BP Integrated Supply and Trading Indiana University Mike

BP Integrated Supply and Trading Indiana University Mike Nierengarten Paul Steffen

2 Today’s Agenda • Overview of BP Group • Integrated Supply & Trading Business Unit • The IST – Oil Americas Trading Development Program • Current Events Discussion • Questions and Answers

3 Overview of BP Group • BP is an oil, gas, petrochemicals and renewables company • 103, 000 employees* • Operations on 6 continents and in over 100 countries • Market capitalization of $ 238. 7 billion* • Annual Revenues of $285 billion* • Largest oil company and 2 nd largest company in the world in terms of revenue (2004 Fortune Global 500) • In terms of social responsibility: BP is 3 rd worldwide *(Data as of Dec 2004) Some Interesting facts ……. Over 27, 800 service stations worldwide (More than Mc. Donalds) Serving 13 million customers everyday (More than Yahoo)

4 Where BP Operates Oil Gas Chemicals Refining Market positions An opportunity and a responsibility

5 How BP Operates

6 Integrated Supply and trading (IST)

7 IST’s Purpose IST’s purpose is to enhance the BP Group’s performance through the application of industry leading supply and trading skills. Through the global application of our expertise we are able to: Optimize BP’s assets by securing optimal supply and off-take; Utilize our risk management and commercial expertise; Be the global leader in asset-based and entrepreneurial focused investment and trading activities

8 IST’s Dual Roles • Supply – Market BP’s production – Optimize crude/product flow – Interface with BP’s physical assets • Trading – Entrepreneurial trading books – Trade around physical asset base – Mitigate volatility risk by hedging

9 How IST Works IST “Trading Ring” Integrated Positions Houston & Chicago 24 Hour Global Trading Singapore London Other Major Offices Long Beach Calgary Moscow Cape Town Dubai And many other offices across the globe Team based trading & incentives Open communication across “books” and locations Combinations of asset and speculative trading in a single team Human Capital $ Assets + Worldwide Presence + Systems + Relationships

10 IST Chicago Trading Floor

11 IST’s Markets WHO ? WHERE ?

IST Trading Development Program 12

13 How the Program Works Purpose of the Program Entry point for driven individuals interested in trading industry Primary source of BP trading talent (also includes Origination, MI, Risk, & Credit) How it Works Competitive 3 year program (driven by individual performance and value delivered to business) Structured training program Formalized assessment process including peer ranking Focus on personal development Roles driven around business needs Networking opportunities Guidance from mentors

14 Trading Development Opportunities Typical Positions Trading Control Analyst Futures and Options Analyst Market/Trading Analyst Chartering Specialist Scheduler Credit Analyst Risk Analyst

15 Current Event Hurricane Katrina Impact Awareness Supply and Demand Developments Global Awareness and Strategy

16 BP at IU This Semester Classroom Presentations Finance – February 23 rd & 24 th BP Trading Game 3 rd week of April • Back on Campus in the Fall • Scoop Sessions / Career Fairs/ Class Presentations • Interviews for full time positions

Questions and Answers 17