Leading from the top in BP Steve Flynn Vice President, HSSE BP Group Safety and Operations

What I’m going to cover Our track record Leading from the very top Our Strategic approach The way forward BP’s leadership model Summary

BP days away from work frequency rate – last 20 years North sea disaster; Grangemouth incident Safety in performance contracts Advanced safety auditing Texas City incident BP Amoco merger Clear vision introduced ‘getting health, safety & environment right’ Golden rules of safety Measures Days Away From Work Case Frequency (DAFWCF) per 200,000 hrs

Recordable Injury Frequency BP’s HSSE performance Workforce Fatalities Oil Spills greater 1 bbl Recordable Injury Frequency Integrity Management Incidents

March 23, 2005

Leading from the very top The BP Group Operations Risk Committee The Group Operations Risk Committee (GORC) is chaired by Tony Hayward and meets monthly. It brings together our segment CEOs with senior functional expertise to oversee and build a foundation for consistent, safe, reliable operations. This includes: Incident analysis, learning and response Monitoring performance indicators Reviewing delivery of the Six-Point Plan Oversight of development and implementation of BP’s Operating Management System (OMS) Oversight of HSE and Operations capability development Independent Panel response and its integration into plans and OMS The GORC also model the expected leadership behaviours and sets the tone at the top of the organization for others to follow

Strategic model Accident The ‘Swiss Cheese’ Model Hazard Performance & risk – through layers of protection to reduce the potential for major incidents and losses: plant – engineering hardware, control systems, physical layouts processes – management systems to identify, control and mitigate risks, and drive continuous operational improvement people – capability in terms of leadership skills, relevant knowledge and experience, and the organizational culture ‘Hard barriers’ are more reliable than ‘soft barriers’, but all ultimately rely on people The ‘Swiss Cheese’ Model Hazard Protective ‘Barriers’ Weaknesses or ‘Holes’ Plant Processes People deliver Performance Accident

Strategic approach Business specific Excellence Efficiency Essentials Sustainable Competitive Advantage Efficiency Neutral Basics & BP Requirements Business Value Destruction Legal Compliance Significant Risk Mitigation Catastrophic Loss Essentials

Strategic milestones – sustainable Immediate action Six-Point Plan Deep Embedding Aspiration Plant Processes People Operating Management System (OMS) … sustained by the right organisational capability & culture Temporary Accommodation Blow-down Stacks Major Accident Risk World Class Operating Company Integrity Management & Control of Work Operating procedures Compliance Audit Actions ‘Getting HSE Right’ Management System Operations Competence 2005 2011+

The BP leadership model - Items related to imperatives identified in CEO 6-point plan

In summary… For BP, our journey is about: getting the basics right, consistently not just occupational safety but also process safety developing and maintaining integrated and consistently delivered systems and processes which underpin learning and sharing ensuring risks are owned and managed locally, in a sustainable way developing well-trained, competent people and teams who have pride in what they do creating and sustaining a world class operating culture, supported by a few clear and well-understood values and behaviours and an environment of continuous performance improvement… And most of all, it’s about leadership