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1、From IOC to IECInternational Oil Company to Integrated Energy Companybp Annual Report and Form 20-F 2023 SustainabilityIntegrationTransition growth engines Convenienceand mobilityBioenergyaHydrogenRenewables&powerConvenienceEV chargingOil and gasRefiningRetail fuels Castrol,aviation,B2B/midstreamLow

2、 carbon energyResilient hydrocarbonsOnline quick readA concise summary of the bp Annual Report and Form 20-F 2023,highlighting strategy,performance and sustainability reporting centreAll our bp corporate reports,including the Sustainability Report,the Net Zero Ambition Progress Update and the bpEner

3、gy O this report More informationRead more on another page of this reportRead more onlineGlossaryWords and terms marked with are defined intheglossary on page 373Task Force on Climate-related Financial Disclosures(TCFD)Information that supports TCFD Recommendations and Recommended Disclosures in rel

4、ation to Metrics and Targets isindicated with.a Bioenergy includes customer-facing and midstream biofuels activities that form part of convenience and mobility.Our strategyOur strategy is focused on three key areas of activity,which include our five transition growth engines.Our sustainability frame

5、 and the power of integration underpins and connects it all.Our destination is unchanged we are transforming from an international oil company to an integrated energy company.Investing in todays energy system,while helping build out tomorrows all in service of growing the value of bp.We are confiden

6、t in our strategy and plan to deliver this as a simpler,more focused and higher valuecompany.Growing the value of bpOur strategy,page 121bp Annual Report and Form 20-F 2023Strategic reportScalePerformanceSafety and sustainability2023 at a glanceAs at 31 December 202387,800bemployees(2022 67,600)$15.

7、2bnprofit for the year attributable to bp shareholders(2022 loss$(2.5)bn)39 tier 1 and 2 process safety events(2022 50)95.0%bp-operated upstream plant reliability(2022 96.0%)2,850 strategic convenience sites(2022 2,400)$5.78/boe upstream unit production costs(2022$6.07/boe)2.3 million barrels of oil

8、 equivalent upstream production(2022 2.3mmboe/d)21,100retail sites(2022 20,650)61countries of operation(2022 62)$13.8bn underlying replacement cost(RC)profit(2022$27.7bn)0.9 million tonnes of CO2 equivalent sustainable GHG emissions reductions(2022 1.5MtCO2e)96.1%bp-operated refining availability(20

9、22 94.5%)6.2GW developed renewables to FID (net)(2022 5.8GW)29,000 electric vehicle charge points(2022 22,000)Strategic report2023 at a glance1About bp2Chairs letter4Chief executive officers letter6The operating environment8Energy outlook10Our strategy in action12Consistency with the Paris goals14Ou

10、r business model16Progress against our strategy18Key performance indicators 24Our financial frame28Our investment process30Group performance35Gas&low carbon energy39Oil production&operations42Customers&products44Other businesses&corporate46Sustainability48Climate-related financial disclosures(TCFD)5

11、5How we manage risk73Risk factors77Compliance information80Non-financial and sustainability informationstatement80Section 172 statement80Corporate governanceIntroduction from the chair82Board of directors83Leadership team86Governance framework88Decision making by the board89Board activities90Our sta

12、keholders92People and governance committee 94Audit committee 98Safety and sustainability committee103Remuneration committee105Directors remuneration report 105Other disclosures133Directors statements 134Financial statementsConsolidated financial statements of the bpgroup137Notes on the financial sta

13、tements169Supplementary information on oil and natural gas(unaudited)247Parent company financial statements of BP p.l.c.275Additional disclosures335Shareholder information 363Glossary 373Non-IFRS measure reconciliations382Signatures 385Cross-reference to Form 20-F386Information about this report387E

14、xhibits387KeyPerformance against our strategy,page 13Key performance indicator,page 24b This figure reflects new acquisitions including TravelCenters of America.2bp Annual Report and Form 20-F 2023About bp We deliver energy products and services to our customers around the world,and we plan to do so

15、increasingly in ways that we believe will help drivethe transition to a lower carbon future.We have operations in Europe,North and South America,Australasia,Asia and Africa.Financial reporting segment performanceAt 31 December 2023,the groups reportable segments were gas&low carbon energy,oil produc

16、tion&operations and customers&products.Each is managed separately,with decisions taken for the segment as a whole,and represents a single operating segment that does not result from aggregating two or more segments(see Financial statements Note 5).Our purposeOur purpose is reimagining energy for peo

17、ple and our planet.We want to help the world reach net zero and improve peoples lives.Who we areWho we are defines what we stand for at bp,building on our best qualities and those things that are most important to us.It comprises three simple beliefs that can inspire each of us at bp to be our best

18、every day.Gas&low carbon energyaComprises our gas&low carbon energy businesses.Our gas business includes regions with upstream activities that predominantly produce natural gas,integrated gas and power,and gas trading.Our low carbon business includes solar,offshore and onshore wind,hydrogen and carb

19、on capture and storage(CCS),and power trading.Power trading includes trading of both renewable and non-renewable power.$14.1bnreplacement cost(RC)profit before interest and taxb(2022$14.7bn)$8.7bnunderlying RC profit before interest and tax(2022$16.1bn)Segment performance,page 39a The Azerbaijan-Geo

20、rgia-Trkiye and Middle East regions have been further subdivided by asset.b IFRS requires that the measure of profit or loss disclosed for each operating segment is the measure that is provided regularly to the chief operating decision maker.For bp,this measure of profit or loss is replacement cost

21、profit before interest and tax,which reflects the replacement cost of inventories sold in the period and is arrived at by excluding inventory holding gains and losses from profit before interest and tax.Replacement cost profit for the group is not a recognized measure under IFRS.For further informat

22、ion see Financial statements Note 5.Our people at bps Sunbury campus in Surrey,UKSeagull oil and gas field in the UK North SeaResilient hydrocarbons,page 19Our people,page 70Live our purposePlay to winCare for others3bp Annual Report and Form 20-F 2023Strategic report See glossary on page 373Oil pro

23、duction&operationsaComprises regions with upstream activities that predominantly produce crude oil,including bpx energy.$11.2bnRC profit before interest and taxb(2022$19.7bn)$12.8bnunderlying RC profit before interest and tax(2022$20.2bn)Segment performance,page 42Customers&productsComprises custome

24、r-focused businesses,which include convenience andretail fuels,EV charging,as well as Castrol,aviation and B2B and midstream.It also includes our products businesses,refining&oil trading,as well as our bioenergy businesses.$4.2bnRC profit before interest and taxb(2022$8.9bn)$6.4bnunderlying RC profi

25、t before interest and tax(2022$10.8bn)Segment performance,page 44Other businesses&corporateComprises innovation&engineering;bp ventures;launchpad;regions,corporates&solutions;our corporate activities and functions;and any residual costs of the Gulf of Mexico oil spill.It also includes Rosneft result

26、s up to 27 February 2022.$(0.9)bnRC loss before interest and taxb(2022 loss$(26.7)bn)$(0.9)bnunderlying RC loss before interest and tax(2022 loss$(1.2)bn)Segment performance,page 46Reconciling strategic pillars to our reportable segments At 31 December 2023 the groups reportable segments were gas&lo

27、w carbon energy,oil production&operations,and customers&products.Wereconcile these to our business activities and strategic pillars inthe table below.c Includes customer-facing and midstream biofuels activities that form part of the bioenergy transition growth engine.Construction of Peacock Solar in

28、 Texas,US The Gigahub at the NEC campus in Birmingham,UKLow carbon energy,page 22Convenience and mobility,page 21 Denotes transition growth engine.2023 progress against our strategy,pages 18-23Financial segment performance in 2023,pages 35-47Strategic pillarsGas&low carbon energyOil production&opera

29、tionsCustomers&productsResilient hydrocarbonsGas regionsGas marketing andtradingOil regionsRefining and oil tradingBioenergyc Convenience and mobilityConvenience FuelsEV charging Castrol,aviation,B2B/midstreamLow carbon energyRenewables&power Hydrogen 4bp Annual Report and Form 20-F 2023Chairs lette

30、rDear fellow shareholders,The past year has been positive in many respects,but it has been challenging too.From the ongoing complexity of the energy transition to economic uncertainty and market volatility.Add to that,across the world conflict has continued to touch many lives and our thoughts are w

31、ith all those who have beenaffected.I will start with safety both physical and psychological because it always comes firstat bp and is fundamental in the boards discussions and decision making.On behalf of the board,I would like to recognize the work by bps teams on operational safety especially in

32、achieving a reduction in the number of our most serious process safety incidents(page 24).However,three people died while working for bp and this is unacceptable.Chief executive transitionIf bp made progress on safety and had a strong operational and financial performance in 2023,there were challeng

33、es too,including the change in CEO in September.However,for me and for the board,the positive here was the effectiveness of our emergency succession planning,which allowed us to appoint Murray Auchincloss immediately as interim leader,and avoid a leadership vacuum.The robust and competitive recruitm

34、ent process that followed,and his performance in that process,led the board to appoint him as CEO on a permanent basis at the beginning of2024.The board was in full agreement that Murray was the best candidate but this was not just our view.We sought feedback from many stakeholders including our sha

35、reholders.It was very important to have this dialogue with so many of you and I want to thank you for your advice and support.Murray has been at bp for more than two decades and he is deeply committed to the company and its people.He has a track record of performance,he knows how to bring out thebes

36、t in a team,he was one of the chief architects of the strategy and he knows the industry inside out.I say more about this transition on page 82.I am grateful to my fellow board members for their support in this process.Their constructive scrutiny of candidates allowed us to make a decision that,we b

37、elieve,is right for bp.Murrays strategic vision and focus on performance will help bp to unlock even more of our potential to compete,win and grow the value of bp.With her strong finance leadership experience,the subsequent appointment of Kate Thomson as chief financial officer in February gives the

38、 board great confidence in what can be achieved in 2024 and beyond.bp had a strong operational performance in 2023 and its strategy remains well suited to the energy transition as itunfolds.5bp Annual Report and Form 20-F 2023Strategic report See glossary on page 373Strategic direction This leadersh

39、ip transition marks a new chapter for the company,but not a new strategic direction.This year,it has become even clearer that the world needs a better,more balanced energy system.One that is secure,affordable and lower carbon.bps strategy to go from an international oil company to an integrated ener

40、gy company is designed both to help build a better system and to create value for shareholders while doing so.bp had a strong operational performance in 2023 and its strategy remains well suited to theenergy transition as it unfolds.The global move to a lower carbon energy system isnot straightforwa

41、rd and presents both challenges and opportunities for an energy company like bp.With global markets remaining unpredictable,flexibility will beimportant and the strategy allows for this.Role of culture As bps business activities evolve,the strength of its culture is paramount.It builds trust within

42、bps teams,encourages better performance and helps bp to attract and keep the best talent.Akey aspect of this is its speak-up culture.bpencourages everyone to raise any concerns they have,including when they see something they think is inconsistent with the code of conduct or is unsafe or unlawful.bp

43、 tools allow them to do this safely,securely,in confidence and without fear of retaliation(see page 72).Closing thanks Every day,bp teams continue to go to work onrigs,in our refineries,in offices,at sea,at ourretail sites and at our solar and wind installations to mention just some of bps many area

44、s of operation.I want to thank themall for the considerable progress bp madein 2023.I also want to thank Paula Rosput Reynolds and Sir John Sawers for their distinguished service.Over almost nine years,Paula has been a valued member of the board,including roles as chair ofthe remuneration committee(

45、Remco)and senior independent director(SID).I am pleased that Amanda Blanc will take on the role of SID and,for an interim period,Tushar Morzaria the role of Remco chair,both with effect from the end of our annual general meeting in April 2024.Sir Johns considerable work since 2015 includes supportin

46、g our safety and sustainability committee and our people and governance committee and he has been highly regarded as chair of our geopolitical advisory council.Both will step down at the end of our annual general meeting in April 2024.I will close with a final thank you.As I look backat this year,on

47、e of the highlights for me personally has been my meetings with you,my fellow shareholders this year more than ever.Ina time of internal change and external uncertainty,I want to thank you for your advice,your belief in bp and for your trust and support throughout.Helge LundChair8 March 2024$6.5bnsh

48、are buybacks announced from our 2023 surplus cash flow$4.8bntotal dividends distributed to bp shareholders6bp Annual Report and Form 20-F 2023Chief executive officers letterDear fellow shareholders,Thank you for your support over the last year,especially during the period of leadership transition.It

49、is an honour to lead your companyas CEO.Our destination is unchanged.Were moving from an international oil company to an integrated energy company IOC to IEC.Were investing in todays energy system,which is mainly oil and gas,while building out tomorrows.And we are focused on growing thevalue of bp.S

50、afety firstSafety always comes first in everything we do.In 2023 three people lost their lives while working for bp a contractor at bpx energy andtwo colleagues at our newly acquired TravelCenters of America business.We will never accept this as part of doing business.Ourgoal is the elimination of a

51、ll fatalities,life-changing injuries and the most serious process safety incidents.In 2023 we continued to make progress on process safety,but there is always more to do.We need to constantly reinforce and build on our operating culture across the business,rigorously applying our Operating Managemen

52、t System(OMS),embedding the Lifesaving Rules and living our Safety Leadership Principles.We are determined to keep building asafer bp.A year of delivery In 2023 we delivered a resilient operational and financial performance,with earnings(adjusted EBITDA)of$43.7 billiona and operating cash flow of$32

53、.0 billion.This contributed to:Profit for the year attributable to bp shareholders of$15.2 billion.Underlying replacement cost profit of$13.8billion.Return on average capital employed (ROACE)of 18.1%b.Net debt reduced to$20.9 billionc itslowest in a decade.In turn this has allowed us to deliver comp

54、etitive distributions to our shareholders:A 10%increase in the dividend per ordinary share(compared with the fourth quarter of2022).$6.5 billion in share buybacks from our 2023surplus cash flow.17%reduction in issued share capital between the end of the first quarter of 2021 and 31 December 2023.We

55、continue to maintain a disciplined financial frame.The strength of our underlying financial performance,the disciplined approach to strengthening the balance sheet over the last few years,and our confidence in our drive towards 2025 gave us the capacity to update the financial frame earlier this yea

56、r.As we announced in February 2024,we have tightened our capital expenditure guidance and enhanced our share buyback guidance,all while continuing to prioritize a strong balance sheet and strong investment grade credit rating.Strategic progress We are four years into our journey from IOC to IEC.Our

57、strategy is based on the judgement that oil and gas will be needed for decades,but that a global shift to lower carbon energy is well underway.Since the pace of that shift is uncertain we will continue to be flexible and pragmatic,responding to changing demand andsocietal need,as we did in February

58、2023.Our strategic progress in 2023 included:Oil and gas production growth of 2.6%,underpinned by strong growth from bpx energy and good management of our basebusiness.Strong underlying year-on-year growth in our convenience gross margin.EV charge points up 35%globally,energy sold up 150%.Biogas sup

59、ply volumes up 80%,biofuels production up 18%.21.1GW net growth in our renewables pipeline.1.1mtpa net growth in our hydrogen pipeline.Completed the planned implementation ofmethane measurement approach across our operated upstream oil and gas assets.a Adjusted EBITDA for the group is a non-IFRS mea

60、sure and its nearest IFRS-equivalent measure is profit for the year 2023.b ROACE is a non-IFRS measure and its nearest IFRS measures of numerator and denominator are profit for the year 2023 attributable to bp shareholders of$15.2 billion and total equity at the end of2023 of$85.5 billion respective

61、ly.c Net debt is a non-IFRS measure and its nearest IFRS-equivalent measure is finance debt at the end of 2023.Nearest IFRS-equivalent measures$15.9bnprofit for the year 2023a17.8%profit for the year 2023 attributable to bp shareholders divided by total equity at 31 December 2023b$52.0bnfinance debt

62、 at the end of 2023c7bp Annual Report and Form 20-F 2023Strategic report See glossary on page 373As we drive to 2025,we will focus on executing to deliver value.Growing the value of bp The last few years were about generating options.As we drive to 2025,we will focus on executing to deliver value.To

63、 guide that effort,weve set out six near-term priorities for bp.These are:to keep improving safety and reducing emissions.To make the company simpler and more focused.To become more efficient by putting technology and digitization at the heart of what we do.To progress our growth projects.To invest

64、to maximize returns.All while maintaining our commitment to shareholder distributions.bp is a great company.We have high-quality resources,outstanding science and engineering,strong partnerships,a world-class trading capability,and above all great people.Six priorities to grow the value of bp 1.Impr

65、ove safety and reduce emissions.2.Drive a focus in the business on activities that create the most value.3.Deliver the next wave of efficiency including technology and global capability hubs.4.Deliver the next set of growth projects that provide growth through to 2030 andbeyond.5.Optimize ROACE thro

66、ugh disciplined investment allocation.6.Grow shareholder returns.Read more:page 29I believe very few companies can deliver what we offer.Its why Ive never been more confident that we can win in this transition as a simpler,more focused and higher value bp.Last but not least,thank you for your contin

67、ued support,and a big thank you to the whole bp team for working incredibly hard in what was attimes an uncertain year.Murray AuchinclossChief executive officer8 March 20248bp Annual Report and Form 20-F 2023The operating environmentEnergy marketsThrough 2023 energy markets and prices were volatile

68、as demand and supply flows continued to adjust to post-COVID-19 recoveries in demand and disruptions caused by the Russia-Ukraine war.Concerns about energy security and emissions continued to boost renewables as the world transitions towards alower carbonfuture.Economic growth was uneven across regi

69、ons,as past increases in energy prices and steep rises in interest rates had varying effects indifferent countries.Inflation rates fell significantly as the effects ofpast increases in food and energy prices on annual inflation eased.However,inflation across much of the world remained above central

70、banks targets,and a combination of squeezed incomes and the sharp tightening in monetary policy contributed to a below-average growth rate of around 3%for the global economy in2023.Growth in advanced economies was 1.5%a,with weakness in the euro area contrasting with continued robust growth in the U

71、S.Emerging economies grew by around 4%a,with China experiencing a rebound in growth to 5.2%a as it emerged from COVID-19 lockdowns.Expansion of other emerging economies was dampened byhigher interest rates and weak demand for their exports.OilOil prices were elevated across much of 2023,supported by

72、 a combination of robust oil demand growth and OPEC production cuts.Brent averaged$83/bbl in 2023,down from$101/bbl in the previous year.Global oil demand grew by 2.3mmb/d to 101.7mmb/d in 2023b.Thestructural post-COVID-19 rebound of mobility(jet and gasoline),including a significant increase in Chi

73、nese oil demand of1.7mmb/db,supported the well-above-trend growth.A combination of official and voluntary cuts caused OPEC+production to fall by 390kb/db in 2023,led by Saudi Arabia,which accounted for a 900kb/d contraction versus 2022b.However,these reductions were offset by strong growth in non-OP

74、EC+supplies,which increased by 2.3mmb/d in 2023b,with the US accounting fortwo-thirds of that increaseb.Natural gasA combination of a relatively warm European winter in 2022-23 and muted European gas demand caused European and Asian natural gas prices to fall early in 2023.Even so,European gas price

75、s in 2023 were still double their 2015-2019 average levelc following the loss of the majority of Russian pipeline gas supply tothe EU in2022.Asian liquefied natural gas(LNG)prices followed European gas prices lower in 2023,and moved back to trading predominantly at a premium to European prices in a

76、reversal of the trend seen in 2022.The increased demand for LNG cargoes following the loss of Russian gas pipeline supply to the EU,combined with below-average growth in new LNG supply capacity in 2023,meant the global LNG market remained sensitive to supply risks,for example reacting strongly to po

77、tential outages in Australia.In the US,Henry Hub(HH)gas prices averaged 61%d lower than in 2022 as the growth in dry natural gas production outpaced demand.Lower HH prices incentivized coal-to-gas switching in the power sector,and heightened demand for cooling during summer heatwaves helped to avoid

78、 storage congestion.US gas storage stocks were 13%e above historical average levels at the end of 2023.In response tothe lower prices,the number of US gas rigs operating declined by a third from its peak in2022f.Refining marker marginWe use a global refining marker margin(RMM)to track the refining m

79、argin environment.Global RMM fell from the record highs reached in 2022,when Russias invasion of Ukraine caused significant disruption to refining operations and established trade flows.RMM values averaged$25.8/bbl,$7.3/bbl lower than in 2022g,mainly due to elevated refinery output,including as a re

80、sult of new capacity additions.Power and renewablesTotal solar and wind capacity additions in 2023 were expected to have reached around 380GW(on alternating current basis),a record increase historically,and more than 100GW higher than in 2022h,with the increase driven mainly by China and solar photo

81、voltaic(PV)deployment.The ongoing effects of the Russia-Ukraine war have increased countries focus on their energy security,supporting greater deployment of renewable energy capacity.Higher commodity prices,rises in interest rates and continued supply chain bottlenecks led to some increases in costs

82、 for solar and wind power in several countries.The offshore wind sector was particularly affected,and some projects were cancelled as their economic viability was eroded.However,we saw governments in many key offshore wind markets remain committed to achieving their offshore wind targets and develop

83、ing their domestic offshore supply chains,providing continued support to the sector.bp operates across volatile energy markets.Here we discuss broader economic trends we have observed that influence our sector as a whole.a IMF World Economic Outlook,October 2023 update.b IEA Oil Market Report,Januar

84、y 2024.c Platts Dutch TTF Day Ahead price.d Platts Henry Hub cash price.e Weekly Natural Gas Storage Report,EIA.f Baker Hughes Rig Count.g The RMM may not be representative of the margin achieved by bp in any period because of bps particular refinery configurations and crude and product slates.In ad

85、dition,the RMM does not include estimates of energy or other variable costs.h IEA Renewables 2023 report;PV capacity additions converted from DC to AC basis by dividing by 1.25.9bp Annual Report and Form 20-F 2023Strategic report See glossary on page 373Hydrogen and carbon capture and storageThere c

86、ontinues to be widespread recognition ofthe need to use low carbon hydrogen and hydrogen-based fuels to help decarbonize harder-to-abate sectors of the global economy.However,high costs and the slow pace of enabling policy have caused increased challenges for the sector.While the sector-wide project

87、 pipeline for production of low-emissions hydrogen operational by 2030 has grown significantly,only a very small amount is either currently operational or under construction.Green hydrogen costs have increased significantly,driven by higher renewable costs,elevated interest rates and competition for

88、 renewable electricity.Blue hydrogen costs,while also impacted by high inflation,are primarily driven by natural gas costs,which have subsided since the end of 2022.Blue hydrogen costs are expected to be lower than green hydrogen costs in many countries through the rest of this decade and beyond.Mor

89、e subsidies are needed to close the gap between the higher costs of green hydrogen andcustomers willingness to pay to switch away from incumbent fuels.The global pipeline of carbon capture and storage(CCS)projectsi continued to grow in 2023.But only a relatively small number of projects are actually

90、 operating or under construction and,based on past relatively low project completion rates,the current project pipeline appears insufficient to meet the CCS deployment rates consistent with Paris-consistent scenariosi.2.3%year-on-year increase in global oil consumption in 2023b0.2%estimated increase

91、 in global gas consumption in 2023c45%expected year-on-year increase in annual solar and wind capacity additions in 2023hMarket activity2023 2022Global oil consumptionb101.7mmb/d99.5mmb/dGlobal oil productionb102.0mmb/d100.1mmb/dNatural gas consumptionj4,071bcm4,061bcmNatural gas productionj4,081bcm

92、4,094bcmDated Brent averagek$82.64/bbl$101.32/bblWest Texas Intermediate(WTI)averagel$77.67/bbl$94.58/bblUrals averagem$61.79/bbl$74.16/bblHenry Hub averaged$2.53/mmBtu$6.41/mmBtuDutch Title Transfer Facility(TTF)averagec40.5 euros per MWh($12.8/mmBtu)123.1 euros per MWh($37.7/mmBtu)Japan-Korea(Asia

93、n)LNG averagen$13.8/mmBtu$34.0/mmBtuRefining marker marging$25.8/bbl$33.1/bbloi Projects include capture projects either on a standalone basis or as part of a hub(sharing transport and storage facilities).j IEA Medium Term Gas Report 2023.k Refinitiv Data Service(Dated Brent spot price).l Refinitiv

94、Data Service(West Texas Intermediate).m Refinitiv Data Service(Urals CIF Rotterdam).n Platts JKM spot price.o The 2022 RMM reflects changes in bps portfolio.Carbon emissions Gt of CO2ea10bp Annual Report and Form 20-F 2023Energy outlookEnergy markets continuedThe bp Energy Outlook 2023 explored the

95、trends and uncertainties surrounding the energy transition outto2050.The Outlook helps inform bps core beliefs about the energy transition.The scenarios within it explore the possible implications of different judgements and assumptions concerning the nature of the energy transition.The uncertainty

96、associated with the transition is substantial,and these scenarios are not predictions of what is likely to happen or what bp would like to see happen.Weuse the output from these scenarios to inform our strategic thinking.a Carbon emissions include CO2 emissions from energy use,industrial processes,n

97、atural gas flaring and methane emissions from energy production.b For more information on Paris-consistent pathways,see page 14.New momentum New momentum captures the broad trajectory ofthe current global energy system.It places weight on the marked increase in global ambition for decarbonization in

98、 recent years,aswell as on the manner and speed of decarbonization seen over the recent past.CO2-equivalent(CO2e)emissions from energy and industrial processes peak in the 2020s,andby 2050 are around 30%below 2019 levels.This scenario is not considered to be a Paris-consistent pathwayb.Net zero This

99、 scenario represents a shift in societal behaviour and preferences which drive gains inenergy efficiency and the adoption of low carbon energy,such that global energy system CO2e emissions fall by around 95%by 2050 relative to 2019 levels.This scenario is considered consistent with the Paris goals,b

100、roadly aligning with pathways maintaining global temperature rises below 1.5C.Accelerated Accelerated explores how the energy system might change if the world collectively takes action for CO2e emissions to fall by around 75%by 2050 relative to 2019 levels.This scenario isconsidered consistent with

101、the Paris goals,broadly aligning with well-below-2C pathways.Three scenarios to explore the energy transition11bp Annual Report and Form 20-F 2023Strategic report See glossary on page 373bp Energy Outlook 2023 updatesIn January 2023 we published the bp Energy Outlook 2023(2023 Outlook).This was upda

102、ted from the 2022 Outlook to consider two major developments:the Russia-Ukraine war and the passing of the US Inflation Reduction Act(IRA).The Russia-Ukraine war was judged likely to have a persistent effect on the future path of the global energy system,causing a change in the composition of global

103、 energy supplies,reducing economic growth,and increasing countries focus on energy security.Also modelled was theIRA,which included a package of largely supply-side measures supporting low carbon energy sources and decarbonization technologies in the US.In July 2023 we released an additional chapter

104、 of the bp Energy Outlook,How energy is used,which considers the outlook for the end uses ofenergy over the next 30 years.This chapter discusses energy use in the transport,industry and buildings sectors of the global economy.It showed that,in all three scenarios outlined on page 10,electricity incr

105、easingly replaces oil as the main energy carrier for light road vehicles in the transport sector.Heavier vehicles also electrify,although hydrogen and biomethane also play a role in some applications.Industry also gradually electrifies,but at a slower rate than transport due to the difficulties of e

106、lectrifying high-temperature heat,with heavy industry also making use of low carbon hydrogen and bioenergy.In the buildings sector,growth in overall energy demand slows as space heating and cooking appliances become more efficient and energy conservation increases.The share of electricity in the ene

107、rgy used by buildings rises as fossil fuel boilers are replaced by heat pumps and emerging economies phase out traditional biomass.We plan to continue to update the bp Energy Outlook in response to new developments in theenergy for strategic decision makingWe use scenarios to inform strategy,manage

108、risk,and improve decision making.Some scenarios start from today and project forward over a timeframe in which the current structure of the energy system helps to inform the pace and nature of the transition path.Others start in the future,breaking free from the inherent inertia in the energy system

109、,and look back to the present from that new perspective.In thinking about appropriate scenarios to inform our strategy,we used both approaches.How scenarios inform our strategy The use of scenarios described in the 2023 Outlook,and those from other organizations,aids our understanding of the energy

110、transition and helps us to think about how different outcomes might impact our strategy.The use of a broad range of scenarios to inform our strategy supports our efforts to make it robust and resilient to the range of uncertainty we face.By considering various time horizons,we can identify key miles

111、tones or signposts which might emerge over the next five,10 or 30 years and inform our view of the key sources of uncertainty affecting the global energy system.We actively monitor for changes in the externalenvironment and refresh or review thescenarios as needed in response to these signals,as we

112、did with the Russia-Ukraine warand the impact of the IRA in the 2023Outlook.For the purposes of testing the resilience ofourstrategy to the range of uncertainty in theenergy transition,we have used scenarios drawn from other credible sources such as theWorld Business Council for Sustainable Developm

113、ent(WBCSD)Climate Scenario Analysis Reference Approach for Companies inthe Energy System,the Intergovernmental Panel on Climate Change(IPCC)andthe International Energy Agency(IEA).Read more on our resilience analysis andthe outcome of that work on page 64How we create scenariosWe quantify a range of

114、 scenarios in the 2023 Outlook using our global energy modelling system.This comprises a suite of models to help us understand the supply and demand dynamics of the global energy system.The modelling framework uses historical data based on the Energy Institutes Statistical Review of World Energyc,th

115、e IEAs data and arange of other data sets.Each scenario is determined by a set of key assumptions,including population and economic growth,pace of technological change,resource constraints and government policies.These are informed by expert views from external organizations including the United Nat

116、ions,Oxford Economics and Rystad Energy.We benchmark our scenarios against external organizations including the IEA,the IPCC,IHS Markit and the Network for Greening the Financial System(NGFS).The modelling techniques used vary by sector and include a combination of econometric modelling,least-cost o

117、ptimization,adoption curves and consumer choice modelling.c Production of the Statistical Review of World Energy passed from bp to the Energy Institute in 2023.It is available online energyinst.org/statistical-review 12bp Annual Report and Form 20-F 2023Transforming to an integrated energy companyOu

118、r strategy in actionWe are investing in todays energy system while helping build out tomorrows.All in service ofgrowingthe value of bp.a Bioenergy includes customer-facing and midstream biofuels activities that form part of convenience and mobility.b This does not form part of bps Annual Report on F

119、orm 20-F as filed with the SEC.c At Brent$70/bbl 2021 real and bp planning assumptions,and at the upper end of the expected capital expenditure range for the group,the relevant strategic pillar or transition growth engine as applicable.SustainabilityEmbedded across our strategy is our sustainability

120、 frame,which sets out our aims for getting to netzero,improving peoples lives and caring forourplanet.IntegrationOur trading and shipping business continues to beat the core ofintegrating and optimizing across integrated value chains.KeyDenotes transition growth engineTCFD Recommendations and Recomm

121、ended DisclosuresExamples of progress against our strategy in 2023,pages 18-23 Sustainability at bp,page 48Growth to 2030bWe aim to generate adjusted EBITDA of$53-58 billionc in 2030.The aims underpinning this include:Growing adjusted EBITDA from resilient hydrocarbons to$41-44 billionc.More than do

122、ubling adjusted EBITDA versus 2019 in convenience and mobility to$9-11 billionc.Delivering$2-3 billionc of adjusted EBITDA from low carbon energy,while establishing the foundations of a material business for the decades to come.Delivering between$10-12 billionc of adjusted EBITDA from transition gro

123、wth engines.ConvenienceEV chargingSustainabilityIntegrationTransition growth engines BioenergyaHydrogenRenewables&powerThree strategic pillars Our strategy is focused on three key areas of activity.Oil and gas RefiningRetail fuels Castrol,aviation,B2B/midstreamConvenience and mobilityLow carbon ener

124、gyResilient hydrocarbons13bp Annual Report and Form 20-F 2023Strategic report See glossary on page 373d Relative to 2019,we expect our hydrocarbon production to be around 25%lower by 2030 reflecting active management and high-grading of the portfolio,including divestment of non-core assets.e 2022 ex

125、cludes Archaea Energy.f Reported to the nearest 50.Performance against our strategyThese are strategic targets and aims we have set against our strategic pillars out to 2025 and 2030.Metrics2023 performance2025 target2030 aimResilient hydrocarbonsUpstream productiond2.3mmboe/d2022 2.3mmboe/d2.3mmboe

126、/d 2mmboe/dbp-operated upstream plant reliability95.0%2022 96%96%96%Upstream unit production costs$5.78/boe2022$6.07/boe$6/boe bp-operated refiningavailability96.1%2022 94.5%96%96%Biofuels production 32kb/d2022 27kb/d50kb/d100kb/dBiogas supply volumes 22mboe/d2022 12mboe/de40mboe/d70mboe/dLNG portfo

127、lio23Mtpa2022 19Mtpa25Mtpa30MtpaConvenience and mobilityStrategic conveniencesitesf 2,8502022 2,4003,0003,500Customer touchpointsper day 12 million2022 12 million15 million20 millionElectric vehicle chargepoints 29,0002022 22,00040,000100,000Low carbon energyHydrogen production(net)0.5-0.7MtpaDevelo

128、ped renewables tofinal investment decision (net)6.2GW2022 5.8GW20GW50GWInstalled renewables capacity (net)2.7GW2022 2.2GW 10GW14bp Annual Report and Form 20-F 2023Pursuing a strategy that is consistent with the Paris goalsConsistency with the Paris goalsWhat we mean by Paris-consistent The 2019 CA10

129、0+resolution requires us to disclose the strategy that the board considers in good faith to be consistent with the Paris goals.When we refer to consistency with Paris we consider this to mean consistency with the world meeting the temperature goal set out inArticles 2.1(a)and 4.1 of the Paris Agreem

130、ent on Climate Change.The Paris goals,which we support,were reaffirmed under the UAE Consensus at COP28 in December 2023,by the Sharm el-Sheikh Implementation Plan agreed by the Parties atCOP27 in November 2022,and the Glasgow Climate Pact agreed by the Parties at COP26 inNovember 2021.We believe th

131、e world is on an unsustainable path,and the carbon budget to meet the Paris goals is running out.bps strategy is informed by these considerations.It is designed to create long-term value for shareholders,while enabling delivery of our net zero ambition to become a net zero company by 2050 or sooner,

132、and to help the world get to net zero.It is designed to be resilient to the uncertainty of the energy transition across many different potential pathways,including various Paris-consistent pathways.In the bp Annual Report and Form 20-F 2021 we set out,based on three key principles,why the board cons

133、iders our strategy to be consistent with the Paris goals.Here we set out,on the same three grounds,why the board continues toconsider this to be the case.Informed by Paris-consistent energy transition scenariosThe speed and nature of the energy transition isuncertain,and so we consider a range of sc

134、enarios from multiple sources including the bp Energy Outlook to inform our beliefs about the energy transition and to develop and test our strategic thinking.This helps to reinforce our confidence in the robustness and resilience of our strategy to the range of uncertainty we face.We are confident

135、that our approach is science-based.We see the Intergovernmental Panel on Climate Change(IPCC)as the most authoritative source of information on the science of climate change,and we use it and other sources to inform our strategy.The IPCC highlights that there are a range of global pathways by which

136、the world can meet the Paris goals,with differing implications for regions,industry sectors and sources of energy.The bp Energy Outlook 2023 updated the 2022 Outlook to reflect the significant developments in global energy markets over the preceding year,including the possible impact of the Russia-U

137、kraine war on the pace of the energy transition.It includes three main scenarios two of which we regard as Paris-consistent(Accelerated and Net Zero)that we use toinform our strategy.Energy outlook page 10 and resilienceWe believe our strategy positions bp for success and resilience in a Paris-consi

138、stent world aworld that is progressing on one of the manyglobal trajectories considered to be Paris-consistent,and ultimately meets the Parisgoals.The strategy diversifies bps portfolio and business interests,reducing the risk that challenges facing a single business area mightadversely affect bps s

139、trategic resilience.In addition,within the inevitable constraints associated with factors such as long-term capital investments,contractual commitments and organizational capabilities at any given time,bps ability to maintain its strategic resilience rests,in part,on the governance usedto keep the s

140、trategy and associated targets and aims under review in light of new information and changes in circumstances.In our climate-related financial disclosures on page 63,we describe how we have conducted an analysis to test our view of the resilience ofour strategy to different climate-related scenarios

141、,using the update on strategic progress presented in February 2023.This includes scenarios that are classified by the World Business Council for Sustainable Development(WBCSD)to be consistent withwell-below 2C and 1.5C outcomesa.As further explained on page 64,while the results of any such analysis

142、must be treated with caution overall,this resilience test again reinforced our confidence in the continued resilience of our strategy to a wide range of ways in which the energy system could evolve throughout this decade,including in scenarios consistent with limiting temperature rise to1.5C.The ana

143、lysis also again highlighted that,while WBCSD data may point towards a broad directional correlation between oil price and thetemperature goal with which scenarios are associated,there is considerable uncertainty asto the extent of this correlation.This is demonstrated by the range within,and overla

144、pbetween,the prices indicated for eachscenario family.In the version of the WBCSD catalogue used for the analysis,the lowest oil price is associated with a 1.5C scenario;however a number of the 1.5C and well-below 2C scenarios have oil prices in 2030 that are substantially higher.And when compared t

145、o bps own central oil price case planning assumption for 2030,theoilprice in a number of the well-below 2C scenarios is also higher,supporting our view that our oil price planning assumption is broadly consistent with Paris-consistent scenarios.a Our 2023 analysis used data from the WBCSD Climate Sc

146、enario Catalogue version 2.0,published on 31 March 2023 and downloaded on 1 February 2024,which includes scenarios considered to be consistent with well-below 2C and 1.5C outcomes.15bp Annual Report and Form 20-F 2023Strategic report See glossary on page 373Contributes to net zero We believe that ou

147、r strategy enables bp to make a positive contribution to the world achieving net zero greenhouse gas(GHG)emissions and meeting the Paris goals outcomes which we believe to be in the best interests of bp as well as beneficial to society generally.We see huge opportunity in the energy transition the t

148、ransformation of the energy system that we believe to be a necessary feature of the worlds efforts to meet the Parisgoals.There are many ways a company atthe heart of the energy sector can make a meaningful contribution to the world getting to net zero.In addition to investing in and scaling our own

149、 lower carbon businesses,these include:policy advocacy and seeking to use the companys influence with trade associations that conduct climate-related advocacy;low carbon collaboration and support for others intheir own decarbonization efforts(such as cities and corporates);and making venturing inves

150、tments in promising new businesses andtechnologies that have the potential to contribute to the energy transition.bp seeks toadvance these areas through our aims in support of our net zero ambition,including aims 6-10 which are focused on activities which can help the world get to net zero,see page

151、50.And,as we pursue our strategy,our diversification and the growth of our low carbon businesses may also contribute to helping the world get to net zero.Some ways of contributing are more readily measured by quantitative metrics than others but all can be important,whether or not they translate int

152、o GHG reductions for bp.For example,in Teesside inthe UK,we continue to work to advance components of the East Coast Cluster a vision for decarbonizing local heavy industries at scale,with CO2 from their emissions taken offshore for permanent storage through Northern Endurance Partnerships carbon ca

153、pture and storage facilities.In 2023 two bp-led lower carbon projects,Net Zero Teesside Power and H2Teesside,part of the East Coast Cluster,were chosen to proceed to negotiations for government support.bp and Equinor were awarded a carbon storage licence by the North Sea Transition Authority,which w

154、ill enable the development of further CO2 storage sites.Together with Equinor we now hold four storage licences on behalf of the Northern Endurance Partnership.There is potential tostore up to 23million tonnes of CO2 a year inthe southern North Sea by 2035.As a further illustration,in terms of low c

155、arbon investment,by 2030 we aim to increase to 50GW the amount of developed renewables to FID,supported by the capital expenditure we plan to invest in our transition growth engines.This aim supports the Paris goals by increasing the low carbon options available to energy consumers.However,it does n

156、ot reduce our Scope 1,2 or 3 emissions.And it may not result in a decrease in the overall carbon intensity of bps sold products,because that is dependent on the extent to which we rather than another party such as a buyer of the developed project market the resulting renewable power,which is a comme

157、rcial consideration.Where we do not directly sell that power,our development of the renewables is effectively invisible in terms of our GHG metrics.As another example,our aim 6 is to more actively advocate for policies that support netzero,including carbon pricing.Helping policymakers to design and

158、put in place low carbon policies that support the transition to net zero can help deliver our strategy and capitalize on the huge opportunities associated with achieving the Paris goals,but the benefit of such advocacy,if successful,extends well beyond any implications for bps own GHG metrics.That i

159、s because well-designed low carbon policies can also advance the decarbonization of a whole economy something potentially of far greater impact than anything a single company can achieve through its own portfolio.We publish examples of our activity in support of aim 6 online at to increased sharehol

160、der interest in Paris consistencyIn 2019 the board recommended that shareholders support a special resolution requisitioned by Climate Action 100+(CA100+)on climate change disclosures.The CA100+resolution passed with more than 99%of votes cast.This is the fifth year we have included responses throug

161、hout the annual report and we have adopted a similar approach to previous years.The CA100+resolution,which includes safeguards such as protections for commercially confidential and competitively sensitive information,is on page 373.Key terms related to this resolution response are indicated with and

162、 defined in the glossary on page 373.These should bereviewed with the following information.Element of the CA100+resolutionRelated contentWhereStrategy that the board considers in good faith to be consistent with the Paris goals.Our strategy and business model12&16Pursuing a strategy that is consist

163、ent with the Paris goals14How bp evaluates each new material capex investment for consistency with the Parisgoals and other outcomes relevant tobpstrategy.Our investment process30Disclosure of bps principal metrics and relevant targets or goals over the short,medium and long term,consistent with the

164、Paris goals.Key performance indicators24Sustainability:net zero targets and aims See TCFD Metrics&Targets for anoverview49 68Anticipated levels of investment in:(i)Oil and gas resources and reserves.(ii)Other energy sources and technologies.Financial frame:disciplined investment allocation28Investme

165、nt in non-oil and gas31bps targets to promote operational GHG reductions.Sustainability:net zero targets andaims(in table)49Estimated carbon intensity of bps energy products and progress over time.Sustainability:aim 349Any linkage between above targets and executive pay remuneration.Directors remune

166、ration report 2023 annual bonus outcome 2024 remuneration policy105 114 11916bp Annual Report and Form 20-F 2023What makes us differentOur business modelWe believe we have the scale,global presence and expertise to navigate complex markets and manage increasingly integrated energy systems.Our purpos

167、eGuiding what we do and how we operate,our purpose is:Reimagining energyfor people and our planetOur strategyTransforming to an integrated energy company.Resilient hydrocarbonsConvenience and mobility Low carbon energyPeople and resourcesaThese are some of the people and resources in our business mo

168、del that support how we create and preserve value for our stakeholders.10,900engineersSustainability at bp,page 48$16.3bncapital expenditureGroup performance,page 35$298m invested in research and developmentpage 1976,759mmboeproved hydrocarbon reserves for the groupbGas&low carbon energy,page 39 Sup

169、plementary information onoil and natural gas,page 247 110 yearsin energyThe operating environment,page 8800employees on graduate schemes$32.0bnoperating cash flow2,500 granted and pending patent applications held by bp and its subsidiaries 6.2GWdeveloped renewables to FID(net)14 yearsof bp Energy Ou

170、tlook publicationsIncumbent capability Financial resourcesResearch and developmentEnergy resourcesEnergy sector experienceStrategy,page 12Creating value through integration,pages 18,20 and 22a Data as at 31 December 2023.b On a combined basis of subsidiaries and equity-accounted entities.See page 34

171、5 for more information on bps oil and gas reserves including the impact of events occurring after the end of the reporting period.17bp Annual Report and Form 20-F 2023Strategic report See glossary on page 373Our business groupsThis is how we are organized to deliver our strategy and deliver long-ter

172、m shareholder value.Our three business groups are supported by four integrators to facilitate collaboration and unlock value(innovation&engineering;regions,corporates&solutions;strategy,sustainability&ventures;and trading&shipping),and three teams that serve as enablers of business delivery(finance;

173、legal;and people&culture).Delivering value for stakeholdersaWe are committed to delivering long-term value for stakeholders.$4.8bntotal dividends distributed to bp shareholders(2022$4.4bn)12mcustomer touchpoints per day(2022 12m)73%employee engagement score from the Pulse annual employee survey(2022

174、 70%)page 71$11.9bncorporate income tax and production tax paid(2022$12.5bn) additional initiatives to benefit communities(2022$93m)page 53$152bnin payments to suppliers for goods and services(2022$174bn)page 70Gas&low carbon energyIntegrating our existing natural gas capabilities with power trading

175、 and growth in low carbon businesses and markets,including wind,solar,hydrogen and carbon capture and storage.Production&operationsThe operational heart of bp,producing the hydrocarbon energy and products the world wants and needs safely and efficiently.Customers&productsFocusing on customers as the

176、 driving force for innovating new business models and service platforms to deliver the convenience,mobility and energy products and services oftoday and the future.Investors and shareholdersIncludes our institutional and retail investors.CustomersIncluding end-use consumers,B2B customers,and distrib

177、utors.EmployeesOur 87,800 people worldwide.Governments and regulatorsIn the countries where we have existing or planned activities.SocietyThe people,businesses and environment in the communities where we work.Partners and suppliersIncludes relationships with academia,industry and cities.Alignment wi

178、th our strategic pillarsHow we reconcile our strategic pillars to our reporting segments and business groups,page 3page 39page 42page 4418bp Annual Report and Form 20-F 2023Progress against our strategyResilient hydrocarbons A resilient oil and gas business is an essential part of our transformation

179、 to an integrated energy company.Our focus remains on safely delivering value,maximizing returns and cash flow,and reducing emissions.Transition growth engines Bioenergy:Demand from our customers for bioenergy is growing.Thats why we are working to scale up our established bioenergy business.We are

180、increasing our biogas supply,growing our biofuels production,helping our customers decarbonize and expanding our trading capabilities.Renewable gas atArchaea EnergyWe started up our first Archaea Modular Design(AMD)plant in Indiana,US in October 2023.AMD allows the plant to be built on skids with in

181、terchangeable components forfaster builds.The plant converts landfill gas(a form ofgreenhouse gas)by capturing it from landfill and converting it to electricity,heat or renewable natural gas(RNG).This helps to improve local air quality and provide lower carbon fuel for homes,businesses and transport

182、ation.It is the first of 15-20 new plants we aim tobring online per year through 2025,with Archaea Energy production volumes contributing to our 2025 target of around 40mboe/d of biogas supply volumes(see page 13).3,200scfmMedora RNG plant processing capacity Bingo goes onlineOur onshore oil and gas

183、 business,bpx energy,invested$1.4 billion in Texass Permian Basin in2023.In August we completed our second central processing facility,Bingo.This follows Grand Slam,which came online in 2021.Methane certificationWe became the first energy major to verify the methane intensity of its entire US onshor

184、e operated natural gas portfolio,with bpx energy gaining certification from MiQ,an independent not-for-profit,in March2023.The certification is independently audited and gives us a better understanding of methane intensity and source emissions,helping us develop plans to reduce emissions further.Our

185、 aim 4 progress,page 49This is a powerful step forward in our net zero journey to capture landfill emissions and provide customers with lower carbon fuel.Starlee SykesCEO Archaea EnergyBingo in the Permian Basin,Texas,US Archaea Energy RNG plant in Medora,Indiana,US19bp Annual Report and Form 20-F 2

186、023Strategic report See glossary on page 373Transforming ourrefineriesIn refining,we expect to drive greater competitiveness and value through our digitization and business improvement plans,including maintaining Solomon first quartile net cash margin.At our Cherry Point refinery in Washington,we br

187、ought online a new vacuum tower and cooling water tower.These upgrades are designed to reduce the refinerys emissions,as well as helping to improve refinery availability and save maintenance costs.In addition,we plan to invest in our refineries and to target more than double our biofuels co-processi

188、ng volumes to around 20,000 barrels per day in 2025.Futureproofing TrinidadIn Trinidad,we restructured the ownership and commercial framework of the Atlantic LNG joint venture with its partners Shell and the National Gas Company of Trinidad and Tobago.The restructuring helps provide the certainty re

189、quired for sanctioning the next wave of upstream gas projects and secures the long term LNG equity offtake for shareholders including bp.Major project start-upsWe started up four major oil and gas production projects in 2023.We expect these projects to contribute more than 50%towards our target of a

190、round 200mboe/d fromten new major projects by 2025.Mad Dog Phase 2,USWe started up our fifth bp-operated production platform,Argos,in the Gulf of Mexico in April 2023.Our new facility is helping to increase production inthe Gulf and has the capacity to produce up to 140mmboe/d gross.KG D6 MJ,IndiaIn

191、 partnership with Reliance Industries Limited,weannounced first production from the MJ field inJune 2023.This is the third deepwater development brought into production in block KG D6 off the east coast of India.Together,the three fields in KG D6 account for around one third of Indias current domest

192、ic gas production and meet approximately 15%of the countrys gas demand.Tangguh expansion,IndonesiaTangguhs Train 3 started up in September 2023.Its production is supporting the growth in supply ofLNG,adding around 3.8Mtpa of gross producing capacity to the existing 7.6Mtpa facility,bringing producti

193、on capacity to around 11.4Mtpa.Seagull,UKIn November 2023 we announced first production from the Seagull oil and gas field in the UK North Sea in partnership with Neptune Energy and JAPEX.The project is the first subsea tieback to the Eastern Trough Area Project(ETAP)in 20 years.Cherry Point refiner

194、y,Washington,USSeagull facility in the UK North Seabp has been operating in the North Sea for nearly 60 years,delivering a reliable flow of energy,supporting thousands ofjobs and a world-class supply chain.We plan to keep doing this by investing in our existing oil and gas infrastructure,like at ETA

195、P.Doris ReiterSVP,bp North Sea20bp Annual Report and Form 20-F 2023Progress against our strategy continuedConvenience and mobility By bringing our capabilities and reach in convenience together with EV charging,we aim to provide customer-focused,lower carbon transport solutions over time.We are also

196、 focused on growth in our differentiated fuels,Castrol,aviation,B2B and midstream including biofuels businesses.Transition growth engines Convenience:In this growing sector,our scale,premium locations,leading brands and strategic partnerships enable us to deliver differentiated offersfor our custome

197、rs.We have a proven track record of resilient gross margin growth against a challenging backdrop,which underpins confidence indelivery of our strategy.We will continue to expand our footprint,which the TravelCenters of America acquisition has accelerated.EV charging:This sector is moving at pace,and

198、 we see significant value through our focus on fast charging to on-the-go customers.Wearefocusedonthe largest EV car parcs across the US,UK,China and Germany,and our joint venture partnerships in IndiaandIberia.US retail boostWe completed the purchase of TravelCenters ofAmerica in May 2023.The deal

199、adds a network of around 290 retailsites on major highways across the US.Itis expected to almost doublea our global convenience gross margin,supporting thegrowth of our convenience and mobilitybusiness.By integrating bp pulse,our fast-growing EV charging business,along with biofuels and renewable na

200、tural gas businesses and in time,hydrogen we aim to respond to our customers changing mobility needs.Emma DelaneyEVP customers&productsTravelCenters of America retail site in Ohio,USGrowing convenienceWe strengthened our strategic convenience partnerships and customer offersin 2023.REWE To Go:bp and

201、 Lekkerland extended their successful partnership to continue to deliver REWE To Go stores at Aral retail sites until 2028.This is bps largest European convenience supply agreement and brings together Germanys largest forecourt brand with one of the countrys leading convenience specialists in suppor

202、t of bps convenience transition growth engine delivery.Auchan,Poland:We signed an agreement withleading convenience retailer,Auchan,with plans to add more than 100 stores to our retail network.The partnership supports our aim togrow our strategic convenience sites and convenience gross margin global

203、ly.BPme:We strengthened our BPme Rewards loyalty scheme with the launch of loyalty pricing,giving customers exclusive discounts on retail store products at around 300 bp-owned retail sites across the UK.bp retail site in West Sussex,UKa On an annualized basis when compared with 2022.21bp Annual Repo

204、rt and Form 20-F 2023Strategic report See glossary on page 373bp pulse EV charging at the Gigahub in Birmingham,UKAccelerating EVWe expanded our EV charging network in 2023,and demonstrated profitability in our on-the-go business in Germany and our joint venture,bp Xiajou in China.In the US:We annou

205、nced a$500 million investment in the US over the next two to three years.As part of this,bp pulse entered into an agreement with Tesla for the future purchase of$100 million of ultra-fast chargers that will be installed across our bp pulse network in the US.The first time Teslas ultra-fast chargers

206、will be deployed on an independent EV charging network.In the UK:We opened the UKs largest public EV charging hub in partnership with The EV Network and NEC Group in September.The Gigahub is located at the heart of the UK motorway network at the NEC campus in the West Midlands,with capacity to charg

207、e up to 180 EVs simultaneously.In Iberia:In December 2023 we formed a joint venture with Iberdrola to accelerate EV charging infrastructure roll-out in Spain and Portugal.The joint venture plans to invest up to 1billion and install 5,000 fast EV charge points by 2025 andaround 11,700 by 2030.SAF in

208、actionWe are aiming to be a leading supplier of sustainable aviation fuel(SAF),as we look tohelp decarbonize theaviation sector.Air bp made its first SAF sale in March 2023.The International Sustainability and Carbon Certification(ISCC)EU SAF was produced through co-processing at our Castelln refine

209、ry in Spain.It was first used on a flight from Zaragoza,Spain to North America with LATAMCargo Chile.This is a milestone in thedevelopment of using existing refineries tomeetSAF demand produced from sustainable feedstocks.Supplied by bp and Virent,the first 100%SAF-fuelled commercial transatlantic f

210、light flew from London Heathrow to JFK airport inNew York in November 2023.Leading in EV-fluidsIn Castrol,our leading position in advanced EV-fluids was further strengthened in 2023.Three out of four ofthe worlds major vehicle manufacturers use Castrol ON products as part of their factory fillb.And

211、we are investing in our technology centres including a new EV laboratory in Shanghai,China and a new laboratory in New Jersey,US.Virgin Atlantic flight before take-off at London Heathrow airport,UK b Based on GlobalData report for 2023 for top 20 selling global OEMs(total new vehicles sales).150%GWh

212、 increase in energy sales volume since 202222bp Annual Report and Form 20-F 2023Progress against our strategy continuedLow carbon energyWe plan to create integrated regional hubs,enabled by two of our transition growth engines in the hydrogen and renewables&power sectors.Transition growth engines Hy

213、drogen:Initially we plan to supply our own refineries decarbonizing our own operations as well as sell to local third parties,before increasing production to turn these into regional hubs.As markets evolve,we plan to invest in building global export hubs for hydrogen and hydrogen derivatives such as

214、 ammonia.Here,our experience of moving gas through pipelines,integrating renewables into our portfolio and transporting LNG on water will accelerate our route to market for hydrogen and ammonia.Renewables&power:We are focusing our investment in renewables on opportunities where we can create integra

215、tion value and enhance returns.We are evaluating options to build a renewables portfolio in green hydrogen,e-fuels,EV charging and power trading.This includes building a global platform in offshore wind,enabled by our capabilities in large-scale,complex offshore projects,as well as our planned acqui

216、sition of Lightsource bp.Bycombining our power trading and marketing activities into this growth engine,we can integrate through the value chain from generation to customer,enhancing returns,building market position and supporting the decarbonization of electricity.Transforming TeessideIn 2023 two b

217、p-led lower carbon projects,NetZero Teesside Power and H2Teesside,part ofthe East Coast Cluster,were chosen to proceed to negotiations for government support.bp and Equinor were awarded a carbon storage licence by the North Sea Transition Authority,which will enable the development of further CO2 st

218、orage sites.Together with Equinor we now hold four storage licences on behalf of the Northern Endurance Partnership.There is potential to store up to 23 million tonnes of CO2 a year in the southern North Sea by 2035.This is a huge step forward for these transformative projects,which will help drive

219、the regions low carbon revolution and deliver the UKs net zero targets.Louise KinghamUK head of country and SVP EuropePeacock Solar construction startsWe started construction of our 187MW solarproject in Texas,US,in mid-2023.Theproject is planned to come online in thesecond half of 2024.At full capa

220、city,the installation is expected to generate enough electricity annually to power the equivalent of 34,000 homes.Peacock will sell all of the electricity it generates under a long-term power purchase agreement,and will also be home to a range of agricultural and biodiversity activities.This support

221、s our aim to develop 50GW of renewable energy capacityto FID by 2030.Teesside brownfield site,covering 4,500 acres on the banks of the River Tees,UK Peacock Solar in Texas,US 23bp Annual Report and Form 20-F 2023Strategic report See glossary on page 373Helping Japan decarbonize We signed a memorandu

222、m of understanding(MOU)with Japans second-largest power company,Chubu Electric,to explore opportunities for decarbonization in the countryand wider Asiaregion.The MOU includes exploring the feasibility of collecting,aggregating,using and transporting CO2 from major emitters in Japans Nagoya port to

223、storage sites through a carbon capture and storage hub.This could help decarbonize a range of the ports carbon-intensive industrial businesses,which account for 3%of Japans total emissions,supporting its ambition to cutemissions by 35%by 2030.Lightsource bp acquisition In November 2023 we agreed to

224、acquire the remaining 50.03%interest in Lightsource bp which we did not already own.Subject to regulatory approvals,the deal is expected to close in the second half of 2024.The acquisition aims to scale up Lightsource bpand create additional value by applying complementary capabilities and strengths

225、 to help meet the growing demand forlow carbon power from our transition growthengines.Upgrading FowlerRidgeWe completed a major technology upgrade at our Fowler Ridge 1 wind farm in Indiana,US.The upgrade will help the site produce more power,more efficiently and with greater reliability.The new Ve

226、stas turbines are expected to produce up to 40%moreenergy.The decommissioned blades will be recycled,avoiding up to 1,500 tonnes ofmetal going to landfill.Hydrogen inSpainIn 2023 we launched plans for a green hydrogen cluster called HyVal,at ourCastelln refinery in the Valencia region of Spain.This

227、project is a substantial upgrade for the wind farm and another investment in bps low carbon energy future.Orlando AlvarezChair and president,bpAmericaWe will continue to scale this successful business,and also apply its capabilities and expertise to help meet the growing demand for low carbon power

228、from our transition growth engines.Anja DotzenrathEVP gas&low carbon energyWind bid wins We have been successful in two offshore wind bids in Germany our first in continentalEurope.We will lead the development,construction and operation ofthese projects,and expect to connect them to the grid by the

229、end of 2030.Integration opportunity:We expect the renewable power fromthese projects will support our green hydrogen and biofuels production,electric mobility growth and refinery decarbonization,as well as widerindustry decarbonization inGermany.4GWtotal potential generating capacity from the two si

230、tesFowler Ridge wind farm in Indiana,US Solar farm in Norfolk,UK20220.18720230.27420210.16420200.13220190.166202294.5202396.1202194.8202096.0201994.9202296.0202395.0202194.0202094.0201994.42022501733202339930202162164620207017532019982672Tier 1 process safety eventsTier 2 process safety events24bp A

231、nnual Report and Form 20-F 2023Key performance indicatorsWe assess the performance of the group across a wide range of measures and indicators that are consistent with our strategy.Our key performance indicators(KPIs)provide a balanced set of metrics that give emphasis toboth financial and non-finan

232、cial measures.These help the board and leadership team assess bps performance.Our leadership team uses these measures to evaluate operating performance and inform its financial,strategic and operating decisions.We track tier 1 and tier 2 events and report the aggregated outcome.Tier 1 events are los

233、ses of primary containment from a process of greatest consequence causing harm to a member of the workforce,damage to equipment from a fire or explosion,a community impact or exceeding defined quantities(per API RP 754 tier 1 definitions).Tier 2 events are those of lesser consequence(per API RP 754

234、tier 2 definitions).2023 performanceOur combined process safety events have generally decreased over the last 11 years,apart from in 2019.This downward trend continued in 2023,with 11 fewer(22%)reported than in 2022.Reported recordable injury frequency(RIF)measures the number of reported work-relate

235、d employee and contractor incidents that result inafatality or injury per 200,000 hours worked.2023 performance Our recordable injury frequency(RIF)increased by47%.A rise in the number of injuries in North America(which we attribute in part to the onboarding of retail operations we acquired includin

236、g Thorntons)contributed to this increase.Safety,page 69bp-operated refining availability represents Solomon Associates operational availability for bp-operated refineries.The measure shows the percentage of the year that a unit is available for processing after subtracting the annualized time lost d

237、ue to turnaround activity and all planned mechanical,process and regulatory downtime.Refining availability is an important indicator of theoperational performance of our downstream businesses.2023 performance bp-operated refining availability increased to96.1%in 2023,due to a lower level of unplanne

238、d maintenanceactivity.bp-operated upstream plant reliability is calculated taking 100%less the ratio of total unplanned plant deferrals divided by installed production capacity,excluding non-operated assets and bpx energy.Unplanned plant deferrals are associated with the topside plant and,where appl

239、icable,the subsea equipment(excluding wells and reservoirs).Unplanned plant deferrals include breakdowns,which does not include Gulf of Mexico weather-related downtime.2023 performance Upstream plant reliability in 2023 was slightly lower than in 2022,mainly due to equipment failures associated with

240、 major project ramp-ups.Reported recordable injury frequencyab Upstream plant reliability(%)Tier 1 and 2 process safety eventsab Refining availability(%)SafetySustainable operationsRemuneration To help align the focus of our executive management and executive directors with the interests of our shar

241、eholders,certain measures are used for executive remuneration.Directors remuneration report,page 105KeyUsed for remuneration policyPerformance against strategy,page 13TCFD Recommendations and Recommended Disclosuresa At the time of publication,the recently acquired US-based Archaea Energy and Travel

242、Centers of America safety reporting processes were still being integrated into bps safety reporting processes and as such,Archaea Energy and TravelCenters of America safety performance data is not included in reported data for 2023.b Includes incidents occurring within bps operational HSSE reporting

243、 boundary.That boundary includes bps own operated facilities and joint ventures where bp is the operator.In some cases,we may also provide information about some of our joint venture activities where we are not the operator.202222023420217202042019520226.0720235.7820216.8220206.3920196.8420227.62023

244、(2.5)2021(20.3)20204.0201912.827.715.213.8(5.7)10.0Profit(loss)for the year attributable to bp shareholdersUnderlying RC profit for the year(non-IFRS)202240.9202332.0202123.6202012.2201925.82022(41.4)202336.420215.820202019(41.7)36.45.92.636.950.11.1ADS basisOrdinary share basis2022(23.7)20238.42021

245、4.020202019(3.8)13.317.818.1(3.0)30.58.9Profit(loss)for the period attributable to bp shareholders divided by total equityROACE(non-IFRS)25bp Annual Report and Form 20-F 2023Strategic report See glossary on page 373We monitor the progress of our major projects to gauge whether we are delivering our

246、core pipeline of projects under construction on time.Projects take many years to complete,requiring differing amounts of resource,so a smooth or increasing trend should not be anticipated.Major projects are defined as those with a bp net investment of at least$250 million,or considered to be of stra

247、tegic importance to bp,or of a high degree of complexity.2023 performance We started up four major oil and gas projects in 2023 Mad Dog Phase 2 in the US Gulf of Mexico;KG D6 MJ off the east coast of India;the Tangguh expansion in Indonesia;and Seagull in the UK North Sea.The upstream unit productio

248、n cost is calculated as production cost divided by units of production.Production cost does not include ad valorem and severance taxes.Units of production are barrels forliquids and thousands of cubic feet for gas.Amounts disclosed are for bp subsidiaries only anddo not include bps share of equity-a

249、ccountedentities.2023 performance Unit production costs decreased,in line with our2025 target,mainly reflecting the impact ofportfolio changes.Underlying RC profit(non-IFRS)is a useful measure for investors because it is one of the profitability measures bp management uses to assess performance.It a

250、ssists management in understanding the underlying trends in operational performance on a comparable year-on-year basis.It reflects the replacement cost of inventories sold in the period and is arrived at by adjusting for inventory holding gains and losses,net impact ofadjusting items and related tax

251、ation from profit or loss attributable to bp shareholders.2023 performance Profit for 2023 attributable to bp shareholders includes pre-tax net impairment charges of$5.7 billion.Reduction in the underlying RC profit reflects lower realizations,the impact of portfolio changes,the impact of lower refi

252、ning margins and a lower oil trading performance.Total shareholder return(TSR)represents the change in value of a bp shareholding over a calendar year(American Deposit Share(ADS)inUSD,ordinary share in GBP).Itassumes that dividends are reinvested to purchaseadditional shares at the closing price on

253、theex-dividend date.2023 performanceTSR performance reflects increased dividends in2023.Operating cash flow is net cash flow provided by operating activities,as reported in the group cash flow statement.2023 performance 2023 primarily reflects lower realizations,refining margins and oil trading perf

254、ormance and the impact of portfolio changes.Return on average capital employed(ROACE)(non-IFRS)gives an indication of a companys capital efficiency,dividing the underlying RC profit(loss)after adding back non-controlling interest and interest expense net of tax by the average of the beginning and en

255、ding balances of total equity plus finance debt,excluding cash and cash equivalents and goodwill as presented on the groupbalance sheet over the periods presented.2023 performanceProfit for 2023 attributable to bp shareholders was$15.2 billion and total equity at 31 December 2023 was$85.5 billion.RO

256、ACE for 2023 reflected lower realizations,the impact of portfolio changes,the impact of lower refining margins and a lower oil trading performance.Upstream unit production costs($/boe)Total shareholder return(%)Return on average capital employed(%)Underlying replacement cost(RC)profit($billion)Opera

257、ting cash flow($billion)Major project delivery Financial30.433.22.441.73.849.25.2202231.92023202135.6202045.5201954.532.131.11.01.4Scope 1(direct)emissionsScope 2(indirect)emissions20220.0520230.0520210.07202020190.120.1426bp Annual Report and Form 20-F 2023Key performance indicators continuedKeyUse

258、d for remuneration policyPerformance against strategy,page 13TCFD Recommendations and Recommended DisclosuresWe report Scope 1 and Scope 2 greenhouse gas(GHG)emissions material to our business on acarbon dioxide-equivalent basis.This KPI comprises Scope 1(from running the assets within our operation

259、al control boundary)and Scope 2(associated with importing electricity,heating and cooling that is bought in to run those operations)data covered by aim 1(to be net zero across our operations by 2050 or sooner).It comprises 100%of Scope 1 and 2 emissions or activities within bps operational control b

260、oundary.2023 performanceScope 1(direct)emissions,covered by aim 1,were31.1MtCO2e an overall increase from 30.4MtCO2e in 2022.Of these Scope 1 emissions,30.2MtCO2e were CO2 and 1.0MtCO2e methanec.Overall emissions increased due to temporary operational changes,project start-ups and growth,which was p

261、artially offset by delivery of SERs and divestments.In 2023 our Scope 2(indirect)emissions,covered by aim 1,decreased by 0.4MtCO2e,to 1.0MtCO2e,compared with 2022d.Lower carbon power agreements,including those at our Cherry Point and Whiting refineries,contributed to this decrease.Basis of calculati

262、onfbps reported GHG emissions include methane(CH4)and carbon dioxide(CO2).Other GHGs are not included as they are not material to our operations.CH4 emissions are converted to CO2 equivalent using the 100-year global warming potential(GWP)recommended by the Fifth Assessment Report(AR5)of the Intergo

263、vernmental Panel on Climate Change(IPCC).Data is required to be submitted into the bp group reporting tool,OneCSR,in accordance with bps Operating Management System(OMS)requirements,broadly based on the GHG Protocol Corporate Standard and the Ipieca Petroleum Industry Guidelines for Reporting Greenh

264、ouse Gas Emissions 2nd Edition,May 2011.The responsibility for quantifying and submitting GHG emissions for reporting is assigned to individual bp facilities and business departments,which are termed reporting units(RUs).Aim 1,page 48We define methane intensity as the amount of methane emissions fro

265、m our upstream oil and gas operations as a percentage of the gas that goes tomarket from those operations.This applies to methane emissions within our operational control boundary,where we have the highest degree of control.Methane emissions from non-producing activities,such as exploration drilling

266、,are excluded.The 2023 methane intensity is calculated based on the currently used methodology and,while it reflects progress in reducing methane emissions,itwill not directly correlate with progress towards delivering the 2025 target under aim 4.2023 performanceWe maintained our methane intensity a

267、t 0.05%in2023g.Methane emissions from upstream operations used to calculate our intensity,increased by around 10%from 28kt in 2022 to31ktin 2023.Basis of calculationfAll operated upstream assets report methane(CH4)emissions on a 100%basis,including emissions from operated upstream oil and gas termin

268、als and LNG facilities.Marketed gas production:all upstream gas reaching a market from bp-operated,upstream assets,whether or not this is bp-owned product,and includes gas production from natural gas wells and associated gas from oil production wells.Throughput from bp-operated oil and gas terminals

269、 is excluded to avoid double counting despite their associated CH4 emissions being included in the metric.CH4 data is required to besubmitted into the bp group reporting tool,OneCSR,in accordance with OMS requirements,broadly based on the GHG Protocol Corporate Standard and the Ipieca Petroleum Indu

270、stry Guidelines for Reporting Greenhouse Gas Emissions 2nd Edition,May 2011.The responsibility for quantifying and submitting CH4 emissions for reporting is assigned to individual bp facilities and business departments,which are termed RUs.Aim 4,page 49Greenhouse gas emissionsabcde operational contr

271、ol(MtCO2e)Methane intensitybg(%)Non-financial20221.520230.920211.620201.020191.42022702023732021642020642019652022292023332021252020201930313233343325Women in group leadershipPeople from beyond the UK and US in group leadership27bp Annual Report and Form 20-F 2023Strategic report See glossary on pag

272、e 373Our people are crucial to delivering our purpose and strategy.We aim to recruit talented people from diverse backgrounds,invest in their development and promote an inclusive culture.Each year we report the percentage of women andindividuals from countries other than the UK and the US among bps

273、group leaders.2023 performanceThe percentage of women in group leadership increased in 2023,continuing an upward trend over the previous five years.The percentage of people from beyond the UK and US in group leadership remained at 33%.Diversity,equity and inclusion,page 71We conduct a Pulse annual e

274、mployee survey tounderstand and monitor levels of employee engagement and identify areas for improvement.2023 performanceOur 2023 survey took place in August.Employee engagement increased to 73%(2022 70%).Pride in working for bp also increased from 78%,reported in2022,to a record 80%.Both numbers ar

275、e notable given that participation was the highest since thesurvey began,with an 85%response rate.Wecontinue to build engagement plans based onsurvey feedback and on real-time updates from our monthly snapshot,Pulse live.Employee engagement,page 71This measure includes actions taken by our businesse

276、s to improve energy efficiency and reduce methane emissions and flaring all leading to ongoing,quantifiable GHG reductions.These refer to the GHG emissions on an operational control basis,which comprise 100%of emissions from activities that are operated by bp and would have occurred had we not made

277、the change they are absolute in nature.From 2019-23 progress against this target was used as a factor in determining bonuses for eligible employeesi,including executives.2023 performanceWe delivered 0.9MtCO2e of SERs from our businesses and activities including reducing Scope 2 emissions by 255ktCO2

278、e at our Cherry Point and Whiting refineries through lower carbon power agreementsd.We also reduced operational emissions by 149ktCO2e at bpx energy through ongoing reductions linked to the expansion of bpx energys network of centralization facilities.Basis of calculationfSee glossary on page 373 fo

279、r a description.SERs reported are from reductions that meet three criteria described in the reporting period.SERs reported include Scope 1(direct)CO2 emission reductions,direct CH4 emission reductions and Scope 2(indirect)GHG emissions reductions.The responsibility for calculating and submitting SER

280、s lies with individual bp facilities and business departments,which are termed reporting units(RUs).RUs submit a quarterly breakdown of SERs directly into the bp group reporting tool,OneCSR.The RUs follow a formal GHG data submission sign-off process in OneCSR confirming SERs have been reported in a

281、ccordance with OMS requirements.Diversity and inclusionj(%)Employee engagement(%)Sustainable GHG emissions reductionsbh(SERs)(MtCO2e)a Total(100%)Scope 1(direct)GHG emissions from source activities operated by bp or otherwise within bps operational control boundary.bps reported GHG emissions include

282、 CH4 and CO2.OtherGHGs are not included as they are not material to our operations.b These are our KPIs for the purposes of our disclosures pursuant to the UK CFD Regulations and Section 414CB(2A)(h)of the Companies Act 2006.c Due to rounding some totals may not equal the sum of their component part

283、s.This does not affect the underlying values.d Scope 2 emissions on a market basis.e Scope 2 GHG emissions figure for 2022 updated to reflect use of renewable energy in UK and offshore in 2022.f Included as part of reporting under the Companies(Strategic Report)Climate-related Financial Disclosure R

284、egulations 2022(The UK CFD Regulations).g Methane intensity is currently calculated using our existing methodology and,while it reflects progress in reducing methane emissions,will not directly correlate with progress towards deliveringthe 2025 target under aim 4.h For 2024 our sustainability measur

285、e is now linked to our operated carbon emissions,which will cover all increases and decreases in those emissions over the year.i 36,400 employees were eligible for a cash bonus in 2023(2022 32,000).j Relates to bp employees.28bp Annual Report and Form 20-F 2023Operating within a resilient and discip

286、lined financial frameOur financial frameFor the full year 2023,finance debt increased from$46.9 billion at the end of 2022 to$52.0billion,primarily reflecting net long-term debt issuances.But we reduced net debt from$21.4 billion to$20.9 billion,the lowest in a decade.#3 Disciplined investment al

287、locationWe plan to invest with discipline,driven by value,and focused on delivering returns consistent with our hurdle rates across both our transition growth engines(#3)and our oil,gas and refining businesses(#4).Investment is allocated across ourbusinesses based on a set of criteria that balances

288、strategic alignment,hurdle rates,volatility,integration value,sustainability andrisk(see page 30 for more information).In 2023 capital expenditure was$16.3 billion.We expect capital expenditure to remain around$16 billion per annum between 2024-25.Our capex frame between 2026 and 2030 remains 14-18

289、billion per annum.This includes expenditure on inorganic opportunities.#5 Share buybacksWe have simplified and enhanced our share buyback guidance.We are committed to announcing$3.5 billion of share buybacks for the first half of 2024.We plan share buybacks of at least$14 billion through 2025,at cur

290、rent market conditions and subject to maintaining a strong investment grade credit rating.This is part of our commitment,on a point forward basis,to returning at least 80%of surplus cash flow to shareholders.We announced share buybacks of$6.5 billion from 2023 surplus cash flow.Between the end of th

291、e first quarter 2021 and 31 December 2023,we have reduced our issued share capital by 17%.In setting the dividend per ordinary share and buyback each quarter,the board will continue totake into account factors including the cumulative level of and outlook for surplus cash flow,the cash balance point

292、 and maintaining astrong investment grade credit rating.a Cash balance point$40/bbl Brent,$11/bbl RMM,$3/mmBtu Henry Hub,all 2021 real.b First half 2024 buybacks will be announced at the first and second quarter results,subject to board approval.c At current market conditions and subject to maintain

293、ing a strong investment grade credit rating.Our disciplined financial frame to 2025 7.270 per ordinary share for 4Q23Resilient$40/bbl cash balance pointa A range credit metrics through cycle$16bn 2024-25 p.a.capital expenditure$3.5bn1H24bAt least$14bnthrough 2025cResilientdividendStrong investment g

294、rade credit ratingSharebuybacksDisciplined investment allocation#1 Capacity for annual increase of the dividend per ordinary share of 4%at$60/bbl#2 Target further progress on credit metrics within the A range through cycle#3 Transition growth engines#4 Oil,gas,refining and other businesses#5 Committ

295、ed to returning at least 80%surplus cash flowc on a point forward basisOur financial frame comprises five clear priorities governing how we intend to allocate cash flow that we generate to grow distributions to shareholders,strengthen our balance sheet,and invest with discipline to grow the value of

296、 bp.Our five priorities remain unchanged#1 Resilient dividendA resilient dividend remains our first priority within our disciplined financial frame.It is underpinned by a cash balance point of around$40 per barrel Brent,$11 per barrel RMM and$3per mmBtu Henry Hub(all 2021$real).Since the fourth quar

297、ter of 2022 our dividend per ordinary share has grown by 10%to 7.270cents.Based on our current forecasts,at around$60per barrel Brent and subject to the boards discretion each quarter,we expect to have capacity for an annual increase in the dividend per ordinary share of around 4%per annum.#2 Strong

298、 investment grade credit ratingOur second priority is a strong investment grade credit rating.Through the cycle,we are targeting to further improve our credit metrics within an A grade credit range.29bp Annual Report and Form 20-F 2023Strategic report See glossary on page 3732024 guidance2023 actual

299、2024 guidance Upstream reported production(guidance is both reported and underlying production)2.3mmboe/dSlightly higher than 2023Total capital expenditure$16.3bnAround$16bn,weighted to the first halfDepreciation,depletion and amortization$15.9bnSlightly higher than 2023Divestments and other proceed

300、se$1.8bn$2-3bn,weighted towards the second halfGulf of Mexico oil spill paymentsf(pre-tax)$1.3bn$1.2bn including$1.1bn pre-tax to be paid during the second quarterOther businesses&corporate underlying annual charge$0.9bnAround$1.0bnUnderlying effective tax rate39%gAround 40%ha By 2025.$70/bbl(2021 r

301、eal),at bp planning assumptions.b At current market conditions and subject to maintaining a strong investment grade credit rating.c By 2025 and versus 2019.d By 2025.e Divestment proceeds are disposal proceeds as per the group cash flow statement.See page 37 for more information on divestment and ot

302、her proceeds.f See Financial statements Note 22 for more information on payables related to the Gulf of Mexico oil spill.g Nearest equivalent GAAP IFRS measure:effective tax rate 33%.h Underlying effective tax rate is sensitive to the impact that volatility in the current price environment may have

303、on the geographical mix of the groups profits and losses.Six near-term prioritiesWe are focused on growing the value of bp,underpinned by six near-term priorities.Improve safety and reduce emissionsSafety is our number one priority.And we are working towards our aim for net zero operationsDeliver gr

304、owth projectsProgressing next set of projects to provide growth through to the end of this decade and into the nextDrive focus into the business Actively manage our portfolio,continued high-gradingOptimize returnsTargeting 18%return on average capitalemployed in 2025aDeliver next wave of efficiencyU

305、sing technology and global capability hubs to increase margin while decreasingspendGrow shareholder returnsCommitted to returning at least 80%of surplus cash flowb through sharebuybacksMeasured bycontinued improvement in safety metricsreduction in operating emissionsc,0.20%methane intensity target b

306、ased on measurement approachc20%upstream plant reliabilitydrefining availabilityd 96%96%capital expenditure for 2024-25 p.a.$16bn14253630bp Annual Report and Form 20-F 2023Our investment processHow we use price assumptions Our price assumptions are used for our investment appraisal processes.They ar

307、e also used to inform decisions about internal planning and the value-in-use impairment testing of assets for financial reporting.The role of price assumptions As part of our regular strategy review,we consider our portfolio and capital requirements to deliver the strategy.This work(and,where applic

308、able,our decisions on individual investments)is informed by our view of the price environment and considers the balanced investment criteria discussed below.Our price assumptions continue to reflect arange of possibilities,including that the transition to a lower carbon economy and energy system cou

309、ld accelerate.Our investment appraisal assumptions,which take a long-term perspective,focus on the fundamental trends affecting the energy sector and our businesses.Throughout 2023 we held our key investment appraisal price assumptions constant at the levels set out in the bp Annual Report and Form

310、20-F 2022.For relevant investment cases assessed in 2024,we have applied and plan to apply the prices shown in the key investment appraisal assumptions table(right)for our central price case.Brent oil and Henry Hub gas assumptions average around$64/bbl and$4.0/mmBtu respectively(2022$real)from 2024

311、to 2050.We consider these prices to be broadly consistent with a range of transition paths compatible with meeting the Paris goals,but they do not correspond to any specific Paris-consistent scenario.We also consider arange of other price assumptions for our investment appraisal,including product-an

312、d market-specific prices relevant to individual investment cases.We continue to apply carbon prices rising to$100/tCO2e in 2030 and$250/tCO2e by 2050(2021$real)in certain cases(see box on the right).In 2022$real terms,this corresponds to$108/tCO2e by 2030 and$270/tCO2e by 2050.Impairment testingOur

313、best estimate of future prices for use invalue-in-use impairment testing continues tobe based on our investment appraisal price assumptions,with quarterly review of near-term prices to confirm that the assumptions appropriately reflect any changesto expectations due to short-term market trends.Impai

314、rment price assumptions were held constant in 2023 at the levels disclosed in the bp Annual Report and Form 20-F 2022 until the fourth quarter,when the updated investment appraisal price assumptions shown below wereused for value-in-use impairment testing.For investment appraisal,potential future op

315、erational emissions costs that may be borne by bp as a result of an investment are included as bp costs,as described in the box below(generally without assuming incremental revenue associated with those emissions),in order to incentivize engineering solutions that reduce operational carbon emissions

316、 on projects.For the treatment of emission cost assumptions in value-in-use impairment testing,see Financial statements Note 1.Key investment appraisal assumptionsa 2022$real2025203020402050Brent oil($/bbl)70706350Henry Hub gas($/mmBtu)4.04.04.04.0Refining marker marginb($/bbl)1414118.5In addition t

317、o the prices shown we also test whether investments meet our return expectations(see page 32)using a$60/bbl Brent oil price series.Carbon price(US$/tCO2e)2022$real2025203020402050Carbon54108216270a The values in the table represent the central case.b The disclosed RMM assumption in the table exclude

318、s carbon pricing impacts and assumes a normalized cost of renewable identification numbers(RINs).Investment process price assumptionsAll investments are evaluated against relevant price assumptions for oil,natural gas,refining margins or other commodities across a range of alternative price or margi

319、n series(typically acentral,upper and lower series).In addition,all investment cases with anticipated annual operational GHG emissions(Scope 1 and 2)above 20,000 tonnes of CO2 equivalent(bp net basis)must estimate those anticipated GHG emissions and include an associated carbon cost in the investmen

320、t economics,using the carbon prices above.Our investment price assumptions place some weight on scenarios in which the transition to a low carbon energy system is sufficiently rapid to meet the goals of the Paris Agreement,as well as scenarios in which the transition may not be sufficiently rapid.Th

321、ey also place some weight on a range of other factors that can drive prices,and which are notdirectly related to the Paris goals.These price assumptions do not link to specific scenarios or outcomes,but instead try to capture the range of different possibilities surrounding the future path of the gl

322、obal energy system.The nature of the uncertainty means that the price ranges inevitably reflect considerable judgement.The ranges are reviewed and updated as necessary,as our understanding of and judgements about the energy transition evolve.In addition to consideration of a range of price assumptio

323、ns,investment cases also assess the impact of alternative assumptions covering other selected variables relevant to the economics of the investment.These variables may include cost,resource,policy changes and schedule,or other areas of uncertainty,to assess the robustness of investment cases to a ra

324、nge of other factors.KeyInformation that supports TCFD Recommendations and Recommended Disclosures in relation to Metrics andTargets31bp Annual Report and Form 20-F 2023Strategic report See glossary on page 373Investment governance and evaluating consistency with the Paris goalsGovernance frameworkb

325、ps framework for investment governance seeks to ensure that investments align with ourstrategy,can be accommodated within our prevailing financial frame,and add shareholder value.It enables investments to be assessed in a consistent way against a range of criteria relevant to our strategy,including

326、environmental and other sustainability criteria.Investments follow an integrated stage-gate process designed to enable our businesses tochoose and develop the most attractive investment cases.A balanced set of investment criteria is used(see page 32).This allows for the comparison and prioritization

327、 of investments across an increasingly diverse range of businessmodels.The governance framework specifies that proposed investments are evaluated using relevant assumptions,including carbon prices for projected operational emissions where applicable.It also sets out requirements for assurance by fun

328、ctions independent of the business before a final investment decision(FID)is taken.The role of the boardThe board assesses capital allocation across the bp portfolio,including the level and mix of capital expenditures and divestments,strategic acquisitions,distribution choices and deleveraging,as we

329、ll as reviewing certain investment cases for approval.Resource commitment meeting For acquisitions and organic capital investments above defined financial thresholds,investment approval is conducted through the executive-level resource commitment meeting(RCM),which is chaired by the chief executive

330、officer.The RCM reviews the merits of each investment case against a balanced set of criteria(see page 32)and considers any key issues raised in the assurance process.The CA100+resolution requires bp to disclose how we evaluate the consistency of new material capex investments with(i)the Paris goals

331、 and(ii)a range of other outcomes relevant to bps strategy.bps evaluation of the consistency of such investments with the Paris goals was undertaken by the RCM for new material capex investments sanctioned in 2023(see page 34).bps evaluation of an investments consistency with a range of other releva

332、nt outcomes is achieved by considering its merits against bps balanced investment criteria,described on page 32.bp boardReviews and approves investment cases ofmore than$3 billion for resilient hydrocarbons,more than$1 billion for all transition or low carbon investments and any significant inorgani

333、c acquisition that is exceptional or unique in nature.Resource commitment meetingForum for executive managements approval of investments related to existing and new lines of business above$250 million or$25 million for acquisitions,or which exceed the relevant EVPs financial authority,and any project considered strategically important such as a new marketentry.Investment allocation committeesEVP-l