in the Gulf of Mexico, unless otherwise indicated. Data are reported as of February 2016. bHydrocarbon spills are defined as any liquid hydrocarbon release that reached the waters of the Gulf of Mexico. The number and volume of spills reported here may differ from that reported through agencies with different spill criteria. Figures reflect spills for which BP is listed as the responsible party.cChemical spills are defined as those that reach reportable quantities established by regulators.dGreenhouse gas emissions data are net, direct GHG emissions presented on a BP equity share basis from both BP-operated and non-operated entities in which BP has a share. The data include volumes from platforms,

emergency equipment aboard platforms, MODUs and support vessels. This data is more comprehensive than emissions reported through the EPA which requires us to report GHG emissions from platforms only. This data also differs from EPA-reported levels because of differences in flaring calculation methods. eGreenhouse gases per 1,000 boe figures are calculated based on net, direct GHG emissions and BP net share of production.fOzone-depleting substances reported here include hydrofluorocarbons and hydrochlorofluorocarbons.gFlaring data in this report may differ from levels reported for EPA GHG emissions because of different calculation methods. The EPA requires reporting based on projections from previous years while the figures in this report are based

on actual data from the reporting year as per BP group conformance requirements.hDrilling wastes data are recorded in the year of completion of the well, not the year of drilling. For example, if a well is drilled in 2013 but not completed until 2014, the drill cuttings discharged to water or disposed to land for that well will be recorded in 2014.iProduction figures are for BP net share of production of oil, natural gas and natural gas liquids and include volumes from both BP-operated and non-operated entities in which BP has a share.jA well is reported as drilled once it has reached total depth.

Environment Units 2013 2014 2015

Numbers of spills (hydrocarbonb and chemicalc) # 92 104 85

Spill volume (hydrocarbonb and chemicalc) gallons 9394.89 123.83 446.14

Greenhouse gas emissions (CO2e)d tonnes 801,833 862,578 746,528

Greenhouse gas emissions per 1,000 boe (CO2e)e tonnes 11.61 9.38 8.21

Sulfur oxides (SOx) tonnes 8 6 5

Nitrogen oxides (NOx) tonnes 8373 10267 8766

Ozone-depleting substances (HFCs, HCFCs)f kilograms 1270 1427 1027

Flaringg tonnes 54873 46562 32312

Produced water discharged tonnes 3,241,954 4,125,612 5,331,630

Oil discharged in produced water tonnes 43.75 59.94 81.66

Discharge of produced chemicals tonnes 4,064.6 7,414 8,162

Hazardous waste disposed tonnes 76 127 88

Non-hazardous waste disopsed offsite tonnes 6,171 63,346 49,013

Non-hazardous waste recovered/recycled offsite tonnes 737 632 129

Drill cuttings discharged to waterh tonnes 44192 114763 58032

Drill cuttings disposed to landh tonnes 22,205 6,537 8,557

Performance Unites 2013 2014 2015

Productions (BP net)i mboed 189.2 252.1 249.3

Number of wells drilledi # 18 13 19

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Acronyms and glossary3-D Three dimensional.

Barrel 42 US gallons.

boe Barrel of oil equivalent – a unit of energy based on the approximate energy released by burning one barrel of crude oil.

BOEM Bureau of Ocean Energy Management.

BSEE Bureau of Safety and Environmental Enforcement.

CO2 Carbon dioxide.

CO2e Carbon dioxide equivalent – greenhouse gas emissions, including methane emissions, are converted to the quantity of CO2 that would create an equivalent warming effect.

Code of conduct BP’s commitment to integrity, summarizing our expectations and standards for employee behavior.

EIA Environmental impact analysis.

EPA US Environmental Protection Agency.

Flaring and venting Ignited (flaring) and unignited (venting) release of natural gas into the atmosphere. Flaring and/or venting of gas can be required in oil and gas operations to ensure the facility operates safely.

Fossil fuels Fuels, such as oil, natural gas and coal, which result from the decay of dead plants and animals over millions of years.

GCRO BP’s Gulf Coast Restoration Organization.

GHG Greenhouse gas emissions – gases which are believed to contribute to climate change. This occurs through natural processes such as decomposition, but also through human activities such as transport using internal combustion engines. In BP, GHG refers to the sum of our operations’ carbon dioxide and methane emissions, expressed as CO2 equivalent.

Gulf Gulf of Mexico.

Hydrocarbons Consisting only of carbon and hydrogen, hydrocarbons are the main components of fossil fuels such as petroleum, coal and natural gas.

IMT Incident management team.

ISO 14001 A standard from the International Organization for Standardization which sets out the requirements for an environmental management system. ISO 14001 certification requires an audit by a competent external party.

LOPC Loss of primary containment – any unplanned or uncontrolled release of material, excluding non-hazardous releases (such as water), from a tank, vessel, pipe or other equipment used for containment or transfer.

mboed Thousand barrels of oil equivalent per day.

MODU Mobile offshore drilling unit.

NOx Nitrogen oxides.

NPDES National Pollutant Discharge Elimination System.

OMS Operating management system – BP’s framework of processes, standards and practices to help deliver consistent performance, progressing to excellence, in operations and safety.

Operational integrity Managing plant and equipment throughout their life cycle to prevent injury to people or damage to the environment through loss of containment, structural failure or unintended release of stored energy.

Process safety Prevention of leaks, spills, equipment malfunctions, over-pressures, excessive temperatures, corrosion, metal fatigue and other conditions.

Produced water Mainly salty water trapped in the reservoir rock and brought up along with oil or gas during production.

PXP Plains Exploration and Production Company.

S&OR BP’s safety and operational risk organization.

SOx Sulfur oxides.

Tonne A unit of measurement equalling 1,000 kilograms or 2,204.6 pounds.

Turnaround A planned, periodic shutdown (either total or partial) of a facility in order to perform maintenance and repairs, and to inspect, test and replace materials and equipment.

ULSD Ultra-low sulfur diesel.

Upstream The exploration, production and transport of oil before refining

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Cautionary statementThe BP in the Gulf of Mexico Verified Environmental Statement 2013-2015 contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of BP in the Gulf of Mexico and certain plans and objectives of BP with respect to these items. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from

those expressed in such statements depending on a variety of factors including future levels of industry product supply; demand and pricing; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; regulatory action; exchange rate fluctuations; development and use of new technology; changes in public expectations and other changes in business conditions; the actions

of competitors; natural disasters and adverse weather conditions; wars and acts of terrorism or sabotage; and other factors discussed elsewhere in this document and at bp.com. No part of this Verified Environmental Statement constitutes, or shall be taken to constitute, an invitation or inducement to invest in BP p.l.c. or any other entity and must not be relied upon in any way in connection with any investment decisions.

Contact usYour feedback is important to us. If you have any comments or queries about this report, please write or phone us and we will be happy to assist.

Telephone: General Inquiries

281 366 2000

Media

281 366 4463

Mail: BP

501 Westlake Park Boulevard

Houston, Texas 77079

Att: U.S. Communications and External Affairs

Web: bp.com

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