Leading from the top in BP

Steve Flynn
Vice President, HSSE
BP Group Safety and Operations
What I’m going to cover

• Our track record

• Leading from the very top

• Our Strategic approach

• The way forward

• BP’s leadership model

• Summary

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 BP days away from work frequency rate –
last 20 years

1.8 North sea disaster; Grangemouth incident

1.56
1.6
1.44
Safety in performance contracts
1.4
1.22 1.2
1.18
1.2

1
0.84
0.8
0.6
0.6 Advanced safety auditing
0.44 0.43 0.43
0.39 BP Amoco merger
Texas City incident
0.4 0.27 0.25
Clear vision introduced 0.19
0.13 0.10
0.2 ‘getting health, safety & environment 0.09 0.08 0.11 0.08 0.07
right’
Golden rules of safety
0
87 88 89 90 91 92 93 94 95 96 97 98 99 2000 2001 2002 2003 2004 2005 2006 2007

Measures Days Away From Work Case Frequency (DAFWCF) per 200,000 hrs 3
 BP’s HSSE performance
Workforce Fatalities Oil Spills greater 1 bbl
30 non road related road related
1200
25 1000
20 800
15 600

10 400

5 200

0 0
1999 2000 2001 2002 2003 2004 2005 2006 2007
1999 2000 2001 2002 2003 2004 2005 2006 2007

Recordable Injury Frequency Integrity Management Incidents

Reported High Potentials Major Incidents
80
1.5
60
1
40
0.5
20
0
0
1999 2000 2001 2002 2003 2004 2005 2006 2007
2004 2005 2006 2007

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March 23, 2005

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Leading from the very top
The BP Group Operations Risk Committee
The Group Operations Risk Committee (GORC) is chaired by Tony
Hayward and meets monthly. It brings together our segment CEOs
with senior functional expertise to oversee and build a foundation for
consistent, safe, reliable operations. This includes:

• Incident analysis, learning and response

• Monitoring performance indicators
• Reviewing delivery of the Six-Point Plan
• Oversight of development and implementation of BP’s
Operating Management System (OMS)
• Oversight of HSE and Operations capability development
• Independent Panel response and its integration into plans and
OMS

The GORC also model the expected leadership behaviours and sets
the tone at the top of the organization for others to follow

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 Strategic model

Performance & risk – through layers

of protection to reduce the potential The ‘Swiss Cheese’ Model
for major incidents and losses:
− plant – engineering hardware,
control systems, physical layouts
− processes – management systems Protective
Hazard
to identify, control and mitigate ‘Barriers’
risks, and drive continuous
operational improvement
− people – capability in terms of Weaknesses
leadership skills, relevant or ‘Holes’
knowledge and experience, and Plant
the organizational culture Processes
‘Hard barriers’ are more reliable than People
‘soft barriers’, but all ultimately rely on
people deliver
Performance
Accident

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Strategic approach

Business
Sustainable specific
Competitive Excellence
Advantage

Efficiency
Neutral

Basics &
BP Requirements
Business Value
Destruction
Legal Compliance

Catastrophic
Loss Significant Risk
Mitigation Essentials

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 Strategic milestones – sustainable

Immediate Six-Point Plan Deep Embedding Aspiration

action

Temporary Accommodation
Plant

Blow-down Stacks
Major Accident Risk
Operating
Operating Integrity Management & Management
procedures Control of Work
System (OMS) World Class
Processes

Compliance Operating
… sustained Company
Audit Actions
by the right
‘Getting HSE Right’ Management System organisational capability
& culture
Operations Competence
People

2005 2011+
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The BP leadership model

- Items related to imperatives identified in CEO 6-point plan 10

In summary…
For BP, our journey is about:

• getting the basics right, consistently

• not just occupational safety but also process safety

• developing and maintaining integrated and consistently delivered systems and processes
which underpin learning and sharing

• ensuring risks are owned and managed locally, in a sustainable way

• developing well-trained, competent people and teams who have pride in what they do

• creating and sustaining a world class operating culture, supported by a few clear and well-
understood values and behaviours and an environment of continuous performance
improvement…

And most of all, it’s about leadership

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