Competitive investment at BP Saltend

1
Competitive investment at BP Saltend
For alternative title pages with images, please
see the BP alternative title slides where you can
copy and paste a pre-set title slide (see BP
templates in PowerPoint menu File / New or
www.bp.com/brand)
Please see the BP PowerPoint tips tricks before
you use this template! This is the preferred
template for BP. It is readable on most
projection equipment however should you feel the
font is too light for your purposes, there is a
template using a heavier font (Univers 55)
available. It can be downloaded at
www.bp.com/brand. There is also a dark green
background template BP special use template
which is more practical for webcasts and for use
in very dark environments when the white version
would produce more glare.

• Malcolm Joslin
• Strategy and Communications Manager

2
The worlds largest companies

• Market Cap (bn) Company
• 371 1 Exxon Mobil
• 362 2 General Electric
• 281 3 Microsoft
• 238 4 Citigroup
• 233 5 BP
• 211 6 Bank of America
• 211 7 Royal Dutch/Shell
• 196 8 Wal-Mart Stores
• 196 9 Toyota
• 196 10 Gazprom
• 196 11 HSBC
• 190 12 Proctor Gamble
• 189 13 Pfizer
• 183 14 Johnson Johnson
• 175 15 Saudi Basic Industries

Source Financial Times 31 March 2006
3
How we fit into BP
BUSINESS SEGMENTS
CUSTOMER FACING
RESOURCES
Exploration Production
Refining Marketing (including Aromatics
Acetyls)
Gas, Renewables and Supply Trading
4
Acetyls Aromatics a global business
Hull, UK AA, Anhydrides, EtAc VAM
Nanjing, China Acetic Acid, 50
Geel, Belgium PTA PX
South Korea PTA, 47 Acetic Acid, 51 VAM, 34
Chongqing, China AA Esters, 51
Cooper River PTA
Decatur PTA PX
Zhuhai, China PTA, 85
Texas City AA PX
Taiwan PTA 61 Acetic Acid, 50
Indonesia PTA, 50
PTA site Acetyls sites PX
sites BP share of JVs
Brazil PTA, 49
Malaysia Acetic Acid, 70 PTA, 100
5
(No Transcript)
6
History of Saltend
7
Ethylene pipeline
Ethyl Acetate
Vinyl Acetate
1200MW power station
Nippon Gohsei

• Over 600m of BP and third party investment
  since 1998

8
BP Acetyls Hull

• European centre for Acetyls Manufacturing
• Production 1.3 million tonnes per annum
• 400 BP staff
• Hull is the largest Acetic Acid producer in
  Europe.
• Hull is the largest Ethyl Acetate producer in the
  world.
• Global centre for Research Technology
• 170 BP staff
• Supports existing Acetyls production sites in
  Hull, USA, Korea, Malaysia, Taiwan China
• Supporting new build in China
• Developing Gas to Products technology

9
Our products
BP Acetyls Hull Our products
ACETIC ACID Fibres, Plastics, Packaging,
Paints, Food Preservatives, Pharmaceuticals,
ACETIC ANHYDRIDE Bleach Activation,
Pharmaceuticals, Herbicides VINYL
ACETATE Paints, adhesives MONOMER ETHYL ACETATE
Pharmaceuticals, paints, printing inks,
photographic products
10
Safety and the Environment at Saltend

• Safety
• 10 million manhours without a Day Away From Work
  Case
• Environmental Reductions since 1990
• Carbon Dioxide (CO2) reduced by 50
• Other releases to air reduced by 90
• Emissions to Humber reduced by 99.8
• (whilst still maintaining capacity)

11
Saltend Chemical Park

• Precedents include
• Bayer sites in Germany
• BASF (Ludwigshafen)
• Chemelot and Delfijl (Netherlands)
• Value Park Terneuzen (Dow) (Netherlands)
• Wilton International
• Some sites overseen by host chemical company
  (e.g. Bayer, Dow), others run by service provider
• Chemelot have relaxed HSE expectations at the
  edges to attract logistics and service providers
• Already third parties at Saltend (Nippon Goshei,
  International Power, Air Products)

12
Synergy with third party investors

• Supplier of our utilities
• Electricity, steam
• Supplier of our raw materials
• Oxygen, nitrogen
• Methanol?
• Catalysts
• User of our products as raw materials
• Acetic acid, anhydride, ETAC, VAM, H2
• (ammonia, O2, N2, ethylene, natural gas)
• User of our waste products
• Provider of our logistics

13
What Saltend has to offer

• Potential feedstocks (acetic acid, acetic
  anhydride, vinyl acetate monomer, ethyl acetate,
  hydrogen, ethylene, oxygen, nitrogen, methanol,
  natural gas)
• Competitive utilities (steam, electricity etc)
• Services (security, first aid, emergency
  response, laboratory etc)
• Infrastructure (central control room, offices
  etc)
• Distribution links (jetty, port, road and rail)
• Available land
• Excellent record for consenting new developments
• Available workforce
• High quality of living

14
Corporate Social Responsibility Enterprise

• BP created Sirius in 1999 with grant of 1m to
  help economic development around Saltend
• Sirius is a registered Enterprise Agency
• Operates from shop in Hedon walk in and chat
• Sirius provides comprehensive business support
  services including loans and loan leverage
• Over 130 businesses and 750 jobs have been
  created via Sirius financial support and over 850
  more jobs created and supported by advice
• Yorkshire Forward has recently supported Sirius
  with a 500k grant

15
Conclusion

• There is interest in a brownfield site with good
  jetty access, existing infrastructure and
  available land
• We need to attract investment that adds value to
  existing operations
• We need to attract investment that increases
  attractiveness of the site for future BP
  investment