BP Strategy

BP has set out a strategy that is enabling us to pivot from being an international oil company focused on producing resources to an
integrated energy company focused on delivering solutions for customers

 doubling adjusted EBITDA, building scale with capital

high-grading our portfolio, lowering
sustaining returns, focused on discipline and returns focus.
our emissions and driving returns.
customers.

Building on our purpose, together with our beliefs about the future of energy systems and changing customer demands, our
strategy is built on three focus areas of activity and three sources of differentiation to amplify value.
BP Strategy
Low carbon electricity and energy
• 10-fold increase in low carbon investment by 2030, with up to 8-fold
BP become a very different
increase by 2025 company by 2030. By then, BP aims
• partnering with 10-15 cities and 3 core industries in decarbonization for:
efforts and doubling customer interactions to 20 million per day, all by • investment in low carbon energy to
2030 have increased from around $500
million to around $5 billion a year; 
Delivering on net zero ambition • developed renewable generating
capacity to have grown from 2.5GW in
• emissions from bp’s operations 30-35% lower by 2030
2019 to around 50GW;
• emissions associated with carbon • bioenergy production to have risen from
in upstream oil and gas production 35-40% lower by 2030  22,000 b/d to more than 100,000 b/d;
• hydrogen business to have grown to
• carbon intensity of products bp sells lower by more than 15%
have 10% share of core markets;
by 2030 • global customer interactions to have
risen from 10 million to 20 million a day;
• electric vehicle charging points to have
Delivering long term value for shareholders increased from 7,500 to over 70,000;
• reset resilient dividend of 5.25c/share per quarter, with commitment and
• energy partnerships with 10-15 major
to  return at least 60% of surplus cash as share buybacks cities around the world and three core
• profitable growth with 7-9% annual growth in EBIDA per share to industries.
2025
Over the same time:
• sustainable value with increasing investment in low carbon and non-
oil and gas • Upstream oil and gas production is
expected to reduce from 2.6 million
Resilient and focused hydrocarbons barrels of oil equivalent a day
(mmboe/d) in 2019 to around
• capital intensity decreasing as major project wave completes, combined with continued 1.5mmboe/d; and
efficiency focus, to drive earnings and ROACE growth • refining throughput is expected to fall
from 1.7 million barrels a day (mmb/d)
• production declines by 40% by 2030 through active portfolio management
in 2019 to around 1.2mmb/d.
• no exploration in new countries
Sustainability
Sustainability at bp is about creating value by connecting the business opportunities of the energy transition with our aims and objectives for
people, our planet and getting to net zero
BP’s ambition is to be a net zero company by 2050 or sooner and to help the world get to net zero. BP have set out 10 aims to support this
ambition. 
Five Aims to get BP to net zero
Net Zero Net Zero Net Zero Sales Reducing Methane More $ for New
Operations Production Energies
to be net zero across our to be net zero on an to reduce to net zero the carbon to install methane measurement to increase the
entire operations on an absolute basis across intensity of the energy products we at all our existing major oil and proportion of
absolute basis by 2050 the carbon in sell by 2050 or sooner. gas processing sites by 2023, investment we make
or sooner our upstream oil and gas p publish the data, and then drive a into our non-oil
roduction by 2050 or 50% reduction in methane and gas businesses.
sooner. intensity of our operations.
• 20% reduction in 20% reduction by 2025 and it is customer focused and reflects to influence our joint ventures to
operational will aim for 35-40% by our low carbon energy sales as well as set their own methane intensity
emissions by 2025 2030 against our 2019 our fossil fuel sales. It measures the targets of 0.2%
• 50% reduction by baseline evolution of that product mix over time
2030 of both our marketed sales and
physical trades of energy products.

Five aims to help get the world to net zero

Advocating Incentivizing Aligning Associations Transparency Clean cities and
employees Leader corporates
to more actively advocate for  to incentivize our global to set new expectations for our to be recognized as an to launch a new team to
policies that support net zero, workforce to deliver on relationships with trade industry leader for the create integrated clean
including carbon pricing our aims and mobilize associations around the globe. transparency of our reporting. energy and mobility solutions
them to become
advocates for net zero
BP have stopped corporate include continuing to We will make the case for our On 12 February 2020, we We launched our regions,
reputation advertising allocate a percentage of views on climate change within declared our support for the corporates and solutions
campaigns and this is remuneration linked to the associations we belong to and recommendations of the team in 2020. It will help
enabling us to redirect emissions reductions for we will be transparent where we Task Force on Climate-related countries, cities and
resources to promote well leadership and around differ. And where we can’t reach Financial Disclosures (TCFD) corporations around the
designed climate policies 22,000a employees alignment, we will be prepared to world decarbonize
leave
Sustainability
Alongside our net zero ambition and aims, BP has also set out five aims to help improve people’s lives and five aims to care for our planet. 
Five Aims to improve people’s lives
More clean energy Just Transition Sustainable Greater equity Enhance
livelihoods wellbeing
to develop enough clean energy to support a just energy transition helping more than 1 greater diversity, equity and to enhance the health
to benefit more than 36 million which advances human rights and million people build inclusion for our workforce and wellbeing of our
people. education sustainable livelihoods and customers, and to employees, contractors
and resilience increase supplier diversity and local communities..
spend to $1 billion.
By 2030 we aim to have delivers decent work, quality jobs and We’ll support the We want our workforce and to proactively improve
developed 50GW renewable supports the livelihoods of local communities where we customers to experience their physical and
generating capacity – broadly communities. work to build greater greater equity – fair mental health – through
enough to meet the power To support a just energy transition, resilience and more treatment according to innovative programmes,
needs of 36 million people – we aim to collaborate with key sustainable livelihoods everyone’s different needs partnerships and offers.
including exploring ways to stakeholders and other industries to and situations – while also
make clean energy accessible support the advancement of human helping our partners in the bp
to those who need it most. rights through the transition ‘ecosystem’ do the same
Five aims to care for our planet
Enhancing Water Positive Championing Unlock circularity Sustainable
biodiversity nature-based purchasing
solutions

making a positive impact becoming water positive by championing nature- to unlock new sources of value developing a
through our actions to 2035 based solutions and through circularity more sustainable supply
restore, maintain and enabling certified natural chain.
enhance biodiversity where climate solutions
we work
We will do this by putting our to replenish more freshwater to use nature-based to keep materials in use for We’ll work with our key
biodiversity position into than we consume in our solutions (NbS) to deliver longer and value them suppliers to embed
action. In doing so, we expect operations. We will do this by value and contribute to throughout their life cycle. We’ll sustainable practices,
that from 2022 all new bp being more efficient in our people and planet do this by focusing on reducing
projects in scope will have operational freshwater use and aims in our operations using resources responsibly and greenhouse gas emissions
plans in place aiming to effluent management, and by and through our business embracing circular principles in and increasing the
achieve net positive impact collaborating with others to activities. design, operations and circularity of what we buy.
(NPI), with a target to deliver replenish freshwater in stressed decommissioning and aim to
What would you think about this bold reorientation in BP business strategy? Will this serve well to the
company’s future ambition and aspiration? Why do you think BP is doing what it is doing, and what are (or
can you distinguish) the drivers behind it?
SWOT

Current Situation Internal Capabiities

The world will electrify, with renewables a clear winner Skills in the world of energy, built up over more than 110 years

Customers will redefine convenience and mobility, driven by Understanding of energy markets and how they move
electrification, digital and fleets
Oil and gas challenged but will remain part of the energy mix for decades Thousands of expert scientists, engineers and technologists

Energy systems will become increasingly multi-technology, integrated People with outstanding capabilities in trading, shipping, marketing and
and local innovation
Customers – countries, cities, industries and corporates – will demand Strong relationships with leading companies, universities and
bespoke energy solutions governments
Digital will continue to transform our lives – creating opportunities to Thriving energy transition, convenience and mobility partnerships and
drive innovation, unlock value and engage new customers and markets businesses that we are growing all over the world
A resilient financial frame and a disciplined approach to capital
allocation
What would you think about this bold reorientation in BP business strategy? Will this serve well to the company’s future ambition
and aspiration? Why do you think BP is doing what it is doing, and what are (or can you distinguish) the drivers behind it?

During 2021 BP established a track-record of delivery

against our financial frame with four quarters of strong
underlying financial performance. BP raised dividend,
substantially reduced debt, invested with discipline,
announced $4.15 billion of share buybacks and drove
returns. Looking ahead, BP priorities for capital allocation
are unchanged and we remain committed to the
continued execution of this plan
What would be the impact of such bold move of BP and other similar companies’ situation, e.g., Amazon, Walmart,
General Motor, and more recently, Fedex, which have made similar statement:
https://www.washingtonpost.com/climate-environment/2021/03/05/more-than-50-companies-have-vowed-be-
carbon-neutral-by-2040/, to other companies that have not made any statement at all?
Can you relate this specifically to the company that you are currently associated with, i.e., Pertamina? Within
Pertamina, what would be the impact to the specific unit that you are currently being part of (either in the holding
or any of the sub-holding companies)?
Apa yg BP, amazon, wallmart, Fedex & perusahaan lainnya lakukan, akan membangkitkan kesadaran dan
contoh bagi perusahaan-perusahaan global untuk bersama sama mendukung zero carbon untuk mencegah
ancaman di masa depan, menciptakan pekerjaan yang layak, dan memiliki sustainable growth.
PERTAMINA
Upaya mengatasi perubahan iklim dilakukan dengan reduksi gas rumah kaca (GRK). PERTAMINA mendukung realisasi target reduksi emisi
GRK yang ditetapkan pemerintah sebesar 29% dengan upaya sendiri, hingga 41% dengan bantuan internasional, sampai tahun 2030.
Strategi yang dilakukan PERTAMINA, antara lain:
• Reduksi emisi gas rumah kaca (GRK) dan dekarbonisasi - Penetapan baseline 2020 dan Peta Jalan Reduksi Emisi - Pengendalian CH4 -
Penerapan perangkap karbon - Pemanfaatan gas suar bakar - Pengembangan teknologi rendah karbon
• Efisiensi energi
• Transisi energi baru dan terbarukan (EBT)
• Produksi bersih dan ramah lingkungan
• Salah satu indikator KPI Direksi dan pejabat perusahaan di tingkat Holding serta Subholding 2030.
Tahun 2020 PERTAMINA melakukan perhitungan total emisi CO2eq sebagai baseline baru untuk PERTAMINA Grup. Perhitungan
menggunakan referensi Permen Lingkungan Hidup No. 12 Tahun 2012 tentang Pedoman Penghitungan Beban Emisi Kegiatan Industri
Minyak dan Gas Bumi untuk Cakupan 1 (Penggunaan Sendiri).

Berdasarkan hasil baseline tahun 2020, PERTAMINA menetapkan Peta Jalan Reduksi Emisi baru, sebagai acuan dalam memenuhi kontribusi
PERTAMINA pada pencapaian target penurunan emisi GRK sektor energi sebesar 29% di tahun 2030. Peta jalan ini diperhitungkan dari
mulai target 2020 sebesar 26% (referensi Konferensi Kopenhagen tahun 2009) hingga tahun 2030 (referensi konferensi Paris tahun 2015).

Within Pertamina, what would be the impact to the specific unit that you are currently being part of?

Jawab masing masing sesuai fungsi/perannya di Pertamina

Finally, what would you think the trends that are exemplified or shown by BP and other energy companies with
similar aspirations have an impact on your professional career? And how are you going to start adjusting to it?

Jawab masing masing sesuai fungsi/perannya di Pertamina