BP

• 1. Origins And Early Expansion

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  In May 1908, a group of British geologists discovered a large amount of oil at Masjed Soleyman located in the Khuzestan Province in the southwest of Persia. William Knox D'Arcy obtained permission to explore for oil through a contract with Ali-Qoli Khan Bakhtiari. This event changed the history of the entire region and led to petrochemical industry development. On the 14th of April 1909, the Anglo-Persian Oil Company was incorporated as a subsidiary of Burmah Oil Company. Some shares were sold to the public immediately after establishment. The first chairman became Lord Strathcona. In 1912, the refinery built on Abadan Island began operating. The British government acquired a controlling interest of 50.0025% in the company in 1914. Winston Churchill urged this move while serving as First Lord of the Admiralty. The navy quickly switched from coal to oil for most warships. APOC signed a 30-year contract with the British Admiralty for supplying oil at a fixed price. In 1915, the company established its shipping subsidiary called the British Tanker Company. By 1916, it had acquired the British Petroleum Company which was a marketing arm of the German Europäische Petroleum Union. After World War I, APOC started marketing products in Continental Europe. Refineries were built in Llandarcy in Wales and Grangemouth in Scotland. It also acquired the controlling stake in the Courchelettes refinery in France. In 1923, Burmah employed Winston Churchill as a paid consultant to lobby for exclusive rights to Persian oil resources.

• 2. Privatization And Global Mergers

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  The British government sold 80 million shares of BP at $7.58 in 1979 as part of Thatcher-era privatization. This sale represented slightly more than 5% of BP's total shares and reduced government ownership to 46%. On the 19th of October 1987, Prime Minister Margaret Thatcher authorized the sale of an additional GBP7.5 billion ($12.2 billion) of BP shares at 333 pence. This represented the government's remaining 31% stake in the company. Peter Walters served as chairman from 1981 to 1990. During his tenure he reduced the company's refining capacity in Europe. In 1984, Standard Oil of California was renamed Chevron Corporation. To meet anti-trust regulations, Chevron divested many Gulf operating subsidiaries. They sold some Gulf stations and a refinery in eastern United States to British Petroleum and Cumberland Farms in 1985. In 1987, British Petroleum negotiated acquisition of Britoil and remaining publicly traded shares of Standard Oil of Ohio. At the same year it was listed on Tokyo Stock Exchange where its shares were traded until delisting in 2008. Robert Horton replaced Walters as chair in 1990. John Browne joined BP in 1966 and rose through ranks to become managing director in 1991. He was appointed group chief executive in 1995. In 1998, British Petroleum merged with Amoco becoming BP Amoco plc. Most Amoco stations in United States were converted to BP brand and corporate identity. In 2000, BP Amoco acquired Atlantic Richfield Co. and Burmah Castrol. Together with ARCO acquisition, BP became owner of 33.5% stake in Olympic Pipeline.

• 3. Catastrophic Environmental Incidents

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  On the 23rd of March 2005, fifteen workers were killed and more than 170 injured in Texas City refinery explosion. Major upgrades to the 1934 refinery had been postponed to save money. Three months later, Thunder Horse PDQ nearly sank during a hurricane. Workers installed a valve backwards allowing ballast tanks to flood. Repairs costing hundreds of millions kept Thunder Horse out of commission for three years. Lord Browne resigned from BP on the 1st of May 2007. Tony Hayward became new chief executive who shifted emphasis from alternative energy focus. Safety would henceforth be company's number one priority. On the 20th of April 2010, Deepwater Horizon oil spill happened as major industrial accident. Bob Dudley replaced Tony Hayward as CEO serving from October 2010 to February 2020. The spill leaked about 4.9 million barrels of oil into marine waters causing severe environmental consequences. It cost the company more than $65 billion including fines and penalties exceeding $18.7 billion under Clean Water Act. This represented largest criminal resolution in US history. In 1967, giant oil tanker Torrey Canyon foundered off English coast with over 100,000 tons crude oil spilled into Atlantic. Ship was owned by Bahamas-based Barracuda Tanker Corporation flying flag of Liberia. RAF jet bombers bombed ship attempting to break up leaking oil but failed to destroy slick. In 2006, Prudhoe Bay oil spill occurred representing largest oil spill on Alaska North Slope resulting in US$25 million civil penalty.

• 4. Strategic Shifts In Energy Markets

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  In January 2010, Carl-Henric Svanberg became chairman of BP board of directors. Following Deepwater Horizon disaster, BP announced divestment program selling about $38 billion worth non-core assets to compensate liabilities related to accident. In July 2010, BP sold natural gas activities in Alberta and British Columbia Canada to Apache Corporation. It sold stake in Petroperijá and Boquerón fields Venezuela plus Lan Tay and Lan Do fields Nam Con Son pipeline. The Phu My 3 power plant Vietnam went to TNK-BP while forecourts and supply businesses Namibia Botswana Zambia Tanzania Malawi transferred to Puma Energy. Wytch Farm onshore oilfield Dorset package North Sea gas assets sold to Perenco. Natural-gas liquids business Canada went to Plains All American Pipeline LP. Texas City Refinery and associated assets transferred to Marathon Petroleum. Gulf of Mexico located Marlin Dorado King Horn Mountain Holstein fields also non-operated Diana Hoover Ram Powell fields sold to Plains Exploration & Production. Non-operating stake Draugen oil field transferred to Norske Shell UK liquefied petroleum gas distribution business sold to DCC. In November 2012 US Government temporarily banned BP from bidding any new federal contracts. Ban conditionally lifted March 2014. In 2011-2015 BP cut down alternative energy business announcing departure from solar market December 2011 by closing BP Solar. Company shut down BP Biofuels Highlands project developed since 2008 making cellulosic ethanol from switchgrass biomass. In 2015 BP decided exit other lignocellulosic ethanol businesses selling Vivergo stake Associated British Foods. BP DuPont mothballed joint biobutanol pilot plant Saltend. June 2014 BP agreed deal worth around $20 billion supplying CNOOC with liquefied natural gas. Statoil Fuel Retail aviation fuel business sold BP. To ensure competition authorities approval former Statoil aviation fuel businesses Copenhagen Stockholm Gothenburg Malmö airports sold World Fuel Services 2015.

• 5. Geopolitical Operations And Controversies

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  Investigative journalism BBC Panorama Africa Eye aired June 2019 criticizing BP way obtaining development rights Cayar Offshore Profond St Louis Offshore Profond blocks off Senegal coast 2017. Frank Timis company Petro-Tim previously unknown oil industry awarded license explore blocks despite having no known record industry. Soon after Aliou Sall brother Senegal president Macky Sall hired company implying conflict interest causing public outrage Senegal. Program accuses BP failure due diligence agreeing deal Timis Corporation 2017 expected provide substantial royalties Frank Timis despite accusations initially obtaining exploration rights corruption. Kosmos Energy also implicated BP refutes implications improper conduct. Regarding acquisition Timis Corporation interests April 2017 BP states paid considered fair market value interests stage exploration/development. However details valuation basis remain confidential stating amount which would paid separately BP to Timis Corporation less than one percent Republic Senegal receive. Senegal justice ministry called inquiry energy contracts. In February 2025 BP signed $25 billion deal redevelop four oil gas fields Kirkuk Iraq. BP has major liquefied natural gas activities Indonesia operating Tangguh LNG project began production 2009 capacity 7.6 million tonnes liquid natural gas per year. Company invested exploration development coalbed methane. In 2018 BP purchased BHP shale assets Texas Louisiana including Petrohawk Energy for $10.5 billion integrated subsidiary BPX Energy. Also 2018 BP bought 16.5% interest Clair field UK ConocoPhillips increasing share 45.1%. BP paid £1.3 billion giving ConocoPhillips 39.2% non-operated stake Kuparuk River Oil Field satellite oil fields Alaska.

• 6. Corporate Governance And Leadership Evolution

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  Helge Lund succeeded Carl-Henric Svanberg the 1st of January 2019 chairman BP Plc board of directors Bernard Looney succeeded Bob Dudley the 5th of February 2020 chief executive. Amidst COVID-19 pandemic BP claimed accelerate transition lower carbon economy energy system announcing company had write down $17.5 billion second quarter 2020. On the 29th of June 2020 BP sold petrochemicals unit Ineos for $5 billion business focused aromatics acetyls interests 14 plants Asia Europe US achieved production 9.7 million metric tons 2019. On the 30th of June 2020 BP sold all Alaska upstream operations interests including Prudhoe Bay Oil Field Hilcorp for $5.6 billion. the 14th of December 2020 sold 49% stake Trans-Alaska Pipeline System Harvest Alaska. September 2020 BP formed partnership Equinor develop offshore wind announced acquire 50% non-operating stake Empire Wind off New York Beacon Wind Massachusetts offshore wind farms expected completed first half 2021. December 2020 BP acquired majority stake Finite Carbon largest forest carbon offsets developer United States. Response 2022 Russian invasion Ukraine BP announced sell 19.75% stake Rosneft although no timeline announced. At time decision Rosneft activities accounted around half BP oil gas reserves third production. British government expressed concern BP involvement Russia. However BP remained Rosneft shareholder throughout whole 2022 year causing criticism Ukrainian president office. October 2022 BP announced acquiring Archaea Energy Inc renewable natural gas producer $4.1 billion. December 2022 announced completed acquisition Archaea Energy Inc $3.3 billion. November 2022 company announced large increase profit period July to September due high fuel prices caused Russian invasion Ukraine.