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Financial Risk Management at BP
Background Note
BP, a London, UK-based multinational company, was focused on the oil and gas industry. According to the 2014 global ranking of Statista Inc., BP was the third largest oil and gas company in the world in terms of revenue and net income. The company marketed its products under the brand names BP, Castrol, and Aral. In addition to this, it had two other brands – AMPM (convenience stores) and Wild Bean Café (coffee and food shop). By the end of 2013, the company operated in around 80 countries and had 83,900 employees. BP had 17,996 million barrels of oil equivalent proved reserve with per day oil production of 3.2 million barrels. It had 14 refineries (wholly or partly owned) while refinery throughputs were 1,791 thousand barrels per day. The company had approx 17,800 retail sites by the end of 2013. |
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The origin of BP, the world’s sixth largest oil and gas company in terms of market capitalization, can be traced back to more than one century ago when William Knox D’Arcy (D’Arcy), an Englishman, obtained 60 years’ concession to explore, obtain, and market oil, natural gas, asphalt, and ozocerite in Persia from Moẓaffar-al-Dīn Shah, fifth Qajar King of Persia. After the initial setback in oil exploration, the first commercially significant oil find was made in May 1908. This discovery led to the establishment of the Anglo-Persian Oil Company (APOC) in 1909.
