Assets
BP (British Petroleum) is a British oil and gas company, the second largest publicly traded oil and gas company in the world. One of the world's leading oil and gas production companies, has been operating in the Russian market for many years. BP has been working in Russia since 1990.
Performance indicators
2022: Take-off arrives amid conflict in Ukraine
BP Plc increased its dividend and extended share buybacks after posting record earnings for 2022, joining its fellow supermagnats and taking advantage of soaring oil and natural gas prices during the Ukraine conflict.
Oil majors are making record profits as the world suffers from high fuel prices. It was reported that in the second quarter of 2022, Big Oil could receive a record profit of $50 billion.
ExxonMobil Chevron,,, and Shell TotalEnergies BP will make even more money than in 2008, when world oil prices jumped to $147 dollars a barrel.
2020: Fixing losses for the first time in 10 years, they reached $5.7 billion
BP ended the year with losses for the first time in 10 years. In 2020, net losses reached $5.7 billion, while in 2019 the British oil and gas company registered a net profit of $10 billion.
Analysts polled by Refinitiv expected losses of $4.8 billion from BP. The company noted that the financial results were influenced by the situation in the processing industry and the ongoing pressure of the COVID-19 coronavirus pandemic. The results in the gas direction deteriorated significantly, including due to high write-offs of exploration costs, which were partially compensated by Rosneft's contribution and reduced tax deductions, BP said.
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 | In addition, the result was influenced by significantly weaker results in the field of marketing and gas trade and higher write-offs in the field of geological exploration, partially offset by Rosneft's higher contribution and lower basic tax fees, BP said in its materials. |  |
According to data from financial statements, the write-offs of the value of BP's oil and gas assets at the end of 2020 amounted to $6.5 billion due to a sharp decrease in long-term forecasts for energy prices. The revenue indicator is not given in the statements.
As of December 31, 2020, BP's net debt amounted to $39 billion, having decreased by $6.5 billion compared to the end of 2019. At the same time, the company warned with an increase in debts in connection with the payment of severance payments, annual payments in connection with oil spills in the Gulf of Mexico and payments following the completion of the creation of a joint offshore wind power enterprise with Equinor.
In 2020, BP held a mega deal in the wind market, buying half of two large wind farms in the United States from Equinor. 2 GW of installed capacity cost her $1.1 billion.[1]
History
2024: Agreement with Abu Dhabi National Oil to establish a joint venture in Egypt for gas production
In February 2024, BP Plc and Abu Dhabi National Oil Co. agreed to establish a joint venture in Egypt to extract natural gas, which will allow the UAE to gain a foothold in the country supplying fuel to Europe.
2023: BP oil and gas chief fired over inappropriate relationship with subordinates
On September 12, 2023, the head of the oil and gas company BP Bernard Looney resigned. The reason was his reluctance to disclose personal relations with subordinates. Read more here.
2022
BP reflected a loss of $24 billion from the exit from Rosneft
British BP reflected a net loss in the results for the first quarter of 2022 before taxes of $24 billion from the ownership of Rosneft shares, according to the company's presentation.
This amount includes $13.5 billion of write-offs of the fair value of net investments, $11.1 billion - pre-tax loss on amounts previously included in total income, about $500 million include the share of Rosneft's profit attributable to BP until February 27, 2022.
Another $1.5 billion includes a pre-tax loss from other enterprises with Rosneft and $1.1 billion in deferred tax liabilities.
Termination of oil and gas purchase transactions
British BP will stop concluding new deals for the purchase of oil and gas. This became March 8, 2022.
2021: Rosneft overtook BP in capitalization for the first time
On September 27, 2021, Rosneft overtook BP in market capitalization. This is evidenced by the data of the London Stock Exchange. Read more here.
2020
Sale of petrochemical business to INEOS for $5 billion
In June 2020, BP announced the sale of its petrochemical business to the chemical concern INEOS for $5 billion.
The sale involves BP's entire petrochemical business, including assets, technology and licenses, manufacturing facilities and their core products. In accordance with the terms of the agreement, INEOS will pay a deposit of $400 million and another $3.6 billion upon completion of the transaction. The remaining amount of $1 billion will be paid in installments by the end of June 2021.
As the head of BP Bernard Looney noted, this deal is an important step in the process of the company's transition to new goals in the power.
Plan to cut 10,000 jobs
BP will cut about 15% of jobs in response to the coronavirus crisis and as part of the plan of the head of the company Bernard Looney to shift the focus of the oil and gas giant to renewable energy sources, the company said on June 8, 2020.
Looney told staff on a conference call that the London-based company would cut 10,000 jobs out of 70,100 so far.
"We will now begin a process that will see about 10,000 people leave BP - the majority by the end of this year," Looney said in a statement. "Part of the plan immediately was to make BP a more compact, faster-moving and low-carbon company," he said.
2017: Q4 and Full Year Totals
Results of the year
BP's profit in 2017 more than doubled compared to 2016 ($2.6 billion) and reached $6.2 billion amid rising prices and oil and gas production, which allowed the company to resume share buybacks, reports. Reuters
In 2017, production rose 12% to 2.47 million barrels per day (bpd), after BP launched 7 oil and gas fields last year.
In the downstream segment, BP recorded profit growth to $7 billion in 2017. Profits at the marketing division rose more than 10%.
BP also reported one-time expenses of $900 million in connection with the tax reform in the United States. Nevertheless, the company expects a long-term incentive to reduce the corporate tax rate.
BP's investment in 2017 reached $16.5 billion, within the annual range of $15- $17 billion, which the company plans to maintain until 2021.
BP's debt-to-market value ratio rose from 26.8% at the end of September to 27.4% at the end of 2017. Net debt amounted to $37.8 billion against $35.5 billion a year earlier, after the company paid $5.4 billion in connection with the explosion at Deepwater Horizon.
Q4
BP's underlying operating income (the definition of net income) was $2.1 billion in the fourth quarter against $400 million a year earlier. The indicator exceeded the forecast of $1.9 billion. Cash flow from operations in the fourth quarter increased slightly to $6.2 billion.
Since oil prices rose 20% in the last quarter of 2017 to $61 per barrel, BP received an excess of cash. This allowed the company to redeem its shares for $343 million in the fourth quarter.
The total amount of legal costs and expenses for cleaning up environmental pollution reached $65 billion in the fourth quarter.[2]
1954:40% in Iran oil production consortium and renamed British Petroleum
On April 10, 1954, an agreement was concluded on the formation of an international consortium for the development of Iranian oil. Under this agreement, 40% went to the Anglo-Iranian oil company, 40% to the five American companies (Gulf Oil, Socal, Esso, Socony, Texaco), 14% to Shell, 6% to the French company. In September 1954, the consortium entered into an agreement with the Iranian government.
On November 1, 1954, the company name changed to British Petroleum.
As a result, this company received £25m in compensation from the Iranian government and £214m from the International Oil Consortium.
1953: Overthrow of Mosaddegh by US and British intelligence agencies
The coup d'état in Iran in 1953 led to the overthrow of the democratically elected government of the National Front of Iran, led by Mossadegh. Organized by the intelligence services of Great Britain and the United States.
1951: Nationalization of assets in Iran. Mosaddegh - Prime Minister
The Anglo-Iranian oil company avoided paying Iran a share in Iranian oil production. No less damage to the Iranian economy was caused by the exemption of AINK from income tax and customs duties. Even Iran itself did not receive enough oil for its own consumption, and therefore was forced to import it from the Soviet Union.
Learning that Saudi Arabia is in an agreement with the American oil company ARAMCO (Saudi Arabian Oil Company) has achieved an equal distribution of profits from oil produced, Prime Minister Razmara suggested that AINK representatives include a similar provision in the new agreement, but the English refused, stating that they would not negotiate under the threat of nationalization, to which Ayatollah Abol-Qasem Kashani was called in public speeches at the ongoing mass rallies and their fatwas, appointed with the support of the "National Front" by the speaker of the parliament, and other leading clergymen of Iran.
Soon after the prime minister publicly rejected the idea of nationalizing Iranian oil in these circumstances, he was killed at the entrance to the mosque by a member of the Fedayins of Islam organization on March 7, 1951. Immediately after his death, the process of preparing a bill on the nationalization of the Iranian oil industry was launched, although the new prime minister, the former Iranian ambassador to the United States Hussein Ala, was an even more zealous opponent of the nationalization of AINK. On March 15, 1951, the Mejlis of Iran decided to nationalize Iran's oil industry; On March 20, the Senate approved this.
After a wave of street protests, the cabinet resigned on April 27, 1951. The next day, April 28, Mohammed Mosaddegh was appointed the new Prime Minister.
In 1951, Iran fell into a deep economic crisis, and foreign powers stopped buying Iranian oil. The Abadan refinery, one of the world's largest, has closed.
The Abadan crisis was exacerbated by the Royal Navy's maritime blockade of trade routes. Great Britain
Nevertheless, despite strong resistance from the United States and Britain, the nationalization of Iranian oil continued.
Oil companies of other countries - Saudi Arabia, Kuwait and Iraq - have significantly increased oil production to occupy Iran's oil niche on the international market. Oil production in the Middle East increased by 10% annually. Restricting oil exports had a deplorable effect on Iran's economy; oil production in the country has greatly decreased: from 242 million barrels in 1950 to 10.6 million barrels in 1952.
Mosaddegh tried to agree on the supply of Iranian oil with the USSR, but due to the lack of a powerful fleet of oil tankers in the Soviet Union at that time, this could not be done.
1941: Overthrow of Shah Reza Pahlavi
In 1941, during World War II, Reza Shah tried to refuse the USSR and Britain to deploy their troops in Iran, after which on August 25, 1941, Soviet and British troops from both ends of the country crossed the Iranian border as part of Operation Consent. It was announced that for the entire period of World War II, they were taking control of the territory, and the Shah was asked to abdicate.
15.09.1941 years, Soviet and British troops entered Tehran, and the next day Shah Reza Pahlavi was forced to sign an abdication in favor of his son, who ruled until 1979.
The abdication took place on September 16, 1941. Ex-Shah died in exile in Johannesburg, South Africa, in 1944.
1934-1940: Countering the German threat in Iran
APOC worked in Persia (since 1935 - in Iran, becoming AIOC), Iraq and Burma.
Standard Oil and Royal Dutch Shell backed the Third Reich.
Since 1933, Iran has rapidly become the main German base of Middle East. Engineers, teachers, instructors came from the Third Reich - many of them were career scouts and created a powerful network throughout the region.
APOC (AIOC) was starting to have problems.
1933: Extension of Persia mining concession until 1993
In 1933, the Shah of Persia, Reza Pahlavi, signed a new agreement with the Anglo-Persian Oil Company. In exchange for a negligible increase in deductions of 4%, the shah extended the concession until 1993.
1918: World War I sales take-off
An increase in demand for petroleum products during the First World War led to the rapid growth of the company. During the period from 1912 to 1918, oil production in Persia increased tenfold. In 1917, an oil refinery was built in Swansea (Wales). Also in 1917, the British government expropriated the British part of the European Petroleum Union (a marketing alliance in which Deutsche Bank played a significant role); this part, called the British Petroleum Company, was immediately absorbed by the Anglo-Persian Oil Company.
1914
The company becomes state-owned under the control of the British Government
Despite the presence of a rich field, the Anglo-Persian Oil Company experienced difficulties with the processing of oil and the sale of petroleum products. To avoid takeover by other oil companies, primarily Royal Dutch Shell, APOC in 1914 signed an agreement with the British government, according to which the company became a supplier of petroleum products to the British Navy, while the government invested £2 million in the company in exchange for a controlling stake. The company remained formally state-owned until 1977, when part of the shareholding was sold.
Buying a 50% stake in Turkish Oil Company
In 1914, the Turkish Oil Company, created two years earlier, was reorganized, and Anglo-Persian acquired 50% of its shares (Deutsche Bank and Royal Dutch Shell each had 25%).
1912: Construction of Abadan refinery and start of petroleum products export
An oil refinery was built in Abadan, the export of petroleum products from which began in 1912, by 1938 this refinery became the largest in the world.
1909: Creation of APOC
On April 14, 1909, the Anglo-Persian Oil Company was formed, in which Burmah Oil owned 97% of the shares. The remaining shares were owned by the company's first chairman, Lord Strathcona. D'Arcy served as director of the company, but did not significantly affect its further development.
1908: Discovery of the first oil field in the Middle East
The first success came in May 1908, when the Mashid and Suleiman field was discovered in the southwestern part of Persia, the first not only in Persia, but throughout the Middle East.
1905: Business controls go to Burmah Oil
Since 1905, work in Persia continued with the financial and technical support of the Burmah Oil Company (English Burmah Oil, founded in 1886 in Scotland).
1901: Briton William D'Arcy receives concession to find and extract oil in Persia
In May 1901, British entrepreneur William Knox D'Arcy received a concession from the Persian Shah to search for and extract oil. D'Arcy hired George Reynolds as chief oil engineer. In the early years, they failed to achieve results. Faced with a lack of skilled personnel, hostility from locals, and insufficient support from the Persian government, their financial resources faltered.
Notes
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