BP Magazine, Issue One 2009 – Contents

Contents
+ Features

Cover story
10 Mega achievement The story behind Azerbaijan’s...
BP Magazine, Issue One 2009 – Contents


21 Viewpoint Music students gather for a very special performance. By Lisa Daviso...
BP Magazine, Issue One 2009 – Welcome

Welcome

Inspiration is a powerful tool. It can instil great passion in people, and...
BP Magazine, Issue One 2009 – For the record

Highlights from around the globe > Winter 2009

The quarter in numbers

4.1M...
BP Magazine, Issue One 2009 – For the record

UK
Asset exchange
BP and BG Group have agreed to exchange a package of North...
BP Magazine, Issue One 2009 – The Big Issue

Climate models: forecasting the future

Climate models increasingly help us u...
BP Magazine, Issue One 2009 – BP Faces

Coffee queen

Leanne Houghton /
Wild Bean Café barista
“I was shocked! I couldn’t ...
BP Magazine, Issue One 2009 – Science made simple

Savvy seismic

Report> Nic Welsh
Illustration> Magic Torch
With future ...
BP Magazine, Issue One 2009 – Science made simple


Seismic stats

‘80%
The amount of future exploration and production ex...
BP Magazine, Issue One 2009 – Exploration & Production

Caspian report> Azeri-Chirag-Gunashli mega-project


Shipshape in ...
BP Magazine, Issue One 2009 – Exploration & Production

From the very beginning, geography played a big hand in how things...
BP Magazine, Issue One 2009 – Exploration & Production

“It takes five years to get something like ACG together,” he says....
BP Magazine, Issue One 2009 – Supporting education

Project Enthuse


Inspiring tomorrow’s bright sparks

Science is endle...
BP Magazine, Issue One 2009 – Supporting education

we see wide variability, with some schools being far more successful a...
BP Magazine, Issue One 2009 – Supporting education

that we can make informed decisions about issues which affect everyone...
BP Magazine, Issue One 2009 – Business principles

Corporate responsibility> Compliance + ethics


Firm foundations

A gro...
BP Magazine, Issue One 2009 – Business principles

the solution can sometimes cause a completely new dilemma somewhere els...
BP Magazine, Issue One 2009 – Business principles

companies have approached BP to share its experiences. And, if potentia...
BP Magazine, Issue One 2009 – BP Shipping

LNG carriers> Gem class


Master mariners

They may have been four years in des...
BP Magazine, Issue One 2009 – BP Shipping

The first three ships were built at HHI’s Ulsan yard – British Emerald beginnin...
BP Magazine, Issue One 2009 – Viewpoint

Stravinsky recording


All the rite notes

Report: lisa davison / Photography: Ri...
BP Magazine, Issue One 2009 – International operations

Country report> Brazil


Brazil the undiscovered country

Business...
BP Magazine, Issue One 2009 – International operations

lubricants, recently implemented a new marketing programme that ma...
BP Magazine, Issue One 2009 – International operations

Favelas are a culture within a culture, self-governing, caught in ...
BP Magazine, Issue One 2009 – Technology

University partnerships> Climate modeling


Climate’s crystal ball

No matter ho...
BP Magazine, Issue One 2009 – Technology

Temperature records reveal that during the 20th century the climate system as a ...
BP Magazine, Issue One 2009 – Technology

Weather and climate: what’s the difference?

Weather refers to the state of atmo...
BP Magazine, Issue One 2009 – Arts & Culture

China: Journey to the East


The great call of China

With 1.3 billion peopl...
BP Magazine, Issue One 2009 – Arts & Culture

A record 35,602 people attended – including the Chinese ambassador, Madame F...
BP Magazine, Issue One 2009 – Factfile

5 Top tankers

BP Shipping has a long, illustrious history spanning much of the 20...
BP Magazine, Issue One 2009 – Environmental impact

Online measurement> BP Energy Lab


Testing your credentials

The laun...
BP Magazine, Issue One 2009
BP Magazine, Issue One 2009
BP Magazine, Issue One 2009
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BP Magazine, Issue One 2009

  1. 1. BP Magazine, Issue One 2009 – Contents Contents + Features Cover story 10 Mega achievement The story behind Azerbaijan’s ‘contract of the century’. By Helen Campbell. Photography by BP Imageshop 13 Enthusiastic approach The education programme designed to help teachers inspire a new generation of scientists. By Hester Thomas Photography by National Science Learning Centre 16 Ethical values How BP’s compliance and ethics agenda is meeting the very highest expectations. By Lisa Davison Illustration by Serge Seidlitz 19 Precious cargo The new class of liquefied natural gas vessels adding a touch of sparkle to the high seas. By Nick Reed Photography by Stuart Conway 22 Brazilian beauty Interest in Brazil is on the rise with growth in tourism and businesses. BP is poised to tap into that growth thanks to a strong presence in jet fuels, a well-established lubricants business and a new biofuels venture. BP Magazine visits the country to learn more about this sleeping giant. By Paula Kolmar Photography by Marc Morrison 25 All change Climate modelling is an increasingly useful tool in understanding the Earth’s climate and scientists at Princeton are leading the way. By Nina Morgan Photography by NOAA 28 Looking East A new BP-supported exhibition has begun travelling around the UK giving insight into Chinese history and culture. By Hester Thomas Photography from the Trustees of the British Museum 31 Interactive energy How a new BP website aims to help individuals better understand their carbon footprint, while offering tips to reduce it. By Helen Campbell + Regulars 04 For the record A snapshot of BP news and statistics from around the world. 05 The Big Issue The Met Office discusses the challenges and opportunities of using climate models. Illustration by David Lyttleton 07 BP Faces BP Australia’s national barista champion makes the perfect coffee. Photography by Bill Bachman 08 Science made simple The technology helping BP ‘see’ through salt. By Nic Welsh. Illustration by Magic Torch 1
  2. 2. BP Magazine, Issue One 2009 – Contents 21 Viewpoint Music students gather for a very special performance. By Lisa Davison Photography by Richard Davies 30 Factfile A look at a few ‘firsts’ from BP Shipping 33 Archive Revisiting BP’s connections with China through the past century. Photography by BP Archive 34 Parting shot: Capturing an Afro-Brazilian artform in full flow. 2
  3. 3. BP Magazine, Issue One 2009 – Welcome Welcome Inspiration is a powerful tool. It can instil great passion in people, and drive them to achieve remarkable things. In many cases, that first taste of inspiration comes from a teacher. In the UK, interest in science at school has declined in recent years, leading to concerns of a skills shortage in industries dependent on those subjects. On page 18, we find out about a BP-supported programme – aptly entitled Project Enthuse – designed to help science teachers reverse that trend, while a look at climate modelling on page 48, advances in seismic technology on page 8 and the innovation behind BP Shipping’s latest fleet featured on page 28 are all perfect examples of how inspired thought helps drive the energy industry. Lisa Davison> Editor Contributors Nina Morgan Worked as an exploration geologist for seven years before turning to freelance science writing. She now specialises in writing about all branches of science and technology. Stuart Conway’s All time favourite photographic subject was a dazzling male Tufted Coquette hummingbird whilst on assignment in Trinidad. David Lyttleton Is a freelance illustrator from Newcastle-Under- Lyme, Staffordshire. He contributes to many publications,including a weekly Guardian column. 3
  4. 4. BP Magazine, Issue One 2009 – For the record Highlights from around the globe > Winter 2009 The quarter in numbers 4.1MW The amount of energy now produced by solar installations on US Wal-Mart roofs $4 The cost per watt of crystalline silicon modules – used in solar panels – in 2008 500 million The total number of barrels of Caspian oil that had passed through Ceyhan terminal, Turkey, by December 2008 6 The number of consecutive years that BP has been the top bunker fuel supplier in Singapore Russia: Board appointments The former chancellor of the Federal Republic of Germany, Gerhard Schröder, has agreed to join the restructured board of TNK-BP, as one of three independent directors. His fellow independents will be James Leng, the chairman designate of Rio Tinto, and Alexander Shokhin, president of the Russian Union of Industrialists and Entrepreneurs. BP and Alfa-Access-Renova (AAR) have agreed to appoint the three directors to avoid the risk of deadlock between the 50:50 owners of the joint venture. Welcoming the new appointment, BP chief executive Tony Hayward said: “The counsel of such a distinguished statesman, who brings both enormous geopolitical experience and a history of strong relationships with Russia, gives me particular confidence that the next chapter in the progress of TNK-BP will be good for all shareholders and for Russia.” UK Trading up Alcohol, confectionery and non-food sales led the way as BP’s UK convenience stores reported a successful Christmas trading period. Like for like sales were up 5% for the three-week period over Christmas and New Year for the 250-strong estate of BP Connect and Express stores. US Changing guard Lamar McKay has been appointed chairman and president of BP America Inc and will serve as BP’s chief representative in the US. He succeeds Bob Malone, who has elected to retire after 34 years with the company. McKay has led the company’s special projects team since early 2008. In that capacity, he played a major role in establishing the new governance model for TNK-BP. US Thunderous success Production has begun from the third and fourth wells at the Thunder Horse field in the Gulf of Mexico, with production now in excess of 200,000 barrels of oil equivalent per day, signalling the completion of commissioning and commencement of full operation. China Clean technologies BP and the Chinese Academy of Sciences (CAS) have agreed to establish the Clean Energy Commercialisation Centre (CECC) in Shanghai, jointly investing $73 million to commercialise Chinese clean energy technologies. The centre will draw on the expertise and experience of both partners to integrate individual energy-related technologies – such as coal gasification and conversion. 4
  5. 5. BP Magazine, Issue One 2009 – For the record UK Asset exchange BP and BG Group have agreed to exchange a package of North Sea assets to help strengthen BP’s position as a major operator in the southern North Sea, and facilitate development activity and investment in the UK continental shelf. Libya Onshore start-up BP’s Libyan exploration project has begun a 13,000 square kilometre (5,000 square miles) seismic acquisition programme in the deserts of Libya’s Ghadames basin. According to Jens Pace, BP North Africa exploration director, the survey is unique in that it involves the first full deployment anywhere in the world of a new, cutting-edge BP proprietary seismic technique known as ‘Integrated Simultaneous Sweeping’ (ISS). BP believes ISS will mark a step- change in productivity in land seismic acquisition, compared to more conventional methods used elsewhere in the industry. Mailbox Safe talking I was fascinated to read the story about former astronaut Jim Wetherbee and how he applies his experiences of flying in space to help keep BP people safe on the ground. His passion for safety came across loud and clear, and his pleasure at working for BP was obvious. Helmer Ruyter, Germany Memory lane Your interview with the BP archivist made me wonder whether the magazine will be celebrating BP’s centenary year? Ann Ross, Spain Ed’s reply: this year marks BP’s 100th anniversary and the next edition of BP Magazine will look back at some of the company’s highlights. Russian reaction As you say in your recent article about TNK-BP, last year’s struggle to reach boardroom agreement about the future direction of the company was high profile. As a result of the coverage, I was often asked about it, so it was helpful to find all the facts and figures clearly laid out and emphasising the positive side of the partnership in a way I could understand and explain to others. Huw Griffin, UK Kind words As a contractor at BP Sunbury, I would like to comment on the excellent coverage of ‘all things BP’ in your magazine. Its broad range of subjects keeps you interested in BP’s operations. In addition, I like the layout changes, with the modern look and feel reflecting BP’s forward-thinking values. Dave Hill, UK 5
  6. 6. BP Magazine, Issue One 2009 – The Big Issue Climate models: forecasting the future Climate models increasingly help us understand the reasons behind climate change and what might happen in the future. Scientists from the Met Office discuss the benefit of having this knowledge. Climate is something different from weather. The difference is often described as climate being the kind of weather patterns you might expect, while weather is the conditions you get on any given day. However, both need complex computer models to make predictions. There is considerable scientific evidence that the world’s climate is changing and that we are responsible for most of the recent acceleration in warming. Climate models help us understand the causes of climate change and provide the means to assess a range of likely future changes. For example, we know some change is inevitable; but we need to know how sensitive the climate is to greenhouse gases so we can adapt to those variations. Climate projections will also help identify changes which are avoidable if we act to reduce our greenhouse gas emissions. Because the Earth’s climate is highly complex, huge supercomputers are needed to make these kinds of projections. Our climate models represent the physical, chemical and biological processes of the atmosphere, ocean, and biosphere, and how each system reacts with the others. Mathematical equations are solved by a computer programme on a 3D lattice of grid points which cover the globe. Such a ‘virtual Earth’ is used for experiments to examine the effects of different influences – both human-induced and naturally occurring – to explain the causes of past climate changes, and make future projections under different scenarios of greenhouse gas emissions. Limited projections As in every field of science, there are uncertainties in climate projections. Much is still not known about how the climate system works: for instance, we have an incomplete understanding of ice-sheet dynamics and so, therefore, we are uncertain about the rates at which glaciers will melt and slide into the sea. Projections are also limited by available computing resources, which restricts the number and detail of the processes that can be represented. In spite of the limitations of computer power, we are steadily improving our understanding of the atmosphere and its interactions with the ocean and biosphere. In the 1970s, carbon dioxide concentrations, their warming impact and rain were included in climate models, but not the effect of clouds. Nor did those models capture the interactions of the atmosphere with the ocean and biosphere. Today’s state-of-the-art models include a far more complete and interactive treatment of clouds and aerosols, as well the coupling of the atmosphere to oceans and ecosystems. Further research will see this improvement continue. More sophisticated models are starting to include more of the detailed chemistry of the carbon cycle, enabling the modeller to consider whether plants, soils and oceans will absorb less carbon as warming continues. Future computer models will include refined atmospheric processes and a wider range of feedback mechanisms that may contribute to climate change. These models enable projections of future climate and the investigation of reasons for changes in the geological past (paleoclimate). As information from geological observations fills in the picture, models of the atmosphere are constrained and improved. If the aim is to assess vulnerabilities to climate change and prepare for changes in general, climate models can only go so far. The spatial or temporal resolution required for certain assessments may be finer than the models can currently resolve, and interpreting the results in the context of the application still presents a significant scientific challenge. Added benefits However, climate modelling is not exclusively reserved for policy guidance. The Met Office Hadley Centre climate model (HadGEM3) is unique in using the same basic model for weather forecasting and projections of climate change. The Met Office has extended its forecasting to seasonal, decadal and centennial timescales. In seasonal forecasting, recent developments in tropical storm and wave-height modelling have brought added benefits to the oil and gas industry; and on longer scales, climate models are being used to explore new threats and opportunities to the industry, such as changes in permafrost regimes. For more information on the development of climate modelling and how Princeton University is using it to better understand the nature of climate change, see pages 48-51. 6
  7. 7. BP Magazine, Issue One 2009 – BP Faces Coffee queen Leanne Houghton / Wild Bean Café barista “I was shocked! I couldn’t believe it,” says Leanne Houghton of her National Barista crown. Every year, BP’s Wild Bean Café baristas across Australia come together to battle it out for the title. Leanne’s store is located close to Melbourne airport and on an average day she can make up to 200 coffees. “We get a lot of travellers, and quite a few regulars who are taxi drivers. I’ve seen some fill two loyalty cards a week. That’s a lot of coffee!” This was Leanne’s second trip to the National Barista Competition finals and as well as the hundreds of hours she spends making coffee at work, she also spent around 10 extra hours training with her region’s food service specialist, a Mocopan (Wild Bean Café’s coffee supplier) representative, and her fellow national finalist, Adriana Ivtingioski. “It was amazing to win – all the hard work that the team put in paid off.” Although not a coffee drinker herself, Leanne takes pride in knowing her stuff. “I like it when someone orders a ristretto [a very short shot of espresso], because they don’t think I’ll know how to make it. It’s nice that we can give our customers a good café experience in a service station.” 7
  8. 8. BP Magazine, Issue One 2009 – Science made simple Savvy seismic Report> Nic Welsh Illustration> Magic Torch With future oil and gas reservoirs increasingly likely to be found under overhanging salt formations, the development of new seismic techniques to ‘see’ through this salt are proving invaluable. n the oil and gas business, impaired vision is an increasing challenge, all thanks to salt. In the Gulf of Mexico, for instance, 80% of future oil and gas reserves are expected to be found lying beneath a layer of salt – up to several thousand metres thick in some places – and in Angola, 60% of the BP-operated Block 31 is covered with it. The trouble is that trying to ‘see’ through salt is like looking through frosted glass. Seismic surveying generates images of the geological structure deep beneath the surface by transmitting soundwaves into the earth and detecting and analysing their reflections. But salt distorts these images, preventing conventional seismic acquisition techniques from giving a clear picture of what is underneath. The salt’s presence increases the risk of unsuccessful, yet costly, exploration and development activities. With so much potential lying under these formations, BP is getting creative with seismic technology in order to clear away some of the frosting. Traditional marine seismic imaging builds a picture of a reservoir by acquiring data in one orientation. By accessing many lines, a cube of data can be built to produce a three-dimensional (3D) image. Even the large advances in 3D imaging over the past decade have difficulty in delivering a good image. To get a clearer view, you have to find a way to look at the target from several different orientations, or ‘azimuths’, and combine the data. In other words, you need to go through it in a number of directions. BP has led the development in multi-azimuth seismic approaches, creating a toolkit of techniques designed to illuminate reservoirs with ever-greater clarity. While new processing and modelling techniques are helping to generate more detail about reservoirs using seismic acquired by conventional, or ‘narrow azimuth’, techniques, BP has developed proprietary technologies to model and process ‘wide azimuth’ data. This multi-azimuth image can be obtained by acquiring conventional data in several orientations, a technique developed and applied by BP in Egypt’s Nile Delta. Another technology, known as Wide Azimuth Towed Streamer (WATS), uses a conventional seismic vessel with streamers of receivers towed behind it to collect the reflected soundwaves. But rather than using sound sources generated from the recording vessel, two source vessels are positioned to one side, at the front and tail of the streamers. The three vessels then travel for a set distance collecting data. After returning to their starting point, the source vessels are offset from the receiver vessel and repeat the journey. This process takes place several times, collecting data from many azimuths – creating the width – to generate a much clearer image. BP has developed another technique – Ocean Bottom Seismic Nodes – to help understand reservoirs lying under deep water. A series of nodes – pressure vessels containing recording equipment to detect vibrations on the seafloor – is placed on the seabed, allowing the source vessel at the surface to travel freely, shooting energy into the nodes from any direction on the compass. The hardware was adapted from instruments more commonly used to record earthquakes, and is currently being used to make field management decisions at the Atlantis field, in the Gulf of Mexico. BP believes advanced seismic imaging has the potential to contribute to the delivery of more than 1 billion barrels of reserves, along with enabling access to more acreage, reduced exploration risk, lower costs and improved recovery. Indeed, advanced seismic imaging on narrow azimuth data has contributed to significant discoveries in Azerbaijan, while multi-azimuth seismic has enabled appraisal of reservoirs in Egypt, and wide-azimuth seismic methods are supporting the appraisal and development of BP’s deepwater assets in the Gulf of Mexico. WATS uses a standard 3D seismic vessel with receivers incorporated into towed streamers to collect the data, but rather than using a sound source mounted on the recording boat, additional source boats are deployed. This ‘wide azimuth’ approach yields enhanced detail of the subsurface geology obscured by salt deposits. 8
  9. 9. BP Magazine, Issue One 2009 – Science made simple Seismic stats ‘80% The amount of future exploration and production expected to lie under salt in the Gulf of Mexico ‘60% The amount of the BP-operated Block 31 in Angola that is covered by salt ‘1 billion The number of barrels of reserves to which BP believes advanced seismic imaging has the potential to contribute. 9
  10. 10. BP Magazine, Issue One 2009 – Exploration & Production Caspian report> Azeri-Chirag-Gunashli mega-project Shipshape in the Caspian Amid the global publicity and geopolitical sensitivities of a 1,760 km (1,093 mile) pipeline built to export Caspian oil through three countries to hungry markets, it is easy to forget about the development of the offshore oil reserves that started it all. Report> Helen Campbell Photography> BP Imageshop In the mid-1990s, when told they were posted to Baku to work on the ‘Contract of the Century’ project, many BP employees responded, “Thanks, that sounds great. By the way, where is Baku?” But if Azerbaijan and its fascinating capital were not well known internationally at that time, the huge and unique Azeri- Chirag-Gunashli (ACG) oil development has put it on the map. For Azerbaijan, this mega-project has brought financial independence and a newfound confidence. For BP, in terms of project management, ACG is undoubtedly one of the most demanding projects ever undertaken. ACG followed the 1997 Chirag ‘Early Oil’ project, which had demonstrated the feasibility of production sharing agreements in the country. The full-field project was then developed in three phases, starting with Central Azeri, followed by West and East Azeri, and finally deepwater Gunashli. Production began in February 2005. ACG nearly didn’t happen. As world oil prices crashed in 1998, there were many doubts that the $10 billion project would get the go-ahead. But, as one manager on the project puts it, 5 billion barrels of oil reserves “were never going to be left in the ground”. ACG was sanctioned and is now making a huge difference to Azerbaijan, to BP and to world oil markets. ACG has transformed Azerbaijan’s image on the world stage, along with its economy, and was the major factor in trebling gross domestic product over the project’s course. The fields produce more than 65% of the country’s oil, and during 2006 and 2007, Azerbaijan was the largest contributor to non-OPEC supply growth. It is unique, but not because it pushed technological boundaries. Although it is the Caspian’s only subsea development, it does not lie in the deep waters that make today’s projects in the Gulf of Mexico, or offshore Angola, so ambitious. And its reserves are not even the biggest in the world. What distinguishes ACG is its scale. The work scope included the engineering, fabrication, construction, installation and commissioning of offshore drilling and production, gas compression and water injection facilities and subsea oil and gas pipelines, and the expansion of what is now the largest onshore terminal outside the Middle East. Calling for six huge offshore platforms, BP’s largest ever saturation dive programme, and an unusually large workforce of locals, BP expatriates and contractors, ACG required extensive logistical planning to realise each stage. More than 159 million man-hours were spent, 80% in Azerbaijan itself, and more than 150 million kilometres driven without major incident. At the project’s peak, catering services were dispensing 20,000 meals a day to workers. Mouth-watering for the diners, no doubt, but eye-watering for those cooking. One massive fundamental challenge was where to build ACG’s huge offshore structures. Key elements of those 233,000 tonnes of infrastructure could not be built in-country. Although Azerbaijan had a long history of oil production and was the centre of Soviet oil platform jacket manufacturing, its construction yards lacked the capacity to produce the raw materials for ACG. Bringing in ready-made elements and upgrading local yards to undertake assembly was the only option, but the project team faced the paradox of Azerbaijan’s position – on the shores of the world’s largest enclosed body of water and yet landlocked. The team used Russia’s canal system and the Volga River, which originates northwest of Moscow and is the only one that flows into the Caspian. The canals allow connection with the Black and Baltic Seas, but are frozen for half the year and can only accommodate relatively small vessels. What ensued was a series of finely-balanced waterway manoeuvres to get drilling and accommodation modules manufactured in Europe through the system. 10
  11. 11. BP Magazine, Issue One 2009 – Exploration & Production From the very beginning, geography played a big hand in how things were going to be done, and “this added a degree of complexity that most projects never have to deal with,” says Bruce Luberski, vice president for major projects BP Azerbaijan. “There are only three ways to come into the country; by air, which is expensive and has weight limits; by road truck, which is very difficult; and by boat through the canals. In the Gulf of Mexico and the North Sea, you pick up the telephone, but in Azerbaijan, you had to add on six to nine months just for logistics. In all, 700,000 tonnes of standardised components were procured via 3,000 orders with suppliers from all around the globe, which were then shipped via sea, canal, rail and road to Baku. This included 28 gas turbines, each generating 21 megawatts, as well 35,000 valves, 5,800km (3,600 miles) of cable, 250,000 tonnes of steel, 1,300km (807 miles) of linepipe, 350 pumps, 30,000 tonnes of piping, and 250 pressure vessels. “It was a significant remit that needed meticulous planning, control and the establishment of a highly skilled and experienced team of procurement supply chain management [PSCM] professionals to manage the supply chain through all three phases,” says Lorie Riva, PSCM manager, major projects since the start of the ACG programme in 1997. Marine installation was the next challenge and required months of careful planning. “I had just finished working on a similar North Sea job, so it was quite a shock seeing what we had in the Caspian,” recalls Frank Wilson, who served as transportation and installation manager and is now marine subsea director. “Because of the canals’ width and height restrictions, you couldn’t just whistle up the usual 21st-century installation vessels, and there wasn’t sufficient time to build new vessels.” Local state-owned vessels, some dating from the 1970s, were upgraded to provide the necessary heavy-lift, pipelaying and dive support capability. A number of other offshore support vessels, small enough to come through the canal system, were brought in, some having masts or decks cut off in order to meet restrictions. The vessels were then reassembled in Baku. The upgrading strategy success was all the more astonishing given that the marine installation team performed the Caspian’s first ever ‘floatover’ operations, where the deck is transported to the offshore site by barge before being floated and ballasted between the platform legs and installed. Although the technique was not new, other projects involved 10-12,000 tonne decks, whereas ACG’s team was dealing with almost 16,000 tonnes and had to perform it six times. The scope might have been daunting, but ACG’s size worked in its favour. Invariably, big projects see designers, contractors and other team members come and go, each making their mark. This usually means changes, delays and increased costs and stress. Instead, ACG’s team adopted a standardised production line for the eventual six platforms, each with a jacket and deck of a roughly similar size and capability. Although this required the amalgamation of two project teams – never easy in the highly charged and competitive oil sector – this blueprint approach was a key factor in its success. “We had a policy of no change, as we wanted predictability with this project,” says Carroll Kearney, who joined the project in March 1997, and is currently the Azerbaijan business unit’s major projects construction director. “In some ways, bigger was better, as we had a chance to do everything again with each platform, and we knew what was going to happen because of these standardised designs.” By retaining project individuals, contractor teams, fabrication yards and suppliers, and rejecting change, ACG achieved building cost savings of up to 24%, and construction schedule improvements of almost seven months. Consequently, ACG beat its planned timescale for oil production by an impressive three months, meaning valuable earlier revenue for Azerbaijan and shareholders. That crucial test, the first year of operations, has seen ACG meet, or exceed, all production and availability targets. Keen to share their know how, the ACG teams submitted more than 50 pages of separate topics to BP’s knowledge management centre, accessible group-wide. The experiences of ACG in standardisation, knowledge management, risk management, contracting strategy and project service management have helped form BP’s major projects common process, which defines and streamlines BP’s approach to its largest projects. Fittingly, ACG won the performance category of BP’s internal Helios Awards programme, and a stream of external accolades. Its management team even gave an unprecedented seven papers at the key Offshore Technology Conference in Houston in May 2008. Teamwork and relationship building within the BP team, with contractors, suppliers or the state oil company, paid off, helping to retain personnel and sustain continuity and a sense of community. Alan Dunn, who joined in 1995, initially as ‘Early Oil’ senior project manager, and left Baku after Phase 3 had come onstream, says there is real attachment to a project like ACG. 11
  12. 12. BP Magazine, Issue One 2009 – Exploration & Production “It takes five years to get something like ACG together,” he says. “People formed a very tight bond and the community spirit was huge. ACG is a fantastic success story of bringing a mega-project onstream for the budget that was promised. It was far more than just a job to work on a project like that. For me, nothing else compares.” Developing the oil was not the sole aim of the contract. As well as upgrading local yards to world-class capabilities, the ACG project created, and sustained over six years, 15,000 jobs for Azerbaijani nationals, providing international- standard training, which has opened doors to jobs worldwide. And Baku and Azerbaijan have experienced massive change, enjoying a building boom of new roads and railways, and airport modernisations, along with new and improved education and community developments. The future sees sustained oil production for the project partners and Azerbaijan, augmented with the planned addition in 2013 of oil from the Chirag Oil Project, due to be sanctioned in late 2009. Most of the requisite platform will be built in Azerbaijan and predominantly by nationals. “I believe the biggest and most positive aspect of working on ACG was the excellent training programmes for locals,” says Ilgar Mammadov, an Azerbaijani who joined in 1998 as an engineer and is now project director for in-country fabrication. “ACG offered great personal development opportunities and made an enormous difference to people’s skills. In addition, a lot of money was invested in the yard upgrades, and the proof is there to see. “I feel very proud to have worked on the project and very confident about the future. ACG has changed people’s lives.” Project statistics 5 billion the number of barrels of oil located in the ACG field 1997 Chirag Early Oil project begins 65% amount of Azerbaijan’s oil produced from ACG 150 million number of kilometres driven without a major accident during contruction 20,000 number of meals a day provided at the height of construction. 12
  13. 13. BP Magazine, Issue One 2009 – Supporting education Project Enthuse Inspiring tomorrow’s bright sparks Science is endlessly fascinating and opens new windows on the world. So, why aren’t more young people interested in pursuing it? Project Enthuse – a BP supported programme – helps teachers motivate a new generation of scientists. Photography> National Science Learning Centre Report> Hester Thomas Enthusiasm is infectious. It is almost impossible to resist the energy and exuberance that radiates from someone talking about a subject on which they are well-informed, and which they clearly love. You only have to think back to your school days and consider which teachers were so passionate about their topic that they sparked an interest in you. For some people, a spark turns into a flame. Indeed, there are many scientists and technologists who can trace their ardent interest back to an inspirational teacher. Yet, in recent years, there has been a decline in the number of UK students gaining qualifications in STEM subjects (science, technology, engineering and mathematics), which, in turn, has resulted in a shortage of these skills in the workforce. This threat to the competitiveness of the UK economy has led to an unprecedented rise in the interest of government, industry and others in the successful uptake of these subjects in schools and universities. In response, the STEM Framework was established in 2007 to coordinate a wide variety of initiatives that will increase the numbers of students selecting and succeeding in STEM subjects. A vital element among these is the highly innovative Project Enthuse. Launched in July 2008, it offers teachers of pupils aged between five and 19 hugely increased access to world-class continuing professional development at the state-of-the-art National Science Learning Centre, based in York. Through Project Enthuse, every state school in the UK can apply for an award, which covers the fees, travel and accommodation for any teacher, lecturer, teaching assistant or technician attending a course. In addition – and this makes the award truly exceptional – it also pays for the cost to schools of providing teaching cover. Furthermore, there are extra funds to help teachers implement ideas when they return to school. In short, a four-day residential course with total costs of around $3,600 per delegate, is free with an Enthuse award. The intention is that with better continuing professional development, teachers will be able to put the wonder of contemporary science and hands-on experiments back at the heart of science lessons in every school in Britain, and pupils will be sufficiently interested to continue science through to higher education. Project Enthuse is a unique, five-year partnership between the government, the Wellcome Trust and several companies. These include BP, Vodafone Group and Vodafone Group Foundation, Rolls-Royce, GlaxoSmithKline, General Electric Foundation, BAE Systems, AstraZeneca and the AstraZeneca Science Teaching Trust. Both the government and the Wellcome Trust will give $14.5 million each to Project Enthuse, with every company providing $1.4 million. In addition, each of them will nominate a senior member of staff to join the Project Enthuse strategy board. This meets annually to discuss, among other matters, scientific ideas that should be added to the National Science Learning Centre’s curriculum. “As soon as we heard about Project Enthuse, we were keen to be involved,” says Ian Duffy, manager of BP’s UK schools education programme. “We could see that this was a step change in tackling a serious issue.” The BP Educational Service has been providing teaching aids to schools for many years, focusing particularly on STEM subjects. “This project, led by outstanding partners, enables teachers to keep abreast of their subject, gain breadth [of knowledge] and network with their peers,” explains Peter Mather, BP head of country for the UK. “The best way to inspire students is to inspire teachers. We all share a vested interest in seeing more youngsters studying science and moving into industry.” But just why is Project Enthuse needed? “The issue isn’t so much about attainment at school, as engagement,” explains Professor John Holman, director of the National Science Learning Centre, as well as National STEM director. “In terms of engagement, not enough young people are sufficiently enthused to take science at a higher level. Also, 13
  14. 14. BP Magazine, Issue One 2009 – Supporting education we see wide variability, with some schools being far more successful at engagement than others. These are the two major issues we have to tackle.” Specialist subjects The problem of pupils turning away from science because of the way it is taught was highlighted in Success in Science, a report published in 2008 by the UK’s Office for Standards in Education (Ofsted). The reasons include a shortage of teachers in specialist subjects, such as physics and chemistry; a reduction in practical laboratory-based experimental work that most pupils love; and, perhaps most importantly of all, insufficient funds for subject-based, continuing professional development for teachers. Yet, it is vital that more young people want to study science and pursue careers in the subject. “Globally, we face huge challenges,” says Sir William Castell, chairman of the Wellcome Trust and a non-executive director of BP. “Consider the following – ageing populations, climate change that drives migration, wider geographic areas for tropical disease, new challenges in the availability of food and water and, finally, energy and environmental sustainability. We need people who are scientifically curious, are interested in research and who can come up with some profound answers that will solve our problems.” Given all this, the question was just what could be done to excite young people about science? The focus turned to teachers whose knowledge, skills and enthusiasm are paramount to capturing pupils’ attention. Vastly improved continuing professional development of science teachers became a clear priority. In 2004, the Wellcome Trust provided the money to build the National Science Learning Centre. This superbly equipped training facility is the only one of its kind in the world. But a building – however wonderful – was not enough. Realising that teachers needed help to fund their professional development, Castell and Holman set out to raise sufficient capital through Project Enthuse. Their goal, over the next five years, is for a teacher of physics, chemistry and biology from every state school in the country to attend one of the National Science Learning Centre’s wide range of courses, topping up their knowledge via regional science learning centres and by making use of web-based programmes. However, the ambitions for Project Enthuse do not stop there. The National Science Learning Centre is also training scientists – including some from Project Enthuse sponsor companies – in how to work with schools. “We want scientists who are passionate about their subject to engage with teachers and pupils, to share their knowledge of science, and integrate it into the classroom through exciting, practical work,” explains Miranda Stephenson, director of the National Science Learning Centre programme. “It’s important that pupils meet scientists, gain a wider picture of science in society, see that there are opportunities for well-paid, interesting jobs in science and also have role models.” So what do teachers think of Project Enthuse? John Hamilton-Cox, a chemistry teacher from Nower Hill High School in north London comments, “Without the Project Enthuse award, I couldn’t have come on this course. We have a science faculty of 17 people. Just two people’s training here would have used up the department’s total annual continuing professional development budget.” Ian Howes, head of science at Welland Park Community College in Market Harborough is also positive: “It’s nice to be treated like a professional in professional surroundings. I’ve gained ideas that I can use in my first lesson. I’ll also share a lot of the concepts with the rest of my colleagues. This is a great opportunity to re-energise my department.” External evaluators The big question is can Project Enthuse make a difference? The National Science Learning Centre is employing external evaluators to measure the impact of its courses. However, its internal evaluations look extremely encouraging. Most courses include two residential periods with teachers returning to report on the changes they have implemented. National Science Learning Centre evaluators then rank their success. “In the academic year 2006-2007, some 73% of participants had a high impact in their schools,” notes Stephenson. “This increased to 90% in 2007- 2008. What we’re seeing is that changes are happening.” If science teachers are able to encourage more students to show an interest in science, then a virtuous circle of benefits could result. A greater number will go on to study science in higher education and there will be a greater pool of talent entering science-based careers. Some will select teaching as a career, filling the demand for specialist teachers in physics and chemistry. They, in turn, will enthuse and engage the next generation of pupils about the value of science. Even if pupils decide against studying science at a higher level, Project Enthuse can still have an impact. “One of our aims is to improve scientific literacy,” explains Holman. “It’s important we all have a basic understanding of science so 14
  15. 15. BP Magazine, Issue One 2009 – Supporting education that we can make informed decisions about issues which affect everyone in society, such as genetically modified crops and stem cell research.” But how long will it take to see more students opting for further study and careers in science? Castell believes that Project Enthuse’s five years of funding is sufficient time to make an impact. “My hope is that Project Enthuse will be big enough to make a difference and good enough to be copied,” he says. “If we prove its worth, we can go back to the government and show that high-quality continuing professional development is a requirement for mainstream education – not just in science, but for all subjects.” Unique environment: The National Science Learning Centre was built by the Wellcome Trust to provide science teachers with an opportunity to continue their professional development. Below, Sir William Castell is the chairman of the Wellcome Trust, and a non-executive director of BP. Informed decisions: one of the aims of Project Enthuse is to improve scientific literacy so that society can make informed decisions about issues such as genetically modified crops. 15
  16. 16. BP Magazine, Issue One 2009 – Business principles Corporate responsibility> Compliance + ethics Firm foundations A growing awareness of unethical business practices over the past decade has brought the subject of compliance and personal responsibility into the spotlight. At BP, this issue has been placed right at the heart of its corporate values, with a dedicated team working hard to ensure its businesses meet the highest expectations. Report> Lisa Davison Illustration> Serge Seidlitz The concept of right and wrong is probably one of the first things we remember being taught by our parents. Evolutionary biology, particularly sociobiologists, would suggest this process was more about honing than teaching, since it argues that this sense of right and wrong – also known as morals, morality and ethics – actually evolved in humans for the good of the individual and the group. Humans, like many other animals, are social beings who like to live together. This evolution, says the argument, helps curb excessive individualism for the benefit of greater co- operation. As well as living together, humans, more often than not, work collectively too, and the principles of a moral code are just as relevant as they are in a social context. As BP’s chief executive, Tony Hayward, says in the company’s code of conduct: “Our reputation, and, therefore, our future as a business, depends on each of us, everywhere, everyday, taking personal responsibility for the conduct of BP’s business.” There are well-documented cases in many industries where such personal responsibility hasn’t always been taken, and in those instances the business in question has fallen foul of the law or society’s expectations. Some are dramatic enough to cause a shift change right across the corporate world. In BP’s case, there was no drama, simply a senior executive team that looked at the external landscape and decided it wanted to keep a step ahead of the game. The first came in 2002, when BP announced it would stop all facilitation payments – small payments to low-level government officials for administrative services. The payment of bribes had already been banned, but this decision (also carried out by Shell) moved the ethical landscape. “People sat up and took notice,” says Tim Langton, vice president, segment and functions compliance team. “You cannot overstate the fact that in this area, if you get it right, it changes the landscape across all sectors and all industries.” Sustainable roots Seven years on, BP’s group-wide compliance and ethics (C&E) function has grown from strength to strength – albeit with bumps along the way – planting sustainable roots deep into all parts of the company. It has taken time and the landscape is continually evolving, with new risks as the environment changes. Tom McCormick, BP’s compliance & ethics officer is clear that a successful C&E function relies on support from the very top of the house. “BP’s executive team has been closely involved with our efforts from day 1,” he says. “Its explicit support is critical in helping each and every business recognise and more importantly, manage their risks.” Andy Inglis, chief executive of Exploration & Production, is one such supporter. “Our code of conduct makes BP’s position very clear,” he says, “and we all have a role to play in this.” Inglis’s own role has included asking the C&E team, along with BP’s legal team, to conduct an anti-bribery risk assessment project across the upstream business. “This work will identify best practice anti-bribery practices, procedures and policies for operations like ours, identify any gaps and propose actions to fill them – all of which we will then disseminate through the businesses for implementation,” he explains. The challenge for C&E, much like the teams who manage safety, is that it can never sit back and say the job is done. It is a question of ‘continuous improvement’ says Barbara Kuryk, vice president for C&E’s strategy, policy and programmes. Where safety relies on the individual to recognise unsafe practice before injury occurs – or, worse, life is lost – compliance and ethics relies on the individual to recognise unethical practice before corporate ‘injury’ occurs and reputations are lost because someone is sent to prison. The key is behaviour. Safety is an easier paradigm – everyone has felt pain so it’s more tangible – although that doesn’t necessarily mean safe practice is easier to implement, simply that an ethical dilemma can be harder to spot. The cause and effect with safety is very clear; there is a science behind it. But when faced with an ethical dilemma, 16
  17. 17. BP Magazine, Issue One 2009 – Business principles the solution can sometimes cause a completely new dilemma somewhere else along the chain. “I cannot tell you the number of times an OpenTalk [BP’s confidential compliance and ethics helpline] investigation has found that two or three people made a judgement that has created a non-compliant situation. Not because they were doing anything covert, but because they were trying to do their best, but made a bad judgement,” says Kuryk. To encourage employees to better understand the dilemmas and adapt accordingly, C&E has created a number of tools. The two most prominent are its global OpenTalk helpline (which receives more than 1,000 calls per year) and its code of conduct, benchmarked as best-in-class. The code covers five key business areas: protection of health, safety, security and environment; employee treatment; interaction with business partners; interaction with governments and communities; and appropriate handling of company assets and financial integrity. “It’s a universal standard,” says Kuryk. “If you do everything the way the code tells you to do it, you’ll be in good shape from an ethical perspective.” Simple process Of course, an 84-page document cannot cover every nuance of every instance in every part of the world. So, says Langton, the process is simple: “If there is no local guidance in the region you work in, then follow the code. If the local guidance is more exacting than the code, then follow the local guidance.” Ultimately, managing compliance and ethics is about managing risk, and McCormick believes the company has come on leaps and bounds in the way it does this. “Lots of companies are good at identifying risk,” he says. “The big question then is how you take action.” In the past, BP carried out an annual exercise in which the top 7,000 individuals in the company had to consider compliance and ethics risk and confirm they were managing it appropriately. In 2007, the team assessed the situation and came to the conclusion that it was an unwieldy process that only really asked people to list issues, with little direction on how to actually manage them. “It was an enormous task, and the business benefit was not commensurate with the effort,” says Kuryk. It was clear that if the team wanted to ensure a high standard of compliance, then the process needed to be simplified and the conversation changed. All BP’s businesses and functions know they need to manage their risks. “It is their decision, their risk,” says Langton. The role of the C&E team is to promote compliance, provide oversight and help respond to ethical quandaries. It is a collaborative effort. Rather than a central team disseminating a list of risks and leaving the businesses to figure it out, the process is a two-way conversation, in which the C&E team helps a business or function respond to known risks. And if the C&E team should spot another issue as they listen to a business, then all the better. There are, of course, risks that can have an impact on any part of BP’s activities – such as bribery, breaches of competition law, environmental protection and personal conduct – but underneath these ‘top line’ themes, there’s a second layer of more specific issues depending on which part of the business you’re focusing. “The risks have very different instances in very different parts of BP, and actually can be different in different parts of an individual segment,” says McCormick. “So, one risk could be a blanket issue right across our Exploration & Production businesses, but only relevant in one sub-segment of our Refining & Marketing operations. Our job is to make sure the programme works everywhere, while having enough flexibility to cater to all our customers. “There is a real art to understanding what is happening in the multitude of different businesses in the 65 jurisdictions where BP operates. It’s very complex and it’s multi-dimensional. It’s what makes it fun – to make compliance and ethics relevant from a business standpoint.” The ultimate goal is that this joined-up approach should run like a seam right through BP’s DNA and, to ensure that BP’s board of directors plays a critical role. While many company boards review their compliance programme once a year, BP reviews its risk profile every single business quarter. Fluid situation The attention it is given is a reflection of the fact that BP is dealing with a dynamic, fluid situation. “The fact that Tim’s team talks straight to the top of the line regularly means they understand what the businesses are experiencing as it happens,” says Kuryk. “It is about being relevant on a day-in-day-out basis,” adds Langton, “and it has to be simple otherwise people won’t do it.” Simplicity allows all BP employees to take the kind of individual responsibility for the group that Hayward describes in the code of conduct. In turn, it helps tell a strong story to the outside world – driving reputation. Indeed, other 17
  18. 18. BP Magazine, Issue One 2009 – Business principles companies have approached BP to share its experiences. And, if potential partners value BP’s ethical commitment as a reason to want to work with it, then doing the right thing brings about mutual advantage – in other words, good business in the ethical sense provides a multinational company with its license to continue operating. 18
  19. 19. BP Magazine, Issue One 2009 – BP Shipping LNG carriers> Gem class Master mariners They may have been four years in design and construction, but it has taken just a few weeks for BP’s new fleet of ‘Gem’ class liquefied natural gas (LNG) carriers to prove what a sparkling addition they are to the company’s shipping fleet. Greener, safer and more efficient than any LNG vessels before them, they have blazed a trail in the industry. Report> Nick Reed Photography> Stuart Conway To the untrained eye, there is nothing obviously ‘different’ about the sleek new liquefied natural gas (LNG) carrier that glides its way serenely, but with purpose, through the Suez Canal. Just a quick chat with the experts is all you need, however, to realise that British Diamond, along with its slightly older sisters in the new ‘Gem’ class fleet – British Emerald, British Ruby and British Sapphire – represents nothing short of a revolution in the way gas is transported around the globe. There’s the way the ships are powered for a start. Gone are the conventional single steam turbines, to be replaced by a dual-fuel diesel-electric (DFDE) system that uses a power station concept. This increases fuel efficiency and so reduces costs and greenhouse gas emissions. The technology comprises four diesel generators and two electric motors geared to one propeller, with the diesel engines capable of running on ‘boil-off’ gases from the LNG cargo tanks, or on conventional diesel fuel. “Each ship consumes around 40 tonnes per day less fuel than a traditional LNG carrier of a similar size, even though it is carrying more cargo,” explains Adrian Howard, vice president for assurance. “That equates to daily savings of up to $25,000 per ship.” Annual emissions savings are around 36,000 tonnes of carbon dioxide and 1,700 tonnes of sulphur oxides. ‘Clean seas’ is one of the core values for BP Shipping (BPS). It is a noble ambition, but not one that is always easy to achieve when dealing with shipbuilders who seek to optimise yard and construction efficiency in a competitive market and, therefore, focus on low cost, standardisation of design and speed of construction, rather than the longer-term environmental impact and increased efficiency. That was certainly the case when BPS began approaching the world’s shipyards with its vision for the Gem class. Not only was it looking for a form of propulsion that had never previously been used in a Far East-built LNG vessel, but also a different kind of hull, a non-standard engine configuration, a new cargo containment system, and even new designs for the funnel, deck house and cargo machinery room. “Convincing a yard that this was the way forward, that the technologies and innovations we were proposing would not only work but also provide them with a competitive edge, was a huge challenge,” says Nick Davison, head of discipline for marine structures in the BPS technical assurance group. Several builders actually refused to work on such a new concept, until Hyundai Heavy Industries (HHI) of Korea – the world’s biggest shipbuilder – put its head above the parapet. Design work The contract was signed in the autumn of 2004, and design work accounted for most of 2005. Exhaustive aerodynamic and hydrodynamic model testing was carried out in Sweden and the UK, to ensure the hull, bow, funnel and other external features would all function as efficiently as possible. This resulted in many other features, including novel wind deflectors over the trunk and in front of the bridge, which reduce drag. There were even laboratory tests with a paint manufacturer to investigate colours for the hull, deck and trunk that would reduce the impact of heat on the cargo tanks. And considerable attention was paid to refining the vital cargo containment area – moving the fuel tanks away from the hull, for example – to address common, and expensive, issues that have plagued other LNG ships in the past. Due to a smaller engine room, the cargo area in Gem class ships is more than 12% larger than its Trader class predecessors. 19
  20. 20. BP Magazine, Issue One 2009 – BP Shipping The first three ships were built at HHI’s Ulsan yard – British Emerald beginning service in July 2007, with British Ruby and British Sapphire following in July and September 2008 respectively. British Diamond was the final jewel in the crown: it was built at Hyundai Samho Heavy Industries (HSHI) in Samho-eup, and was delivered in October 2008. The $1 billion project came in under budget and on time overall. Without doubt, the Gem class vessels have set a new benchmark in the industry. “We were constantly pushing for higher standards,” says Mark Anderson, BPS construction manager. “We followed all the relevant guidelines and regulations at every stage, of course, but whenever we could, we looked at ways in which we could significantly exceed them.” The initially sceptical shipbuilding industry in the Far East has been forced to sit up and take notice as a result. HHI’s brave decision in rising to the considerable construction challenge has meant it is now the region’s market leader in the manufacture of DFDE-powered LNG carriers. No fewer than 57 orders for similar vessels are currently active at Far Eastern yards, making DFDE the industry’s new number one choice for LNG ship propulsion systems. Safety triumph The programme was a health and safety triumph, too, with just four lost time injuries sustained by Hyundai staff, in a total of 4,731,201 shipyard hours. There was only one BP recordable injury in that time: when an inspector fell off his bicycle and slightly sprained his wrist. Successful new internal relationships have also been forged. “There was great co-operation between the design and construction teams and the sea staff,” explains Chris Bailey, BPS technical manager, fleet. “We ran workshops with engineering officers and deck officers during the initial design phase, then put engineering officers in the Korean site teams for three months at a time so they could see how the ships were built. The aim was to increase awareness and understanding of what we do among end users.” Perhaps most importantly, of course, do the ships work? “Absolutely,” says BPS charterer, Bruce Moore. “They are materially more complicated than our other ships, so the engineers in particular are getting to grips with a number of operational challenges. But the ships are all in service, are all busy, and the feedback from crews is extremely positive.” So, safer, greener and more efficient ships that produce improved performance and clear commercial benefits; new design and construction standards; and happy crews. Oh yes, and cleaner seas. Not just gems by name, it would appear, but also gems by nature. Facts and figures Per vessel specifications of BP’s new ‘Gem’ class of LNG-carrying ships: Length 288 metres (944 feet) Width 44.2 metres (145 feet) Draft 11.47 metres (38 feet) Deadweight 76,000 tonnes Gross tonnage 99,600 tonnes Cargo capacity 155,000 cubic metres Service speed 20 knots Main engines Two 12-cylinder Wartsila 50DF (1,400kW) plus two 9-cylinder Wartsila inline 50DF (8,550kW) – all at 514rpm. Generators Two Converteam 6.6kV (10,313kVA) plus two Converteam 6.6kV (13,750kVA) 14-pole salient machines Shipowner BP Shipping Shipbuilder Hyundai Heavy Industries Flagged Isle of Man 20
  21. 21. BP Magazine, Issue One 2009 – Viewpoint Stravinsky recording All the rite notes Report: lisa davison / Photography: Richard davies On a cold November day last year, a group of talented young musicians from the Trinity College of Music Symphony Orchestra gathered together in London’s oldest concert hall for a very special recording of Stravinsky’s The Rite of Spring and Elgar’s Enigma Variations. The music is to be used in a BP film commissioned to mark the company’s centenary year. In production for the past three years, the film begins with a recreation of the moment geologist George Reynolds and his team first struck oil in May 1908. It is this moment that Stravinsky’s piece – notorious for its complicated melodies – illustrates musically, while Elgar’s arrangement represents the ‘Englishness’ of Reynolds. The professional commission gave the students invaluable experience of a real recording session, while providing Trinity with the funding to bring in Edward Gardner – one of Britain’s pre-eminent conductors – to coach the orchestra. The next issue of BP Magazine will celebrate BP’s centennial year with a special historical edition. 21
  22. 22. BP Magazine, Issue One 2009 – International operations Country report> Brazil Brazil the undiscovered country Business and tourism are on the rise in Brazil – a vast country that spans more than half of the South American continent. With strong positions in jet fuels, auto and manufacturing lubricants, and a new venture in sugar cane-based biofuels, BP is finding itself well placed to take advantage of this growing interest. Report> Paula Kolmar Photography> Marc Morrison As I stood at the base of one of the world’s most recognised sculptures, watching a bright sun’s white radiance turn to a soft glow with the approach of dusk, I considered a well-kept secret I learned about Brazil. A country known for its beautiful people (inside and out I must add), the Amazon rainforest, Carnival, World Cup football teams, famous beaches and its Portuguese language is quietly building up its resource muscle and cultivating its business acuity. Brazil is a remote giant that is poised to emerge as a formidable influence in the world. Atop a mountain named Corcovado in Rio de Janeiro, the massive, awe-inspiring sculpture of Christ the Redeemer stands, arms extended wide, leaving its message open for interpretation, perhaps a religious symbol, maybe a welcome, or embrace of protection. “Look at all that Brazil offers,” it seems to say, “and see a bright future, new growth and fresh opportunities.” BP has certainly seen those opportunities and is busy growing its presence in the South American country, although not, at the moment, in the way one might expect. Brazil produces hydrocarbons primarily from the Atlantic Ocean in the Campos basin in the southeast – in 2008 it produced around 2 million barrels per day. Many energy companies, including the national oil company Petrobras and BP, have their main offices in Rio, the original gateway to Brazil. An extraordinary place, Rio is a city of millions, where breathtaking beauty and extremes of wealth and poverty are tightly packed between mountains, hillsides and world-renowned beaches – Copacabana and Ipanema. It may soon be famous as an energy centre, too. Recent oil discoveries off the city’s coast have some experts believing vast resources lie beneath a dome of salt and rock. This news lifted the country and, one could argue, even stimulated economic growth and development, thus leading to more jobs and more money to spend or invest. Along with Russia, India and China, Brazil is recognised as one of four key emerging markets that will drive future global growth and it is this potential that BP is working hard to tap into: specifically in lubricants and aviation fuel. São Paulo, the most populous city in Brazil, is home to BP’s lubricants business and Air BP offices, and serves as the global development centre for BP’s premiere venture into biofuels, using sugar cane rather than corn. Sampa, as it is commonly called by locals, is a cosmopolitan city with an expanding middle-class economy and evolving small- business sector. Portuguese, the national language, is often the only one travellers encounter outside of their hotels. The southeast region, where Rio and São Paulo are located, represents close to 80% of the population and 60% of Brazil’s buying power. About an hour’s travel by plane, the two metropolises cover a compact area of southeastern Brazil, one of the five largest countries in the world. From a marketing point of view, the two cities offer convenient exposure to roughly 20 million potential customers in a country where people love and depend on their cars, and take pride in maintaining them with the best products they can afford. That means changing the oil under the hood regularly using high-performance, branded and proven engine oil products. BP Lubricants’ Castrol brand, sold in Brazil since the 1950s, takes the needs of customers very seriously and designs oils with specifications targeting a suite of vehicles, from small flex-fuel cars to large cargo trucks. The Castrol brand also serves Brazil’s growing automotive manufacturing, metalurgy and machinery manufacturing industries. BP Lubricants’ Industrial Lubricants & Services (ILS) division also works closely with the mining industry – Brazil’s iron ore exports generate around $2 billion in annual revenue – and sugar mills. As of 2007, Brazil is the world’s largest producer of sugar cane. Castrol lubricants are produced and packaged at a plant on the outskirts of Rio. Demand for the products is high, and output is closely managed by Salim Abi Saab. “Because of this demand, the plant operates flat out. Unscheduled downtime is an unacceptable risk, as are poor safety habits,” Abi Saab explains. “We have a rigorous production schedule and an intricate arrangement for truck arrivals, loading and departures. Safety is managed with a firm hand for employees and shippers alike. It is a key feature in our ability to maintain the customers’ expectations of quality and delivery.” Back in São Paulo, Mauricio Garcia-Ramos and Carlos Cardozo, the heads of automotive and industrial 22
  23. 23. BP Magazine, Issue One 2009 – International operations lubricants, recently implemented a new marketing programme that makes efficient use of distributors to increase product sales throughout the sprawling and sparsely populated regions of Brazil. “After a few months, the positive impact of the programme is evident in the numbers,” says Garcia-Ramos and Cardozo. Air travel within Brazil and from around the world is on the rise. The country’s 67 airports are operated by the government entity Infraero, which is dedicated to meeting the demand and improving flight safety. Tourism is a major growth area, with investors opening more resorts and hotels on exquisite beaches and close to areas of hard-to-access natural beauty, which had previously required visitors to stay in small campsites. ‘Build it and they will come’ as the old saying goes, and so it is in Brazil. Air BP, imbued with a passion and process for safety and efficiency, is establishing itself as the aviation fuelling company recognised as having the safest operation in the country,” says Marcelo Soares, operations manager. The first new aviation fuelling company in Brazil in 50 years, Air BP has brought innovative ideas and proven safety measures for fuelling planes accurately. This is evident in the fact that Brazil’s government is currently assessing Air BP’s safety procedures and is planning on making its ‘no decal no fuel’ policy a law in the country. “Brazil’s jet fuels market has grown 8.1% and 7.7%, respectively in 2007 and 2008. After completing construction of the Rio de Janeiro International Airport terminal and the pipeline to access local fuel supply in May 2008, Air BP Brazil has established a solid foundation for business growth”, says Ricardo Paganini, Air BP Brazil country manager. The safety philosophy and procedures align with the objectives of Infraero: to put in place a safe, efficient fuelling process in order to prepare for the anticipated increase in air traffic. Tourism is a big part of the growth, but business travel is on the rise as well. Visiting the Brazilian Consulate in Houston, I discover that applications for business visas to Brazil have grown at a remarkable rate over the past 18 months. Whether tourism or business is attracting people to Brazil, the hidden potential is building momentum. Paulo Pinho, head of BP’s biofuels venture in the country, sees the opportunity in Brazil as far-reaching. “Given today’s petroleum price volatility and the global interest in reducing dependency on hydrocarbon fuel, our joint venture, Tropical Bioenergia, gives BP a position in the growing sugar cane ethanol industry in Brazil,” says Pinho. And Brazil is the place for this business, producing around 22 billion litres of sugar cane ethanol per year, according to its industry organisation UNICA, and continues to show big growth. With two harvests per year, sugar cane is plentiful in Brazil, and studies show that there is enough arable land available to support production of biofuels without having an impact on land for food crops, or sensitive areas such as rainforests. Brazil is far ahead of most countries in providing fossil and biofuels to consumers; 90% of the vehicles are flex-fuel, so the driver can switch fuels whenever the prices change. “Increasing capacity for making sugar cane ethanol, as we plan to do at Tropical, creates more opportunity for exporting to consumers who want the choice.” Discovering Brazil is a trip more and more people and businesses are taking, and the prize is a gold mine of fortune and prosperity from every direction. The undiscovered country is about to burst onto the world’s radar. History: Brazil is the largest and most influential country in South America, and the only one whose people speak Portuguese. Following 300 years of rule under Portugal, Brazil became independent in 1822 and a republic in 1889. Governance fell under military control until a peaceful transition to civilian administration in 1985. Trade: The discovery of diamonds, gold and other precious metals peaked the interest of Portugal and France in the 16th century. Mining remains one of its key industries. Highly developed agriculture, manufacturing and service sectors support its presence in world markets, with the US as its primary trading partner. Culture: Passionate, warm people characterise Brazil’s population and they are a nation of zealots when it comes to football (soccer). The comfort and pleasure of guests dominate their lifestyle, and visits always begin with the offer of strong coffee in tiny espresso cups, followed by immense generosity with their time and space. Passion for health and beauty is obvious, but Brazilians look for it as much on the inside as on the outside of people. New hope for prosperity Favelas (fah - veh - lahs): shantytowns and slums of Rio de Janeiro and São Paulo; rich in history; the only affordable housing for lower-working-class people; violence is common. Famous and infamous at once, Rio’s favelas number around 1,000. The peculiar urban geography of the city has meant many are placed on hillsides that face the prosperous seaside neighbourhoods and tourist spots. They provide a striking illustration of the dramatic gap between rich and poor. 23
  24. 24. BP Magazine, Issue One 2009 – International operations Favelas are a culture within a culture, self-governing, caught in a cycle of poverty from which it is hard to break free. Living conditions have been a major issue in Brazil for at least a century, and many attempts to ‘cure’ the problem have left them in the same spiral at a growing rate. Documentaries, movies, and tours have placed a small spotlight on favelas, but as Brazil advances its global presence, attention is intensifying. Small strides are helping direct people towards the hope of prosperity. Cristina Brunet, community affairs coordinator for all of BP Brazil’s businesses, is getting the company involved with passion and funding. She is a Carioca (native of Rio de Janeiro) to the core and believes passionately in a future for people in the favelas. “Most residents are hard-working and ambitious, grasping for opportunities to improve themselves,” she explains. “Education and training give them the chance to see a better future.” Rio’s Favela da Maré is a community that supports education, art, and tutoring for university entrance exams through a homegrown organisation called CEASM, founded in 1997. We were permitted to visit the school where BP sponsors language courses in English, Spanish and French. Just as extraordinary is the recently opened museum of Maré history and local works of art. One of the CEASM founders explains why he built the museum: “The people like to express themselves through art to tell a story or reflect the place where they live. wanted to give them a place to exhibit their art and possibly motivate others to take part.” Vital statistics: Name: Brazil Area: 8,511,965km2 (3,286,488 square miles) Population: 196,342,592 Life expectancy: 71.71 years Capital city: Brasília Climate: mostly tropical, but temperate in the south Language: Portuguese Religion: Roman Catholic (73.6%); Protestant (15.4%) Currency: real Major industries: agriculture, textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts. 24
  25. 25. BP Magazine, Issue One 2009 – Technology University partnerships> Climate modeling Climate’s crystal ball No matter how you look at it, when it comes to the Earth’s climate, change is definitely in the air. Nina Morgan finds out how climate modelling can provide a glimpse into the climatic conditions we can expect in the future. Report> Nina Morgan Imagery> NOAA From rising global temperatures to changing rainfall patterns, and increases in the severity of storms – climate change affects us all. But how will the climate change in the future? And what factors will determine it? The honest answer, says Dr V Ramaswamy, director of the Geophysical Fluid Dynamics Laboratory (GFDL) – a US Department of Commerce-funded National Oceanic and Atmospheric Administration (NOAA) lab in Princeton, New Jersey – is simple: “We still have lot to learn!” But he is quick to point out that thanks to advances in climate modelling, scientists now have a much better grasp of how the climate system works. This new understanding can help when it comes to meeting the many challenges it poses to our way of life. Climate modelling involves using mathematical equations to describe processes in the climate system, and the effects of the interactions that take place between them. The first general circulation model – effectively the first model of the climate system – was developed in 1969 at GFDL. Newer climate models take many more processes into account, and GFDL researchers remain at the forefront of the modelling field (see left). “We don’t have a conventional laboratory to test how these various processes interact or the role each plays in affecting the Earth’s climate,” explains Dr Ramaswamy. “Instead, we use powerful supercomputers as our ‘laboratory’ to explore how these various systems influence the Earth’s climate both now and in the future.” It’s a tall order. To know how the climate will change in the future, it’s necessary to understand how climate systems behave in the present and have done in the past. Like weather forecasting, this relies on numerical models and analysing vast amounts of data gathered from land-, sea- and satellite-based observation, to gain a better picture of the many and varied processes that affect and control climate (see page 51). While changes in the composition of the Earth’s atmosphere – such as rising levels of carbon dioxide (CO2), decreasing ozone levels in the stratosphere, and the effects of changes in the level of particulates that contribute to air pollution in different parts of the world – are important, other variables also play key roles. These include, for example, changes in the amount of solar radiation that reaches the Earth’s surface and natural phenomena, such as ocean circulation and ocean/atmosphere interactions. Climate modellers begin by developing numerical models to describe these individual systems and variables, and then go on to combine them to build very large, complex numerical models. The aim is to accurately describe the Earth’s current climate system in order to better understand how the atmosphere works, how greenhouse gases affect the atmosphere and trap heat next to the surface, and how the oceans interact with the atmosphere, the terrestrial biosphere and plants and animals on the land. “The key to climate modelling is to bring all the equations together to work towards an integrated knowledge of how the coupled atmosphere-ocean-land system works,” says Dr Ramaswamy. “But before we can use the models to predict the future, we first have to validate them to make sure they adequately describe the present.” Only then can modellers ‘force’ the models – or incorporate ‘what if’ scenarios – to gain an idea of how the climate may behave if, for example, oceanic or atmospheric conditions change.” With so many processes and scenarios to consider, developing and running the models is a major challenge, as is interpreting the results. Both weather and climate are subject to natural variations, which have nothing to do with the forcing that drives climate change. Sorting out those variations from the effects of forcing requires a major effort. Ironically, says Dr Ramaswamy, “although we are still not able to reliably predict climate variability with our modelling, we can use it to study the effect of the forced variations in order to get a good handle on how the global climate will change over a timescale of decades. And we can also get a good idea of what is causing the changes.” 25
  26. 26. BP Magazine, Issue One 2009 – Technology Temperature records reveal that during the 20th century the climate system as a whole had warmed. The model results confirm that most of this global warming can be attributed to observed increases in concentrations of greenhouse gases. These rises have been strongly influenced by human activity, with the continuous rise in anthropogenic – or human-generated – CO2 levels responsible for about 55% the warming effect. But climate modelling is not all doom and gloom. It is also useful in exploring the options for adapting to, and mitigating the effects of, climate change. The information derived from climate modelling is already being used to clarify the options policy makers need to understand in order to make the right choices to prevent further environmental damage. Climate modelling results will, for example, play an important role in a two-year study focusing on climate change and climate choices, beginning at the US National Academy of Sciences. There are a number of scientifically-based options – for example, carbon capture and sequestration, or planting more forests – under consideration. “But whether these are the best options and whether they are economically feasible,” says Dr Ramaswamy, “is another question. Developing mitigation strategies for global warming is – like understanding climate change itself – a great balancing act, and decisions must be taken with great care.” The good news is that the technology for climate modelling continues to improve. “By developing better ways to analyse data more intelligently, climate modellers are increasing our quantitative understanding of how climate works. Thanks to the growth in computing power, better methods of data collection and handling – and, most importantly, increased brain power – we know more about the climate system than we did 10 years ago, and this is being fed back in to improve our understanding even further. Climate modellers have already unravelled many aspects of the climate system and contributed useful information to help the world adapt to or mitigate climate change. Thanks to continuing incremental advances in observation technology, coupled with ever-growing computing power, we’re learning more all the time.” Science Stats BP’s university science research programmes Some of the climate modelling work carried out by the GFDL is done in collaboration with Princeton University professors Steve Pacala and Robert Socolow, co-directors of the Carbon Mitigation Initiative (CMI). Princeton has world-renowned climate modelling expertise in its own right, and has developed a number of important techniques and methodologies to help better understand the planet’s atmosphere in the past and present, and what is shaping events and factors. BP and Ford established the CMI at Princeton University in 2000 to carry out research into the fundamental scientific, environmental and technological issues that will determine how carbon can be managed in the future. BP’s original 10-year commitment to CMI provided $1.5 million a year, and was later increased to more than $2 million a year. Recently, BP has agreed to extend the partnership for a further five years, from 2011 to 2015. The CMI is just one of the long-term university science research programmes that BP supports. Others include: • The BP Institute for multi-phase flow, based at the University of Cambridge, UK • The Methane Conversion Cooperative (MC2), based at the California Institute of Technology and the University o f California, Berkeley, US • Clean Energy: Facing the Future and the Energy Innovation Laboratory, based at Tsinghua University, the Dalian Institute of Chemical Physics, and the China Academy of Sciences • Ocean Science and Deepwater Technology, based at the Scripps Institution of Oceanography, US • The Urban Energy Systems Project, based at Imperial College, London, UK • Nanotechnology Solar Research, based at the California Institute of Technology • Energy Biosciences Institute, based at the University of California, Berkeley, the University of Illinois and Lawrence Berkeley National Laboratory, US • Energy Initiative and Advanced Conversion Research Project, based at the Massachusetts Institute of Technology, US. 26
  27. 27. BP Magazine, Issue One 2009 – Technology Weather and climate: what’s the difference? Weather refers to the state of atmospheric conditions, such as humidity, precipitation, temperature, cloud cover and wind at any one place at any one time. Climate, in contrast, refers to the characteristic pattern of weather elements over several decades. Weather forecasting and climate modelling generally rely on the same sort of data – but treat them in different ways. The goals are different, too. For weather forecasting, the aim is to predict accurately what the weather will be like a few days in the future. With climate modelling, the challenge is to predict how climate systems will behave and what will influence their behaviour decades into the future. 27
  28. 28. BP Magazine, Issue One 2009 – Arts & Culture China: Journey to the East The great call of China With 1.3 billion people – a quarter of the world’s population – living in a country the size of Europe, an unparalleled manufacturing base, and having hosted the 2008 Olympic Games, interest in all things Chinese is, arguably, greater than ever before. The timing is perfect then, for China: Journey to the East – a British Museum touring exhibition supported by BP. Hester Thomas finds out more. Report> Hester Thomas Photography> Trustees of The British Museum Seen in profile, the horse’s mouth is agape as if it has just been pulled up short. In the saddle, the small, solid figure of a soldier turns to the viewer. Resplendent in armour and helmet, his face is fearsome, the eyes narrowed and the lips firmly set. He strokes his beard as if contemplating which few, carefully selected, words he should use in rebuke. This, it is clear, is a man of action. Meet Guan Yu, a great general and Chinese hero who was later deified and worshipped. He appears on a roof tile, made in north China during the Ming Dynasty some time between 1490 and 1620. According to traditional Chinese belief, roofs are platforms of communication between the world of the living and spirit realms. Consequently, they were decorated to ward off evil, as well as attract blessings and good fortune. This curious artefact is just one of more than 100 that the British Museum is sending on tour around England from 2009 to 2011, in a fascinating and free exhibition – China: Journey to the East. The British Museum holds the nation’s finest Chinese collection, and this will be the largest loan of Chinese material that it has ever made in the UK. However, as Jessica Harrison-Hall, curator of Chinese ceramics at The British Museum, as well as curator of this exhibition, explains, “While these artefacts form the core of the exhibition, each museum will add its own collection or show items borrowed from local institutions. So, every venue will feature extra, different and exciting objects.” China: Journey to the East is a CHINA NOW legacy project and has major support from BP. In addition, it has received funding from the National/Regional Museum Partnerships Education Programme 2008-2009, a joint initiative between the Department for Culture, Media and Sport and the Department for Children, Schools and Families. BP’s involvement in the exhibition and tour came as the result of CHINA NOW being formed to promote Chinese culture. Running in the six months up to the 2008 Olympic Games, it grew to be the largest festival of Chinese culture ever to take place in the UK. BP has substantial interests in China. It first operated there in the early 1970s and, currently, has a total investment of more than $4.5 billion. Indeed, the company is one of the country’s leading foreign investors. The timing of China: Journey to the East is important. “One of the aims of CHINA NOW was to create a legacy,” explains its chief executive officer, Simon Heale. “We wanted the British public – and especially children – to learn more about China long after the festival was over. This exhibition will achieve just that.” BP sought to channel support for CHINA NOW through one of the four major arts and cultural institutions with which it has strong relationships. Via The British Museum, National Portrait Gallery, Royal Opera House and Tate Britain, the company aims to make the best in arts and culture accessible to as many people as possible. “Around the same time that CHINA NOW was in development, The British Museum also presented a proposal for a touring exhibition,” explains Des Violaris, BP’s director of UK arts and culture. “The exhibition would be on China and included a substantial educational programme, enabling it to reach many more people. It was one of those serendipitous moments when a perfect solution, which will work for everyone, presents itself.” Neil MacGregor, director of the British Museum, was especially pleased to find an enthusiastic partner, as he explains, “China’s history is one the world needs to know, now more than ever before. China: Journey to the East will give UK audiences an insight into China’s cultural achievements over the past 3,000 years to the present day.” The exhibition’s launch announcement was made during Chinese New Year 2008 at the start of the CHINA NOW festival, in a spectacular day of celebration at The British Museum. Supported by BP in association with CHINA NOW and China in London, the British Museum ran an extensive programme featuring dance and shadow puppet troupes, music, children’s workshops, games, films and storytelling to celebrate the Year of the Rat. 28
  29. 29. BP Magazine, Issue One 2009 – Arts & Culture A record 35,602 people attended – including the Chinese ambassador, Madame Fu Ying, and her staff. For the first time since it opened to the public in 1759, the museum had to close its doors due to overwhelming visitor numbers. China: Journey to the East is based around five themes, developed with the advice of teachers in conjunction with the partner museums. They are play and performance; technology; beliefs and festivals; food and drink; plus language and writing. Among other features, the exhibition reveals some of the many Chinese inventions that became part of worldwide history: silk, crossbows, stirrups, gunpowder, compasses, paper and printing, the abacus and porcelain. It also includes a handling collection, with items such as spices, games, costumes, musical instruments and chopsticks, so that visitors can explore objects further. The cross-curricular educational programme that complements China: Journey to the East is targeted at school- children from seven to 14 years old, plus their families and teachers. An important aspect of the exhibition’s public programme will be the role of Chinese communities in the UK. All the venues have Chinese neighbourhoods, including many twinning arrangements with Chinese cities. There have been well-established links between China and Britain since the 17th century, when China became a major maritime trading nation. For many years, the Chinese were transient visitors, but, gradually, some settled in the UK. The 1851 census recorded just 78 Chinese-born residents in England and Wales. However, by 2004, some 143,500 Chinese people were recorded living in Britain, with growing numbers coming to study at UK universities. “We hope all visitors – regardless of age or ethnicity – will be engaged by the five themes, as well as the handling objects,” says Frances Carey, senior consultant for public engagement at The British Museum. “Also, that they learn how China has a resonance in all aspects of their lives in ways that, perhaps, they never realised.” China: Journey to the East opens at Bristol’s City Museum & Art Gallery on 24th January 2009 as part of the festivities for the Chinese Year of the Ox. It will stay there until 19th April 2009, then move on to: — The Herbert, Coventry: 2nd May – 19th July 2009 — Willis Museum, Basingstoke: 1st August – 24th December 2009 — Sunderland Museum & Winter Gardens: 29th January – 9th May 2010 — York Art Gallery: 22nd May – 5th September 2010 — Manchester Museum: 25th September 2010 – 26th June 2011 For more information, visit: www.britishmuseum.org/whats_on/touring_exhibitions_and_loans/china_journey_to_the_east.aspx 29
  30. 30. BP Magazine, Issue One 2009 – Factfile 5 Top tankers BP Shipping has a long, illustrious history spanning much of the 20th century. During that time, it witnessed many industry and company ‘firsts’. 1 British Emperor 1916-1941 The British Emperor (above) was the first vessel to carry the ‘British’ name, a tradition that continues today. Her first voyage carried fuel oil from Abadan in Persia (now Iran) back to the UK. On 7th May 1941, during a voyage from Durban, South Africa to Abadan, she was captured and sunk by the German raider Pinguin at a position 480 km (300 miles) south, southeast of Socotra, off the coast of Yemen. 2 British Valour 1927-1953 In 1942, the British Valour became the first of the company’s tankers to carry out the important task of regularly refuelling HM Escorts vessels while at sea, on the UK to Freetown, South Africa route. In the same year, BP suffered its worst shipping losses of the Second World War. 3 British Glory 1927-1954 First built in 1927, the British Glory became the first company vessel to be fitted with a fore and aft bridge in 1943 so that it could carry out refuelling duties while still at sea. It also suffered torpedo damage in 1940 during the Second World War. British Explorer 1969-1981 The British Explorer was the company’s first 215,000 dead weight tonnage (dwt) very large crude carrier (VLCC). During the course of the 1970s, VLCCs of up to 270,000dwt began to join the fleet. As the vessel size grew, numbers of tankers decreased. British Trader 2002- The British Trader was one of the first of the new ‘Trader’ class double-hulled vessels carrying liquefied natural gas (LNG). These vessels were the first to be ordered for general trading instead of on a contract basis. In other words, they were free to trade wherever the market took them, instead of following a set ‘bus’ route. 30
  31. 31. BP Magazine, Issue One 2009 – Environmental impact Online measurement> BP Energy Lab Testing your credentials The launch of the BP Energy Lab builds on the company’s highly successful carbon calculator to help individuals discover ways to reduce their impact on the environment. Report> Helen Campbell When BP launched its ‘carbon calculator’ in 2005 as an online tool for individuals to determine the impact of their lifestyles on the environment, many saw it as a somewhat surprising move. What was a producer and retailer of fossil fuels doing telling people about their carbon footprint? But the calculator was a resounding success, receiving more than 1 million hits in its first six months, and enjoying a 70% completion rate. The website offered people a means to reduce their impact on the environment, while the company looked at a range of alternative energies and efficiencies to do the same in-house. Since its launch, other corporates and bodies, including governmental agencies and environmental non-governmental organisations, have introduced their own versions, with varying degrees of success and scientific basis. As the paradox between energy security, the cost of energy and the environment becomes more acute, BP is introducing an updated version of the calculator. The new BP Energy Lab is an innovative online portal, that offers individuals a convenient place to access a number of BP’s existing online efficiency and environmental impact measurement tools, along with some new ones. The site’s new Energy Calculator updates many of the features of the original version. Taking just minutes to complete, the tool asks users for information, including their country, size of their house and number of occupants, the number of short- and long-haul flights taken, and car and train miles travelled in a year. It then calculates the user’s energy consumption in kilowatt-hours and the carbon footprint in tonnes, weighed against the country average. Visitors can also access a well-stocked Energy Facts database, take an enlightening energy quiz, or find energy efficiency tips. BP Energy Lab also encompasses an updated ‘targetneutral’ section, which builds on the success of a programme BP first launched in the UK in 2006. targetneutral asks drivers to reduce, replace and neutralise their vehicle’s environmental impact by helping to fund emissions reduction projects. The initiative has neutralised more than 80,000 tonnes of carbon dioxide emissions to date, through projects ranging from wind energy in India to composting in Australia. Green Streets Two of the lab’s most exciting new activities are the SimCity™ ‘Green Streets Challenge’, where users design a town and build its economy using alternative energies, and the ‘Green Driving Test’. The latter challenged several British journalists to drive as many miles as possible, using the same car and route, on exactly one litre of BP Ultimate unleaded fuel. Results show that it is often the driver, not the car, that has the greater effect on the fuel consumption and outputs of a journey. Meanwhile, an ‘Energy Hero’ game allows players to take Jackson the cartoon dog, or one of his friends, for a walk to spot ways they can save energy at home. They can click to switch off lights, the television and the tumble drier, or put ‘rubbish’ into the recycling bin, the hope being that they will transfer this into real life. While the whole site has a clean, engaging look and feel, employing a friendly animated professor to help users navigate through the various tools, its developers have taken advantage of the latest technical capability to bring it right up to date. “There is considerable awareness of the need for energy efficiency, coupled with growing concern about energy prices,” says Kathy Leech, BP’s director of brand communications. “We have been able to add capabilities to the calculator that weren’t available in 2005, such as individuals’ energy usage and ways to improve energy efficiency. “The Energy Lab Calculator is built on the same questions as the first version, but is more interactive, with fun animation and graphics, which we can do because of increased online infrastructure.” 31

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