BP in Turkey
Sustainability Report 2006
The BP group                                                                                                             1...
A message from our Head of Country:
Integrating sustainability

It gives me great pleasure to present this, our first     ...
What responsibility means for BP



This report is structured according to the framework we use in BP to
describe the diff...
Highlights in 2006
Achievements

Strong business performance Turnover
from our principal business operations    Safe and s...
Responsible operations
1.1   BP at-a-glance
1.2   Our business activities
1.3   Financial and economic performance
1.4   D...
Responsible operations




1.1   BP at-a-glance
This section provides a high-level overview of BP’s organizational
structu...
• The BP code of conduct: The code of
  conduct translates certain group values
  into specific mandatory principles and
 ...
Responsible operations




1.2   Our business activities
Our activities in Turkey cover most aspects of the oil and gas va...
BTC in Turkey
More than half the length and facilities, and much of the complexity of the BTC
pipeline lies within Turkey’...
Responsible operations




Gas and power BP supplies natural gas          is likely to increase the demand for gas        ...
Turkey for decades. We are the leading        of the terminals are at coastal locations     majority of product is transpo...
Responsible operations




commercial and auto LPG segments.          country’s largest LPG import and           Shell, pr...
1.3   Financial and economic performance
We have a significant economic impact in Turkey, not only in terms of
the revenue...
Responsible operations




1.4   Dialogue and engagement
We interact on a regular basis with a wide range of groups – incl...
Government relations The diversity of our       of safety and security around the Ceyhan      by the need to meet EU stand...
Responsible operations




legislative change, these alterations         BTC can create unrealistically-high        manage...
1.5   Health and safety
Ensuring the health and safety of all those involved in or affected by
our operations requires con...
Responsible operations




                                                                We use a number
               ...
testing. Once recruited, drivers receive               which have developed from our ‘Safe Pass       is a challenge acros...
Responsible operations




1.6   Environmentally sound operations
One of BP’s group values is to seek to drive down the en...
We introduced BP Ultimate,
  a series of advanced
  performance fuels which
  have outstanding engine
  cleaning power, an...
Responsible operations




1.7   Security and human rights
Doing business in Turkey requires consideration of national and...
and Human Rights, designed to help            providers and assessed their allocation
companies in the extractive industri...
Responsible operations




1.8   Cultural heritage
The BTC pipeline winds its way through historically-fertile Azerbaijan,...
1.9   Our People
BP seeks to offer rewarding careers, exciting challenges, equality of
opportunity and a working environme...
Responsible operations




best practice and shows employees         which the business unit produces a
where to find more...
Our role in society
2.1   The social and environmental context
2.2   BP and climate change
2.3   Promoting good governance...
Our role in society




2.1   The social and environmental context
Turkey is among the world’s most rapidly industrializin...
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
BP 2006 Turkey country sustainability report
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Transcript of "BP 2006 Turkey country sustainability report"

  1. 1. BP in Turkey Sustainability Report 2006
  2. 2. The BP group 1 A message from our Head of BP plc is the parent company of the BP group, one of the largest groups of oil and Country: Integrating gas companies in the world. BP provides energy from oil and gas and from other Sustainability low-carbon sources for transportation, heat and light, and retail brands and products 2 What responsibility means for used in everyday life. We operate globally, with business activities and customers in BP around 100 countries and approximately 97,000 employees. We have exploration 3 Highlights in 2006 and production interests in 26 countries. Just under 40% of our fixed assets are 4 Responsible operations located in the US and around 25% in the UK and the rest of Europe. 5 BP- at-a-glance 7 Our business activities In 2006, the BP group produced the equivalent of almost 4 million barrels of oil and 12 Financial and economic gas per day for customers across the world. The group’s capital spending totaled performance $17.2 billion in 2006. On the US Securities and Exchange Commission (SEC) basis of 13 Dialogue and engagement reserves reporting, our reserve replacements ratio was 113% in 2006.a 16 Health and safety 19 Environmentally sound This report: its scope and process operations In BP, we define ‘sustainability’ as the capacity to endure as a group, by renewing assets; creating and delivering better products and services that meet the evolving 21 Security and human rights needs of society; attracting successive generations of employees; contributing to a 23 Cultural heritage sustainable environment; and retaining the trust and support of our customers, 24 Our people shareholders and the communities in which we operate. 26 Our role in society 27 The social and environmental This is the first account of our sustainability performance in Turkey and covers context activities and developments in 2006. It has been prepared in accordance with BP’s 28 BP and climate change country sustainability reporting guidelines. The report brings together information 29 Promoting good governance from the diverse range of BP activities in the country. This includes description of 31 Enterprise development our activities in Turkey carried out under the auspices of the BTC Co., in which BP is 33 Education the major shareholder, but otherwise does not cover in detail the operations of 35 Access to energy companies in which BP Turkey has an equity holding or commercial interest. 36 Community and environmental invetsment programmes As it is our first report of this kind in Turkey, background details about our operations 44 Performance data prior to 2006 are provided where necessary to set the context. Unless otherwise 45 Independent assurance statement indicated, data relates to 2006. Where data is provided, we indicate whether it 46 Glossarry of terms relates to BTC or to our other activities in Turkey. 47 Further information The report has been prepared by our business in Turkey, which has its headquarters in Istanbul. In preparing the report, we have conducted research and discussions with a wide variety of staff in BP Turkey and across the BP group. We have used a formal process to determine which issues are of most significance to internal and external parties to ensure that the report presents a balanced and reasonable view of our performance. a On a combined basis of subsidiaries and equity-accounted entities, excluding acquisitions and disposals. Cover: BTC Ceyhan Marine Terminal In this report, references to ‘BP’ and the ‘BP A message from the group auditor, Ernst & Young group’ shall mean BP p.l.c., its subsidiaries and affiliates and, unless otherwise stated, We have reviewed the BP in Turkey Sustainability Report 2006 in order to the text does not distinguish between the provide assurance to BP management that the data, statements and operations and activities of BP p.l.c. and those of its subsidiaries and affiliates. Unless assertions made regarding the sustainability performance of BP in Turkey are specified otherwise, references in this report supported by evidence or explanation. Our scope of work and conclusions can to ‘us’, ‘we’, and ‘our’ shall refer to the activities of BP in Turkey. Unless indicated be found on page 45. otherwise, all currency amounts are denominated in US dollars. A glossary of terms used in this report is provided on page 46
  3. 3. A message from our Head of Country: Integrating sustainability It gives me great pleasure to present this, our first Turkey are already benefiting local communities. Our customer- sustainability report for BP in Turkey. facing businesses in transport fuels and lubricants are Our activities in the country are diverse, encompassing the important players in the increasingly competitive Turkish fuels transportation of oil and gas, the storage, handling and market. manufacture of fuel products, and their distribution, sale and 2006 was an eventful year for BP in Turkey. Highlights marketing across the country and internationally. Our retail included the transition to full operations on BTC, marking the presence and the successful development of the Baku-Tbilisi- end of over a decade of work involving thousands of people. Ceyhan (BTC) pipeline have contributed to our strong Our retail and lubricants businesses tackled increasing reputation in Turkey. competition and responded to a number of demanding Turkey is an important country for BP. The BTC pipeline and regulatory changes. We managed these while achieving strong assets, the majority of which lie within Turkey, are among the financial results with a good health and safety performance, group’s most important strategic assets. Our activities to concern for which underpins our work, every day. promote safe and efficient shipping through the Turkish Straits BP has been present in Turkey for nearly 100 years. The are important for the safe passage of our own products. Given company here has sustained itself through periods of the country’s pivotal position linking the west to the energy- tremendous change. Our aim is to continue to build a business rich areas of the Caucasus, Russia, and the Middle East, these in which sustainability is integral to everything we do. Turkey efforts have wider international significance too. again is poised at the brink of further political and social In turn, we believe that BP is important for Turkey. The change. By building a truly sustainable business, we hope to range of our activities here makes us unique among western contribute constructively to Turkey’s development and to grow oil companies. As the principal shareholder in BTC Co. and the and prosper within it. operator of BTC assets in Azerbaijan and Georgia, we play a Your feedback on our performance, and on this report, will central role in connecting Azerbaijan’s oil and gas reservoirs to be an important input to our efforts. Turkey’s Ceyhan terminal and gas markets. The gas we supply to the Turkish market from our Shah Deniz field in the Caspian, is important for Turkish energy security and provides a commercial counter-weight to other gas supplies on which the country depends. Transit fees from BTC will also provide a Tahir Uysal reliable source of national revenue, and the community and Head of Country, BP Turkey environmental investment projects we are undertaking in February 2008 Sustainability Report 2006 1
  4. 4. What responsibility means for BP This report is structured according to the framework we use in BP to describe the different aspects of corporate responsibility. According to this framework, our activities fall into two categories: those in which we have control and those where we have an influence. Our ‘sphere of control’ covers our operations, while our ‘sphere of influence’ extends beyond our operations to many aspects of society and the environment. Chapter 1: Responsible operations Sphere of control Operating responsibly has two levels. At its core it requires compliance with laws and regulations. At a second, higher, level, we seek to act as a ‘progressive operator’ by setting our own standards which go further than the law requires. We believe that a company with aspirations to succeed in the long term must have universal standards of individual and collective behaviour that are applied in every activity, everywhere around the world. In a large, diverse organization such as BP, this continues to be our primary challenge. Chapter 1 reports on our performance in this sphere during 2006. Chapter 2: Our role in society Sphere of influence In this sphere, we seek to take a lead in significant areas, such as climate change and development, where our experience, assets and capabilities enable us to seek to be a positive influence. Our role in addressing climate change goes well beyond minimizing our own emissions to include contributing to the policy debate, supporting research and developing new, cleaner technologies in power and transport. Through our BP Alternative Energy business, we are investing in power generated from renewable and alternative sources and in 2006 we set up a biofuels business to explore, develop and market new generations of low-carbon transport fuels. In terms of social and economic development, our main contribution is typically in the form of government revenues, jobs, skills and products. However, we also have a wider role to play in promoting sound governance and contributing to the progress of our host communities. Chapter 2 covers our progress in these areas during 2006. 2 BP in Turkey
  5. 5. Highlights in 2006 Achievements Strong business performance Turnover from our principal business operations Safe and secure operations Our safety in Turkey increased by approximately performance across our businesses 16% in 2006, and total investment was good in 2006, with no fatalities and increased by approximately 27%. We no major environmental incidents. The maintained our strong market position risks arising from the transition from in fuels and lubricants despite tougher project to operations on the BTC competition created by mergers and project were managed successfully new entrants to these markets (see (see page 16). page 9). Community and Environmental Commissioning of the BTC pipeline The investment Our investment BTC pipeline delivered its first oil in programmes linked to BTC continued June 2006. This is the largest non- their work supporting socio-economic OPEC source of oil supply to be development in communities along the brought on stream in 15 years and has pipeline route and protecting the natural been a major feat of project environment. An independent management and engineering (see evaluation of the community page 9). investment programme provided positive feedback, and a second phase Successful transition from project to of projects was initiated (see page 27). operations on BTC The completion of the BTC project construction saw the smooth transition into operations (see page 7). Challenges The National Marker initiative We were Responding to these changes had Downstream business restructuring As required to make changes to our significant implications in terms of part of a Europe-wide business operations and procedures in order to costs of compliance (see page 14). restructuring programme, we reduced meet the obligations of the new the number of staff employed in our national fuel marker system, introduced Black Sea exploration withdrawal refining and marketing operations in by government to protect fuel quality Following completion of initial pursuit of increased operating efficiency and reduce volumes of smuggled fuel. exploration activity, we withdrew from 2006 (see page 24). The timescale for introducing these further oil exploration in the Black Sea, changes was extremely challenging but managed this process sensitively (see page 14). (see page 35). Responding to regulatory change A Gas delivery Delivery of gas into the number of regulatory changes were Turkish domestic market began in 2007 introduced in 2006, such as the rather than 2006 as originally planned, introduction of new licensing after technical problems with well requirements, and measures relating to start-up and network connection (see product quality and labour law. page 35). Sustainability Report 2006 3
  6. 6. Responsible operations 1.1 BP at-a-glance 1.2 Our business activities 1.3 Financial and economic performance 1.4 Dialogue and engagement 1.5 Health and safety 1.6 Environmentally sound operations 1.7 Security and human rights 1.8 Cultural heritage 1.9 Our people 4 BP in Turkey Sustainability Report 2006 4 BP Gemlik Lubricants Plant
  7. 7. Responsible operations 1.1 BP at-a-glance This section provides a high-level overview of BP’s organizational structure, corporate governance policies and management framework. It outlines the way in which our vision and strategy are developed and how we seek to deliver against those objectives. The activities of BP Turkey are described within this group context. BP is a global group, with interest and operates and where the joint venture trying to deliver and how we go about that activities in Exploration and Production, agreement permits. Where BP is not the delivery. The systems are designed to Refining and Marketing, and Gas, Power operator or where BP is the shareholder in enable the business to achieve its and Renewables. a JV, BP encourages adoption of or works commercial goals – through strategy, Our business in Turkey forms part of towards standards and policies planning and execution – while operating the BP Africa, Middle East and Caspian comparable with BP’s own. safely, ethically and responsibly by region. Our activities here encompass a . applying values, standards and controls. wide range of BP businesses, described Vision and strategy The BP group strategy in more detail in pages 7-11. is captured within five-year and annual In terms of how we deliver, our action is Our operations in country are supported plans. The strategy seeks to achieve the shaped by: by activities carried out at group level principal goal set by the board – namely • Executive limitations: These define the which aim to achieve coherence across maximizing shareholder value on a long- boundaries between the board and the the company, manage risk effectively and term basis. Segments and business units group chief executive (GCE) and those achieve economies of scale. Technological develop their own strategies in line with activities and conditions the board support is provided by the group’s the group strategy. considers unacceptable. The board research and engineering activities. In Turkey, our customer-facing delegates authority to the GCE for Technology helps the group access the operations adopt key components of the performance within these limitations. energy resources we need to provide refining and marketing strategy in seeking • Brand attributes: Our brand attributes future security of energy supply and to increase brand loyalty in our lubricants are to be performance-driven, supports the group in its goal of business and by presenting distinctive progressive, innovative and green. minimizing the environmental impact of its offers, achieving good market share, • Group values: Group values are energy production and consumption. margin, and efficiency improvements in statements that lay out courses of BP also works with a number of non- our retail market. In our upstream action and goals, often aspirational, BP companies and other entities in joint activities, managing the BTC assets is a against which we can test our ventures (JVs). From a group perspective, fundamental part of our strategy in Turkey performance and shape the reputation many of these JVs are large and and will remain a key activity for many of the group. They include aspirations significant businesses in their own right, years to come. to have no accidents, conduct established as separate companies with environmentally sound operations, treat their own boards and governance Governance and management framework employees fairly, have an inclusive and processes, in which BP is a shareholder. Our corporate governance and meritocratic organization, pursue In all cases, BP implements its own management systems provide a mutually advantageous relationships standards and policies in those JVs it framework for determining what we are and promote respect for human rights. Sustainability Report 2006 5
  8. 8. • The BP code of conduct: The code of conduct translates certain group values into specific mandatory principles and expectations for all employees within BP. • Group standards: These set out clear expectations, processes and principles to be followed worldwide. The code of conduct and standards for driving safety, credit, business continuity planning, and the group investment assessment and approval procedures are fully operational. Four others have been approved and are now being executed: control of work, integrity management, digital security and security; and three are currently being defined: marine operations; people; and management information. • Control processes: These consist of practical frameworks which enable implementation of the system of internal control. • Individual performance objectives: These define an individual’s expected contribution 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 and controls in the context of our activities in Turkey. 6 BP in Turkey
  9. 9. Responsible operations 1.2 Our business activities Our activities in Turkey cover most aspects of the oil and gas value chain from exploration and production through to the sale and use of petroleum products in retail and commercial markets. While our own exploration activity in Turkey has been limited, we are the major shareholder in the BTC Company, responsible for the BTC and SCP pipelines which deliver oil and gas from Azerbaijan. We are involved in the manufacture, storage, handling and carriage of products into and throughout Turkey, and their sale and marketing to a range of customers. The BTC export system We are the simultaneous loading of two tankers along the pipeline route (see section major shareholder in the BTC Co. of up to 300,000 deadweight tonnes. 2.7). which owns the BTC pipeline and The pipeline is helping to relieve the 2006 was an important year of transition, marking the change accompanying assets in Turkey. In growth in oil-related traffic and from project to operations on BTC. accordance with the Host Government associated environmental risks Agreement (HGA), the BTC facilities through the Istanbul straits, as well as and pipeline in Turkey are managed by strengthening economic and political BIL (BOTAS International Limited) a links between Turkey, Georgia, subsidiary of the state-owned BOTAS Azerbaijan and the west. company. On behalf of all the project 2006 was an important year of partners in the BTC Co. we work transition, marking the change from closely with BIL to try and ensure the project to operations on BTC. From safe and efficient operations of these the loading of the first tanker at major investments in Turkey. Ceyhan in July 2006 to the end of The official inauguration of the 2006, some 80 vessels were loaded to Turkish section of the BTC oil export transport oil from BTC to international pipeline, the new Ceyhan marine markets. Flow rates through the export terminal and the full BTC pipeline have steadily increased and pipeline export system was held in the pipeline now brings around July 2006. This milestone marked the 600,000 barrels of oil per day to the completion of a major engineering world market. project, lasting over 12 years. It is one Throughout the construction phase of the longest pipelines in the world. of BTC, and continuing into The 1,076 kilometre Turkish section operations, high regard has been paid of the BTC export system includes to managing the environmental and four pump stations, two metering social impact of the pipeline. This has stations and the Ceyhan export included concern for safe and terminal which itself consists of seven environmentally-sound operations (see one million barrel capacity crude oil sections 1.5 and 1.6), and additional storage tanks and a two and half investment projects to protect the kilometre-long jetty to allow environment and support communities Sustainability Report 2006 7
  10. 10. 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 length Pipe diameter 46”,42” and 34” Land parcels 18,200 65% of the total Metering stations 2 4 in the pipeline overall Valve stations 51 51% of the total number Intermediate pigging station 2 3 in the pipeline overall Pump stations 4 Half the total number Road and railways crossings 300 42% of the total number Watercourse crossings 600 46% of the total number BTC pipeline Kayseri 8 BP in Turkey
  11. 11. Responsible operations Gas and power BP supplies natural gas is likely to increase the demand for gas The retail fuel market in Turkey is to Turkey through the SCP pipeline, in Turkey, including the possibility of highly competitive and became more so transported from the Shah Deniz field in more gas-fired power generation. in 2006 with the entry of new retailers the Caspian. At the Turkish border with in the market and further consolidation Georgia, gas enters the Turkish gas Retail fuels and lubricants We are a of existing players through mergers. distribution network owned and major fuel retailer in Turkey, with Our main competitors are the former operated by BOTAS. We will provide approximately 590 retail sites across state-owned company Petrol Ofisi, approximately 6.6 billion cubic metres the country. All sites are dealer-owned Opet, and a joint venture formed in of gas per year to the Turkish market, and dealer-operated, supplying BP 2006 bringing together Shell and Turk representing approximately 15% of products and with BP standards Petrol. The privatization in 2005 of domestic supply. The liberalization of nigarously applied. We have the third TÜPRAS, the major refining organization the gas and electricity markets in largest market share, providing in Turkey, was finalized in 2006. Turkey may create opportunities for approximately 15% of the market for In Castrol, we have a very well- gas sales, storage and distribution and motor fuels. known and respected brand, present in BTC commissioning The official inauguration of the full BTC pipeline export system took place in July 2006 at the Ceyhan terminal on the Mediterranean coast of Turkey. The event, hosted by the Turkish government, was attended by their Excellencies Ahmet Necdet Sezer, President of Turkey; the Turkish Prime Minister, Recep Tayyip Erdogan; President Ilham Aliyev of the Republic of Azerbaijan; and the President of Georgia, Mikheil Saakashvili; together with visiting senior government and state officials, senior executives of BTC owner companies and business representatives. Addressing the inauguration ceremony at Ceyhan, former BP CEO Lord Browne thanked 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 global market for the first time in a century. On behalf of BP, I would like to express our thanks to all those who made it possible to get to this point. I’d like to thank the thousands of extraordinary people from the three countries directly involved – Azerbaijan, Georgia and Turkey - and the people from many others beyond whose support and involvement was indispensable - the members of the workforce, the inhabitants of local communities, the companies, governments, international institutions, our partners and, of course, our own staff. BTC is the first great engineering project of the 21st century.” Sustainability Report 2006 9
  12. 12. Turkey for decades. We are the leading of the terminals are at coastal locations majority of product is transported to supplier of lubricants to the automotive and receive product by pipeline or customers by road, although use is also sector, and have significant presence in vessel. We are the major shareholder made of rail. We also trade fuels with the marine and industrial markets. We and operator of the ATAS fuel terminal competitors. own and operate a modern lubricants in the south-east of the country. We Safe transportation is also important plant at Gemlik, in Marmara, built also work as JV partners (with Shell, in the Turkish Straits which is an originally in the 1960s but substantially ExxonMobil, and Total) in other international transit route for oil that modernized through a major investment terminals at Cekisan Limited and links the west with the Caspian region, in the year 2000. The plant employs Ambarl› Limited and store fuels at third the Caucasus, Russia and markets in approximately 100 people, including party terminals. the Middle East. Notwithstanding the contractors. Motor oils, transmission A major conversion project at ATAS flow of oil through the BTC pipeline fluids, grease, marine lubricants and begun in 2004 is continuing there to from 2006 onwards, substantial hydraulic system fluids are produced reconfigure the former refinery into a volumes of BP-owned or produced oil and filled at the plant. The plant has an trading terminal. Storage facilities, road, are regularly transported through the annual blending and filling capacity of rail and ship loading and unloading Bosphorus. We have a team of approximately 150,000 tonnes. facilities will enable the facility to specialists from BP Marine based in support marketing operations in Turkey whose role is to provide Logistics The storage handling and southern Turkey. assurance on the safety of ports and transport of fuels are crucial parts of our From our terminals, fuels are loaded vessels across the region. operations in Turkey. Our businesses into BP-owned or dealer-operated trucks rely on the efficient transport of product for onward transportation to our LPG (liquefied petroleum gas) The LPG into and out of our terminals, where network of retail sites and to industrial market in Turkey is one of the largest in products are handled and stored. Most customers across the country. The Europe, dominated by residential, 10 BP in Turkey
  13. 13. Responsible operations commercial and auto LPG segments. country’s largest LPG import and Shell, providing jet fuel at airports in The rapid expansion of the natural gas storage terminal, in the Dortyol region. Istanbul, Izmir, Antalya and Bodrum. pipeline grid has had a significant Our business imported approximately We also provide fuel through a joint impact, leading to shrinkage of the bulk 9% of total LPG imports into the operation with ExxonMobil at Ankara sector and bottled markets in some country in 2006. and Dalaman airports. We sold regions of the country, although the approximately 85,000 tonnes of fuel oil auto gas market has grown. LPG Turkey Air BP Air BP has been present in in 2006, and conducted our operations owns the single biggest underground Turkey since 1958. We currently without any reported day away from storage LPG tank in the country, and the operate in JVs with ExxonMobil and work cases, recordable injuries or spills. BP Logistics in Turkey Sustainability Report 2006 11
  14. 14. 1.3 Financial and economic performance We have a significant economic impact in Turkey, not only in terms of the revenues we generate but also in relation to the taxes we pay and the jobs we create directly through the staff we employ. We have a major indirect impact in the economy, on the local companies we work with and through the skills and capabilities that we transfer. The table below sets out the financial tangible and intangible assets such as performance of BP Petrolleri A.fi. the plant infrastructure, machinery, legal entity which reports annually to equipment and other investments regulatory authorities in Turkey, and made in retail stations. which represents approximately 90% of The value of imports derives from the total turnover relating to our activities imports of oil, while the value of exports in Turkey, excluding BTC. is derived principally from intra-company The total investment figure relates sales of fuel and LPG to our international principally to capital expenditure on businesses. Financial performance Turkey operationsa ($ million) 2005 2006 Turnover 3,117,998,165 3,628,828,715 Total investment 47,256,069 59,806,324 Value of imports 639,000,000 660,455,445 Value of exports 65,993,315 56,564,009 a BP Petrolleri A.fi. 12 BP in Turkey
  15. 15. Responsible operations 1.4 Dialogue and engagement We interact on a regular basis with a wide range of groups – including government, local communities, non-governmental organizations, and the media. Our aim is to ensure that dialogue and engagement with these groups builds relationships which create mutual advantage – that is, benefits for those with whom we do business as well as for ourselves. Customer relations Understanding and or organizations that typically have their responding to the needs of our own customer portfolio), large customers is crucial to our continuing industrial customers (in sectors such as success. In our fuels and lubricants power generation, construction, and businesses, our advertising, product mining), fleet customers, and marketing and sales promotion activities wholesalers. emphasize the quality and diversity of In the lubricants business, similarly, our product and service offering. Several we have important relationships with of our products have characteristics many different types of customer. We with environmental attributes, such as are the leading supplier of lubricants to the lower emissions derived from using the automotive sector in Turkey, and BP Ultimate fuel, or the increased fuel also supply the marine and industrial efficiency gained by use of advanced sectors. lubricants such as the ‘0’ viscosity fuel Castrol Elixion, which tests have shown BIL and BOTAS We have close yields lubricant savings of 5% relationships with BIL, the designated compared with regular grade lubricants. operators of the BTC pipeline, related We work to Emphasizing safety in our products assets and terminal in Turkey. One of and services is also an important part of our key roles now that the BTC system maintain strong our customer offer. For example, our is in operation, is gaining assurance on Castrol customer offer targeting fleet behalf of shareholders that the assets relationships owners, re-launched in 2006, includes are being managed and maintained in with our network free safe driving training for Castrol accordance with the operating fleet customers, satellite vehicle agreement. To do this, we have set up of dealers, re- tracking information to enable better various mechanisms including the monitoring of data such as hours driven placement of a senior and experienced sellers and and driver behaviour, and fuel-efficient BTC manager as BIL technical director, driving training. a number of other staff secondments, industrial We also work to maintain strong as well as regular interaction among customers. relationships with our network of operations managers along the length dealers, re-sellers (these are individuals of the pipeline. Sustainability Report 2006 13
  16. 16. Government relations The diversity of our of safety and security around the Ceyhan by the need to meet EU standards, has activities in Turkey means that we have terminal. We work closely with the had a significant impact on the petroleum working relationships with many authorities in Istanbul to protect the industry. A number of regulatory branches of government. We engage safety and environmental integrity of the developments introduced in 2004 and with central government on strategic Turkish Straits. Through our community 2005 continued to affect our business. issues such as energy market and environmental investment A significant administrative challenge liberalisation, fuel supply and distribution. programmes in BTC, we have developed was created in 2006 by new licensing In common with the rest of the relationships with hundreds of village, legislation, requiring the submission and petroleum industry, we implemented the district and provincial authorities, approval of licenses for all activities new national marker initiative for fuel, collaborating with them on specific carried out in the petroleum sector. The introduced in 2006 by the Energy Market projects in their localities. implementation of a national marker Regulatory Authority (EMRA). We The development of a comprehensive system to prevent the illegal importation engage with coastal authorities on issues national regulatory structure, often driven of fuel also had significant implications. Introducing the marker, a chemical additive injected to liquid fuels at a custom’s entry point or refinery exit, is incurring significant financial and workload costs created by the need to make operational changes at our terminals. Transport, storage and handling of the fuel marker involves additional health and security arrangements, creating potential financial and health risks. Important changes were made to labour law in 2006, including amendments which tightened provisions on the use of contractors, which had the goal of creating greater fairness and equality of treatment between employees and contractors. As with any 14 BP in Turkey
  17. 17. Responsible operations legislative change, these alterations BTC can create unrealistically-high management of land-related issues, created financial and operational costs of expectations among local communities, infrastructure damage, security and compliance. and can bring impacts which cause community liaison during their eight visits disruption and difficulty for certain to the pipeline, the last of which Community engagement Effort has been communities. A complaints and occurred in June 2007. In their 2006 made throughout the BTC project to compensation procedure sets out a clear review, SRAP noted that ‘communities engage with local communities and other process for recording, responding to and were generally satisfied with interested parties such as NGOs, tracking complaints, such as those which reinstatement of community roads, government ministries, and the local and arise from concerns over access to land culverts, irrigation systems and the like national media. Contact during operations or property or infrastructure damage. In and also commented on the effective is continuing through community and the course of 2006, complaints were handling of grievance tracking and close environmental investment projects and raised by the local fishing communities out. The panel commented on the need through routine contact with local from Yumurtal›k and Golovas› alleging to focus on making the community communities around our assets various construction and operational- organization that have evolved during the Ninety-eight meetings were held by related impacts in the vicinity of the construction phase self-reliant -an BTC with stakeholder groups in Turkey in Ceyhan terminal. BTC Co has conducted observation that has been followed- up in 2006. BIL held a series of meetings with extensive studies using specialists from subsequent action on CIP. governors, municipal authorities, the Ankara University to determine the gendarmerie, business associations, compensation package that has been NGOs and the media, across seven received by all eligible fishermen. The provinces. BIL also held meetings with fishermen have applied to the courts over 250 communities after assuming and we are continuing to examine these responsibility for operations at the end of claims as part of the ongoing legal July 2006. This effort followed visits by process. We continue to work with the BOTAS and contractor community liaison fishermen to build a more positive staff to 126 communities along the relationship. pipeline right of way, a village around the The Social Resettlement Action Plan Ceyhan marine terminal, and 15 project- Panel (SRAP), established to provide affected villages in the vicinity of pump independent monitoring for lenders of stations. BTC’s management of social Projects and operations of the scale of commitments, have examined the Sustainability Report 2006 15
  18. 18. 1.5 Health and safety Ensuring the health and safety of all those involved in or affected by our operations requires constant attention on personal and process safety. In Turkey, the nature of our business means that much of our effort is focused on using our influence to try to ensure that our partners, contractors and dealers operate to high safety standards. In our own operations, we strive for our safety practices to be fit-for- purpose and aligned with the long-term development of group systems. Safety performance We are pleased to The transition from project to days away from work case frequency report that we experienced no fatalities operations on BTC has required has been consistently better than in the course of 2006 and our recordable managing the risks associated with international pipeline and offshore injury frequency declined in the course of change, such as the introduction of new construction industry performance. We 2006. However, we experienced an contractors, as well as the different regret to report the death of one BOTAS increase in our total vehicle accident rate. health and safety concerns which arise member of staff during BTC construction Summary information on our safety from continuous operations. Experience in January 2006. A full investigation was performance is set out in the table has shown that changes like this can carried out to understand the causes of below. More detail (including notes lead to deterioration in safety this tragic accident and to ensure that all explaining key terms) is provided in the performance. Across the project as a actions are taken to prevent any performance data table on page 44. whole, we are pleased to report that the recurrence. Safety and operational integrity Across Safety performance summarya BP operations in 2006, we have sought 2005 2006 to improve existing safety practices from Fatalities 0 0 the operational level upwards, not only Days away from work case frequency (DAFWC) 0.05 0 prioritizing practical steps such as Total recordable injury frequency 0.32 0.23 relocating staff and assessing assets for Man hours worked 3,694,803 3,481,002 major accident risks but also working a The information in this table does not include data related to BTC. towards the long-term development of our safety management systems and Comparison of BTC and international industry safety performance capabilities. BTC statistics BTC statistics BTC statistics IPLOCAb statistics Risk assessment work was carried out for 2004 for 2005 for 2006a for 2004 in Turkey in 2006. For example, analysis Contractors carried out in our storage and handling submitting data 11 9 5 56 operations examined the steps that Total man-hours 63,784,499 23,477,749 3,407,082 650,123,559 might occur in a serious accident and the Fatalities 6 1 1 34 DAFWC 30 13 1 2,247 possible mitigation actions that could be DAFWC taken. We have also worked to frequency 0.10 0.11 0.06 0.69 implement the group control of work a Project phase only. standard, which seeks to reduce the b IPLOCA: International Pipeline and Offshore Constructors Association. number and frequency of injuries and 16 BP in Turkey
  19. 19. Responsible operations We use a number of mechanisms to gain assurance that health and safety are being managed effectively. fatalities that occur as a result of ‘Golden Rules of Safety’ which Road safety Improving driving and road workplace incidents. provide guidance for safe operations safety has long been an important for eight high-risk activities such as priority for BP, as road traffic accidents Gaining assurance We use a number of working at heights, energy isolation have been the largest single cause of mechanisms to gain assurance that and lifting. We have an operations workforce fatalities (30%) across the health and safety are being managed assurance team who work with their group over the past eight years. Turkey is effectively in those operations where we counterparts at BIL, assessing rated as a high-risk area on the BP have influence but do not own and performance and providing technical driving safety standard scale not only operate them ourselves. In our retail support on safety matters where because the nature of our business fuels business, regular audits are carried necessary. involves the delivery of large volumes of out of our dealers’ health and safety The most important aspect of all of product – the majority transported by performance, assessing aspects such as these processes is building the support road – but mainly due to the worsening forecourt safety, storage of hazardous and confidence of our contractors and safety record on Turkey’s roads. National materials and use of personal protective partners to help them develop a culture statistics show the number of recorded equipment. In our logistics operations, in which concern for safety is integral to traffic accidents rose from approximately we screen contractors’ safety everything they do. Providing training is a 795,000 in 2003 to more than 1 million in performance before appointing them and key element of building mutual 2005 – nearly 3,000 per day - with more then work with them to maintain or confidence. We have provided training on than 3,200 people killed in traffic improve safety performance. various aspects of driver safety, for accidents in 2005. In our BTC operations, HSSE example, across our businesses in We take various actions to try to standards based on our management Turkey. Training on specific risks, such as ensure the technical safety of our system framework ‘Getting HSE Right’ the use of scaffolding to guard against operations and to work on developing are embedded within our operating the dangers of working at heights, was better awareness of the importance of agreement with BIL, as are the BP also conducted in 2006. safety on the roads. Approximately fifty percent of ground fuel is transported by a BP-operated fleet managed by a Road safety performancea transportation department active in Turkey 2005 2006 since 1998. Vehicles in the fleet are Total vehicle accidents 6 6 subject to inspection to ensure they are fit Total vehicle accident rate 0.28 0.43 for the transportation of dangerous good Kilometres driven 21,309,906 14,088,808 by road. Driver recruitment includes a The information in this table does not include data related to BTC. medical testing and practical driving Sustainability Report 2006 17
  20. 20. testing. Once recruited, drivers receive which have developed from our ‘Safe Pass is a challenge across Turkish society and training covering anti-skid, anti-rollover, fire- Programme’. This initiative set minimum have supported broader initiatives to develop fighting and defensive driving. In 2006, we required standards and was first launched in awareness. Since 2004, for example, we began the installation of vehicle data 1998. Our standards include a range of have run a programme called ‘Smart Steps’ recorders (VDRs) for all professional drivers, technical requirements covering aspects which aims to increase awareness of road, including sales staff and tanker drivers of such as air and brake systems, fuel tanks, family and school safety issues among secondary transport. VDRs use satellite tyres, hazard warnings, fire extinguishers, children. Originally introduced to technology to monitor and record vehicle and personal protective equipment. communities along the BTC pipeline route, locations and driver behaviour, covering On BTC activities, driver, passenger and the programme has been implemented in aspects such as speed, breaking and community training on road safety has been city areas including Ankara. We have acceleration patterns, and rest times given. In the initial six-month phase of worked with the Ministry of Education to Preliminary data shows that this has already operations (as at the end of 2006), BTC develop and disseminate the initiative. had an effect in reducing instances of driving recorded zero recordable injuries, a We have supported a road safety at excessive speed. significant achievement considering the children’s theatre, an initiative geared at 5-9 For dealer-owned and operated drivers, twofold increase in the number of man- year olds, about road safety. The script and responsible for the transport of the hours and the increase in all health and lyrics cover topics such as how to cross a remaining 50% of ground fuels, we have a safety targets. street, where to sit in the car, and the use comprehensive set of road tanker standards, We recognize that improving road safety of seat belts. In 2007, the initiative celebrated its tenth year, and we estimate it has reached more than 1 million children in BTC health and safety performance (operations phase) Turkey. In 2006, approximately 29,000 2005 performance 2006 performance children attended the play, through visits to BP BIL BP BIL approximately 180 schools. Man-hours 605,971 1,342,040 1,244,352 1,958,959 Kilometres driven 2,446,826 507,070 6,029,156 3,568,746 Fatalities 0b 0 0b 0b Health Taking steps to protect health is Days away from an important aspect of how we treat our work case 0b n/a 0b 0b workforce as well as a significant factor Recordable injury in ensuring business continuity. frequency 0.99a n/a 0b 0b We prepared a pandemic response High potential plan in 2006. We carried out medical incident frequency 0b n/a 0b 0.10a screening of professional drivers. Total vehicle Dedicated health professionals are in post accident rate 1.23b n/a 0.995a 0.56a Total vehicle at major sites to provide a first line of accidents 3 n/a 6 2 medical response. Guidance has been a Figures above target. provided on issues such as stress b Figures below target. management. 18 BP in Turkey
  21. 21. Responsible operations 1.6 Environmentally sound operations One of BP’s group values is to seek to drive down the environmental impact of its operations. We see this as being an integral part of operating responsibly. We aim not only to comply with legal requirements but to reduce the impacts of our operations by using and safeguarding natural resources carefully. Managing our impacts Safeguarding the the environmental and social action world oil production and their closure natural environment has been a feature plans – covering wastewater would have an immediate impact on of work on the BTC pipeline since the discharges, special land area international oil markets. project’s inception. Before any reinstatement, landscape plans, We work closely with the authorities construction work was started on the groundwater sustainability studies, and in Turkey to protect the environmental pipeline, an environmental and social the annual survey of marine turtles.A integrity of the straits. Our Turkish impact assessment (ESIA) was carried fauna study, vegetation and diversity Straits transit procedures policy out which gathered more than 11,000 surveys and a sediment quality study exceeds regulatory requirements by pages of information on geological, were also carried out. mandating the use of pilotage to guide biological, cultural and social factors Work has involved preparing detailed all vessels carrying BP hydrocarbon over a 500 metre wide strip following procedures to support the cargo, irrespective of the size of the the whole of the proposed pipeline environmental management plans we vessel or whether they are BP route. The findings of this study developed in 2005 for operations, operated, time chartered, voyage resulted in refinement of the route covering emissions to air and water, chartered or under contract. We also where necessary and provided data and waste, ecology, and cultural heritage. undertake to meet the costs of these recommendations which have been Our work has involved reviewing sites, pilotage services. Our policy requires all translated into mitigation measures to and supporting BIL operational staff on transits through the straits to be reduce any foreseeable environmental environmental and social issues. We undertaken in double-hulled vessels and social impacts resulting from are helping BIL in the development of and for transit to be undertaken only construction and operations. an ISO 140001 compliant management during hours of daylight for vessels The transition to operations in 2006 system for the Ceyhan terminal. whose length exceeds 200 metres (in involved a number of changes such as line with local regulations). The policy different environmental impacts arising Minimizing risk to the Turkish straits states that all masters of BP operated from different activity sets. Since the The existence of the BTC pipeline and time-chartered vessels shall have start of operations, comprehensive reduces shipments of oil through the undertaken bridge resource monitoring has occurred, covering Istanbul straits, one of the busiest management training on a simulator ambient air emissions, noise, stack waterways in the world, characterized that includes the Bosphorus and emissions and aqueous discharges. We by their narrowness and complex Dardanelles module. have focused on gaining assurance that currents. The straits are of major In addition to these requirements, the commitments made in the ESIA are economic and environmental we maintain regular contact with the being fulfilled. For example, work was significance; oil transits through them Vessel Traffic Service (VTS), which has begun on additional studies required by represent approximately 2.5% of total responsibility for the safe management Sustainability Report 2006 19
  22. 22. We introduced BP Ultimate, a series of advanced performance fuels which have outstanding engine cleaning power, and help to reduce exhaust emissions. of the straits. We also maintain sampling and testing laboratories, to transport (such as projects seeking relationships with the coastal safety ensure that fuels meet tightening solutions to problems of noise, administration and the Under- Turkish standards. congestion and energy use) and also secretariat of Maritime Affairs to help We introduced BP Ultimate in Turkey provided impetus for the Turkish secure safe operations around the in 2005, a series of advanced Business Council for Sustainable Turkish Straits and the Ceyhan marine performance fuels which have Development to develop a programme terminal. outstanding engine cleaning power, and of actions seeking to integrate improve engine performance by sustainable development into Turkish Marine assurance An integral part of burning more evenly and completely business and public life. BP’s worldwide marine assurance than ordinary engine fuels, and help to We are also supporting EMBARQ, activity is located in Istanbul, reflecting reduce exhaust emissions. Ultimate is the World Resource Institute’s Centre Turkey’s importance as a location for available at BP stations across the for Sustainable Transport. EMBARQ’s international oil transit.The team not country. In 2006, a second generation aim is to build partnerships between only vets ports and terminals of BP Ultimate with additives was government, business and civil society throughout the region, but also introduced; fuels that further improve to develop sustainable solutions to assesses the safety, technical integrity, performance and reduce emissions. urban mobility issues. and ownership details of vessels that We have supported EMBARQ’s might be used for BP business. The Sustainable mobility In April 2006, BP emissions inventory project in Turkey team provides training on operating was the main sponsor of the second which is examining transportation practices and marine technology to BP Business World and Sustainable emissions in Istanbul to quantify operators and third parties. We are an Development Congress, held in transport-based emissions per active participant in marine industry Istanbul. The conference, which kilometre, identifying key pollutants and working groups focusing on ensuring focussed on issues of sustainable their sources by vehicle and fuel. The safe shipping operations. mobility, reflected our interest in study results can then be generalized contributing to meeting the demand for to determine calculations for other Maintaining product quality Ensuring and managing the consequences of cities throughout Turkey. Based on the the quality of our products, which greater mobility, driven by population results, EMBARQ will recommend include many well-known brands in growth and prosperity. The conference action items for Istanbul. Our Turkey, and maintaining their integrity gathered interested parties from involvement is helping us learn more is a fundamental requirement. Across academia, private companies, about how the city tackles transport the country, the petroleum industry has government, and NGOs. It resulted in issues and the role we can play in needed to upgrade facilities such as initiatives focused specifically on support. 20 BP in Turkey
  23. 23. Responsible operations 1.7 Security and human rights Doing business in Turkey requires consideration of national and regional security issues because of the country’s strategic geographical position and its geo-political importance. The security of our assets, which have economic significance for economies east and west, is an important consideration within this context. Ensuring the security of our people and others affected by our operations, within a proper framework of respect for the law and human rights, is a constant requirement. We have a clearly- defined framework for managing security and human rights challenges in Turkey supported by group-wide standards, tools and expertise. Asset and personal security We keep the cases, trained on-site spill response we would respond to a pandemic threat security of our assets under regular teams responded to the incident. We are at World Health Organization phase 4 review and view any potential security sharing information with the and above. breach as serious. This means identifying gendarmerie to prevent their recurrence. We carry out emergency response and assessing risks such as those that We support moves by the Turkish training exercises, focusing on major risk might arise from sabotage or an act of government to amend the existing scenarios. We undertook a table-top terrorism, through to events such as Petroleum Market Law to provide for exercise in 2005 relating to a shipping attempts to tap the BTC pipeline. We stiffer penalties for illegal tapping. incident in the Istanbul straits and have been increasingly aware of the subsequently ran a major training threat to our assets given the tensions The group security standard Our exercise in 2007 involving a scenario caused by conflict in the region. framework for managing security takes featuring an oil spill and fatalities around We are mindful of other types of account of the requirements of the BP the Ceyhan terminal. To improve co- risk which affect individuals, such as Group Security Standard issued in 2006. ordination, we set up a new crisis those arising from crime or the theft of The standard mandates key security management centre in our Istanbul property or information. We provide delivery expectations and offices in 2006. We work closely with briefings to visitors to Turkey designed accountabilities for all businesses, coastal and shipping authorities in the to protect their personal security while in regions and functions across the group. Istanbul straits and around Ceyhan to the country. Its six elements provide a framework for help ensure effective co-ordination. Security for the BTC pipeline is the protection of BP’s people, In our retail operations, we train provided by the Turkish gendarmerie, operations, assets and reputation. attendants on how to respond to under the terms of the Host Goverment emergency situations, like a fire, and Aggreement (HGA). The principal Emergency response In line with the appropriate product handling. challenge is to protect the operational group crisis management framework, integrity and safety of the pipeline, and we have an incident management plan Human rights International oil companies in particular to prevent illegal tapping. for Turkey that describes response have faced criticism from human rights Regrettably, there have been instances strategies and defines roles and organizations for failing to take sufficient of this in 2006 and 2007. None of the responsibilities for dealing with action to prevent human rights abuses in taps were leaking to the environment at incidents, emergencies, or crises. The areas where host authorities take the time they were discovered, although plan covers all BP operations carried out responsibility for security. in some cases small spills had occurred in country. In the context of this, our BP is one of the founding members while the tap was being made. In these pandemic response plan sets out how of the Voluntary Principles on Security Sustainability Report 2006 21
  24. 24. and Human Rights, designed to help providers and assessed their allocation companies in the extractive industries of responsibilities and training plan. We maintain the safety and security of their have carried out an independent review operations within a framework that in 2006 to assess compliance with the upholds respect for human rights. We commitments made on employment see our support for human rights as part standards in Turkey. The BP Turkey of a broader picture in which civil society leadership team have been guided by We see our support and long- term regional stability are experts from group security on the for human rights as supported through promoting respect for voluntary principles, in 2007. human rights and the rule of law. We have had no instances brought part of a broader We have sought to ensure the to our attention of human rights abuses voluntary principles are applied in or violations or of complaints about picture in which civil Turkey. Underpinning our effort was the human rights abuse. As outlined in conclusion in 2003 of the BTC Joint section 1.4 of this report, we have a society and long- Statement and the Trilateral Security clear complaints and grievance term regional Protocol. These enshrined the procedure in place for any such commitment to a range of international complaints to be raised, tracked, and stability are norms (including but not limited to the responded to. The independent Social voluntary principles) in agreements Resettlement Action Plan expert panel, supported through signed by the governments of in their report to BP of 2007, concluded Azerbaijan, Georgia and Turkey. that ‘in no instance was it mentioned promoting respect Since then, we have taken several that this increase in security forces for human rights actions to monitor compliance with presence was generating problems such these commitments. In 2006, we as harassment. In several cases, and the rule of law. undertook an external security review villagers mentioned increased security which included an assessment of force presence as a positive compliance. This included consideration development, either because they felt of the ability of public security providers their own security was enhanced, or to respond to situations of violence in a because the Jandarma was able to keep lawful manner. We have monitored the the road to the village accessible at all performance of our private security times, particularly in winter.’ 22 BP in Turkey
  25. 25. 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 most archaeologically wealthy. We undertook extensive study and consultation when determining the pipeline route so as to minimize its passage through areas of cultural and historical significance. We uncovered a number of new archaeological finds which have been sensitively excavated and managed. This work has added to the knowledge of many aspects of Turkey’s rich and varied past. Design and construction of the BTC potentially sensitive areas. A protocol pipeline posed a vast engineering signed with the Turkish government in challenge. The route was defined 2002 sought to ensure that historical through a process which aimed to assets were protected, in line with minimise the social and environmental international conventions. Procedures impacts during construction and were developed for excavation, site throughout its operational life. protection and registration. Environmental and social impact assessments carried out in all three Excavation finds The archaeological countries included surveys along the excavations carried out in Turkey on the route and consultation with pipeline route have confirmed the governments, regulators, academics, region’s kaleidoscope of cultural life NGOs, and individual communities. spanning prehistory to the middle ages. At Büyükard›ç, Erzincan, excavation Cultural heritage management As part of revealed a single period early iron-age the Turkish impact assessment, a site and buildings; at Kayranl›kgözü, cultural heritage management plan was south of Göksun, excavations uncovered developed. Its aim was to ensure that all a previously undetected roman bath. At historical assets, above and below Sazpegler in Ardahan, handmade ground, were identified using survey ceramics and coins testify to techniques which conformed to settlements from the Byzantine empire. Raising awareness Our aim has not only internationally-agreed standards. Teams Excavations carried out typically lasted been to protect the artefacts uncovered of archaeologists from Ankara from one to four months. More than 800 during the pipeline construction process University, the Middle East Technical workers – art historians, anthropologists, but also to display them. The project has University and Gazi University were geophysicists, surveyors and restorers – worked with museums along the commissioned to walk the entire were employed between 2003-04. Work pipeline route to show salvaged pipeline route in Turkey to identify any was led by the Gazi University Research artefacts. Findings and analysis from the previously unrecorded potential Centre for Archaeology and BOTAS’ excavation work are also being archaeological sites. team of archaeologists. More than 370 published. We believe these efforts will Extensive planning like this helped to sites were recorded and registered with contribute to a deeper and wider ensure the pipeline route avoided many the Ministry of Culture and Tourism. understanding of Turkey’s rich history. Sustainability Report 2006 23
  26. 26. 1.9 Our People BP seeks to offer rewarding careers, exciting challenges, equality of opportunity and a working environment characterized by fairness and decency. One of our core values is to engage the creative talents of our employees. We aim to nurture the capabilities of our people, treat them and reward them fairly, make clear the expectations the group has of them and promote inclusion within a meritocratic organization of people from diverse backgrounds. Engaging our people Our principal Staff rationalization in 2006 A employees the opportunity to thrive means of engaging effectively with our restructuring of the European refining and ensure they maintain a sensible employees is through developing an and marketing business was work-life balance. open and inclusive work environment undertaken in 2006 which aimed to in which people are treated fairly and simplify the business’s structure and Learning and development In addition with respect. Our commitment to provide a sustainable platform from to on-the-job and discipline-specific create this is underpinned by a number which the business could grow in training provided to our workforce, we of basic people-related processes. future. In common with BP businesses offer a range of broader learning and These include regular performance in some other countries, this resulted development courses on behalf of the feedback and appraisal, development in a programme of staff rationalization businesses operating in Turkey. These planning, and the provision of learning in Turkey in 2006. A total of 115 cover a range of topics including and development opportunities. employees left the company. Efforts negotiation skills, managing high A number of formal mechanisms are were made to manage this difficult performance, and enhancing used to communicate and engage with process as sensitively as possible, performance through influence. our employees. This includes the group offering voluntary redundancy and staff People Assurance Survey (PAS), a transfers where possible. The BP code of conduct Our code survey carried out every two years that represents BP’s commitment to provides insight into employee Work-life balance One aspect of the integrity, defining what is expected of sentiment about their working life in rationalization programme was the every BP employee in five areas: BP. We supplemented the PAS in 2006 need to ensure the skills and health, safety, security and the with a staff survey carried out in 2007 competencies of individuals were environment; employees; business by an independent external properly aligned with their job and partners; governments and organization which focused on issues future responsibilities. To support this, communities; and company assets and particular to our business. we provided a range of training financial integrity. It is a company-wide We inform our employees about the modules for team leaders and staff. We framework that sets out how we company’s internal as well as external recognize that the reduction in staff should behave when faced with news through email communications, created uncertainty in the organization choices about our behaviour at work, ‘town hall meetings’, magazines, and increased workload for some ranging from basic rules on safety to events, and visits to Turkey by senior members of the workforce. However, detailed expectations regarding management from across the efforts have been taken to make job competition and anti-trust issues. It organization. descriptions are clear and give all was developed in line with international 24 BP in Turkey
  27. 27. Responsible operations best practice and shows employees which the business unit produces a where to find more detailed standards certificate indicating the extent to on specific issues. which it has complied with laws, In 2005, the code of conduct was regulations and the code of conduct. translated into Turkish and distributed Under this process, line managers to employees together with a video in certify the behaviour of teams under Turkish with case studies and their direction, following a team guidance. Employees were asked to discussion. The certificates include sign a certificate confirming they had details of any breaches of compliance received the code and had reviewed it. and report progress on any issues The code was discussed during town raised during the previous year. The hall meetings in 2006. We continued to process continues to the head of enforce the code where breaches had country, who submits a certificate to occurred and reminded people of its group on behalf of BP Turkey. applicability. For example, we brought people’s attention to the need to OpenTalk OpenTalk is BP’s adhere to the provisions of the code in independent global employee concerns relation to gifts and entertainment, programme which allows individuals to which specifies that all gifts or raise question or concerns – entertainment offered, accepted, or confidentially and anonymously – about declined should be logged in the issues of compliance, ethics or the organization’s gifts and entertainment code of conduct. Concerns and register. We have also incorporated a inquiries received by OpenTalk are Our principal means of standard clause on ethical conduct handled by an independent operator engaging effectively with within the terms and conditions of our before being forwarded to BP for legal agreements and use this investigation and response. In 2006, our employees is through whenever appropriate. reminders were given of OpenTalk at developing an open and town halls in Turkey to continue to inclusive work Compliance and ethics certification We raise awareness and encourage BP and also carried out the annual compliance joint venture employees to use the environment. and ethics certification process in service. Sustainability Report 2006 25
  28. 28. Our role in society 2.1 The social and environmental context 2.2 BP and climate change 2.3 Promoting good governance 2.4 Enterprise development 2.5 Education 2.6 Access to energy 2.7 Community and environmental investment programmes 26 BP in Turkey 26 BP in Turkey Photograph caption will go here lorem ipsum children amet vellum. BP road safety children's play: on stage with dolor sit
  29. 29. Our role in society 2.1 The social and environmental context Turkey is among the world’s most rapidly industrializing countries. It has achieved several consecutive years of strong economic growth and modernization. The quality of life for many of its citizens has increased markedly. Yet it is also a country which presents sharp contrasts of inequality between urban and rural areas and rich and poor. Pressures on the natural environment, one of the richest and most diverse on earth, are growing. Pursuing economic growth, while protecting the country’s tremendous social and environmental diversity, is a major political and social challenge. Contributing to economic development migrating birds. Many other examples dimension to environmental and social BP’s main contribution to economic and testify to the variety of Turkey’s natural management through providing social development derives from the environment. additional benefits to the environment products and services we supply, the Pressures on this environment, and communities. In Turkey, we have taxes we pay and the jobs we create however, are growing – increased launched community and environmental directly through the staff we employ. We exploitation and habitat loss has investment programmes in addition to contribute indirectly through the local increased the number of nationally-rare our environmental and social companies we contract with, and or globally-endangered plants. Systems management of our routine operations. through the skills and capabilities we for protecting sensitive areas are not These focus on specific community and help to develop. Making these fully-established. Uncontrolled tourism, environmental needs. contributions sustainable means sand extraction, and illegal fishing have But there is another environmental operating a business with robust contributed to wetland destruction. Local issue which represents a significant economic foundations in a manner that and national economic development has challenge for societies in every country enhances the natural and social capital increased resource consumption, often in the world: climate change. For this on which we draw. in unsustainable ways. reason, we begin this section of the report by setting out the group’s thinking Protecting the environment Turkey’s Supporting social development For many on climate change and providing an location, climate and geological history rural communities in Turkey, income overview of our global marketing of low- have endowed the country with some of levels are low and opportunities for carbon power and transport. the richest biodiversity on earth. The economic advancement seem limited. BTC pipeline route in Turkey holds Physical and social infrastructure is examples of 17% of the country’s 3,000 under-developed, hampering the capacity endemic flora species and 28% of its for communities to help themselves. 158 globally threatened species of fauna. In BP’s operations in Turkey and The temperate forests of the Caucasus around the world, we approach these are considered among the most challenges through measures designed biologically rich on earth, and Turkey’s to ensure our operations are carried out lagoons and wetlands are among the in an environmentally-sound manner and most important in the Mediterranean respond to community needs. In addition basin. At the junction of Europe and to environmentally and socially sound Asia, Turkey lies on two major routes for operations, BP is trying to add a new Sustainability Report 2006 27

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