British Petroleum Essay Sample
BP’s (British Petroleum) origins can be traced back to 1901 when William Know tried to explore oil in Persia. The first commercial oil discovery was made in the Middle East by BP in 1908. Its exploration operations expanded into North America (mainly Alaska), South America, Africa, and Europe. The oil crisis in the 1970s led to acquisition of Standard Oil in 1987, formation of BP America and the acquisition of Britoil in 1988. In 1998, BP and Amoco merged to create BP Amoco, an international energy and petrochemicals group with global operations.
In 2000, BP Amoco changed its name to BP and acquired Veba Oel’s retail and refining assets in Germany and central Europe. This made BP the market leader in Germany and Austria and substantially strengthened its position in Poland and several other central European countries. BP also signed a number of agreements covering investments to strengthen its presence in the growing Chinese energy market.
The company also transferred the Mardi gas pipeline system in the Gulf of Mexico from exploration and production to refining and marketing, and a small US operation supplying petrochemicals feedstock from gas, power, and renewable (GP&R) to olefins and derivatives. Later in 2007, BP and the Libya Investment Corporation (LIC) signed a production agreement with Libya’s National Oil Company (NOC).
BP Egypt made a significant gas discovery at record depths in the Nile Delta, in early 2008. Subsequently, BP and its partner, Marathon Petroleum West of Shetlands, announced new oil discovery in Block 204/23, following drilling on the South-West Foinaven prospect. In 2008, BP and ConocoPhillips formed of a joint venture company called Denali. In June 2009, BP announced the sale of its wholly-owned subsidiary, BP West Java (BPWJ), to Indonesian state-owned oil and gas company PT Pertamina (Persero). In the same month, BP announced the sale of its ground fuels marketing business in Greece to Hellenic Petroleum for E359 million (approximately $500 million).
Bp also made a giant oil discovery at its Tiber Prospect in the deepwater US Gulf of Mexico, in
September 2009. The well, was drilled to a total depth of approximately 35,055 feet (10,685
Meters) making it one of the deepest wells ever drilled by the oil and gas industry. In August 2010, BP agreed to sell its oil and gas exploration, production, and transportation business in Colombia to a consortium of Ecopetrol, Colombia's national oil company (51%), and Talisman of Canada (49%).
In February 2010, BP received an offer from Delek Europe, a leading fuel retailer in Europe, to buy its French retail fuels. In March 2010, BP announced its decision to sell its marketing businesses in some parts of Africa to focus on those countries which would offer the greatest synergies with its supply portfolio.
In March 2010, BP Solar shifted its remaining in-house manufacturing operations to its low cost joint ventures and regional supply partners but continued to maintain its US presence in sales and marketing, and research and technology, project development, as well as key business support activities. The oilfield development in the Azerbaijan sector of the Caspian Sea in August
2010 saw Bp make claim payments of nearly $400 million during the 16 weeks it managed claims related to the oil spill in the Gulf of Mexico.
BP agreed to sell its interests in ethylene and polyethylene production in Malaysia to Petronas in September 2010 at 15% interest in Ethylene Malaysia and 60% interest in Polyethylene Malaysia. Further in September 2010, BP America completed the MC252 relief well in the Gulf of Mexico. The company also confirmed the successful completion of the well kill operations on the MC252 well in the Gulf of Mexico.