Andy Inglis

Chief Executive, Exploration & Production

Houston, 27th May 2009
Cautionary Statement
Forward Looking Statements - Cautionary Statement
This presentation and the associated slides and discussion contain forward looking statements, particularly those
regarding capital expenditure, production growth and costs. 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 the timing of bringing new fields on stream; 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; 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 presentation.

Reconciliations to GAAP - This presentation may also contain financial information which is not presented in
accordance with generally accepted accounting principles (GAAP). A quantitative reconciliation of any such
information to the most directly comparable financial measure calculated and presented in accordance with GAAP
can be found on our website at www.bp.com

Cautionary Note to US Investors - The United States Securities and Exchange Commission permits oil and gas
companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by
actual production or formation tests to be economically and legally producible under existing economic and
operating conditions. We use certain terms in this presentation, such as “resources” and “non-proved reserves”,
that the SEC’s guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to
consider closely the disclosures in our Form 20-F, SEC File No. 1-06262, available from us at 1 St James’s Square,
London SW1Y 4PD. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

May 2009

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 Global organisation and resource base
Alaska
Russia
Canada North Sea
North Azerbaijan
America Gas
Gulf of North
Africa Middle East
Mexico & Pakistan
Egypt
Trinidad &
Andean Tobago
Asia Pacific
Angola

Southern Cone

Excluding TNK-BP(1) TNK-BP

Proved: 14.6 bn boe Proved: 3.6 bn boe
Conventional oil

13 years Deepwater oil 10

years
Water flood viscous
and heavy oil
Conventional gas 45 years
LNG gas
26 years
Unconventional gas
Non-proved: 28.0 bn boe Non-proved: 15.4 bn boe

(1) Resources at end-2008 on a combined basis of subsidiaries and equity-accounted entities, excluding TNK-BP 3
 Resource and reserve growth model:
The “Hopper”
Exploration Access

Prospect
Inventory

Exploration Discovered Field Extensions and

Start 2001 Discoveries Resource Access Improved Recovery End 2008

25.9 bn boe Non-proved resources 43.4 bn boe

15.2 bn boe Proved reserves 18.1bn boe

1.2bn boe 1.4bn boe

PRODUCTION Total resources : production 44 yrs
Total resources: production 34 yrs

Resources and reserves on a combined basis of subsidiaries and equity-accounted entities. 4

 Technology flagships
Each has potential to deliver 1billion+ boe increase in reserves

Inherently Reliable Facilities

Monitor, predict and manage Field of the Future TM
corrosion to increase operating Deliver 100mboed through real time
efficiency reservoir, wells and facility management

Advanced Seismic Imaging

Locate and enable access to Pushing Reservoir Limits
new resources Advanced gas injection and
waterflood technologies

Subsea Well Intervention/

Deepwater Facilities Unconventional Gas
Improve subsea recovery Prove 12tcf tight gas
factors resource
Effective Reservoir Access
Four-fold increase in reservoir
Gulf of Mexico Paleogene contact area per well
Progress 2 billion boe via
sustained high pressure Unconventional Oil
well tests Progress 2 billion boe heavy
Beyond Sand Control oil resource
Deliver capital expenditure
savings and incremental
production / resources
5
 Driving excellence at each stage of the
lifecycle
EXPLORE DEVELOP PRODUCE
Production

Time

Explore Develop Produce

Identify Test Leadership Leverage

6
Exploration: identifying the right basin

7
 Exploration: consistent delivery
100 80

90
70
80

Exploration success rate (%)

60
70
Number of wells

50
60

50 40

40
30
30
20
20
10
10

0 0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Total wells Play test wells Exploration success

8
 Exploration: Gulf of Mexico Deepwater
Basin mastery
Industry Cumulative Finding Curve
40
Cumulative Resources Billion boe

30

20

Gulf of Mexico Shelf

10 2000 Gulf of Mexico Deepwater
1996
Mississippi
0
1985 Delta
0 200 400 600 800 1000
Number of Discoveries

Shelf

Flo
dari
Esc
Slope

a
rp m
ent
Mississippi
Fan

Basin 9
 Driving excellence at each stage of the
lifecycle
EXPLORE DEVELOP PRODUCE
Production

Time

Explore Develop Produce

Select Define Execute

10
 Targeting capital efficiency
Unit of Activity Efficiency Supply Chain
• Reservoir • Centralised organisation • Global leverage
understanding (Spars, D&C, Subsea) • Competitive bidding
• Cross discipline • FEL (Front End Loading) • Global relationships ->
integration • Systems and processes performance and quality
• Standardisation

100 Engineering and Manhours Manhour / ton $ / manhour

Project Mgmt

80 Spar Manhour / ton $ / ton materials

$ / mboed
# of days execution $ / day vessel
Subsea
60
Costs (%)

D&C costs
(Drilling &
Completions) using
40 Mobile Offshore Rig rate ($ / day)
Drilling Unit # Wells Days / 10k
$ / service
Complexity of wells Non productive Time
20 $ / ton materials
D&C costs using
Spar Rig

0
Cost Structure = Unit x Efficiency x Price
11
 Standardisation: Design one – Build many
Azerbaijan

Central Azeri - 2004 West Azeri - 2005 East Azeri – 2006 Deepwater Guneshli - 2008
Angola

G. Plutonio - 2007 Bk31 PSVM – 2010+ Bk31 Central – 2010+ Bk31 South – 2010+ Bk18 West – 2010+
Trinidad

Cannonball – 2006 Red Mango – 2007 Cashima – 2008 Savonette -2009

Egypt

Train 1 Supply 2008 Train 2 Supply – Ph1 2010+ Train 2 Supply – Ph2 2010+
Mexico
Gulf of

Dorado 2009 King South 2009 Atlantis North Flank 2009 Isabella - 2011
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 Driving excellence at each stage of the
lifecycle
EXPLORE DEVELOP PRODUCE
Production

Time

Explore Develop Produce

Safe Reliable Efficient

13
Produce: safe and reliable operations

Gulf of Mexico Personnel Safety

0.80

Recordable Injury Frequency (12 month rolling)

Jan 2008
0.69

0.60
Operating
Management
System

0.40

Apr 2009
0.36
0.20

3Q08

1Q09
1Q07

2Q07

3Q07

4Q07

4Q08
1Q08

2Q08
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 Produce: improving operating efficiency
Gulf of Mexico Operating Efficiency
(excl weather and planned outages)
96
95.1
Operating Efficiency (%)

95
94.0
94
92.8 92.6 93.1
93
92
91
90
2006 2007 2008 2009 - YTD
Gulf of Mexico SPU Thunder Horse

Gulf of Mexico Choke Model

Ops
Wells Facilities Export Ops Efficiency = Actual Production
Efficiency IPC

$ IPC (Installed Production Capacity) =

Entire system fully optimized at full rate
97.4% 97.8% 99.8% 95.1%
with no planned or unplanned losses
RESERVOIR

15
 Agenda
Morning 7:45am – 12:15pm
7:45am Introduction Andy Inglis
Chief Executive, Exploration & Production
8:45am Exploration Mike Daly
Head of Exploration & Access
10:15am Deep Water Gulf of Mexico Neil Shaw
Strategic Performance Unit Leader,
Gulf of Mexico
11:15am North America Gas Andy Hopwood
Strategic Performance Unit Leader,
North America Gas
Afternoon 1:00pm – 6:15pm
1:00pm Technology Jackie Mutschler
Technology Vice President, Research &
Technology
2:00pm Mini Deep Dives
• Advanced Seismic
• Unconventional Gas
• Pushing Reservoir Limits
• Paleogene
3:30pm Advanced Collaborative Environment (ACE)
5:15pm Summary, questions and feedback Andy Inglis
Chief Executive, Exploration & Production 16
Today’s presenters

Andy Inglis Mike Daly

Chief Executive Head of Exploration
Exploration & Production & Access

Neil Shaw Andy Hopwood

Strategic Performance Strategic Performance
Unit Leader Unit Leader
Gulf of Mexico North America Gas

Jackie Mutschler
Technology Vice President
Research & Technology

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