bp-20241231


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
American Depositary Shares	BP	New York Stock Exchange
Ordinary Shares of 25c each		New York Stock Exchange	*
3.796% Guaranteed Notes due 2025	BP/25A	New York Stock Exchange
3.119% Guaranteed Notes due 2026	BP/26A	New York Stock Exchange
3.410% Guaranteed Notes due 2026	BP/26C	New York Stock Exchange
3.017% Guaranteed Notes due 2027	BP/27D	New York Stock Exchange
3.279% Guaranteed Notes due 2027	BP/27B	New York Stock Exchange
3.543% Guaranteed Notes due 2027	BP/27E	New York Stock Exchange
3.588% Guaranteed Notes due 2027	BP/27A BP/27C	New York Stock Exchange
5.017% Guaranteed Notes due 2027	BP/27	New York Stock Exchange
3.723% Guaranteed Notes due 2028	BP/28	New York Stock Exchange
3.937% Guaranteed Notes due 2028	BP/28A	New York Stock Exchange
4.234% Guaranteed Notes due 2028	BP/28B	New York Stock Exchange
4.868% Guaranteed Notes due 2029	BP/29C	New York Stock Exchange
4.970% Guaranteed Notes due 2029	BP/29A	New York Stock Exchange
4.699% Guaranteed Notes due 2029	BP/29	New York Stock Exchange
1.749% Guaranteed Notes due 2030	BP/30A	New York Stock Exchange
3.633% Guaranteed Notes due 2030	BP/30	New York Stock Exchange
2.721% Guaranteed Notes due 2032	BP/32A	New York Stock Exchange
4.812% Guaranteed Notes due 2033	BP/33	New York Stock Exchange
4.893% Guaranteed Notes due 2033	BP/33A	New York Stock Exchange
4.989% Guaranteed Notes due 2034	BP/34	New York Stock Exchange
5.227% Guaranteed Notes due 2034	BP/34A	New York Stock Exchange
3.060% Guaranteed Notes due 2041	BP/41	New York Stock Exchange
2.772% Guaranteed Notes due 2050	BP/50B	New York Stock Exchange
3.000% Guaranteed Notes due 2050	BP/50A	New York Stock Exchange
3.067% Guaranteed Notes due 2050	BP/50	New York Stock Exchange
2.939% Guaranteed Notes due 2051	BP/51	New York Stock Exchange
3.001% Guaranteed Notes due 2052	BP/52	New York Stock Exchange
3.379% Guaranteed Notes due 2061	BP/61	New York Stock Exchange
4.375% Perpetual Subordinated Non-Call 5.25 Fixed Rate Reset Notes	BP/P1	New York Stock Exchange
4.875% Perpetual Subordinated Non-Call 10 Fixed Rate Reset Notes	BP/P2	New York Stock Exchange
6.125% Perpetual Subordinated Fixed Rate Reset Notes	BP/P4	New York Stock Exchange
6.450% Perpetual Subordinated Fixed Rate Reset Notes	BP/P3	New York Stock Exchange


« See glossary on page 351		bp Annual Report and Form 20-F 2024		1




		Strategic report

2024 at a glance

As at 31 December 2024

Scale


100,500a		61
employees		countries of operation
(2023 87,800)		(2023 61)


2.4			>39,000
million barrels of oil equivalent – upstream« production			electric vehicle charge points«
million barrels of oil equivalent – upstream« production			(2023 >29,000)
(2023 2.3mmboe/d)


21,200
retail sites«
(2023 21,100)

Performance


$0.4bn	$8.9bn	l
profit for the year attributable to bp shareholders	underlying replacement cost (RC) profit«
(2023 $15.2bn)	(2023 $13.8bn)


95.2%	l	94.3%	l
bp-operated upstream plant reliability«		bp-operated refining availability«
(2023 95.0%)		(2023 96.1%)


2,950			8.2GW
strategic convenience sites«			developed renewables to FID« (net)
(2023 2,850)			developed renewables to FID« (net)
			(2023 6.2GW)


$6.17/boe	l
upstream unit production costs«
(2023 $5.78/boe)

Safety and sustainability


38	l	33.6MtCO2e	l
tier 1 and 2 process safety events«		GHG emissions – operational control
(2023 39)		(2023 32.1MtCO2e)


Key
l	Key performance indicator, page 14

aThis figure reflects new acquisitions and companies we have taken full ownership of including bp bioenergy and Lightsource bp.


Strategic report
2024 at a glance	1
About bp	2
Chair’s letter	4
Chief executive officer’s letter	5
The operating environment	6
Energy outlook	7
Our strategy	8
2024 performance	9
Consistency with the Paris goals	10
Our business model	12
Key performance indicators	14
Our financial frame	18
Our investment process	20
Group performance	24
Gas & low carbon energy	28
Oil production & operations	31
Customers & products	33
Other businesses & corporate	36
Sustainability	38
Climate-related financial disclosures (TCFD)	42
Our approach to sustainability	56
How we manage risk	61
Risk factors	65
Compliance information	68
Non-financial and sustainability information statement	68
Section 172 statement	68

Corporate governance
Introduction from the chair	70
Board of directors	72
Leadership team	74
Governance framework	75
Board activities	76
Our stakeholders	78
Key decisions	79
Safety and sustainability committee	80
Audit committee	82
People, culture and governance committee	86
Remuneration committee	88
Directors’ remuneration report	88
Other disclosures	111


Financial statements
Consolidated financial statements of the bp group	115
Notes on the financial statements	145
Supplementary information on oil and natural gas (unaudited)	223


Additional disclosures	311
Shareholder information	341
Glossary	351
Non-IFRS measure reconciliations	360
Signatures	364
Cross-reference to Form 20-F	365
Information about this report	366
Exhibits	366


« See glossary on page 351		bp Annual Report and Form 20-F 2024		3




		Strategic report

Financial reporting segment performance

At 31 December 2024, the group’s reportable segments were gas & low

carbon energy, oil production & 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).

Gas & low carbon energya

Comprises 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 carbon

capture and storage (CCS), and power trading. Power trading includes

trading of both renewable and non-renewable power.


$3.6bn		$6.8bn
replacement cost (RC) profit before interest and taxb		underlying RC profit before interest and tax«
(2023 $14.1bn)		(2023 $8.7bn)



	Segment performance, page 28

Oil production & operationsa

Comprises regions with upstream activities that predominantly produce

crude oil, including bpx energy.


$10.8bn		$11.9bn
RC profit before interest and taxb		underlying RC profit before interest and tax
(2023 $11.2bn)		(2023 $12.8bn)



	Segment performance, page 31

Customers & products

Comprises customer-focused businesses, which include convenience

and retail 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 bioenergyc businesses.


$(1.6)bn		$2.5bn
RC loss before interest and taxb		underlying RC profit before interest and tax
(2023 profit $4.2bn)		(2023 $6.4bn)



	Segment performance, page 33

Other businesses & corporate

Comprises technology; bp ventures; our corporate activities and functions;

and any residual costs of the Gulf of America oil spill.


$(1.0)bn		$(0.6)bn
RC loss before interest and taxb		underlying RC loss before interest and tax
(2023 loss $(0.9)bn)		(2023 loss $(0.9)bn)



	Segment performance, page 36

aThe Azerbaijan-Georgia-Türkiye and Middle East regions have been further subdivided by asset.

bIFRS 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 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 information see Financial statements – Note 5.

cIn February 2025 bp announced its intention to move its biogas business to the gas & low carbon energy segment.



	The Gigahub EV charging hub at the NEC in Birmingham, UK
		Customers & products, page 33



	bp’s Xazar Centre office in Baku, Azerbaijan
		Other businesses & corporate, page 36


4		bp Annual Report and Form 20-F 2024






Chair’s letter

Dear fellow shareholders,

Chief executive transition

The world bp operates in continues to change at

pace. The past year has seen numerous

elections, complex geopolitics and ongoing

conflict, as well as significant climate events. At

the same time, there has been progress in AI and

technology and some signs of growth and

prosperity in emerging economies. As a result,

energy demand continues to rise with the supply

of oil and gas, and renewable energy, reaching an

all-time high.

For bp, there was leadership change, with a new

CEO and CFO, and 2024 was a year of reshaping

the portfolio and laying the foundation for growth

and sustainable shareholder returns. Under

Murray Auchincloss’s leadership, bp has made

significant moves, continuing to play its part in

supplying the energy the world needs today and

helping build out the energy system of tomorrow.

We strengthened our oil and gas portfolio,

expanded in biogas and bioenergy, and focused

our hydrogen and wind projects – all leading to

the fundamental strategy reset announced at our

Capital Markets Update in February 2025.

Performance

Safety continues to be at the forefront of

everything bp does, and the board and I would

again like to recognize bp’s teams for their work

to reduce the most serious process safety

incidents. This requires constant vigilance,

robust processes and a willingness to speak up

and act.

However, whether it is on the front line or on the

board, bp can never take safety for granted. We

were tragically reminded of this in October 2024 by

the fatality in our bp bioenergy business in Brazil.

Many of bp’s businesses performed well,

including higher upstream« production and

strong plant reliability«, but it was a difficult year

in parts of our customers & products business,

particularly in refining. bp cannot control a tough

price environment but it can address underlying

performance – and the board believes that the

comprehensive update of our strategy that we

announced in February, combined with strong

performance management processes, will help

bp to do this.

Strategy reset

A lot has changed since we launched our

strategy in 2020 – and bp has learned a lot. The

pandemic has altered consumer behaviour,

geopolitical tensions have increased the focus on

security of supply, and although energy demand

has risen to a high point, overall, growth has been

weaker. Globally, inflation and rising interest

rates have had an impact on the economics of

major projects, particularly low carbon

investments.

Because of all these factors, combined with our

engagement with our shareholders and other

important stakeholders, we reworked our

strategy. Murray sets out how on the next page.

This is a new direction for bp. The board has

worked closely with Murray and his leadership

team throughout this reset, which has our full

support. The reset builds on bp’s distinctive

strengths, learns from its challenges and

represents deliberate choices and a conviction

about the way forward. The next steps are clear.

Now is about rigorous performance, and the

board has an important role to play in overseeing

the delivery of the strategy we have set out.

Culture and values

The board believes that the changes bp is

making are positive and necessary for the future

of the company, but we know change itself can

be unsettling. This makes it more crucial than

ever that bp maintains a strong culture and

strong values. bp is rigorous about operational

and safety processes, and must continue to be

rigorous about care for others, our speak-up

culture and psychological safety. As a board, we

provide oversight and constructive challenge,

and in doing so we routinely monitor bp’s culture.

I say more about this in the governance section

on page 70.

Closing thanks

Thank you, particularly to bp’s owners and bp’s

teams, in a year where bp has faced numerous

challenges and worked hard to improve its

performance and focus the organization. We are

grateful to everyone who has given us their time,

expertise, support – and challenged us too. This

is your company and we believe it is now set to

grow – and win – in a changing energy market.

Helge Lund

Chair

6 March 2025


« See glossary on page 351		bp Annual Report and Form 20-F 2024		5




		Strategic report

Chief executive officer’s letter

Dear fellow shareholders,

We’ve been in action throughout the past year

materially reshaping bp’s portfolio and laying the

foundations for February’s Capital Markets

Update. This fundamental reset of our strategy

demonstrates a clear focus on actions to drive

performance improvement and grow cash flow

and returns for bp’s shareholders.

Safety first

In 2024, we made progress on safety, reducing

the number of combined tier 1 and 2 process

safety events« for a second year in a row, with

the most serious tier 1 events down significantly

– but we have more to do. Our goal is to

eliminate fatalities, life-changing injuries and the

most serious process safety incidents. Tragically,

one person died while working in our newly

acquired bp bioenergy business in Brazil in

October 2024. We must continue to embed and

reinforce our Operating Management System«,

Lifesaving Rules and Safety Leadership

Principles across bp (see page 56). Nothing

matters more than safety.

Financial and operating performance

We delivered strong performance in some areas

in 2024 but had some challenges in others. For

example, our upstream« production was 2%

higher than in 2023, and plant reliability« was

strong at over 95%, but there were difficulties in

refining. Margins were lower and the power

outage at Whiting in the first quarter contributed

to a dip to 94.3% in our refining availability«.

This contributed to earnings of $38 billiona

(adjusted EBITDA«) in 2024 and operating cash

flow« of $27.3 billion and resulted in:

•Profit for the year attributable to

shareholders of $0.4 billion.

•Underlying replacement cost profit«

of $8.9 billion.

•Return on average capital employed«

of 14.2%b.

•And net debt« of $23 billionc.

This allowed us to raise the dividend per ordinary

share by 10% and announce $7 billion of share

buybacks for the year.

Reshaping the portfolio

We’ve done more to reshape bp’s portfolio in the

aAdjusted EBITDA for the group is a non-IFRS measure and its nearest IFRS-equivalent measure is profit for the year 2024.

bROACE is a non-IFRS measure and its nearest IFRS measures of numerator and denominator are profit for 2024 attributable to bp

shareholders of $0.4 billion and total equity at the end of 2024 of $78.3 billion respectively.

cNet debt is a non-IFRS measure and its nearest IFRS-equivalent measure is finance debt at the end of 2024.

dTarget first introduced in bp’s first quarter 2024 group results announcement referred to as cash costs savings. Cash costs has the

same meaning as underlying operating expenditure«.

eExcludes deferred consideration for 2024 acquisition of bp bioenergy in 2025.

last 12 months than in any year in the past 20

years. We started up a major project« and

sanctioned 10. We agreed new access in regions

we know well, including in Iraq and India – at

material scale. We formed a new joint venture,

Arcius Energy, to develop gas in the Middle East

with ADNOC’s investment arm XRG. And we

announced plans for JERA Nex bp, joining forces

with one of the world’s major power companies

to create a leader in offshore wind development

– and helping to grow the scale of the business

in a capital-light way for bp. We also now own

100% of bp bioenergy, one of the top-three

sugarcane bioethanol producers in Brazil,

and Lightsource bp, one of the world’s leading

solar developers. And we're investing with

discipline in hydrogen and carbon capture,

sanctioning four projects in 2024.

At the same time, we introduced our target to

deliver at least $2 billion of savingsd by the end of

2026, relative to 2023. We made strong progress

on this, achieving structural cost reduction« of

$0.8 billion since the start of 2024.

Growing shareholder value

Having laid the foundations, we have

fundamentally reset our strategy. This is a new

direction. We’ve drawn on everything we’ve

learned since 2020, while reflecting substantial

changes to the external environment and using

our deep-seated industrial skills and experience.

The key elements are:

•First, a growing upstream. We’re increasing

planned investment by 20% to around $10

billion a year in oil and gas to help build more

higher-returning major projects and increase

exploration.

•Second, a focused downstream. We’re

focusing our portfolio around core integrated

positions and taking action to improve

performance. We expect to invest around

$3 billion by 2027.

•Third, investing with discipline in the

transition. We plan to pursue fewer and

higher-returning opportunities, and access

growth more efficiently. We now expect to

invest between $1.5-2.0 billion per year into

transition businesses« through 2027e – more

than $5 billion lower per year than our

previous guidance.

All while continuing to drive value through our

distinctive strengths in trading, technology and

partnerships. And we are now guided by a more

focused set of sustainability aims, the ones most

relevant to our net zero ambition and the long-

term success of bp (see page 38).

Thank you

There are very few companies of scale that can

adapt at pace with society to meet demand from

countries, companies and customers for more

energy and lower carbon products. bp is one

of them. I’m excited about our new direction and

the significant opportunity we have to grow value

for our shareholders.

I want to thank our brilliant team for their hard

work, commitment and resilience through a

period of extensive change. I also want to thank

you, the owners of our business, for continuing to

put your trust in our company.

Murray Auchincloss

Chief executive officer

6 March 2025

Nearest IFRS-equivalent measures

$1.2bn

profit for 2024a

0.5%

profit for 2024 attributable to bp

shareholders divided by total equity

at 31 December 2024b

$59.5bn

finance debt at the end of 2024c


6		bp Annual Report and Form 20-F 2024






Energy markets

The operating environment

bp operates across volatile energy markets. Here

we discuss broader economic trends we have

observed that influence our sector as a whole.

The world economy grew by around 3%a in 2024.

Growth rates varied widely across economies,

with US GDP estimated to have grown by 2.8%a,

much stronger than had been expected at the

start of the yearb. By contrast, the eurozone

economy expanded by only 0.8%a. China’s growth

is estimated to have been close to the

government’s ‘around 5%’ targeta.

Inflation continued to moderate around the world

in 2024, moving towards central banks’ target

rates in most major economies. Cooling inflation

allowed several central banks, including the US

Federal Reserve, the European Central Bank and

the Bank of England, to cut interest rates.

Financial market prices suggest further interest

rate reductions are expected during 2025.

Oil

Oil prices were elevated across much of 2024,

supported by oil demand growth and OPEC

production cuts. Dated Brent averaged $81/bblc in

2024, broadly unchanged from $83/bblc in 2023.

A slowdown in Chinese oil demand growth to a

quarter of its pre-COVID trend lowered global

annual oil demand growth to 0.94mmb/d, causing

total oil demand in 2024 to be 102.9mmb/dd.

The slowdown in demand growth and

outperformance of non-OPEC+ supply led to

production cuts from OPEC+ in 2024. OPEC+

output averaged 49.8mmb/d in 2024 – around

900kb/dd lower than 2023. Saudi Arabia cut its

output to just 9.0mmb/d in 2024, over 1mmb/d

lower than its levels in the first half of 2023d.

These reductions were more than offset by

strong growth in non-OPEC+ supplies which

increased by 1.5mmb/d in 2024d, with the US

accounting for almost half of that increased.

Natural gas

A relatively warm European winter in 2023-24 and

muted European gas demand caused European

and Asian natural gas prices to fall in early 2024.

Prices troughed in February but had increased by

70%e by the end of December following strong

Asian LNG demand growth and weak LNG

supply growth.

Industry, power generation and transportation

were the main sectoral drivers of that Asian LNG

demand growth. European gas demand

continued to decline due to lower power demand.

Outages and project delays meant global LNG

supply grew at a slow pace of 2.5% in 2024f.

In the US, Henry Hub (HH) gas prices averaged

$2.2/mmBtug, the lowest price level, in real terms,

in the last 25 years. A warm US winter (2023-24)

resulted in natural gas stocks 40%h above the five-

year average by the end of March. Consequently,

HH declined to levels needed to incentivize power

sector coal-to-gas switching and lower natural

gas production. Increases in power demand for

air conditioning and data centres aided this

rebalancing. The number of US gas rigs in key

shale basins declined by 47% from its peak in

2022i.

Refining marker margin

We use a global refining marker margin (RMM)«

to track the refining margin environment. Global

RMM in 2024 continued the downward trajectory

from 2023. An increase in refining capacity and a

slowdown in demand growth for refined products

meant RMM values averaged significantly lower in

2024 at $17.7/bbl ($8.1/bbl lower than in 2023) j.

Power and renewables

Electricity demand growth continues to outpace

total energy demand growth, driven by increasing

electrification in developed economies and by

growing prosperity and industrialization in

emerging economies. Growing demand from data

centres looks set to increase electricity demand

materially in the coming years.

Total solar and wind capacity additions in 2024

are estimated to have exceeded 600GW, breaking

the record set in 2023k. This surge was

associated with significant overcapacity in solar

manufacturing in China.

Bioenergy growth also maintained momentum,

with resilient demand for liquid biofuels in road

transport, increasing biomethane production, and

increasing announced capacity of sustainable

aviation fuel projects.

Hydrogen and carbon capture

and storage

Persistent high costs, the slow pace of enabling

policy and insufficient demand continue to

challenge the decarbonization of costlier-to-abate

processes with low carbon hydrogen. The project

pipeline for production of low carbon hydrogen

operational by 2030 remains significant, but only

around 4Mtpal is either currently operational or

under construction. Green hydrogen« costs are

expected to be higher than those for blue

hydrogen« in many countries through this

decade and beyond.

Carbon capture and storage (CCS) is increasingly

being recognized as critical to the energy

transition, and the global pipeline of CCS projects

continued to grow in 2024. Operational and

under-construction projects are expected to

double to 100Mtpam over the next few years.

While this represents progress, the current project

pipeline, taking into account relatively low

historical success rates, appears insufficient to

meet the CCS deployment rates in Paris-

consistent transition scenariosn.


Market activity	2024	2023	a IMF World Economic Outlook, October 2024, measured on a Purchasing Power Parity basis. b IMF World Economic Outlook Update, January 2024. c Refinitiv Data Service (Dated Brent spot price). d IEA Oil Market Report, January 2025. e Platts Dutch TTF Day Ahead price. f IEA Gas Market Report, Q1 2025. g Platts Henry Hub cash price. h Weekly Natural Gas Storage Report, EIA. i EIA Short Term Energy Outlook, Appalachia and Haynesville regions. j The RMM may not be representative of the margin achieved by bp in any period because of bp’s particular refinery configurations and crude and product slates. In addition, the RMM does not include estimates of energy or other variable costs. k bp Energy Outlook 2024; IRENA Stats; Wood Mackenzie Global Solar Forecasts. PV capacity additions are converted from DC to AC basis by dividing by ~1.2. l WoodMac Lens; Hydrogen Project Pipeline data, October 2024. m WoodMac Lens; CCUS Project Pipeline data, October 2024. n Projects include capture projects either on a standalone basis or as part of a hub (sharing transport and storage facilities). o Refinitiv Data Service (West Texas Intermediate). p Platts JKM spot price. q This number is restated from the bp Annual Report and Form 20-F 2023 to reflect revisions made in the IEA Oil Market Report, January 2025. r This number is restated from the bp Annual Report and Form 20-F 2023 to reflect revisions made in the IEA Gas Market Report, Q1 2025.
Global oil consumptiond	102.9mmb/d	102.0mmb/dq
Global oil productiond	102.9mmb/d	102.3mmb/dq
Natural gas consumptionf	4,212bcm	4,097bcmr
Natural gas productionf	4,190bcm	4,134bcmr
Dated Brent averagec	$80.76/bbl	$82.64/bbl
West Texas Intermediate (WTI)« averageo	$75.87/bbl	$77.67/bbl
Henry Hub averageg	$2.19/mmBtu	$2.53/mmBtu
Dutch Title Transfer Facility (TTF)« averagee	34.4 euros per MWh ($10.9/ mmBtu)	40.5 euros per MWh ($12.8/ mmBtu)
Japan-Korea (Asian) LNG averagep	$11.9/mmBtu	$13.8/mmBtu
Refining marker marginj	$17.7/bbl	$25.8/bbl


« See glossary on page 351		bp Annual Report and Form 20-F 2024		7




		Strategic report

Energy outlook

The bp Energy Outlook 2024 (2024 Outlook)

explores the trends and uncertainties

surrounding the energy transition out to 2050.

The bp Energy Outlook helps inform bp’s 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 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. We use the output

from these scenarios to inform our strategic

thinking.

We published the 2024 Outlook in July 2024,

designed around two scenarios informed by

recent trends and developments in the global

energy system. The 2024 Outlook provides key

insights about how the energy system may

evolve over the next 25 years.

The two scenarios – Current Trajectory and Net

Zero (see ‘Two scenarios to explore the energy

transition’, below) – explore the speed and shape

of the energy transition out to 2050 and help to

shape a resilient strategy for bp.



	Read the bp Energy Outlook 2024 bp.com/energyoutlook



	Two scenarios to explore the energy transition
	Carbon emissions Gt of CO2ea
	Current Trajectory		Net Zero
	is designed to capture the broad pathway along which the global energy system is currently travelling. It places weight on climate policies already in force and on global aims and pledges for future decarbonization. At the same time, it also recognizes the myriad challenges associated with meeting these aims. CO2 equivalent (CO2e) emissions in Current Trajectory peak in the mid-2020s and by 2050 are around 25% below 2022 levels.		explores how different elements of the energy system might change to achieve a substantial reduction in carbon emissions. In that sense, Net Zero can be viewed as a ‘what if’ scenario: what elements of the energy system might change, and how, if the world collectively acts for CO2e emissions to fall by around 95% by 2050.
			History

	a Carbon emissions include CO2 emissions from energy use, industrial processes, natural gas flaring and methane emissions from energy production.

A new theme discussed throughout the 2024

Outlook centres on the challenge of moving from

the current ‘energy addition’ phase of the energy

transition to an ‘energy substitution’ phase. In

this second phase, low carbon energy increases

sufficiently quickly to more than match increases

in global energy demand, allowing the

consumption of fossil fuels, and their associated

emissions, to decline.

Scenarios for strategic

decision making

We use scenarios to inform strategy, manage

risk, and improve decision making.

Some of the scenarios are based on climate and

other policies currently in force, and on current

global aims and pledges around the energy

transition. Other scenarios are based on

achieving a certain pace or degree of transition,

and consider how the energy system might

change to achieve that.

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 2024

Outlook, and those from other organizations, aids

our understanding of the energy 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 milestones or signposts which might

emerge over the next five, 10 or 25 years and

inform our view of the key sources of uncertainty

affecting the global energy system.

We actively monitor for changes in the

external environment and refresh or review

the scenarios as needed in response to

these signals.

For the purposes of testing the resilience

of our strategy to the range of uncertainty in

the energy transition, we have used scenarios

drawn from other credible sources such as the

UN Principles for Responsible Investment (UN

PRI) and the International Energy Agency (IEA).

Read more on our resilience analysis and the

outcome of that work on page 50.

How we create scenarios

We quantify a range of scenarios in the 2024

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 Institute’s Statistical Review

of World Energy, the IEA’s World Energy Balances

data and a range 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 analysis from external

organizations including the United Nations,

Oxford Economics and Rystad Energy. We

benchmark our scenarios against external

organizations including the IEA, the IPCC, and

S&P Global.

The modelling techniques used vary by sector

and include a combination of econometric

modelling, adoption curves and consumer

choice modelling.


8		bp Annual Report and Form 20-F 2024






Our strategy

Resetting strategy




	Growing upstream	Focusing downstream


Disciplined investment in transition

Growing the upstream: our oil and gas business

We plan to increase investment to grow production while also growing cash

flow, in addition to disciplined expansion of biogas. Maintaining strong and

safe operations throughout.

Focusing the downstream: our customers and

products business

We are reshaping the portfolio to focus on markets and businesses where

we have advantaged and integrated positions. We have clear actions to

drive improved performance, including addressing costs in our customers

business, and improving operations in refining.

Investing with discipline in transition

We plan to invest with discipline: with selective investment in biogas,

biofuels and EV charging, where we see strong demand growth; adopting

innovative capital-light partnerships in renewables; and focusing investment

on hydrogen and carbon capture projects to support us in decarbonizing

our operations, and position us for growth through the next decade. We

now expect capital investment into transition businesses« to be between

$1.5-2.0 billion per year through 2027a – more than $5 billion lower per year

than our previous guidance.

All while continuing to drive value through our distinctive strengths in trading, technology and partnerships.

Our primary targets

We have set out four primary targets that we will use to measure our progress and how we are improving

performance. These targets, alongside the guidance and financial frame (see page 18), support our reset.

Taken together, we believe our primary targets will underpin growth in the value of bp.



	Adjusted free cash flow« growth				Net debt«
	>20%b				$14-18bnc

	adjusted free cash flow compound annual growth rate (CAGR)« from 2024-27				by end 2027


	Structural cost reduction«				Return on average capital employed (ROACE)«
	$4-5bn				>16%b

	by end 2027				in 2027

aExcludes deferred consideration for 2024 acquisition of bp bioenergy in 2025.

bAt $70/bbl Brent, $4/mmBtu Henry Hub, and $17/bbl refining marker margin, all 2024 real.

cPotential proceeds from any transactions related to Castrol strategic review and announcement to bring a strategic partner into Lightsource bp will be allocated to reduce net debt.


10		bp Annual Report and Form 20-F 2024






Consistency with the Paris goals

Pursuing a strategy that is consistent with the Paris goals

What we mean by Paris-consistent

The 2019 CA100+ 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 in Articles

2.1(a) and 4.1 of the Paris Agreement on

Climate Change«.

The Paris goals, which we support, were restated

in the Baku Climate Pact at COP29 in Baku in

November 2024.

We believe the world is on an unsustainable path,

and the carbon budget to meet the Paris goals is

running out.

bp’s strategy is informed by these

considerations. It is designed to create long-term

value for shareholders, while enabling delivery of

our net zero ambition. It is tested for resilience 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 considers our strategy to be consistent

with the Paris goals. Here we set out, on the

same three grounds, why the board continues to

consider this to be the case.

Informed by Paris-consistent energy

transition scenarios

The speed and nature of the energy transition are

uncertain, and so we consider a range of

scenarios from multiple sources including the bp

Energy Outlook 2024 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.

aOur 2024 analysis used data from the WBCSD Climate Scenario Catalogue version 3.0, published on 16-05-2024 and downloaded on 13-11-2024.

We are confident 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

the world can meet the Paris goals, with differing

implications for regions, industry sectors and

sources of energy.

The bp Energy Outlook 2024 examined recent

developments and emerging trends in the global

energy system, exploring the key uncertainties

surrounding the energy transition. It included two

main scenarios – one of which, Net Zero, we

regard as Paris-consistent.



	Energy outlook page 7 and bp.com/energyoutlook

Strategic resilience

We believe our strategy positions bp for success

and resilience in a Paris-consistent world – a

world that is progressing on one of the many

global trajectories considered to be Paris-

consistent, and ultimately meets the Paris goals.

The strategy diversifies bp’s portfolio and

business interests, reducing the risk that

challenges facing a single business area might

adversely affect bp’s strategic 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, bp’s

ability to maintain its strategic resilience rests, in

part, on the governance used to keep the

strategy and associated targets and aims under

review in light of new information and changes

in circumstances.

In our climate-related financial disclosures on

page 50, we describe how we have conducted an

analysis to test our view of the resilience of our

strategy, based on the Capital Markets Update

presented on 26 February 2025, to different

climate-related scenarios. This includes some

scenarios that are classified by the World

Business Council for Sustainable Development

(WBCSD) to be consistent with well-below 2°C

and 1.5°C outcomesa.

As further explained on page 51, while the results

of any such analysis 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

to 1.5°C.

The analysis also again highlighted that, while

within the WBCSD scenarios lowest oil prices are

associated with 1.5°C scenarios, there is

considerable uncertainty – demonstrated by the

range within, and overlap between, the prices

indicated for each scenario family.

In the version of the WBCSD catalogue used for

the analysis, the lowest oil price is associated

with a 1.5°C scenario; however a number of the

1.5°C and well-below 2°C scenarios have oil

prices in 2030 that are substantially higher than

these – and when compared to bp’s own central

case oil price planning assumption for 2030, the

oil price in a number of the well-below 2°C and

1.5°C scenarios is also higher.

Taking this into account, the analysis supported

our belief that our strategy is financially resilient

against the lowest prices associated with a

Paris-consistent world in the WBCSD catalogue.

This in turn supports our view that our strategy is

resilient to such a Paris-consistent world.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		11




		Strategic report

Contributes to net zero

We believe that our 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 transformation of the energy system that

we believe to be a necessary feature of the

world’s efforts to meet the Paris goals. There are

many ways a company at the heart of the energy

sector can make a meaningful contribution to the

world getting to net zero. In addition to investing

in our transition businesses«, these include:

supporting collective action through participation

in external initiatives and seeking to use the

company’s influence with trade associations that

conduct climate-related advocacy; low carbon

collaboration and support for others in their own

decarbonization efforts (such as cities and

corporates).

For example, we continue to advocate for

policies that support net zero. Helping

policymakers to design and put in place low

carbon policies that support the transition to net

zero can help deliver our strategy and capitalize

on the opportunities associated with achieving

the Paris goals, but the benefit of such actions, if

successful, extends well beyond any implications

for bp’s own GHG metrics. That is 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 online at bp.com/advocacyactivities.

Some ways of contributing to helping the world

get to net zero are more readily measured by

quantitative metrics than others – but all can be

important, whether or not they translate into GHG

reductions for bp. For example, Lightsource bp

operates with a develop, engineer, construct and

farm-down business model that creates value

through selling majority interests in assets it has

developed to strategic partners.

Where Lightsource bp helps bp meet its own

demand for cost competitive, low carbon power,

including for power trading, EV charging, biofuels

and green hydrogen« this would show up in GHG

metrics. However, where we do not directly sell

that power, our development of the renewables is

effectively ‘invisible’ in terms of our GHG metrics.

In December 2024, in Teesside, UK, bp and

partners reached financial close on the Net Zero

Teesside Power (NZT Power) and Northern

Endurance Partnership (NEP) projects. The NEP

aims to develop the infrastructure to transport

and store up to an initial 4MtCO2 annually from

three Teesside-based carbon capture projects

within the East Coast Cluster, with the ability to

expand in the future.


Responding to increased shareholder interest in Paris consistency In 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 sixth year we have included responses throughout 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 352. Key terms related to this resolution response are indicated with « and defined in the glossary on page 352. These should be reviewed with the following information:
Element of the CA100+ resolution	Related content	Where
Strategy that the board considers in good faith to be consistent with the Paris goals.	Our strategy and business model	8 & 12
	Pursuing a strategy that is consistent with the Paris goals	10
How bp evaluates each new material capex investment« for consistency with the Paris goals and other outcomes relevant to bp strategy.	Our investment process	20
Disclosure of bp’s principal metrics and relevant targets or goals over the short, medium and long term, consistent with the Paris goals.	Key performance indicators	14
	Sustainability: net zero aims and targets	38
	See ‘TCFD Metrics & Targets’ for an overview	55
Anticipated levels of investment in: (i) Oil and gas resources and reserves. (ii) Other energy sources and technologies.	Our strategy	8
	Financial frame: disciplined investment allocation	18
	Investment in non-oil and gas	21
	Transition investment	39
bp’s targets to promote operational GHG reductions.	Sustainability: net zero« aims	38
Estimated carbon intensity of bp’s energy products and progress over time.	Sustainability: net zero sales aim«	39
Any linkage between above targets and executive pay remuneration.	Directors’ remuneration report	88
	2024 annual bonus outcome	96
	2025 remuneration policy	102

Where the CO2 being taken offshore for

permanent storage is from local heavy industries

this will not show up in bp’s GHG metrics.

So while Lightsource bp, NZT Power and NEP

projects support the Paris goals by increasing

the low carbon options available to energy

consumers, not all of their activities will be

reflected in the metrics associated with bp’s net

zero aims.


12		bp Annual Report and Form 20-F 2024






Our business model

What makes us different

As an integrated energy company, we believe we have a world-class portfolio – a top-tier oil and gas

business in attractive basins, and leading integrated positions and brands across the value chain. All

underpinned by distinctive capabilities in trading, technology and partnerships.

Our purpose

Guiding what we do and how we operate.

Our purpose is to deliver energy to the world,

today and tomorrow.

Our reset strategy

Our new strategy plays to our distinctive strengths

and capabilities.

•Growing the upstream

•Focusing the downstream

•Investing with discipline in transition



	Strategy, page 8

People and resourcesa

These are some of the people and resources in our business model that support how we create and preserve value for our stakeholders.


Incumbent capability
~11,600		~1,100
engineers		employees on graduate schemes

	Sustainability at bp, page 38


Research and development
$301m		~2,200
invested in research and development		granted and pending patent applications held by bp and its subsidiaries

	page 171


Energy sector experience
>110 years		~15 years
in energy		of bp Energy Outlook publications

	The operating environment, page 6


Financial resources
$16.2bn		$27.3bn
capital expenditure«		operating cash flow«

	Group performance, page 24


Energy resources
6,248mmboe		8.2GW
proved hydrocarbon reserves for the groupb		developed renewables to FID« (net)

	Gas & low carbon energy, page 28 Supplementary information on oil and natural gas, page 223

aData as at 31 December 2024.

bOn a combined basis of subsidiaries and equity-accounted entities. See page 323 for more information on bp’s oil and gas reserves.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		13




		Strategic report

Our business groups

This is how we are organized to deliver our strategy and deliver long-term shareholder value. Our three business groups are enabled by supply, trading &

shipping and supported by five functions: finance; technology; strategy, sustainability & ventures; people, culture & communications; and legal.


Gas & low carbon energy		Production & operations		Customers & products
Integrating our existing natural gas capabilities with power trading and growth in low carbon businesses and markets, including wind, solar, hydrogen and carbon capture and storage.		The operational heart of bp, producing the hydrocarbon energy and products the world wants and needs – safely and efficiently.		Focusing on customers as the driving force for innovating new business models and service platforms to deliver the convenience, mobility and energy products and services of today and the future.

	page 28		page 31		page 33

Delivering value for stakeholdersa

We are committed to delivering long-term value for stakeholders.


Investors and shareholders
Includes our institutional and retail investors.


$5.0bn
total dividends distributed to bp shareholders (2023 $4.8bn)


Customers
Including end-use consumers, B2B customers, and distributors.


2,950
strategic convenience sites« (2023 2,850)

cThis figure reflects new acquisitions and companies we have taken full ownership of including bp bioenergy and Lightsource bp.


Employees
Our 100,500c people worldwide.


70%
employee engagement score from the Pulse annual employee survey (2023 73%)

	page 58


Governments and regulators
In the countries where we have existing or planned activities.


$10.6bn
corporate income tax and production tax paid (2023 $11.9bn)

	bp.com/tax


Society
The people, businesses and environment in the communities where we work.


$76m
supporting additional initiatives to benefit communities (2023 $117m)


Partners and suppliers
Includes relationships with academia, industry and cities.


$146.6bn
in payments to suppliers for goods and services (2023 $151.7bn)

	bp.com/sustainability


14		bp Annual Report and Form 20-F 2024

Key performance indicators

We 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 to

both financial and non-financial measures.

These help the board and leadership team

assess bp’s performance. Our leadership team

uses these measures to evaluate operating

performance and inform its financial,

strategic and operating decisions.

Safety


		l
Tier 1 and 2 process safety events«ab		l

2024	38
2023	39
2022	50
2021	62
2020	70


	Tier 1 process safety events		Tier 2 process safety events
	Tier 1 process safety events		Tier 2 process safety events

We track tier 1 and tier 2 events and report the

aggregated outcome. Tier 1 events are losses 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 tier 2 definitions).

2024 performance

Our combined process safety events (PSEs) have

generally decreased over the last 12 years, apart

from in 2019. In 2024 we reported our lowest

number of tier 1 PSEs – three, down from nine in

2023. However, our tier 2 PSEs increased to 35

(2023 30). Our total reported PSEs for 2024

were 38 (2023 39), see page 56.

Sustainable operations



Refining availability (%)

2024		94.3
2023		96.1
2022		94.5
2021		94.8
2020		96.0

bp-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 due to turnaround activity and all

mechanical, process and regulatory downtime.

Refining availability is an important indicator

of the operational performance of our

downstream businesses.

2024 performance

bp-operated refining availability decreased to

94.3% in 2024, mainly due to the impact of a

power outage at our Whiting refinery.


Remuneration	l

To help align the focus of our executive

management and executive directors with the

interests of our shareholders, certain measures

are used for executive remuneration.



	Directors’ remuneration report, page 88


Key
l	Used for remuneration policy
TCFD	TCFD Recommendations and Recommended Disclosures



Reported recordable injury frequency«ab

2024		0.297
2023		0.274
2022		0.187
2021		0.164
2020		0.132

Reported recordable injury frequency (RIF)

measures the number of reported work-related

employee and contractor incidents that result in

a fatality or injury per 200,000 hours worked.

2024 performance

In 2024, our RIF increased by 8.5%. Our

aExclusions to safety metrics – tier 1 and 2 process safety events may exist and recordable injury frequency may exist where entities

that have been recently acquired or where bp has recently taken full ownership have been granted a deviation from specific reporting

requirements in bp’s Operating Management System (OMS)★ for an initial transitional period and data are not included in the

reported metrics unless specifically noted. For the full year 2024 reporting period this includes Archaea Energy, TravelCenters of

America, bp bioenergy and Lightsource bp.

bThe metric includes reported PSEs occurring within bp’s operational HSSE reporting boundary. That boundary includes bp’s own

operated facilities and joint ventures where bp is the operator. In some cases, we may also provide information about some joint

venture activities where bp is not the operator.

businesses have identified underlying themes for

these injuries and have developed plans intended

to help reduce them in future. For more on

safety, see page 56.



Upstream« plant reliability (%)

2024		95.2
2023		95.0
2022		96.0
2021		94.0
2020		94.0

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

applicable, the subsea equipment (excluding

wells and reservoirs). Unplanned plant deferrals

include breakdowns, which does not include Gulf

of America weather-related downtime.

2024 performance

Upstream plant reliability in 2024 was marginally

higher than in 2023.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		15




		Strategic report



Major project delivery

2024		1
2023		4
2022		2
2021		7
2020		4

We monitor the progress of our major projects to

gauge whether we are delivering our 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 strategic importance to bp, or of a high

degree of complexity.

2024 performance

We started up one major oil and gas project

in 2024 – the Azeri Central East project in

Azerbaijan. Furthermore, on 31 December

first gas flowed to the FPSO at the Greater

Tortue Ahmeyim project in Mauritania

and Senegal.

Financial



Underlying replacement cost (RC) profit ($ billion)

2024		0.4 8.9
2023		15.2 13.8
2022		(2.5) 27.7
2021		7.6 12.8
2020		(20.3) (5.7)


	Profit (loss) for the year attributable to bp shareholders		Underlying RC profit for the year (non-IFRS)
	Profit (loss) for the year attributable to bp shareholders		Underlying RC profit for the year (non-IFRS)

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 assists 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 of adjusting

items« and related taxation from profit or loss

attributable to bp shareholders.

2024 performance

Profit for 2024 attributable to bp shareholders

includes pre-tax net impairment charges of

$5.1 billion. Reduction in the underlying RC profit

reflects lower refining margins, lower

realizations«, a lower gas marketing and trading

result and a lower oil trading contribution, partly

offset by lower taxation.



Operating cash flow ($ billion)

2024		27.3
2023		32.0
2022		40.9
2021		23.6
2020		12.2

Operating cash flow is net cash flow provided by

operating activities, as reported in the group cash

flow statement.

2024 performance

2024 primarily reflects lower profits from

operations, partly offset by working capital

movements.



Upstream unit production costs ($/boe)

2024		6.17
2023		5.78
2022		6.07
2021		6.82
2020		6.39

The upstream unit production 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 for liquids« and

thousands of cubic feet for gas. Amounts

disclosed are for bp subsidiaries only and do not

include bp’s share of equity-accounted entities.

2024 performance

Unit production costs increased, mainly

reflecting the impact of portfolio changes.


		l
Total shareholder return (%)		l

2024	(11.9) (11.0)
2023	5.9 2.6
2022	36.9 50.1
2021	36.4 36.4
2020	(41.4) (41.7)


	ADS basis		Ordinary share basis
	ADS basis		Ordinary share basis

Total shareholder return (TSR) represents the

change in value of a bp shareholding over a

calendar year (American Depositary Share (ADS)

in USD, ordinary share in GBP). It assumes that

dividends are reinvested to purchase additional

shares at the closing price on the ex-dividend

date.

2024 performance

Reduced TSR reflects a reduction in the

share price.


		l
Return on average capital employed (ROACE) (%)		l

2024	0.5 14.2
2023	17.8 18.1
2022	(3.0) 30.5
2021	8.4 13.3
2020	(23.7) (3.8)


	Profit (loss) for the period attributable to bp shareholders divided by total equity		ROACE (non-IFRS)
			ROACE (non-IFRS)

ROACE« (non-IFRS) gives an indication of a

company’s 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 ending

balances of total equity plus finance debt,

excluding cash and cash equivalents and

goodwill as presented on the group balance

sheet over the periods presented.

2024 performance

Profit for 2024 attributable to bp shareholders

was $0.4 billion and total equity at 31 December

2024 was $78.3 billion. ROACE for 2024 reflected

lower refining margins, lower realizations, a

lower gas marketing and trading result and a

lower oil trading contribution, partly offset by

lower taxation.


16		bp Annual Report and Form 20-F 2024

Key performance indicators

continued


Key
l	Used for remuneration policy
TCFD	TCFD Recommendations and Recommended Disclosures

Non-financial


		TCFDl
Greenhouse gas emissionsabcde – operational control (MtCO2e)		TCFD l

2024		33.6
2023		32.1
2022		31.8
2021		35.6
2020		45.5


	Scope 1 (direct) emissions		Scope 2 (indirect) emissions
	Scope 1 (direct) emissions		Scope 2 (indirect) emissions

We report Scope 1 and Scope 2 greenhouse gas

(GHG) emissions material to our business on a

carbon dioxide-equivalent basis. This KPI

comprises Scope 1 (from running the assets

within our operational control boundary) and

Scope 2 (associated with importing electricity,

heating and cooling that is bought in to run

those operations) data covered by our net zero

operations aim (to be net zero across our

operations by 2050 or sooner). It comprises

100% of Scope 1 and 2 emissions or activities

within bp’s operational control boundary.

2024 performance

In 2024 our Scope 1 (direct) emissions were

32.8MtCO2e – an overall increase from

31.1MtCO2e in 2023. Of these Scope 1

emissions, 31.4MtCO2e were carbon dioxide and

1.5MtCO2e were methanec. Overall emissions

increased due to project start-ups, operational

growth in our low carbon businesses, temporary

operational changes and operational issues in

Tangguh, partially offset by the delivery of

emissions reduction projects. In 2024 our Scope

2d (indirect) emissions, covered by bp’s net zero

operations« aim, decreased by 0.2MtCO2e, to

0.8MtCO2e, compared with 2023. The continued

use of lower carbon power agreements and a

project at our Gelsenkirchen refinery to replace

imported steam contributed to this decrease, see

page 38.

Basis of calculatione

bp’s 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 recommended by the Fifth Assessment

Report (AR5) of the Intergovernmental Panel on

Climate Change (IPCC).

Data is required to be submitted into the bp

group reporting tool, OneCSR, in accordance

with bp’s Operating Management System

(OMS)« requirements, broadly based on the GHG

Protocol Corporate Standard and the Ipieca

Petroleum Industry Guidelines for Reporting

Greenhouse 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).



Methane intensityaf (%)		TCFD

2024	0.07
2023	0.05
2022	0.05
2021	0.07
2020	0.12

We define methane intensity« as the amount of

methane emissions from our upstream oil and

gas operations as a percentage of the gas that

goes to market 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, are excluded. In 2024 we

started reporting methane intensity based on our

new measurement approach across our major

operated oil and gas assets.

2024 performance

Our methane intensity was 0.07% in 2024f.

Methane emissions from upstream operations

used to calculate this methane intensity

increased by around 48% from 31kt in 2023 to

46kt in 2024, see page 39.

Basis of calculatione

All operated upstream assets report methane

(CH4) emissions on a 100% basis, including

emissions from operated upstream oil and gas

and also includes terminals 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 is excluded to avoid double counting

despite their associated CH4 emissions being

included in the metric. CH4 data is required to be

submitted into the bp group reporting tool,

OneCSR, in accordance with OMS requirements,

broadly based on the GHG Protocol Corporate

Standard and the Ipieca Petroleum Industry

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 (RUs).


« See glossary on page 351		bp Annual Report and Form 20-F 2024		17




		Strategic report



Diversity and inclusiong (%)

2024		35 35
2023		34 33
2022		33 33
2021		32 31
2020		29 30


	Women in group leadership		People from beyond the UK and US in group leadership
	Women in group leadership		People from beyond the UK and US in group leadership

Our people are crucial to delivering our purpose

and strategy. We aim to recruit talented people

with diverse perspectives, backgrounds, skills

and experiences, invest in their development and

promote an inclusive culture.

Each year we report the percentage of women

and individuals from countries other than the UK

and the US among bp’s group leaders.

2024 performance

The percentage of women in group leadership

aThese 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.

bTotal (100%) Scope 1 (direct) GHG emissions from source activities operated by bp or otherwise within bp’s operational control boundary. bp’s reported GHG emissions include CH4 and CO2.

cDue to rounding some totals may not equal the sum of their component parts. This does not affect the underlying values.

dScope 2 emissions on a market basis.

e Included as part of reporting under the Companies (Strategic Report) Climate-related Financial Disclosure Regulations 2022 (the UK CFD Regulations).

fIn 2024 reported absolute methane emissions from upstream major oil and gas processing sites are based on our new measurement approach. Prior to 2024 these emissions were calculated using a

different methodology and therefore the methane intensity reported in those years and calculated using that data does not directly correlate to progress towards delivering the 2025 target. Prior year

data is provided for information purposes, and we do not seek to directly compare prior years.

gRelates to bp employees.

increased in 2024, continuing an upward trend

over the previous five years. The percentage of

people from beyond the UK and US in group

leadership also increased by 2 points.



Employee engagement (%)

2024		70
2023		73
2022		70
2021		64
2020		64

We conduct a Pulse annual employee survey to

understand and monitor levels of employee

engagement and identify areas for improvement.

2024 performance

The 2024 Pulse annual survey, which ran in

August and September, saw our engagement

score decrease by 3 points to 70%, in line with

2022 levels, and a completion rate of 82%. We

also extended the survey to retail where we

achieved an engagement score of 68% and

completion rate of 77%. We continue to build

engagement plans based on survey feedback

and on real-time updates from our monthly

snapshot, Pulse live.



	Employee engagement, page 58


18		bp Annual Report and Form 20-F 2024






Our financial frame

Operating within a resilient and disciplined financial frame

Our financial frame sets out how we allocate cash that we generate to strengthen our balance sheet,

invest with discipline to grow the value of bp and deliver resilient shareholder distributions.

Our financial frame

Balance sheet

Shareholder distributions

Capital expenditure

Resilient dividend

Share buybacks

$14-18bn

Net debt« target

by end 2027a

Expect annual increase of the

dividend per ordinary share of

at least 4%b

Excess cash shared

through buybacks

over time

~$15bn

in 2025

$13-15bn

in 2026-27

‘A’ range credit metrics

through cycle

30-40%

of operating cash flow« distributed as

dividends and share buybacksbc

Disciplined investment

allocation, assessed against

a set of balanced criteria

a Potential proceeds from any transactions related to Castrol strategic review and announcement to bring a strategic partner into Lightsource bp will be allocated to reduce net debt.

b Subject to board discretion each quarter, taking into account factors including outlook for cash flow, share count reduction from buybacks and maintaining ‘A’ range credit metrics.

c Includes offsetting any dilution from employee share schemes over time.

Resilient dividend

We continue to maintain a resilient dividend

policy within our disciplined financial frame.

Since the fourth quarter of 2023 our dividend per

ordinary share has grown by 10% to 8.00 cents.

Based on our current forecasts and subject to

the board’s discretion each quarter, we expect

increases in the dividend per ordinary share of

at least 4% per annum.

Stronger balance sheet

We are committed to strengthening the balance

sheet and are now targeting net debt of between

$14-18 billion by the end of 2027. Any potential

proceeds from the strategic review of Castrol

and Lightsource bp transactions will be

dedicated to strengthening the balance sheet.

For the full-year 2024, finance debt increased

from $52.0 billion at the end of 2023 to

$59.5 billion, primarily reflecting net long-term

debt issuances, and net debt increased from

$20.9 billion to $23.0 billion.

Disciplined investment allocation

We will continue to invest with discipline, driven

by value, and focused on delivering returns.

Investment is allocated across our businesses

based on a set of criteria that balances strategic

alignment, hurdle rates, volatility, integration

value, sustainability and risk (see page 22).

In 2024 capital expenditure« was $16.2 billion.

We expect capital expenditure to be around

$15 billion in 2025 and our capital expenditure

frame for 2026 and 2027 is reduced to $13-15

billion per annum. This includes expenditure on

inorganic opportunities. Within the capital frame,

on average ~$10 billion per year will be allocated

to oil and gas, of which ~70% is expected to be

allocated to oil and 30% to gas. In customers and

products, we are progressively focusing capital

expenditure from ~$4 billion in 2024 to ~$3

billion by 2027. In low carbon energy, we expect

capital expenditure, on average, will be less than

$800 million per year through 2027, around half

of which is allocated to hydrogen and CCS

projects already through FID.

Share buybacks

Share buybacks remain a core part of our

investor proposition. Our intention remains

to share excess cash with investors through

buybacks. Subject to board discretion, we

expect total distributions, including dividend

and buyback, to be in the range of 30-40% of

operating cash flow over time, including

buybacks to offset dilution from employee

share schemes.

We announced share buybacks of $7 billion for

2024 and between the end of the first quarter

2021 and 31 December 2024, we have reduced

our shares in issue by 22%.

In setting the dividend per ordinary share and

buyback each quarter, the board will continue

to take into account factors including the

cumulative level of and outlook for cash flow,

share count reduction from buybacks and

maintaining 'A’ range credit rating metrics.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		19




		Strategic report

Our investor proposition

Our strategy is being fundamentally reset. We are reallocating capital to drive growth from our highest returning businesses. And we are focused on driving

improved performance. This is all in service of growing long-term shareholder value. It’s underpinned by a plan to deliver compelling adjusted free cash

flow« and strong returns growth, supporting resilient distributions and a stronger balance sheet. We believe bp has a compelling investor proposition.



Resetting strategy •Growing upstream •Disciplined transition investment	Reallocating capital •Reallocating and reducing capital expenditure« •Significant divestment programme	Driving performance •Improving downstream •Cost efficiency



	Compelling adjusted free cash flow growth				Strong returns growth
	>20%				>16%

	Compound annual growth rate (CAGR)« from 2024-27a				ROACE« in 2027a



Resilient distributions	Stronger balance sheet	Lower operational emissions
30-40%	$14-18bn	45-50%

Total distribution of operating cash flowbc	Net debt target by end 2027d	Reduction aim across Scope 1 and 2 by 2030e



	More information Our strategy and primary targets, page 8 Sustainability, page 38

2025 guidance


	2024 actual	2025 guidance
Upstream reported production (guidance is both reported and underlying production«)	2.4mmboe/d	Reported production to be lower/underlying production to be slightly lower than 2024
Total capital expenditure«	$16.2bn	Around $15bn
Depreciation, depletion and amortization	$16.6bn	Broadly flat compared with 2024
Divestments and other proceedsf	$4.2bn	Around $3bn, weighted towards the second half
Gulf of America oil spill paymentsg (pre-tax)	$1.2bn	Around $1.2bn including $1.1bn pre-tax to be paid during the second quarter
Other businesses & corporate underlying annual charge	$0.6bn	Around $1.0bn
Underlying effective tax rate«	41%h	Around 40%i

aAt $70/bbl Brent, $4/mmBtu Henry Hub, and $17/bbl refining marker margin, all 2024 real.

bSubject to board discretion each quarter taking into account factors including outlook for cash flow, share count reduction from buybacks and maintaining ‘A’ range credit metrics.

cIncludes offsetting any dilution from employee share schemes over time.

dPotential proceeds from any transactions related to Castrol strategic review and announcement to bring a strategic partner into Lightsource bp will be allocated to reduce net debt.

eReduction in emissions against 2019 baseline, on a CO2e basis.

fDivestment proceeds« are disposal proceeds as per the group cash flow statement. See page 26 for more information on divestment and other proceeds.

gSee Financial statements – Note 22 for more information on payables related to the Gulf of America oil spill.

hNearest equivalent GAAP IFRS measure: effective tax rate 82%.

iUnderlying effective tax rate« is sensitive to the impact that volatility in the current price environment may have on the geographical mix of the group’s profits and losses.


20		bp Annual Report and Form 20-F 2024






Our investment process

How we use price assumptions

Our price assumptions are used for our

investment appraisal processes. They are 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

Our decisions on individual investments are

informed by our view of the price environment

and consider the balanced investment criteria

discussed below.

Our price assumptions continue to reflect a

range of possibilities, including that the transition

to a lower carbon economy and energy system

could accelerate. Our investment appraisal

assumptions, which take a long-term

perspective, focus on the fundamental trends

affecting the energy sector and our businesses.

From January 2024 until January 2025, we held

our key investment appraisal price assumptions

constant at the levels set out in the bp Annual

Report and Form 20-F 2023. For relevant

investment cases assessed from February 2025,

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 (2023 $ real) from 2025 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 a range of other price

assumptions in investment appraisals, including

product and market-specific prices relevant to

individual investment cases.

We apply carbon prices rising from $50/tCO2e

in 2025 to $135/tCO2e in 2030 and $200/tCO2e

by 2050 (2023 $ real) in certain cases (see

box, right).

Impairment testing

Our best estimate of future prices for use in




	Investment process price assumptions
	All investments are evaluated against relevant price assumptions for oil, natural gas, refining margins or other commodities across a range of alternative price or margin series (typically a central, 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), must estimate those anticipated GHG emissions and include an associated carbon cost in the investment 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. They also place some weight on a range of other factors that can drive prices, and which are not directly 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 global 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 assumptions, 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, schedule, resources, policy changes, or other areas of uncertainty, to assess the robustness of investment cases to a range of other factors.

value-in-use impairment testing continues to be

based on our investment appraisal price

assumptions, with quarterly review of near-term

prices to confirm that the assumptions

appropriately reflect any changes to expectations

due to short-term market trends.

Impairment price assumptions were held

constant in 2024 at the levels disclosed in the bp

Annual Report and Form 20-F 2023 until the

fourth quarter, when the updated investment

appraisal price assumptions shown below were

used for value-in-use impairment testing.


Key investment appraisal assumptionsa TCFD
2023 $ real	up to 2030	2040	2050
Brent oil ($/bbl)	70	63	50
Henry Hub gas ($/mmBtu)	4.0	4.0	4.0
Refining marker margin (RMM)b« ($/bbl)	14	12	9
In addition to the prices shown we also test whether investments meet our return expectations (see page 22) using $60/bbl Brent oil price series.

Carbon price TCFD
2023 $ real	2030	2040	2050
Carbon ($/tCO2e)	135	175	200
a The values in the table represent the central case. b The disclosed RMM assumption in the table excludes carbon pricing impacts and assumes a normalized cost of renewable identification numbers (RINs).

For investment appraisal, potential future

operational 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 on projects. For

the treatment of emission cost assumptions in

value-in-use impairment testing, see Financial

statements – Note 1.


Key
TCFD	Information that supports TCFD Recommendations and Recommended Disclosures in relation to Metrics and Targets


« See glossary on page 351		bp Annual Report and Form 20-F 2024		21




		Strategic report

Investment governance and

evaluating consistency with the

Paris goals

Governance framework

bp’s framework for investment governance seeks

to ensure that investments align with our

strategy, 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 environmental

and other sustainability criteria.

Investments follow an integrated stage-gate

process designed to enable our businesses to

choose and develop the most attractive

investment cases. A balanced set of investment

criteria is used (see page 22). This allows for the

comparison and prioritization of investments

across a diverse range of business models.

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 functions independent of the

business before a final investment decision (FID)

is taken.

The role of the board

The 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 well 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 officer.

The RCM reviews the merits of each investment

case against a balanced set of criteria (see page

22) 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

and (ii) a range of other outcomes relevant to

bp’s strategy.

bp’s evaluation of the consistency of such

investments with the Paris goals was undertaken

by the RCM for new material capex investments

sanctioned in 2024 (see page 23).

bp’s evaluation of an investment’s consistency

a In February 2025 bp announced that we have retired the concept of transition growth« engines going forward.

with ‘a range of other relevant outcomes’ is

achieved by considering its merits against bp’s

balanced investment criteria, described on

page 22.



	bp board Reviews and approves investment cases of more than $3 billion for resilient hydrocarbons, more than $1 billion for all transition or low carbon investments« and any significant inorganic acquisition that is exceptional or unique in nature.



	Resource commitment meeting Forum for executive management’s review and approval of investments related to existing and new lines of business above $250 million, or $25 million for acquisitions, or which exceed the relevant EVP’s financial authority, and any project considered strategically important such as a new market entry.



	Investment allocation committees EVP-level forums to review and approve investment cases within a business group as per individual EVP financial authority (up to $250 million, or typically $25 million for acquisitions).



	Business group investment governance meetings SVP-level forums that review and approve investment cases within a business group or function, up to the individual SVP’s financial authority.



	Cross-group meetings Forums that facilitate discussions across businesses and functions, to support project development, sensitivity analysis, integration opportunities and risk assessment ahead of investment committee meetings.

Investment in non-oil and gas

In 2024 transition growth investment«a was

$3.7 billion, compared to $3.8 billion in 2023

(see page 39).

Bioenergy: Our biogas operation, Archaea

Energy, continued its growth and using its

modular plant design it started up nine new

renewable natural gas (RNG)« plants in 2024

(see page 33).

EV charging: Together with our strategic

convenience site« networks, our investment in

EV charging is helping us to offer lower carbon

mobility solutions to more customers. In 2024

examples include the opening of our standalone

Aral EV charging Gigahub, in Germany, with 28

charge points. And in China, bp pulse installed

2MWh batteries at a charging hub in Shenzhen.

We continue to build scale in our EV charging

network in key markets (see page 33).

Convenience: In 2024 we continued strategic

investment in support of high-grading our

retail fuels and convenience portfolio, including

continued investment in TravelCenters of

America, which bp acquired in 2023 (see

page 33).

Hydrogen and CCS: We are high-grading and

focusing our hydrogen portfolio – prioritizing

projects in jurisdictions where we have an

adequate regulatory framework, access to

the value chain – including our own or customer

demand – linkage to carbon capture and

access to competitive renewable power.

In 2024 we made final investment decisions

on four hydrogen/CCS projects (see page 29).

For example we were granted funding to help

support the development of a 100MW green

hydrogen« project next to our Lingen refinery

in Germany. The plant could produce up to

11,000 tonnes of green hydrogen annually.

The final investment decision was taken in

December 2024.

Renewables & power: In April 2024 we

announced that we took ownership of Equinor’s

50% stake in the Beacon Wind US offshore wind

projects. In December we announced that bp

and JERA Co., Inc will, subject to regulatory

approvals and closing conditions being met, join

forces to create a global wind joint

venture« (see page 28).

Low carbon activity investment

In 2024 low carbon activity investment«,

a subset of our total transition growth

investment, accounted for 80% of our total

transition growth investment (67% in 2023).

It increased from $2.5 billion in 2023 to

$3.0 billion in 2024, reflecting higher investment

in bioenergy, EV charging and wind businesses.


22		bp Annual Report and Form 20-F 2024






Our investment process continued

Balanced investment criteria

All investment cases must set out their

investment merits and are considered against a

set of six balanced investment criteria –although

investment decisions may also take other factors

into account as appropriate. This standardized

approach is intended to create a level playing

field for decision making and allows portfolio-

wide comparisons of investment cases. The

decision to endorse an investment based on the

information provided represents our evaluation

that it is consistent with what the 2019 CA100+

resolution« refers to as ‘a range of other

outcomes relevant to bp’s strategy’.

The six balanced investment criteria are:

Strategic alignment: For all investment cases,

we consider whether the investment supports

delivery of our strategy, including our net zero

aims. We also assess if the investment case

involves distinctive capability that bp has, or

intends to develop, and whether it adds to an

existing ‘scale’ business within the portfolio or

could help us create one.

Safety and risks: For all investment cases, we

provide an assessment of the key risks to the

investment that have a significantly higher

probability than usual or have a significantly

greater impact (relative to the size of the project)

were they to occur. Safety risk management at

bp is underpinned by our Operating Management

System (OMS)«, which is designed to help us

sustainably deliver safe, reliable and compliant

bp operations.

Sustainability: For all investment cases, we

consider how any proposed business opportunity

is connected to the energy transition, societal

needs and the environment. This approach is

underpinned by our purpose and sustainability

frame. All RCM cases must consider significant

impacts of an investment on key sustainability

aims, informed by our sustainability assessment

template for investment cases (for our use of

carbon prices, see box on page 20).

Investment economics: For all investment

cases, we consider investment economics

against a range of relevant measures. Depending

on the nature of the investment case, these may

include return expectations (e.g. internal rate of

return or IRR), net present value, discounted

payback and profitability index, reflecting

assumptions about relevant commodity prices,

margins and carbon prices (see page 20). The

forward economics of an investment case are

considered against the differentiated IRRs

applicable to that case at the time of the

investment decision, depending on the business.

We also refer to these expectations as hurdle

rates; although, as noted, each case is assessed

according to its combined merit against our full

set of balanced criteria.

1.For our upstream business (including biogas),

we seek an IRR of 15%.

2.For our downstream business (including EV

charging and biofuels), we seek portfolio-level

returns in excess of 15%.

3.For hydrogen and CCS, we expect levered

returns in the mid-teens including farm-down

and integration value.

For each investment, the relevant return

expectations above are assessed using our

central price assumptions. For additional capital

discipline for investments in oil and gas

production, we also compare the central price

hurdle above (15%) to a case in which the Brent

oil price starts at $60/bbl and later declines to

the level of our key appraisal assumptions by

2050 (see page 20). In addition, for investments

in our oil and gas and refined products

businesses, as well as any other investments

that do not fall within one of the specific

businesses set out above, we compare the IRR

in our lower-price case to a cost of capital

hurdle rate.

Volatility and rateability: Our investment

economics metrics also consider the degree of

uncertainty of the cash flows when considering

investment cases. For example, some cases

have more certainty of future costs and revenue

projections. Variation in net present values for

the key variables in an investment case are

quantified by sensitivity analysis to give a range

of potential outcomes against our key

investment hurdles.

Optionality and integration: Our assessment

considers the degree of optionality offered by a

project – the ability to adapt our business to

changing circumstances. This could be an option

to sell a product with a floor price, or the right to

purchase additional equity in a joint venture at

specific terms. Other types of options include the

right to develop (or not develop) extensions to

existing projects, or to change the course of a

project’s development depending on market

circumstances. We likewise seek out integration

along value chains across multiple products,

services, geographies and customers. For

example, our gas production can supply

liquefaction plants whose LNG is monetized

by our trading business. Likewise, carbon

sequestration projects may allow us to add

value to our gas production by reducing

carbon intensity.

Paris consistency evaluation process

Our new material capex investments« are

intended to support the delivery of bp’s strategy.

For evaluations conducted in 2024, investments

in scope for evaluation were defined as:

•New: investment in a new project, or

extension of an existing project/asset, or

share of an entity that is new to bp, or a

substantial increase in bp’s share.

•Material: more than $250 million capex

investment.

Quantitative evaluations

For our investment economics and sustainability

investment criteria we considered quantitative

guide levels, as set out below, to inform the

evaluation of each investment’s consistency with

the goals of the Paris Agreement. For evaluations

in 2024 we used the central price IRR and other

economic hurdles as set out in the bp Annual

Report and Form 20-F 2023 (page 32). As in

previous years, we reduced our operational

carbon intensity« guide levels, in line with our

decreasing portfolio average. As our approach

matures with experience, we may continue to

adjust or supplement our methodology. There

may be instances when new material capex

investments are evaluated as consistent with

the Paris goals despite either the economic or

sustainability guide levels not being met. The

RCM may also take account, in its Paris

consistency evaluation, of the six balanced

investment criteria using qualitative

assessments.

Investment economics: We calculated economic

indicators using our central price, and where

applicable, our lower price cases, and applying

our carbon price assumptions to relevant

operational GHG emissions. (For our current key

central case oil and natural gas price

assumptions, see page 20, where we also set out

our view on their consistency with achieving the

Paris goals). We then compared the economic

indicators to the relevant economic guide level

(see below), based on the corresponding hurdles.

We typically target a threshold of >1.0x the

relevant IRR guide level, and <1.0x any relevant

payback guide level, as set out in the bp Annual

Report and Form 20-F 2023 (page 32).

Sustainability: Where appropriate, we compared

the expected operational carbon intensity of the

investment relative to that of the portfolio

average shown in the bp ESG Datasheet 2023 for

the segment or the related business activity

(upstream and refining). We normally target a

ratio of less than 100%, meaning that the

investment is expected to reduce the average

operational carbon intensity of the relevant

portfolio. The potential impact of new material

capex investments on bp’s net zero aims is a

further consideration.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		23




		Strategic report

Evaluation outcome

In 2024 eight new material capex investments were approveda. All were evaluated as being consistent with the Paris goals, taking into account both

quantitative and qualitative evaluations and the balanced criteria above.

Evaluation of investment performance against quantitative guide levelsb

Seven of the eight investments exceeded the relevant IRR guide level as shown in the chart. The IRR of the remaining investment was slightly below

its central price IRR hurdle.

Three of the four upstream hydrocarbon projects had emissions intensities below the relevant upstream intensity guide level. The other upstream

investment had an emissions intensity above the guide level, but was expected to reduce our operational emissions intensity in the region. The four

other investments were in businesses for which there was no applicable carbon intensity guide. These latter investments are shown as ‘n/a’ in the

operational carbon intensity chart.

Investment economics

Sustainability

Against IRR guide level

Against operational carbon intensity

Investments with

intensity guide level

No intensity

guide level

Guide

n/a

Decisions taken in 2024

In 2024 there were eight new material capex investment decisions evaluated for Paris consistency, shown here in the order the investment decisions were made:

Brazilian biofuels: In June bp agreed to take full

ownership of our Brazilian biofuels joint venture,

acquiring Bunge’s 50% interest. The acquisition is

expected to have capacity to produce around

50,000 barrels a day of ethanol equivalent from

sugar cane through the business’s 11 agro-

industrial units across five Brazilian states.

Kaskida: In July bp approved its final investment

decision in the Kaskida project in the US Gulf of

America. The new floating platform is expected to

have nameplate production capacity of 80,000

barrels of oil per day. It will leverage simplified,

standardized and cost-efficient design, which is

expected to be replicated in future projects.

Ruwais LNG: In July bp announced we had

agreed to take a 10% interest in a new ADNOC-

operated LNG facility in Abu Dhabi, deepening our

relationship with our longstanding partner. The

project has a planned total capacity of 9.6Mtpa.

The investment is consistent with bp’s strategy to

develop competitive gas positions as we grow our

LNG portfolio.

aThe RCM also approved two investment cases in our low carbon energy business with capital investment above $250 million, which are not included in the evaluation information presented above.

This is because one did not reach a final investment decision during 2024 and the other was a transaction to progress certain bp low carbon energy assets by contributing them to a joint venture. All of

the assets that were material had been previously disclosed as new material capex investments in bp’s Annual Report and Form 20-F for the relevant year.

bThe 2024 investments have been compared to relevant guides (as applicable to the evaluation of each investment) and are presented here in order of the ratio to the relevant central-price case IRR

guide level (or where there was no relevant central price IRR guide level, the lower price one), and separately in order of the ratio to the relevant emissions intensity guide level. As a result, the

evaluations against the economic and sustainability benchmarks do not necessarily follow the same order.

Coconut gas development: In August bp and

EOG agreed to form a 50:50 joint venture for the

Coconut development with EOG as operator. This

partnership for the Coconut development is part

of bpTT’s strategy to grow its gas business and

help to unlock the energy future of Trinidad

and Tobago.

Tangguh UCC: In November bp and partners

gave the go-ahead for the Tangguh UCC project in

Papua Barat, Indonesia. The project has three

components: the Ubadari field; a gas compression

facility; and a carbon capture, use and storage

(CCUS) project. It has the potential to unlock

around 3 trillion cubic feet of additional gas

resources in Indonesia to help meet growing

energy demand in Asia. The CCUS component is

expected to sequester around 15MtCO2 during its

initial phase from Tangguh’s natural gas

production, reducing overall CO2 emissions

intensity from operations at Tangguh.

Northern Endurance Partnership (NEP):

In December bp and partners made their final

investment decision for NEP, a joint venture

between bp, Equinor and TotalEnergies, which is

the CO2 transportation and storage provider for

the UK’s East Coast Cluster (ECC).

The Teesside onshore NEP infrastructure is

expected to serve the Teesside-based carbon

capture projects – NZT Power, H2Teesside and

Teesside Hydrogen CO2 Capture. We expect

around 4MtCO2 per year from these projects will

be transported and stored from 2027.

Net Zero Teesside Power (NZT Power):

Also in December bp and partners took a final

investment decision in NZT Power, a joint venture

between bp and Equinor, which could generate

up to 742MW of flexible, dispatchable low carbon

power. Up to 2MtCO2 per year will be captured at

the plant, and then transported and securely

stored in subsea storage sites in the North Sea.

Lingen Green Hydrogen: In December bp

made a final investment decision for the Lingen

Green Hydrogen project in Germany, which will be

its first fully-owned and operated large-scale green

hydrogen« facility. The project is expected to

install a 100MW electrolyser capacity capable of

producing an average of 10-11kt of green

hydrogen per year from 2027. The renewable

power needed for the electrolyser is expected to

be supplied by offshore wind generation.


24		bp Annual Report and Form 20-F 2024






Group performance

Laying the foundation for growth


$0.4bn	$8.9bn	$27.3bn
profit attributable to bp shareholders (2023 profit $15.2bn)	underlying replacement cost (RC) profit« (2023 profit $13.8bn)	operating cash flow« (2023 $32.0bn)


Financial and operating performance
	$ million except per share amounts
	2024	2023	2022
Sales and other operating revenues	189,185	210,130	241,392
Profit before interest and tax	11,297	27,348	18,039
Finance costs and net finance income/expense relating to pensions and other post-employment benefits	(4,515)	(3,599)	(2,634)
Taxation	(5,553)	(7,869)	(16,762)
Profit (loss) for the year	1,229	15,880	(1,357)
Non-controlling interest	(848)	(641)	(1,130)
Profit (loss) for the year attributable to bp shareholders	381	15,239	(2,487)
Inventory holding (gains) losses«, before tax	488	1,236	(1,351)
Taxation charge (credit) on inventory holding gains and losses	(119)	(292)	332
Replacement cost (RC) profit (loss)«	750	16,183	(3,506)
Net (favourable) adverse impact of adjusting items«a, before tax	9,344	(1,143)	29,781
Total taxation charge (credit) on adjusting items	(1,179)	(1,204)	1,378
Underlying RC profit	8,915	13,836	27,653
Adjusted EBIDA«	31,161	34,345	45,695
Adjusted EBITDA«	38,012	43,710	60,747
Dividend paid per ordinary share (cents)	30.540	27.760	22.932
Dividend paid per ordinary share (pence)	23.720	22.328	18.624
Profit (loss) per ordinary share (cents)	2.38	87.78	(13.10)
Profit (loss) per ADS (dollars)	0.14	5.27	(0.79)
Underlying RC profit per ordinary share« (cents)	54.40	79.69	145.63
Underlying RC profit per ADS« (dollars)	3.26	4.78	8.74
Adjusting itemsa
Gains on sale of businesses and fixed assets	670	361	3,866
Net impairment and losses on sale of businesses and fixed assets	(6,930)	(5,838)	(5,920)
Environmental and related provisions	(181)	(647)	325
Restructuring, integration and rationalization costs	(222)	37	34
Fair value accounting effects (FVAEs)b	(1,852)	9,403	(3,501)
Rosneft	—	—	(24,033)
Gulf of America oil spill	(51)	(57)	(84)
Other	(273)	(1,711)	(43)
Total before interest and taxation	(8,839)	1,548	(29,356)
Finance costs	(505)	(405)	(425)
	(9,344)	1,143	(29,781)
Adjusting items total taxation	1,179	1,204	(1,378)
	(8,165)	2,347	(31,159)

aSee page 313 for more information. bSee page 314 for information on the cumulative impact of FVAEs.

bp delivered operating cash

flow of $27.3 billion. During

the year, we made strong

progress on cost savings,

achieving $0.8 billion of

structural cost reduction«.

We raised the dividend per

ordinary share by 10% and

delivered $7 billion of share

buybacks. Our focus on

capital discipline and

strengthening the balance

sheet continues into 2025.

Kate Thomson

Chief financial officer


« See glossary on page 351		bp Annual Report and Form 20-F 2024		25




		Strategic report

At 31 December 2024 the group's reportable

segments are gas & low carbon energy, oil

production & operations and customers &

products. Each is managed separately, with

decisions taken for the segment as a whole, and

represent a single operating segment that does

not result from aggregating two or more

segments. See Financial statements – Note 5

Segmental analysis.

Results

The profit for the year ended 31 December 2024

attributable to bp shareholders was $0.4 billion,

compared with $15.2 billion in 2023. Adjusting

for inventory holding losses, RC profit was $0.8

billion, compared with $16.2 billion in 2023.

After adjusting RC profit for a net adverse impact

of items, which bp has classified as adjusting

(adjusting items) of $8.2 billion (on a post-tax

basis), underlying RC profit for the year ended

31 December 2024 was $8.9 billion. The result

reflected lower refining margins, lower

realizations, a lower gas marketing and trading

result and a lower oil trading contribution, partly

offset by lower taxation.

For 2023, after adjusting RC profit for a net

favourable impact of adjusting items of $2.3

billion (on a post-tax basis), underlying RC profit

was $13.8 billion. The result reflected lower

realizations, the impact of portfolio changes, the

impact of lower refining margins and a lower oil

trading performance.

For a discussion of bp’s financial and operating

performance for the years ending 31 December

2022 and 31 December 2023, see bp Annual

Report and Form 20-F 2023, pages 35-47.

Adjusting items

In 2024 the net adverse pre-tax impact of items,

which bp has classified as adjusting (adjusting

items) was $9.3 billion including:

•Adverse fair value accounting effects (FVAEs)

relative to management’s measure of

performance of $1.9 billion primarily due to an

increase in the forward price of LNG during

2024, compared to a decline in 2023 and the

adverse impact of the fair value accounting

effects relating to the hybrid bonds in 2024

compared to the favourable impact in 2023.

•Net impairment and losses on sale of

businesses and fixed assets includes a loss

of $1.1 billion relating to the sale of the

ground fuels business in Türkiye (see

Financial statements– Note 2) and net

impairment charges of $5.1 billion (see

Financial statements– Note 4).

•In addition, $0.5 billion net impairment

charges were reported through equity-

accounted earnings (reported within the

‘other’ category).

•The other category also includes a $0.5 billion

gain relating to the remeasurement of bp's

pre-existing 49.97% interest in Lightsource bp

and a $0.5 billion gain relating to the

remeasurement of certain US assets

excluded from the Lightsource bp acquisition

(see Financial statements – Note 3 for further

information); and recognition of onerous

contract provisions related to the

Gelsenkirchen refinery. The unwind of these

provisions will be reported as an adjusting

item as the contractual obligations are

settled.

In 2023 the net favourable pre-tax impact of

adjusting items was $1.1 billion including:

•Favourable FVAEs relative to management’s

measure of performance of $9.4 billion

primarily due to a decline in the forward price

of LNG during 2023. Under IFRS, reported

earnings include the mark-to-market value of

the hedges used to risk-manage LNG

contracts, but not of the LNG contracts

themselves. The underlying result includes

the mark-to-market value of the hedges but

also recognizes changes in value of the LNG

contracts being risk managed. The impacts of

FVAEs relative to management’s internal

measure of performance are provided on

page 314.

•Net impairment charges of $5.7 billion largely

as a result of changes in the group’s price and

discount rate assumptions, activity phasing

and economic forecasts (in particular related

to the Gelsenkirchen refinery).

•In addition, $1.3 billion net impairment

charges were reported through equity-

accounted earnings (reported within the

‘other’ category), of which $1.1 billion relates

to our US offshore wind projects.

See Financial statements – Note 4 for more

information on impairments, and pages 313

and 314 for more information on adjusting

items and FVAEs.

Taxation

The charge for corporate income taxes was

$5,553 million in 2024 compared with $7,869

million in 2023. The effective tax rate (ETR) on

the profit before taxation for the year in 2024

was 82%, compared with 33% in 2023. The ETR

on the profit before taxation for the year in 2024

and in 2023 was impacted by fair value

accounting effects and other adjusting items.

Excluding inventory holding impacts and

adjusting items, the underlying ETR« in 2024

was 41% compared with 39% in 2023. The

underlying ETR in 2024 is higher due to changes

in the geographical mix of profits. The underlying

ETR for 2025 is expected to be around 40% but it

is sensitive to a range of factors, including the

volatility of the price environment and its impact

on the geographical mix of the group’s profits

and losses. Underlying ETR is a non-IFRS

measure. A reconciliation to IFRS information is

provided on page 360.

Outlook for 2025

2025 guidance

•bp expects reported upstream« production to

be lower and underlying upstream

production« to be slightly lower compared

with 2024. Within this, bp expects underlying

production from oil production & operations

to be broadly flat and production from gas &

low carbon energy to be lower.

•In its customers business, bp expects growth

including a full year contribution from bp

bioenergy and a higher contribution from

TravelCenters of America in part supported by

a partial recovery from the US freight

recession. Earnings growth is expected to be

supported by structural cost reduction. bp

continues to expect fuels margins to remain

sensitive to the cost of supply and earnings

delivery to remain sensitive to the relative

strength of the US dollar.

•In products, bp expects broadly flat refining

margins relative to 2024 and stronger

underlying performance underpinned by the

absence of the plant-wide power outage at

Whiting refinery, and improvement plans

across the portfolio. bp expects similar levels

of refinery turnaround activity, with phasing of

turnaround activity in 2025 heavily weighted

towards the first half, with the highest impact

in the second quarter.

•bp expects other businesses & corporate

underlying annual charge to be around $1.0

billion for 2025. The charge may vary from

quarter to quarter.


26		bp Annual Report and Form 20-F 2024






Group performance continued


Cash flow and debt information
	$ million
	2024	2023	2022
Cash flow
Operating cash flow«	27,297	32,039	40,932
Net cash used in investing activities	(13,250)	(14,872)	(13,713)
Net cash provided by (used in) financing activities	(7,297)	(13,359)	(28,021)
Cash and cash equivalents at end of yeara	39,269	33,030	29,195
Capital expenditure«b	(16,237)	(16,253)	(16,330)
Divestment and other proceedsc	4,224	1,843	3,123
Debt
Finance debt	59,547	51,954	46,944
Net debt«	22,997	20,912	21,422
Net debt including leases«	34,909	31,902	29,990
Finance debt ratio« (%)	43.2%	37.8%	36.1%
Gearing« (%)	22.7%	19.7%	20.5%
Gearing including leases« (%)	30.8%	27.2%	26.5%
a2024 includes $65 million of cash and cash equivalents classified as assets held for sale in the group balance sheet. bAn analysis of capital expenditure by segment and region is provided on page 312. cDivestment proceeds are disposal proceeds as per the group cash flow statement. See below for more information on divestment and other proceeds.

Operating cash flow

Operating cash flow for the year ended

31 December 2024 was $27.3 billion, $4.7 billion

lower than 2023. Compared with 2023, operating

cash flows in 2024 primarily reflected lower

profits from operations partly offset by working

capital movements.

Movements in working capital« favourably

impacted cash flow in the year by $4.0 billion,

including an adverse impact from the Gulf of

America oil spill of $1.1 billion. Other working

capital effects were principally a decrease in

other current assets. bp actively manages its

working capital balances to optimize and reduce

volatility in cash flow.

Operating cash flow for the year ended

31 December 2023 was $32.0 billion, $8.9 billion

lower than 2022. Compared with 2022, operating

cash flows in 2023 primarily reflected lower

realizations, refining margins and oil trading

performance and the impact of portfolio

changes.

Movements in working capital adversely

impacted cash flow in 2023 by $3.3 billion,

including an adverse impact from the Gulf of

America oil spill of $1.2 billion. Other working

capital effects were principally a decrease in

other current liabilities, partly offset by decreases

in inventory and other current assets.

Net cash used in investing activities

Net cash used in investing activities for the year

ended 31 December 2024 decreased by $1.6

billion compared with 2023.

The decrease mainly reflected an increase in

divestment proceeds and a net cash inflow from

acquisitions, partly offset by an increase in

expenditure on fixed assets.

Total capital expenditure for 2024 was $16.2

billion (2023 $16.3 billion), of which organic

capital expenditure« was $16.1 billion (2023

$15.0 billion). Inorganic capital expenditure for

2024 includes the cash acquired net of

acquisition payments on completion of the bp

Bunge Bioenergia and Lightsource bp

acquisitions. Inorganic capital expenditure for

2023 includes $1.1 billion, net of adjustments, in

respect of the TravelCenters of America

acquisition. Sources of funding are fungible, but

the majority of the group’s funding requirements

for new investment comes from cash generated

by existing operations. bp expects capital

expenditure of around $15 billion in 2025 and a

range of $13-15 billion per annum from 2026 to

2027.

Total divestment and other proceeds for 2024

amounted to $4.2 billion, including $0.9 billion

from the sale of receivables and $0.7 billion cash

received, both relating to prior divestments, and

$0.6 billion relating to the formation of Arcius

Energy. Other proceeds for 2024 consist of $0.8

billion of proceeds from the sale of a non-

controlling interest in the subsidiary that holds

our 20% share in Trans Adriatic Pipeline AG

(TAP) and $0.5 billion of proceeds from the sale

of a 49% interest in a controlled affiliate holding

certain midstream assets offshore US.

Total divestment and other proceeds for 2023

amounted to $1.8 billion, including $0.5 billion

relating to the sale of the upstream business in

Algeria and $0.3 billion relating to the disposal of

bp’s interest in the bp-Husky Toledo refinery.

Other proceeds for 2023 consist of $0.5 billion of

proceeds from the sale of a 49% interest in a

controlled affiliate holding certain midstream

assets onshore US.

As at 31 December 2024, $22.0 billion of

proceeds were received against our target of $25

billion of divestment and other proceeds between

the second half of 2020 and 2025. bp expects

divestment and other proceeds to be around $3

billion in 2025.

Net cash provided by (used in)

financing activities

Net cash used in financing activities for the year

ended 31 December 2024 was $7.3 billion,

compared with $13.4 billion in 2023. Compared

with 2023, financing cash flows in 2024 primarily

reflected higher receipts from the issue of

perpetual hybrid bonds and higher net proceeds

from the issuance and repayment of finance

debt.

In 2024, 1,238 million of ordinary shares (2023

1,263 million) were repurchased for cancellation

for a total cost of $7.1 billion (2023 $7.9 billion),

including transaction costs of $38 million (2023

$43 million).

Total dividends paid to shareholders in 2024

were 30.540 cents per share, 2.78 cents higher

than 2023. This amounted to total dividends paid

to shareholders of $5.0 billion in 2024 (2023 $4.8

billion). The board decided not to offer a scrip

dividend alternative in respect of the 2024 and

2023 dividends.

Debt

Finance debt at the end of 2024 increased by

$7.6 billion from the end of 2023 primarily

reflecting net long-term debt issuances. The

finance debt ratio at the end of 2024 increased to

43.2% from 37.8% at the end of 2023.

Net debt at the end of 2024 increased by $2.1

billion from the 2023 year-end position. Gearing

at the end of 2024 increased to 22.7% from

19.7% at the end of 2023. The increase in net

debt and gearing primarily reflects the net debt

acquired from the completion of the bp Bunge

Bioenergia and Lightsource bp transactions

partially offset by the issuance of perpetual

hybrid securities. Net debt and gearing are non-

IFRS measures. See Financial statements –

Notes 26 and 27 for further information on

finance debt and net debt.

For information on financing the group’s

activities see Financial statements – Note 29

and Liquidity and capital resources on page 316.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		27




		Strategic report


Group reserves and productiona
	2024	2023	2022
Estimated net proved reserves (net of royalties)
Liquids (mmb)	3,699	3,747	3,997
Natural gas (bcf)	14,786	17,471	18,481
Total hydrocarbonsb (mmboe)	6,248	6,759	7,183
Of which:
Equity-accounted entitiesb	1,377	1,437	1,381
Production (net of royalties)
Liquids (mb/d)	1,166	1,115	1,214
Natural gas (mmcf/d)	6,914	6,944	7,101
Total hydrocarbonsc (mboe/d)	2,358	2,313	2,438
Of which:
Subsidiaries	2,008	1,967	2,000
Equity-accounted entitiesc	350	345	439
aBecause of rounding, some totals may not agree exactly with the sum of their component parts. bSee Supplementary information on oil and natural gas on page 223 for further information. See page 322 for more information on bp’s oil and gas reserves including the impact of events occurring after the end of the reporting period. c2022 includes bp’s share of Rosneft and Russia joint ventures (193mboe/d). See Oil and gas disclosures for the group on page 324 for further information.

Total hydrocarbon proved reserves at

31 December 2024, on an oil equivalent basis,

including equity-accounted entities, decreased by

8% compared with 31 December 2023 (8%

decrease for subsidiaries and 4% decrease for

equity-accounted entities). Natural gas

decreased by 15% (19% decrease for

subsidiaries and 5% increase for equity-

accounted entities).

There was a net decrease from acquisitions and

disposals of 72mmboe within our US, Trinidad

and North Africa subsidiaries.

Total hydrocarbon production for the group was

2.0% higher compared with 2023. The increase

comprised a 2.1% increase (5.6% increase for

liquids and 0.6% decrease for gas) for

subsidiaries and a 1.4% increase (1.3% increase

for liquids and 2.0% increase for gas) for equity-

accounted entities.


28		bp Annual Report and Form 20-F 2024






Gas & low carbon energy

Gas & low carbon energy segment comprises our gas & low carbon businesses. Our gas business

includes regionsa 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 CCS, and power trading. Power trading and marketing includes trading of both renewable and non-

renewable power.


Financial and operating performance
	$ million
	2024	2023	2022b
Sales and other operating revenuesc	32,628	50,297	56,255
Profit before interest and tax	3,569	14,081	14,688
Inventory holding (gains) losses«	—	(1)	8
RC profit before interest and tax	3,569	14,080	14,696
Net (favourable) adverse impact of adjusting items«d	3,234	(5,358)	1,367
Underlying RC profit before interest and tax«	6,803	8,722	16,063
Taxation on an underlying RC basis	(2,137)	(2,730)	(4,367)
Underlying RC profit before interest	4,666	5,992	11,696
Depreciation, depletion and amortization	4,835	5,680	5,008
Exploration write-offs	222	362	2
Adjusted EBITDA«e	11,860	14,764	21,073
Capital expenditure«
Gas	3,615	3,025	3,227
Low carbon energy	1,596	1,256	1,024
	5,211	4,281	4,251
aThe AGT and Middle East regions have been further subdivided by asset to allow reporting in either gas & low carbon or oil production & operations as appropriate. b2022 includes bp Bunge Bioenergia. From the first quarter of 2023, bp Bunge Bioenergia is reported within customers & products. cIncludes sales to other segments. dSee page 314 for information on the cumulative impact of FVAEs. eA reconciliation to RC profit before interest and tax is provided on page 362.

Financial results

Sales and other operating revenues for 2024 are

lower than 2023 due to materially lower trading

results, lower gas prices and lower volumes.

RC profit before interest and tax for 2024 was

$3,569 million compared with $14,080 million

for 2023.

Items which bp has classified as adjusting for

2024 had a net adverse impact of $3,234 million

including adverse fair value accounting effects

(FVAEs)« of $1,550 million, relative to

management’s view of performance, net

impairment charges of $3,004 million, partly

offset by a gain of $1,006 million as a result of

remeasurement of our previously existing

interest and related assets on the step-

acquisition of Lightsource bp (LSbp).

After adjusting RC profit for the net impact of

items which bp has classified as adjusting,

underlying RC profit before interest and tax for

2024 was $6,803 million, compared with $8,722

million for 2023. The decrease reflects a lower

gas marketing and trading result, lower

realizations and lower production partly offset by

a lower depreciation, depletion and amortization

charge and lower exploration write-offs.

Items which bp has classified as adjusting for

2023 had a net favourable impact of $5,358

million including favourable FVAEs of $8,859

million, relative to management’s view of

performance, partially offset by a net impairment

charges.

See Financial statements – Note 4 and Note 16

for further information on net impairment

charges.

Operational update

Reported production for 2024 was 888mboe/d,

4.4% lower than the same period in 2023.

Underlying production« for the full year was 2.8%

lower, mainly due to base decline in Egypt,

partially offset by major projects« ramp-up.

Renewables pipeline« at the end of the year was

60.6GW (bp net), including 38.7GW of LSbp’s

pipeline. The renewables pipeline showed a net

increase of 2.3GW during the year as a result of

the LSbp acquisition (20.5GW), offset by

reductions as a result of high-grading and focus

on proposed hydrogen projects and the US solar

business.

In renewables by the end of 2024 we had

cumulatively brought 8.2GW (bp net) developed

renewables to FID«.

Strategic progress

Gas

In Indonesia, we announced the final investment

decision on the $7 billion Tangguh Ubadari,

carbon capture, utilization and storage (CCUS)

Compression project (UCC), which has the

potential to unlock around 3 trillion cubic feet of

additional gas resources in Indonesia. Tangguh

CCUS aims to be the first CCUS project

developed at scale in Indonesia.

In Trinidad, we have made progress on our

growth projects and high graded our portfolio:

•In June we sanctioned the Coconut project

and in August we agreed to partner with EOG

Resources Trinidad Limited to develop the

Coconut gas field.

• In July, together with our partner NGC, we

were awarded an exploration and production

licence by the Bolivarian Republic of

Venezuela for the development of the cross-

border Cocuina gas discovery.

•In December we completed the sale of four

mature offshore gas fields and associated

production facilities to Perenco T&T.

In Egypt, we completed the formation of a new

joint venture, Arcius Energy (51% bp, 49% XRG).

The JV will initially operate in Egypt, and includes

interests assigned by bp across

two development concessions, as well as

exploration agreements.

In December, we completed a sale of a non-

controlling stake in bp Pipelines TAP Limited,

the bp subsidiary that holds a 20% share in

Trans Adriatic Pipeline AG (TAP), to Apollo-

managed funds.

In January 2025 we announced that we have

begun flowing gas from wells at the Greater

Tortue Ahmeyim (GTA) project off the coast of

West Africa. Once fully commissioned, it is

expected to produce 2.4Mtpa of LNG.

In February 2025 we signed an agreement with

ONGC as the technical services provider for the

largest offshore oil field in India, which accounts

for around 25% of the country's oil production.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		29




		Strategic report

LNG portfolio

In April bp and Korea Gas Corporation (KOGAS)

announced the signing of a long-term agreement

to supply up to 9.8Mt of LNG over 11 years on a

delivered ex-ship (DES) basis from 2026. This

builds on the existing long-term sale to KOGAS

and further adds to bp’s global LNG market

presence in key demand regions.

In July bp confirmed it would take 10% interest in

the new ADNOC-operated LNG facility in Abu

Dhabi (Ruwais LNG), further deepening bp’s

longstanding partnership with ADNOC. The

project has planned total LNG production

capacity of 9.6mmtpa.

bp and its partners concluded the restructured

ownership and commercial framework of

Atlantic LNG in Trinidad and Tobago effective 1

October, which allows for an intensified focus on

operational efficiency and reliability and provides

the certainty required for sanctioning the next

wave of upstream gas projects.

See Oil and gas disclosures for the group on

page 318 for more information on oil and gas

operations in the regions.

Low carbon energy

In 2024 we have initiated a significant portfolio

reset of low carbon energy businesses and we

are making strong progress on the programmes

that are driving focus and reducing costs.a

Hydrogen and carbon capture and storage

In 2024 we have refocused our H2CCS business

by reducing the number of projects from 30 to

five to seven high-quality hydrogen/CCS projects

this decade, four of which have taken FID

in 2024:

•In September together with our partner

Iberdrola, we sanctioned construction of a

25MW green hydrogen« project at bp's

Castellón refinery in Spain which is expected

to be operational in the second half of 2026.

•In December financial close was reached for

two major projects in Teesside, UK: the

Northern Endurance Partnership (NEP)

carbon capture and storage project and the

Net Zero Teesside Power (NZT Power)

project.

•We also announced in December the final

investment decision for 100MW Lingen Green

Hydrogen project (see case study, right).

aFrom 2025 we intend to report our biogas business as part of the gas & low carbon energy segment.

Renewables and power

Offshore wind

We have changed our model for offshore wind –

delivering with partners and with external

financing that will be capital-light for bp and

improve our equity returns.

In December we announced our agreement with

JERA Co., Inc. to combine our global offshore

wind businesses to form a new standalone,

equally-owned joint venture JERA Nex bp (see

case study, right).

In December the Japanese government

selected a consortium involving bp, Tokyo Gas,

Marubeni Corporation, Kansai Electric Power

and Marutaka Corporation to build a 450MW

offshore wind farm.

Onshore renewables

In October we completed the acquisition of the

remaining 50.03% interest in LSbp, one of the

world’s leading developers and operators of

utility-scale solar and battery storage assets

operators. LSbp has developed 12GW to date

including 3GW of projects to FID in 2024. In 2024

it also constructed over 2GW with total cost

under budget as well as significantly developing

battery energy storage systems capabilities and

footprint. In February 2025 we announced our

intention to bring a strategic partner into the

business.

In September we announced our plans to sell our

existing US onshore wind energy business, bp

Wind Energy (10 operating wind assets, net total

generating capacity 1.3GW) and aim to bring

together the development of onshore renewable

power projects through Lightsource bp.

Power trading

In August we announced we have completed the

acquisition of GETEC ENERGIE GmbH, a leading

independent supplier of energy to commercial

and industrial customers in Germany. This deal

will accelerate the growth of bp’s European gas

and power presence.


	LiDAR buoys help inform offshore wind farm development, Liverpool, UK



	Partnering for offshore wind bp and JERA Co., Inc., Japan’s largest power generation company, have agreed to set up a new 50:50 joint venture, JERA Nex bp, that will become one of the largest global offshore wind developers, owners and operators. The joint venture aims to create a strategic platform for growth by combining a balanced mix of operating assets and development projects with total 13GW potential net generating capacity. Subject to regulatory and other approvals, we aim to complete the formation of JERA Nex bp by the end of the third quarter of 2025.



	Green hydrogen in Germany In December 2024 bp announced the final investment decision for its 100MW Lingen Green Hydrogen (LGH2) project in Germany. It is expected to be bp’s largest industrial green hydrogen plant and the first that we will fully own and operate. The project is expected to produce around 11,000 tonnes of green hydrogen annually, with commissioning expected in 2027.


	bp’s Lingen refinery, Germany


30		bp Annual Report and Form 20-F 2024






Gas & low carbon energy continued


Estimated net proved reserves and productiona (net of royalties)
	2024	2023	2022
Estimated net proved reserves (net of royalties)
Crude oilb (mmb)	113	128	151
Natural gas liquids (mmb)	1	1	9
Total liquids«c	115	129	160
Natural gasc (bcf)	6,965	8,635	9,708
Total hydrocarbons«c (mmboe)	1,316	1,618	1,834
Of which equity-accounted entitiesd:
Liquids (mmb)	1	—	—
Natural gas (bcf)	196	—	—
Total hydrocarbons (mmboe)	35	—	—
Production (net of royalties)
Crude oilbe (mb/d)	88	96	103
Natural gas liquids (mb/d)	8	9	15
Total liquids (mb/d)	96	105	118
Natural gas (mmcf/d)	4,596	4,778	4,866
Total hydrocarbons (mboe/d)	888	929	957
Of which equity-accounted entitiesf:
Liquids (mb/d)	2	2	2
Natural gas (mmcf/d)	9	—	—
Total hydrocarbons (mboe/d)	4	2	2
Average realizations«g
Liquids ($/bbl)	75.37	77.03	89.86
Natural gas ($/mcf)	5.90	6.13	8.91
Total hydrocarbons ($/boe)	38.57	40.21	56.34
aBecause of rounding, some totals may not agree exactly with the sum of their component parts. bIncludes condensate and bitumen. cIncludes 1.7 million barrels of total liquids (2.2 million barrels at 31 December 2023 and 3 million barrels at 31 December 2022) and 219 billion cubic feet of natural gas (430 billion cubic feet at 31 December 2023 and 547 billion cubic feet at 31 December 2022) in respect of the 30% non-controlling interest in BP Trinidad and Tobago LLC. dbp’s share of reserves of equity-accounted entities in the gas & low carbon energy segment. e2023 restated, 4mb/d previously reported in NGLs. fbp’s share of production of equity-accounted entities in the gas & low carbon energy segment. gRealizations are based on sales by consolidated subsidiaries only – this excludes equity-accounted entities.

Renewables


	2024	2023	2022
Renewables (bp net, GW)
Installed renewables capacity«	4.0	2.7	2.2
Developed renewables to FID«	8.2	6.2	5.8
Renewables pipeline	60.6	58.3	37.2
of which by geographical area:
Renewables pipeline – Americas	21.2	18.8	17.0
Renewables pipeline – Asia Pacific	15.1	21.3	11.8
Renewables pipeline – Europe	23.6	14.6	8.3
Renewables pipeline – Other	0.7	3.5	0.1
of which by technology:
Renewables pipeline – offshore wind	9.7	9.3	5.2
Renewables pipeline – onshore wind	6.6	12.7	6.3
Renewables pipeline – solar	44.3	36.3	25.7
Total developed renewables to FID and renewables pipeline	68.8	64.5	43.0


	The potential site of NZT Power, UK



	Natural gas in Indonesia bp and its partners approved the $7 billion Tangguh UCC project in Papua Barat, Indonesia. This initiative will help unlock around 3 trillion cubic feet of natural gas and help meet growing energy demand in Asia. Through the use of CCUS for enhanced gas recovery, the project has the potential to sequester around 15MtCO2 in its initial phase, reducing overall CO2 emissions intensity from operations at Tangguh.


	Tangguh LNG facility, Papua Barat, Indonesia



	Teesside carbon capture milestone In December 2024, bp and partners reached financial close on the Net Zero Teesside Power (NZT Power) and Northern Endurance Partnership (NEP) projects. NZT Power aims to be one of the world’s first gas-fired power stations with carbon capture, and could generate up to 742MW of flexible, dispatchable low carbon power and could capture up to 2MtCO2 annually. NEP will develop the infrastructure to transport and store up to an initial 4MtCO2 annually from three Teesside-based carbon capture projects within the East Coast Cluster, with the ability to expand in the future. Both projects are expected to support thousands of jobs and help advance the UK's journey to net zero.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		31




		Strategic report

Oil production & operations


Oil production & operations segment comprises regionsa with upstream activities that predominantly produce crude oil, including bpx energy.
Financial and operating performance
	$ million
	2024	2023	2022
Sales and other operating revenuesb	25,637	24,904	33,193
Profit before interest and tax	10,780	11,191	19,714
Inventory holding (gains) losses«	9	—	7
RC profit before interest and tax	10,789	11,191	19,721
Net (favourable) adverse impact of adjusting items«	1,148	1,590	503
Underlying RC profit before interest and tax«	11,937	12,781	20,224
Taxation on an underlying RC basis	(5,165)	(5,998)	(9,143)
Underlying RC profit before interest	6,772	6,783	11,081
Depreciation, depletion and amortization	6,797	5,692	5,564
Exploration write-offs	544	384	383
Adjusted EBITDA«c	19,278	18,857	26,171
Capital expenditure«	6,198	6,278	5,278

aThe AGT and Middle East regions have been further subdivided by asset to allow reporting in either gas & low carbon or oil production & operations as appropriate. bIncludes sales to other segments. cA reconciliation to RC profit before interest and tax is provided on page 362.

Financial results

Sales and other operating revenues for 2024

were higher than 2023 mainly due to higher

volumes partially offset by lower realizations.

RC profit before interest and tax for 2024 was

$10,789 million compared with $11,191 million

for 2023.

Adjusting items for 2024 had a net adverse

impact of $1,148 million principally relating to

net impairment charges. See Financial

statements – Note 4 and Note 16 for further

information on net impairment charges.

After adjusting RC profit for the net adverse

impact of adjusting items, underlying RC profit

before interest and tax for 2024 was $11,937

million, compared with $12,781 million for 2023.

The lower profit reflects lower realizations, and

the impact of increased depreciation charges

and higher exploration write-offs, partly offset by

higher volumes.

Adjusting items for 2023 had a net adverse

impact of $1,590 million mainly relating to net

impairment charges. See Financial statements –

Note 4 and Note 16 for further information on

net impairment charges.

Operational update

Reported production for 2024 was 1,470mboe/d,

6.3% higher than the same period of 2023.

Underlying production« for the year was 6.2%

higher compared with the same period of 2023

reflecting bpx energy performance and major

projects« partly offset by base performance.

Strategic progress

•Aker BP announced oil production had started

from the Tyrving field, which is part of the life

extension of the Alvheim field.

•ACG joint venture partners announced the

signing of an addendum to the existing PSA

which enables the parties to progress the

exploration, appraisal, development of and

production from the non-associated natural

gas reservoirs of the ACG field (bp operator

with 30.37% equity).

•Azule Energy completed the acquisition of a

42.5% interest in exploration block 2914A

(PEL85), Orange Basin, offshore Namibia.

•bp sanctioned the Atlantis Drill Center

Expansion in the Gulf of America (bp

share 56%).



	Growth in the Permian In 2024, bp’s US onshore oil and gas business, bpx energy, achieved its 30-40% growth target, set for 2025, a year early. And it brought online Checkmate, its third central processing facility in the Permian Basin in April. The electrified facility is designed to support further production growth for bpx energy in the basin.


	bpx energy, Permian Basin processing facility in Texas, US

•Aker BP was awarded interests in 19 licences



	Growth in the Permian In 2024, bp’s US onshore oil and gas business, bpx energy, achieved its 30-40% growth target, set for 2025, a year early. And it brought online Checkmate, its third central processing facility in the Permian Basin in April. The electrified facility is designed to support further production growth for bpx energy in the basin.


	bpx energy, Permian Basin processing facility in Texas, US

(of which it will operate 16) in the North Sea

and Norwegian Sea (bp 15.9%).

•bp was awarded a licence for two blocks in

the central North Sea, consolidating our

position around our Eastern Trough Area

Project (ETAP) central processing facility.

•The Production Sharing Contract for the

Tupinamba block in Brazil was executed

(bp 100%).

See Oil and gas disclosures for the group on

page 318 for more information on oil and gas

operations in the regions.


32		bp Annual Report and Form 20-F 2024






Oil production & operations continued


Estimated net proved reserves and productiona (net of royalties)
	2024	2023	2022
Estimated net proved reserves (net of royalties)
Crude oilb (mmb)	3,112	3,193	3,380
Natural gas liquids (mmb)	472	426	457
Total liquids	3,584	3,618	3,836
Natural gas (bcf)	7,821	8,836	8,774
Total hydrocarbons« (mmboe)	4,932	5,142	5,349
Of which equity-accounted entitiesc:
Liquids (mmb)	917	1,001	968
Natural gas (bcf)	2,467	2,527	2,394
Total hydrocarbons (mmboe)	1,342	1,437	1,381
Production (net of royalties)
Crude oilb (mb/d)	953	910	866
Natural gas liquids (mb/d)	117	100	86
Total liquids (mb/d)	1,070	1,010	952
Natural gas (mmcf/d)	2,318	2,165	1,998
Total hydrocarbons (mboe/d)	1,470	1,383	1,297
Of which equity-accounted entitiesd:
Liquids (mb/d)	272	269	176
Natural gas (mmcf/d)	431	432	436
Total hydrocarbons (mboe/d)	346	343	251
Average realizations«e
Liquids ($/bbl)	69.85	72.09	89.62
Natural gas ($/mcf)	2.55	4.17	10.46
Total hydrocarbons ($/boe)	53.96	58.34	82.23
aBecause of rounding, some totals may not agree exactly with the sum of their component parts. bIncludes condensate and bitumen. cbp’s share of reserves of equity-accounted entities in the oil production & operations segment. During 2024 gas operations in Angola, Argentina, Bolivia, Mexico and Norway were conducted through equity-accounted entities. dbp’s share of production of equity-accounted entities in the oil production & operations segment. 2022 includes bp’s share of production of Russia joint ventures. eRealizations are based on sales by consolidated subsidiaries only – this excludes equity-accounted entities.



	Expansion in the Gulf We took a final investment decision on the Kaskida project in the US Gulf of America in July. The floating production platform is expected to have a capacity of 80,000 barrels of oil per day from six wells in its first phase. Kaskida will be bp’s sixth hub in the Gulf of America and production is expected to start in 2029.



	Progress in Azerbaijan In April we started up oil production from the Azeri Central East (ACE) platform, as part of the Azeri-Chirag-Gunashli development in the Caspian Sea. ACE is bp’s first fully remotely operated offshore platform. Its innovative engineering helps automate labour-intensive processes, supporting safer and more efficient operations as well as helping lower operational emissions.



	Redevelopment of Kirkuk On 25 February 2025 bp reached agreement on all contractual terms with the government of the Republic of Iraq to invest in several giant oil fields in Kirkuk providing for the rehabilitation and redevelopment of the fields, spanning oil, gas, power and water with potential for investment in exploration. The agreement is subject to final governmental ratification.


	ACE platform in the Caspian Sea, Azerbaijan


« See glossary on page 351		bp Annual Report and Form 20-F 2024		33




		Strategic report

Customers & products

Customers & products segment comprises our customer-focused businesses, which include



	Scaling up biofuels We took full ownership of bp bioenergy, one of Brazil’s leading biofuels-producing companies, in October. The acquisition means bp now has the capacity to produce around 50,000 barrels a day of ethanol equivalent from sugar cane through the business’s 11 agro-industrial units across five Brazilian states.



	Epic expansion In 2024 we launched our own line of private label consumer-packaged products in the US – epic goods. Initially featuring a few products, the range expanded to over 50 SKUs by the end of 2024. epic goods is available in 1,500 locations across our ampm, TravelCenters of America, Thorntons brands and many of our franchised locations, offering a range of nuts, juices and bottled water.


	bp bioenergy, Brazil

convenience and retail 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.


Financial and operating performance
	$ million
	2024	2023	2022
Sales and other operating revenuesa	155,401	160,215	188,623
Profit (loss) before interest and tax	(2,039)	2,993	10,235
Inventory holding (gains) losses«	479	1,237	(1,366)
Replacement cost (RC) profit (loss) before interest and tax	(1,560)	4,230	8,869
Net (favourable) adverse impact of adjusting items«b	4,077	2,183	1,920
Underlying RC profit before interest and tax«	2,517	6,413	10,789
Of which:
customers – convenience & mobility	2,584	2,644	2,966
Castrol – included in customers	831	730	700
products – refining & trading	(67)	3,769	7,823
Taxation on an underlying RC basis	(452)	(1,454)	(2,308)
Underlying RC profit before interest	2,065	4,959	8,481
Depreciation, depletion and amortization	3,957	3,548	2,870
Of which:
customers – convenience & mobility	2,135	1,736	1,286
Castrol – included in customers	176	167	153
products – refining & trading	1,822	1,812	1,584
Adjusted EBITDA«c	6,474	9,961	13,659
Of which:
customers – convenience & mobility	4,719	4,380	4,252
Castrol – included in customers	1,007	897	853
products – refining & trading	1,755	5,581	9,407
Capital expenditure«	4,420	5,253	6,252
Of which:
customers – convenience & mobility	2,059	3,135	1,779
Castrol – included in customers	227	262	235
products – refining & trading	2,361	2,118	4,473
aIncludes sales to other segments. bSee page 314 for information on the cumulative impact of FVAEs. cA reconciliation to RC profit before interest and tax by business is provided on page 327.

Financial results

Sales and other operating revenues in 2024

were lower than in 2023, mainly due to lower

product prices.

RC loss before interest and tax for 2024 was

$1,560 million, compared with a profit of $4,230

million for 2023.

Items which bp has classified as adjusting for

2024 had a net adverse impact of $4,077 million

(including adverse fair value accounting effects

of $81 million – relative to management’s view of

performance), of which $1,660 million related to

impairments of assets, which included an

impairment of the Gelsenkirchen refinery and

$1,267 million related to loss on disposal, mainly

related to the Türkiye grounds fuels business

disposal. See Financial statements – Note 4 for

further information on disposals and

impairments.

After adjusting RC loss for the net adverse

impact of items, which bp classified as adjusting,

underlying RC profit before interest and tax

(underlying result) was $2,517 million, compared

with $6,413 million for 2023. The result was

significantly lower, primarily reflecting the impact

of lower refining margins and a lower oil trading

contribution.

Items which bp has classified as adjusting for

2023 had a net adverse impact of $2,183 million

(including adverse fair value accounting effects

of $86 million – relative to management’s view of

performance), of which $1,614 million related to

impairment of assets, which included an

impairment of the Gelsenkirchen refinery.

Customers – the convenience and mobility

underlying result for 2024 was lower than 2023.

The 2024 underlying result benefited from a

continued stronger performance in Castrol,

driven by higher unit margins and volumes and

lower costs. In addition, the continued momentum

in EV charging, convenience and retail fuels


34		bp Annual Report and Form 20-F 2024






Customers & products continued

margins was more than offset by a significantly

weaker European midstream performance driven

by biofuels margins. The contribution of

TravelCenters of America continues to be

impacted by the US freight recession.

Products – the underlying result for 2024 was

significantly lower than 2023. In refining, the

result was lower, primarily due to lower realized

refining margins and the first quarter plant-wide

power outage at the Whiting refinery, partly offset

by a lower impact from turnaround activity. The

contribution from oil trading was also

significantly lower than 2023.

Operational update

bp-operated refining availability« for 2024 was

94.3%, lower compared with 96.1% in 2023,

mainly due to the first quarter Whiting refinery

power outage.

Strategic progress

Convenience & retail fuels

In February 2025, bp completed the acquisition

of fuel and convenience retailer, X Convenience,

expanding its network with the addition of 49

sites in South and Western Australia.

Strategic convenience sites« grew to 2,950,

an increase of more than 100 sites compared

to 2023.

In support of high-grading our retail fuels and

convenience portfolio, in October 2024, bp

completed the sale of Türkiye ground fuels

business to Petrol Ofisi, including the group's

interest in three joint venture terminals in Türkiye

and in November 2024, announced its intention

to sell its mobility and convenience and bp pulse

businesses in the Netherlands, with completion

of the sale by the end of 2025.

In addition:

•In October 2024, bp announced the launch of

earnify, a loyalty programme designed to

provide customers with a seamless,

integrated and rewarding experience,

including exclusive discounts on retail store

products and fuel purchases in around 5,500

bp, Amoco and ampm branded stores across

the US.

aFIA advanced sustainable fuel must achieve at least 65% greenhouse gas emissions savings relative to fossil-derived petrol produced at installations operating since 2021. See 2026 F1 Technical

Regulations for details.

EV charging

EV charging continued to show strong

momentum. Energy sold and EV charge points«

installed in the year grew by around 75% and 35%

respectively, compared to 2023, with charge

points now around 39,100.

bp continued to advance its future network

growth:

•In July 2024 bp signed a deal with Simon

Property Group to install and operate up to

900 ultra-fast charging« bays at up to 75

sites across the US, with initial sites expected

to open to the public in early 2026.

•In September 2024, bp signed a deal with LAZ

parking in the US, to roll-out ultra-fast

charging hubs in 20 cities.

In addition:

•In March 2024 bp acquired the freehold of

one of the largest truck stops in Europe,

Ashford International Truckstop in Kent. The

acquisition presents bp with the opportunity

to help meet the comprehensive needs of

UK and European HGV operators transitioning

to EVs.

•In April, bp opened its first bp pulse branded

Gigahub in Houston, Texas, with 24 ultra-

fast« charge points, building momentum in

our US charging business offering.

Castrol

Castrol continued to diversify beyond its core

lubricants and fluids business under a new

‘Onward, Upward, Forward’ strategy. Establishing

a strong presence as a Data Center liquid cooling

solution provider with continuous expansion to

cover the full range of technology. Strong

collaboration with leading AI Server/Chips

players such as Supermicro and Intel.

In addition:

•In June 2024 Castrol announced an

investment in Gogoro Inc., a global

technology leader in two-wheeler battery-

swapping ecosystems that enable smart

mobility solutions for cities.

•Castrol continued to grow its independent

branded workshops, adding around 4,000

workshops in 2024, compared to 2023, with

workshops now over 38,000 in total.

As announced in February 2025, bp is carrying

out a strategic review of its Castrol business with

the intention of accelerating Castrol’s next phase

of value creation.



	Fuelling innovation In July we announced a new strategic partnership with Audi for Formula 1. Through the partnership, we plan to develop the FIA- specified advanced sustainable fuela for Audi's 2026 entry into Formula 1 and through Castrol, we plan to develop lubricants and EV fluids for Audi's V6 turbo engine and electric motor and battery. The collaboration also includes long-term sponsorship, making bp the first official partner of Audi's future Formula 1 factory team.



	Charging ahead ADAC, Germany’s leading automobile association with over 20 million members, announced Aral pulse, bp’s EV charging brand in Germany, as their new exclusive EV charging partner from 1 August. The partnership supports Aral pulse’s aim to expand its existing network. Additionally, bp opened our first standalone Aral EV charging Gigahub in Mönchengladbach in November 2024, featuring 28 charge points and a 24/7 smart store.


	Audi bp partnership


« See glossary on page 351		bp Annual Report and Form 20-F 2024		35




		Strategic report

Bioenergy

bp’s Archaea Energy started up nine renewable

natural gas (RNG) landfill plants in 2024, with a

total capacity of more than 10 million mmBtu per

annum. This includes one of its largest Archaea

Modular Design plants in Shawnee, Kansas in

April. Located next to a large private owned

landfill, the Shawnee plant captures landfill gas

and converts it to RNG with a total capacity of

9,600 standard cubic feet. In February 2025 bp

announced its intention to move its biogas

business to the gas & low carbon energy

segment.

In biofuels, bp took full ownership of bp

bioenergy in Brazil in October 2024. In January

2025, bp announced the decision to rephase its

biofuels project in Kwinana, Australia, with the

objective of improving capital productivity. In

addition, as announced in February 2025, bp will

continue to assess options for investment in

standalone biofuels plants, co-located with our

existing refineries with the potential to move one

project to FID by 2027. However, we will only

proceed when project economics are supportive.

In addition:

•In April 2024, bp launched its new

hydrotreated vegetable oil (HVO) bioenergy

brand, marketed as bp bioenergy HVO, and

commencing with roll-out at sites across the

UK and the Netherlands.

•During the fourth quarter bp continued to

progress its strategic plans to access

feedstock for biofuels, announcing a 10-year

agreement with agri-food group MIGASA for

the supply of up to 40,000 tonnes per year of

vegetable oil waste, and announcing a

collaboration with Corteva, with the intent of

forming a JV, on novel feedstocks.

Refining

bp continued to high grade its refining portfolio,

announcing in February 2025 bp’s intention to

market its Ruhr Oel GmbH – BP Gelsenkirchen

operation in Germany for potential sale, including

its refinery in Gelsenkirchen and DHC Solvent

Chemie GmbH in Mülheim an der Ruhr. This is in

addition to bp’s plans, announced in March 2024,

to transform the Gelsenkirchen refinery site by

the end of the decade. The plans include

simplification of the site to improve its

competitiveness, including a controlled reduction

in total production capacity from 2025 and

increased production of lower-emission fuels

using co-processing.

In addition:

•On 19 June 2024 bp completed the sale of its

8.3% shareholding in Channel Infrastructure,

which owns and operates New Zealand’s

Marsden Point fuel import terminal. Our long-

term terminal storage agreements with

Channel Infrastructure to meet bp’s

foreseeable import and supply requirements

are unaffected by the sale of these shares.

•On 1 December 2024, bp completed the sale

of its 50% ownership in the SAPREF refinery

to the South African state-owned entity,

Central Energy Fund SOC Ltd.


36		bp Annual Report and Form 20-F 2024






Other businesses & corporate

Other businesses & corporate comprises technology, bp ventures, our corporate activities & functions

and any residual costs of the Gulf of America oil spill. From the first quarter 2022 the results of Rosneft,

previously reported as a separate segment, are also included in other businesses & corporate. For

more information see Financial statements – Note 1 Significant accounting policies, judgements,

estimates and assumptions – Investment in Rosneft.


Financial and operating performance
	$ million
	2024	2023	2022
Sales and other operating revenuesa	2,290	2,657	2,299
Profit (loss) before interest and tax	(988)	(903)	(26,737)
Inventory holding (gains) losses«	—	—	—
Replacement cost (RC) profit (loss) before interest and tax	(988)	(903)	(26,737)
Net (favourable) adverse impact of adjusting items«b	380	37	25,566
Underlying RC profit (loss) before interest and tax«	(608)	(866)	(1,171)
Taxation on an underlying RC basis	292	322	439
Underlying RC profit (loss) before interest	(316)	(544)	(732)
Depreciation, depletion and amortization	1,033	1,008	876
Capital expenditure«	408	441	549
aIncludes sales to other segments. bSee page 314 for information on the cumulative impact of FVAEs.

Financial results

RC loss before interest and tax for 2024 was

$988 million, compared with $903 million

for 2023.

Adjusting items for 2024 had a net adverse

impact of $380 million. Adjusting items include

impacts of fair value accounting effects, which

had an adverse impact of $221 million.

Adjusting items for 2023 had a net adverse

impact of $37 million. Adjusting items include

impacts of fair value accounting effects, which

had a favourable impact of $630 million.

Adjusting items also include impacts of

environmental charges, which had an adverse

impact of $604 million.

After adjusting RC loss for the adjusting items,

underlying RC loss before interest and tax for

2024 was $608 million, compared with a loss of

$866 million for 2023, mainly reflecting increased

interest income.

Strategic progress

We continued to invest in a portfolio of

technology businesses, which we see as having

the potential for high growth, through bp

ventures. Strategically significant investments

made through 2024 include:

•In May bp ventures announced the

investment of $10 million in Hysata to expand

the production of its high efficiency

electrolyser technology.

•In December, bp invested in Snowfox

Discovery Ltd alongside co-investors Rio

Tinto and Oxford Science Enterprises.

Snowfox Ltd is a natural hydrogen exploration

company, whose mission is to unlock the

potential of natural hydrogen to contribute to

a net zero future.

•In December, bp ventures announced an

investment into Oxford Flow alongside

Energy Impact Partners. Oxford Flow

engineers and manufactures unique valve

technology designed to be more reliable

and cost-effective.

•In December, bp ventures invested in India’s

leading intercity bus platform, Zingbus, to

scale operations and work to electrify India’s

intercity bus routes. Zingbus’ platform is

designed to make intercity travel more

affordable, accessible and reliable.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		37




		Strategic report


Other businesses & corporate excluding Rosneft
	$ million
	2024	2023	2022
Profit (loss) before interest and tax	(988)	(903)	(2,704)
Inventory holding (gains) losses	—	—	—
Replacement cost (RC) profit (loss) before interest and tax	(988)	(903)	(2,704)
Net (favourable) adverse impact of adjusting items	380	37	1,533
Underlying RC profit (loss) before interest and tax	(608)	(866)	(1,171)
Taxation on an underlying RC basis	292	322	439
Underlying RC profit (loss) before interest	(316)	(544)	(732)


Rosneft
	$ million
	2024	2023	2022
Profit (loss) before interest and tax	—	—	(24,033)
Inventory holding (gains) losses	—	—	—
Replacement cost (RC) profit (loss) before interest and tax	—	—	(24,033)
Net (favourable) adverse impact of adjusting items	—	—	24,033
Underlying RC profit (loss) before interest and tax	—	—	—
Taxation on an underlying RC basis	—	—	—
Underlying RC profit (loss) before interest	—	—	—


	2024	2023	2022
Estimated net proved reserves (net of royalties) (bp share)
Crude oila (mmb)	—	—	—
Natural gas liquids (mmb)	—	—	—
Total liquids«	—	—	—
Natural gas (bcf)	—	—	—
Total hydrocarbons« (mmboe)	—	—	—
Productionb (net of royalties)
Crude oila (mb/d)	—	—	144
Natural gas liquids (mb/d)	—	—	—
Total liquids (mb/d)	—	—	144
Natural gas (mmcf/d)	—	—	238
Total hydrocarbons (mboe/d)	—	—	185
aIncludes condensate. b2022 reflects bp's estimated share of Rosneft production for the period 1 January to 27 February only. The estimated share of production for that period has been averaged over the full year.


38		bp Annual Report and Form 20-F 2024






Sustainability

Sustainability at bp

Our sustainability frame underpins the delivery of our strategy. It focuses on three areas – getting to

net zero, improving people’s lives and caring for our planet.

In February 2025, as part of our strategy reset, we announced we would simplify the aims we have set as part of our sustainability frame to focus on the

areas that we believe are most relevant to bp’s long-term success. We now have five aims: net zero operations«, net zero sales«, people, biodiversity and

water. In some areas we have retired aims we had previously set; however, in many cases work continues in those areas. We provide an update on our

actions on those aims, and our wider progress in relation to embedding sustainability, in our latest Sustainability Report bp.com/sustainability.

Sustainability aims

Net zero operations

Net zero sales

People

Biodiversity

Water

Our aim is to reach net

zero« by 2050 or sooner

for Scope 1 and 2

emissions within bp’s

operational controla,

including by maintaining

‘near-zero’ methane

intensity« across our

operated producing assets,

enabled by supportive

government policies.

Our aim is to reduce to net

zero the average lifecycle

carbon intensity of the

energy products« we sell

by 2050 or sooner, enabled

by supportive government

policies and the

decarbonization of

energy demand.

Our aim is to support our

employees and local

communities through the

energy transition.

Our aim is to support

biodiversity where

we operateb.

Our aim is to reduce our

net freshwater use in

stressed catchments

where we operate.

See below

See page 39

See page 60

Reporting on sustainability

In this section, we cover selected sustainability issues along with information in the following areas:

•Performance on our net zero aims, see page 38

•Climate-related financial disclosures, see pages 42-55

•Our approach – safety, ethics and compliance, our people, ‘Who we are’ (our beliefs), see pages 56-60

Net zero

Our ambition remains to be a net zero company

by 2050 or sooner, and to help the world get to

net zero.

We have retired some of our previous net zero

aims and are focusing our aims on the two areas

that we believe are most relevant to our long-

term success and to achieving our overall net

zero ambition. These are: net zero operationsc

and net zero sales. Both of these aims make

explicit what is needed to enable their delivery –

and the delivery of the associated interim targets

and aims. Our future business and investment

decisions, intended to facilitate delivery of our

strategy and investor proposition, will also affect

the outcomes for these aims.

We believe our net zero ambition and aims, taken

aOn a CO2e basis.

bAt our new in-scope bp-operated projects and major operating sites.

cThis aim is a combination of bp’s previous net zero aims (‘aim 1’ and ‘aim 4’).

dDue to rounding some totals may not equal the sum of their component parts. This does not affect the underlying values.

together, are consistent with the goals of the

Paris Agreement.

By setting a path that enables us to make a

positive contribution, working to build out and

participate in many of the new energy value

chains the world will need, our ambition and aims

support the world’s progress towards the Paris

Agreement.

We provide updates on some retired net zero

aims as follows: net zero production« page 39,

investment in transition page 39, advocacy page

39, incentivizing employees page 59, and our

participation in trade associations page 60.

Net zero operations TCFD

Our aim is to reach net zero by 2050 or sooner

for Scope 1 and 2 emissions within bp’s

operational control.

Our interim target is a 20% reduction in our

Scope 1 and 2 operational emissions by the end

of 2025 against the 2019 baseline. Our current

outlook for the end of 2030 is a reduction of

around 45% against the baseline.

Informed by this outlook, and the assumptions

underpinning it, which may change over time,

we have adjusted our previous 50% reduction

aim for the end of 2030 to a range of 45-50%,

against the 2019 baseline of 54.5MtCO2e. Our

methane intensity target remains 0.20% by the

end of 2025.

Scope 1 and 2 emissions

Our combined Scope 1 and 2 emissions were

33.6MtCO2e – a decrease of 38% from our 2019

baseline. The total decrease includes 18MtCO2e

attributable to divestments and 5.4MtCO2e in

emissions reductions activity.

In 2024 our Scope 1 (direct) emissions were

32.8MtCO2e – an overall increase from

31.1MtCO2e in 2023. Of these Scope 1

emissions, 31.4MtCO2e were from carbon

dioxide and 1.5MtCO2e from methaned. The

increase was due to project ramp-ups,

operational growth in our low carbon businesses

and some temporary operational changes such

as turnaround activity and operational issues.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		39




		Strategic report

These were partially offset by the delivery of


Average carbon intensity of sold energy products (gCO2e/MJ)cd
	2024	2023	2022	2021	2020	2019
Average carbon intensity of sold energy products	79	80	81	81	81	84
Oil/refined products	91	91	92	92	93	95
Gas/NGLs	67	67	67	67	67	68
Bioproductse	41	44	43	44	44	47
Power/heatf	50	56	29	27	33	28

emissions reduction projects.

In 2024 our Scope 2a (indirect) emissions,

decreased by 0.2MtCO2e, to 0.8MtCO2e,

compared with 2023. The continued use of lower

carbon power agreements and a project at our

Gelsenkirchen refinery to replace imported steam

from a coal-fired power plant with steam

produced in our own gas-fired boilers contributed

to this decrease.

We report our Scope 1 and 2 emissions on an

operational control and equity share basis in the

bp ESG Datasheet 2024.



	bp.com/ESGdata

Methane

In 2024, we started reporting on the basis of our

new methane measurement approach across

our major operated upstream oil and gas assets.

Using this approach, our methane intensity was

0.07% in 2024 (2023 0.05%b). Methane

emissions from our upstream« operations used

to calculate this methane intensity were 46kt in

2024 (31kt in 2023b).

The higher emissions and intensity in 2024 are

primarily from flaring due to operational issues in

our Tangguh operations and increases as a

result of a temporary operating mode, which

were quantified as a result of improvements in

our measurement methodology. Our real-time

methane emissions data, together with our

increased technical understanding of methane in

flares allowed us to identify this abnormal

situation in Tangguh, but, generally, analysis of

our 2024 measured data shows that overall

methane emissions from upstream operational

flaring were lower than previously reported using

conventional methodologies (including those

mandated by some countries). Marketed gas

volumes increased by 8.5% to 3,614bcf in 2024.

We continue to work to reduce operational

methane emissions. We remain on track to

reach zero routine flaring by 2030 in line with

our aim under the World Bank’s Zero Routine

Flaring Initiative.

Net zero sales TCFD

Our aim is to reduce to net zero the average

aScope 2 emissions on a market basis.

bIn 2024 reported absolute methane emissions from upstream major oil and gas processing sites are based on our new measurement approach. Prior to 2024 these emissions were calculated using a

different methodology and therefore the methane intensity reported in those years and calculated using that data does not directly correlate to progress towards delivering the 2025 target. Prior year

data is provided for information purposes, and we do not seek to directly compare prior years.

cPreviously reported figures for the period 2019-2023 have been restated to update the 2019 baseline and the years 2020-2023 in line with the updated methodology for the net zero sales metric. For

more detail on how this metric is calculated see the Basis of Reporting: bp.com/basisofreporting.

dThe aggregate lifecycle emissions and energy values used in the calculation of the average lifecycle carbon intensity of sold energy products« are provided in the bp ESG Datasheet 2024.

eIncludes biofuels and biogas.

fCovers all power, including renewable and non-renewable.

gCommodity groups in 2024 are Oil/Refined Products, Gas/NGLs, Biofuels, Biogas, Power/Heat.

hOn the updated methodology basis.

iIn February 2025 bp announced that we have retired the concept of transition growth« engines going forward.

jExcludes deferred consideration for 2024 acquisition of bp bioenergy in 2025.

lifecycle carbon intensity of the energy

products« we sell by 2050 or sooner. We are

targeting a reduction in intensity of 5% by the end

of 2025. Informed by our strategy reset, and a

range of assumptions, we are aiming for an

8-10% reduction by the end of 2030 compared to

the 2019 baseline. This is an adjustment to

our previous aim of 15-20% against the 2019

baseline.

We have updated our net zero sales

methodology to follow a net volume accounting

approach, guided by Ipieca’s sectoral guidance

(2016) for Scope 3 reporting. The approach

focuses on identifying the point, for bp, where the

largest amount of sold energy products is

transferred within a given commodity’s value

chaing. We believe this will better reflect and

track our strategic progress over time, see

bp.com/basisofreporting.

In 2024 the average carbon intensity of our sold

energy products« was 79gCO2e/MJh. This

represents a 6% reduction from our 2019

baseline, driven by improvements in the well to

tank (WTT) emissions of sold products and

changes in the sold product mix, which have

included strategic investment activities such

as the addition of a signification retail power

volume as a result of the EDF Energy Services

acquisition in 2022 in the US.

Net zero production and

transition investment

We have retired our aim related to the estimated

Scope 3 (category 11) emissions from the

carbon in our upstream oil and gas production«.

The estimated Scope 3 emissions from the

carbon in our upstream oil and gas production

were 322MtCO2 in 2024 – an 11% reduction

relative to our 2019 baseline and a slight

increase from 315MtCO2 in 2023. This increase

was mainly associated with an increase in

underlying production due to the ramp-up of

major projects« and higher asset performance.

We have retired our aim for more investment into

the transition. In 2024 transition growth

investment« i was $3.7 billion, compared

with $0.6 billion in 2019 and $3.8 billion in 2023.

It represents around 23% of total capital

expenditure« in both 2023 and 2024, compared

with around 3% in 2019.

Our disciplined approach to capital investment

means that individual investments will be made

when we consider there to be a clear and

compelling business case, in line with our

balanced set of investment criteria, see page 20.

We will continue to provide guidance on a


Khazzan gas field, Oman

periodic basis about production volumes and our

capital frame. As announced in February 2025,

we now expect to invest between $1.5-2.0 billion

per year through 2027j in what we now refer to

as our transition businesses« TCFD.

Advocacy related to net zero

While we have retired our previous advocacy aim,

our work in 2024 focused on several themes in

support of our net zero ambition, including

carbon pricing, and policy frameworks that

support growth in low carbon hydrogen, carbon

capture and storage (CCS), renewables,

decarbonizing transport (including EV charging)

and bioenergy.

We publish examples of our activity online at

bp.com/advocacyactivities.


Key
TCFD	TCFD Recommendations and Recommended Disclosures


40		bp Annual Report and Form 20-F 2024






Sustainability continued

Net zero aims 2024 performance


Aims	Measure/coverage	2024 performance	2025 targets	2030 aims	Aims for 2050 or sooner

Net zero operations«	Scope 1 and 2«	38%a	20%a	45-50%a	Net zero«

Net zero production«	Scope 3«	11%a	–

Net zero sales«	Average lifecycle carbon intensityb	6%cd	5%d	8-10%d	Net zero«

Reducing methane	Methane intensity«	0.07%e	0.20%	Now embedded into net zero operations

More $ into transition	Transition growth investment«	$3.7bn	–

aReduction in absolute emissions against 2019 baseline.

bAverage lifecycle carbon intensity of our sold energy products«.

cPreviously reported figures for the period 2019-2023 have been restated to update the 2019 baseline and the years 2020-2023 in line with the updated methodology for the Net zero sales metric. For more

detail on how this metric is calculated see the Basis of Reporting: bp.com/basisofreporting.

dReduction in the average lifecycle carbon intensity of sold energy products against the 2019 baseline. The percentage change is calculated from the source data instead of the rounded carbon intensity

number.

eIn 2024 reported absolute methane emissions from upstream major oil and gas processing sites are based on our new measurement approach. Prior to 2024 these emissions were calculated using a

different methodology and therefore the methane intensity reported in those years and calculated using that data does not directly correlate to progress towards delivering the 2025 target. Prior year data

is provided for information purposes, and we do not seek to directly compare prior years.




Streamlined energy and carbon reporting (SECR) information
Further information on our greenhouse gas (GHG) emissions, energy consumption and energy efficiency is set out here and on the following page. It includes disclosures in respect of the SECR requirements. Further breakdown of our GHG and energy data is available in the bp ESG Datasheet 2024 at bp.com/ESG.
Operational controlab	Unit	2024	2023	2022
Scope 1 (direct) emissions	MtCO2e	32.8	31.1	30.4
UK and offshore	MtCO2e	1.0	1.0	1.0
Global (excluding UK and offshore)	MtCO2e	31.8	30.1	29.4
Scope 2 (indirect) emissions – location-based	MtCO2e	2.4	2.0	2.1
UK and offshore	MtCO2e	0.02	0.02	0.02
Global (excluding UK and offshore)c	MtCO2e	2.4	1.9	2.0
Scope 2 (indirect) emissions – market-based	MtCO2e	0.8	1.0	1.4
UK and offshorede	MtCO2e	0.02	0.0	0.0
Global (excluding UK and offshore)f	MtCO2e	0.8	1.0	1.4
Energy consumptiongb	GWh	129,872	124,770	121,697
UK and offshore	GWh	4,526	4,688	4,376
Global (excluding UK and offshore)	GWh	125,347	120,082	117,321
Ratio of Scope 1 (direct) and Scope 2 (indirect) emissions to gross productionh	teCO2e/te	0.16	0.16	0.15
UK and offshore	teCO2e/te	0.13	0.13	0.12
Global (excluding UK and offshore)	teCO2e/te	0.16	0.16	0.15

a Operational control data comprises 100% of emissions from activities operated by bp, going beyond the Ipieca guidelines by including emissions from certain other activities such as contracted drilling activities. Read more at bp.com/basisofreporting. b Due to rounding, some totals may not agree exactly to the sum of their component parts. c 2022 restated due to IEA emission factor library update. d 2023 reflects REGOs that had not been retired at the time of publication but are expected to be retired subject to business decisions at the end of the compliance period 31 July 2024. e 2024 reflects REGOs that had not been retired at the time of publication but are expected to be retired subject to business decisions at the end of the compliance period 31 July 2025. f 2022 restated due to consistency of rounding. g Energy content of flared or vented gas is excluded from energy consumption reported as although it reflects loss of energy resources, it does not reflect energy use required for production or manufacturing of products. h Gross production comprises upstream production, refining throughput and petrochemicals produced.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		41




		Strategic report




Streamlined energy and carbon reporting (SECR) information
Energy efficiency measures Operational efficiency We take a portfolio view of our project improvement activities at individual sites. This allows us to prioritize the most effective projects, supporting energy efficiency, reduced carbon emissions, and lower costs. During 2024 we completed energy efficiency reviews in three production regions: Azerbaijan, Georgia and Türkiye, Trinidad and Tobago, and the Gulf of America, US. We started an energy efficiency programme in our refining business, and two refineries, Whiting, US and Rotterdam, Netherlands, have completed it. We expect to complete reviews for the remaining production regions and refineries in 2025. Identified opportunities will be advanced through our existing business processes and plans that support our net zero ambition. In 2024, a total of 27 new emission reduction projects contributed to reductions of 0.42MtCO2e. This is in addition to the 172 emissions reduction projects and the associated reduction of 0.9MtCO2e in 2023. These projects are tracked based on GHG reductions and include energy efficiency improvements. Emission reduction projects implemented by our businesses in 2024, included low carbon energy consumption projects, which delivered 102ktCO2e in emissions savings. These reductions were primarily delivered in bpx energy, US and included electrification projects and installation of solar pumps. Emission savings of ~262ktCO2e were achieved through energy efficiency improvements in production processes and flaring process optimization projects during 2024. These included: •Our Gelsenkirchen refinery replaced imported steam from a coal-fired power plant with steam produced in our own gas- fired boilers, reducing emissions by 19ktCO2e. •bpx energy’s central distribution projects, Karnes and Bingo, enabled decommissioning of legacy natural gas- driven equipment, resulting in reduced flare volumes and the switch from natural gas to instrument air in pneumatic devices. •Restoration of cooling water infrastructure at Cherry Point to reliably meet refinery needs and improve the efficiency of compressor operations.	Other types of reduction projects delivered a total reduction of 56ktCO2e, including the hydrocracker improvement project at Cherry Point, US, which saved 26ktCO2e of emissions. As part of managing energy efficiency, we take a portfolio-wide approach to assessing and prioritizing spinning reserve reduction opportunities. Spinning reserve involves running additional power generation machines to provide an excess of energy supply. This can help to protect production from plant vulnerabilities, including power generation reliability. Reducing spinning reserve can increase exposure to power fluctuations for production. We take a risk- based approach when considering reducing the number of running machines. This allows bp to realize emissions and maintenance cost reductions from fewer running machines, while managing the associated production risk. bp is involved in several external groups working on energy efficiency, including the Oil & Gas Climate Initiative (OGCI), the International Association of Oil & Gas Producers (IOGP) and Energy Star. We continue to run an annual training course for new chemical engineers, which includes energy efficiency upskilling, and we offer GHG emissions and energy efficiency training for more experienced engineers and practitioners. Reporting methodology Our approach to reporting GHG emissions broadly follows the Ipieca, API, IOGP Petroleum Industry Guidelines and the GHG Protocol for Reporting GHG Emissions. We calculate GHG emissions based on fuel consumption and fuel properties for major sources, such as flares. We report CO2 and methane. We do not include nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride as they are not material to our operations. Energy consumption is monitored and reported centrally from all operated sites by fuel type. This includes all energy, both imported and self-produced, used to run our operations and aligned with our GHG reporting boundary, but excludes energy content of flared or vented gas. Although flaring and venting reflects loss of energy resources, it does not reflect energy use required for production or manufacturing of products.	Ratio of Scope 1 and Scope 2 emissions to gross production bp reports a ratio of Scope 1 and Scope 2 emissions to gross production, see the SECR table on page 40. This covers all our Scope 1 and Scope 2 emissions on an operational control boundary basis and uses gross operated sales from our operated oil and gas facilities, refinery throughput and petrochemicals produced. The denominator uses output from production businesses, refineries and petrochemical facilities, which account for 96% of total operated emissions. The intensity ratio has remained the same as 2023. The ratio provided in the SECR table uses production and throughput from our operated upstream, refining and chemicals businesses as a measure of output which can be consistently reported against. We report data on a consolidated basis in the Annual Report and Form 20-F and this differs to the production and throughput used for the ratio in the SECR table, which aligns with the operational control boundary basis.


42		bp Annual Report and Form 20-F 2024






Climate-related financial disclosuresa

We support the recommendations of the Task Force on Climate-related Financial Disclosures

(TCFD), established by the Financial Stability Board to improve the reporting of climate-related

risks and opportunities.

We want to continue to work constructively with

the IFRS Foundation’s International Sustainability

Standards Board (ISSB) and others as they

develop good practices and standards for

transparent climate-related reporting.

In 2024 we continued to engage with the World

Business Council for Sustainable Development

(WBCSD) in relation to its ongoing ’Climate

Scenario Analysis Reference Approach for

Companies in the Energy System’. Read about

how we have used the WBCSD Scenario

Catalogueb to inform our own scenario analysis

on page 53.

TCFD statement

We report in line with the FCA Listing Rule

UKLR 6.6.6R(8), which requires us to report on

a ‘comply or explain’ basis against the TCFD

Recommendations and Recommended

Disclosures in respect of the financial year

ended 31 December 2024c.

We consider our climate-related financial

disclosures to be consistent with all of the

TCFD Recommendations and Recommended

Disclosures and that they are therefore

compliant with UKLR 6.6.6R(8). We have set

out our disclosures against each TCFD

Recommended Disclosure and in doing so have

covered both the Recommended Disclosure and

the related Recommendationd. We have made

disclosures that take into consideration

references made to the materiality of information

in the Recommendations related to Strategy and

Metrics and Targets. In determining materiality

for these purposes, we considered whether

particular information may have the potential to

influence the economic decisions of our

shareholders. We have also, where appropriate,

considered the TCFD guidance and other

supporting materials referred to in the UK Listing

Rulese. In the Strategy (b) section on page 47, we

describe elements of our plans for the transition

to a lower carbon economy as we execute

our strategy.

As explained on page 10, we consider our

strategy to be consistent with the goals of the

Paris Agreement.

The strategy has been developed taking into

consideration, among other things, the bp Energy

Outlook 2024 scenarios (described on page 7),

which take account of climate commitments and

pledges made by countries in which we operate

alongside a range of other factors.

In preparing our disclosures we have made

several judgements, and while we are satisfied

that they are consistent with the TCFD

Recommendations, Recommended Disclosures

and reporting requirements under the UK CFD

Regulations, we will continue to monitor

guidance as it evolves and consider opportunities

to enhance our disclosures.

Governance



	TCFD Recommendation: Disclose the organization’s governance around climate-related issues and opportunities.



	Recommended Disclosure: a. Describe the board’s oversight of climate-related risks and opportunities. b. Describe management’s role in assessing and managing climate- related risks and opportunities.

The board’s role

One of the core roles of the board is to promote

the success of the company for the benefit of its

shareholders as a whole while having regard to

various factors, including the interests of our

other stakeholders and the impact of our

operations on the environment and the

communities where we operate.

In performing this role, the board sets and

monitors bp’s strategy. It is responsible for

monitoring bp’s management and operations

and obtaining assurance about the delivery of

its strategy.

Any changes to the company’s purpose, strategy

and values (which we call ‘Who we are’) are

reserved for the board for approval in

accordance with the board-approved corporate

governance framework.

The board’s responsibilities extend to oversight

of bp’s internal control and risk management

framework, including climate-related risks

and opportunities, as set out in the terms of

reference of the board, available online at

bp.com/governance.

The board considers that our strategy allows bp

to be flexible to adapt to the evolution of the

external environment, including market changes,

to remain consistent with the Paris goals, see

page 21.

The board and its committees have oversight of

climate-related issuesf, which include climate-

related risks and opportunities. Related board

and committee activities are set out within the

board activities section and committee reports

respectively, which can be found on the pages

detailed in the table on page 43.

Climate-related risks and opportunities were

discussed at each board meeting covering

strategy in 2024, and the committees considered

climate-related issues where appropriate to do so

in fulfilling their responsibilities. Oral reports from

each of the committee chairs are given at board

meetings to keep the board apprised of the

relevant matters discussed including, where

applicable, climate-related risks and opportunities.

Our company secretary’s office manages the

process by which board and committee agendas

are set and works closely with teams in bp to

develop materials that assist the board to

discharge its responsibilities, including in respect

of climate-related issues.

The board also reviewed documents containing

climate-related disclosures – including these

TCFD disclosures.

aThis section provides disclosures pursuant to the FCA Listing Rule UKLR 6.6.6R(8) and in line with the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022 (The UK

CFD Regulations). In the main, we consider our TCFD disclosures achieve UK CFD compliance. Where additional information has been provided beyond our TCFD disclosures to achieve compliance

with the CFD Regulations, this has been specifically called out.

bOur 2024 analysis used data from the WBCSD Climate Scenario Catalogue version 3.0, published on 16-05-2024 and downloaded on 13-11-2024.

cIn considering the consistency of our disclosures with the TCFD Recommendations and Recommended Disclosures we have had regard to, among other things, the documents referred to in UKLR

6.6.8G and 6.6.9G, as applicable to the financial year 2024.

dIn preparing the disclosures we have referred to the TCFD implementation guidance ’Annex: Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures (October

2021)’, available from fsb-tcfd.org/publication.

eUKLR 6.6.8G and UKLR 6.6.9G.

fWe interpret the term ’climate-related issues’ to relate primarily to those climate-related risks and opportunities for bp that are relevant to the delivery of long-term shareholder value in the context of

the low carbon transition.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		43




		Strategic report

Learning and development

The board continues to develop its knowledge and expertise on climate-related and sustainability matters. For example, in 2024, the board took part in

the following:


Renewables and power update		Included recent progress on, and plans for, offshore wind. Update provided to assist the board in remaining abreast of key energy transition risks and opportunities.
Hydrogen and carbon capture and storage transition growth« engine update		Update provided on bp-led projects including the Northern Endurance Partnership, Net Zero Teesside Power and H2Teesside. Assisted the board in remaining abreast of key energy transition risks and opportunities.
Energy and economic update		The briefing was given by our chief economist on developments shaping the key political and societal trends currently affecting the energy transition, in advance of publication of the bp Energy Outlook 2024 in July 2024. Briefing assisted the board in remaining abreast of key developments.

The board is due to receive further updates on

bp’s strategic process and sustainability frame

in 2025.

Climate and sustainability expertise

The board believes its members possess the

necessary expertise related to climate change

and sustainability to support the group’s

strategy. In particular, six of our non-executive

directors have specific climate change and

sustainability expertise, as set out below.

This determination is based on an assessment of

their background and experience, with a focus on

their background in the energy sector, experience

in executive roles and depth of experience in

sustainability and climate change, including

climate-related risks and opportunities.

For more general director skills information, see

page 71.

•Dame Amanda Blanc is the current serving

CEO at Aviva plc and has held several

executive roles across the industry. She was

co-chair of the UK Transition Taskforce and

Principals Group Member of Glasgow

Financial Alliance for Net Zero (GFANZ).

•Helge Lund has extensive experience in the

energy sector and deep knowledge and global

experience including stakeholder

considerations regarding climate change risk

and opportunities. He has chaired the board

through the development of bp’s strategy and

net zero ambition and continues to have

oversight of the delivery of that strategy. He

served as a member of the UN Secretary-

General’s Advisory Group on Sustainable

Energy from 2011 to 2014.

•Melody Meyer has deep-rooted operational

experience in the energy sector which equips

her to advise on climate-related risks and

opportunities. She has chaired bp’s safety

and sustainability committee since November

2019, which oversees the implementation

of bp’s sustainability frame and net

zero ambition.

•Hina Nagarajan has over 30 years’ experience

in senior roles within the customer-focused

FMCG sector. As CEO of United Spirits

Limited (Diageo plc’s listed Indian subsidiary),

she has overseen the implementation of

Diageo India’s 10-year ESG action plan, and

its Society 2030 mission, in addition to a

number of other sustainability initiatives.

•Satish Pai has extensive experience in the

resource and energies industries. He is

managing director of metals company,

Hindalco Industries Limited, and leads the

company’s Sustainability Board in overseeing

sustainability initiatives – such as sustainable

mining practices, energy conservation and

recycling. He has served on the bp safety and

sustainability committee since March 2023.

•Johannes Teyssen brings CEO experience

from his time at EoN, where under his

leadership, it split its hydrocarbons and non-

hydrocarbons businesses – giving him

significant experience of considering climate-

related risks and opportunities. He has sat on

bp’s safety and sustainability committee

since 2021. He is a director of Alpiq Holding

AG, a Swiss energy services provider and

electricity producer in Europe.




	Board and committees’ consideration of climate-related issues For examples from the year ended 31 December 2024, see the text indicated with TCFD on the pages set out below.
	The board

		pages 76-77
	Safety and sustainability committee

		pages 80-81
	Audit committee

		pages 82-85
	Remuneration committee

		pages 88-110


44		bp Annual Report and Form 20-F 2024






Climate-related financial disclosures continued

The role of management

The board, subject to certain conditions and

limitations, delegates day-to-day management of

the business of the company to the CEO. The

CEO is responsible for proposing bp’s strategy

and annual plan to the board for approval and

leading the bp leadership team in delivering bp’s

strategy and annual plan.

Under this delegation, the CEO is responsible

for overseeing the implementation of a

comprehensive system of internal controls that

are designed to, among other things (a) identify

and manage risks that are material to bp, (b)

protect bp’s assets, and (c) monitor the

application of bp’s resources in a manner that

meets external regulatory standards. Risks, for

these purposes, include the climate-related risks

and opportunities for bp associated with the

issue of climate change and the transition to a

lower carbon economy. This is set out in the CEO

role profile at bp.com/board.

The assessment and management of climate-

related risks and opportunities are embedded

across bp at various levels and delegated

authority flows down from the board through the

CEO. See page 61 for more information on risk

governance and oversight.

2024 activity

Where considered appropriate, climate-related

risks and opportunities were discussed at bp

leadership team meetings in 2024 as part of

regular business performance updates prepared

for these meetings.

The bp leadership team provides oversight of

risk, including climate-related risk, through the

various committees described on page 61. They

are informed about and monitor emerging risks

over the short, medium and longer-term via

emerging risk papers produced by our SVP

treasury. Members of the leadership team

receive information on the longer-term risks and

opportunities associated with the energy

transition via updates produced by our chief

economist. These papers are shared with

the board.

SVP level and beyond

The bp leadership team is supported by bp’s

senior-level leadership and their respective

teams, with dedicated business and functional

expertise focused on climate-related risks and

opportunities or on matters which may be

affected by such risks and opportunities. This

includes: health, safety, environment and carbon;

risk; and strategy and sustainability (which

includes our carbon ambition, policy and

economics teams). Alignment between group,

business and functional leaders is fostered

through other meetings, such as the TCFD

working group which leads the preparation of

bp’s TCFD disclosures.

Management consideration of climate-related risks and opportunities is organized as follows:


Resource commitment meeting		Forum for approval of investments related to existing and new lines of business above $250 million or $25 million for acquisitions, or which exceed the relevant EVP financial authority, and any project considered strategically important such as a new market entry, see page 21.
Group sustainability committee		Provides oversight, challenge and support in the implementation of bp’s sustainability frame and the management of potentially significant non-operational sustainability (including climate-related) risks and opportunities. It met four times in 2024. During 2024 the committee considered progress embedding sustainability, performance against targets and bp’s position on certain strategic sustainability issues that present risks or opportunities to delivery. This committee is chaired by the EVP strategy, sustainability & ventures (SS&V) and comprises members of the bp leadership team. The outputs from the committee are shared with the board and its committees, including the safety and sustainability committee, as appropriate.
Group operational risk committee		Provides oversight of safety and operational risk management performance for the group, where appropriate. Climate-related factors may affect certain sources of safety and operational risk, such as severe weather events.
Group financial risk committee		Monitors the effectiveness of bp’s financial reporting, systems of internal control and financial risk management, namely material group financial risks. Where appropriate, it considers the planned approach to assurance and verification of non-financial reporting ahead of updating the audit committee.




	Acquired businesses
	Integration plans are developed to transition acquired businesses into bp’s system of internal control, over an appropriate timeframe.


« See glossary on page 351		bp Annual Report and Form 20-F 2024		45




		Strategic report

Climate governance: management of climate-related matters

As at 1 January 2025

bp board level

Board

Safety and sustainability

committee

Audit committee

People, culture and

governance committee

Remuneration committee

EVP level

CEO

Group sustainability

committee

Chair: EVP SS&V

Resource commitment

meeting

Chair: CEO

Group operational

risk committee

Chair: CEO

Group financial

risk committee

Chair: CFO

bp leadership team

SVP level

Sustainability forum

Chair: SVP sustainability

Focuses on sustainability plans and progress.

Production & operations carbon table

Chair: SVP HSE & carbon, P&O

Focuses on the delivery of lower carbon plans

in P&O – particularly in relation to net zero

aims.

Issues and advocacy meeting

Chair: SVP external affairs, C&EA

Focuses on policy and advocacy issues, including those

related to climate matters.

Cross bp forums and meetings

Meetings and forums to allow cross-group discussions, integration and implementation.

Risk Management



	TCFD Recommendation: Disclose how the organization identifies, assesses and manages climate-related risks.



	Recommended Disclosure: a. Describe the organization’s processes for identifying and assessing climate-related risks.

bp’s risk management system and policy,

described on page 61, are designed to address

all types of risks including our principal risks and

uncertainties, described on page 62.

As part of this system, our businesses and

functions are responsible for identifying,

assessing, managing and monitoring risks

associated with their business or functional area.

aInformation added to satisfy the UK CFD Regulations.

The process for identifying risks is outlined on

page 62 and guidance to support consistency

has been made available to our businesses to

provide them with a climate-related framework

and taxonomy, which they are able to use as they

see fit in their identification and assessment

of risk.

Where risks – including climate-related risks –

are identified, businesses and functions are

required to assess them, in line with our risk

management policy. This includes an impact

and likelihood assessment which supports the

consideration of relative significance and

prioritization of risk management activities.

The impact criteria outlined on page 62 include

health and safety, environmental, financial and

non-financial (such as regulatory impact) criteria

and are used for assessing risks, including

climate-related risks. This provides a consistent

basis for assessment across bp.

For the purposes of our TCFD disclosures, we

use the TCFD’s distinction between ‘physical’ and

‘transition’ climate-related risks.

Identification, assessment and

management of climate-related

opportunitiesa

As set out in our TCFD Strategy A and B

disclosures on page 47, we have identified

potentially material climate-related opportunities

and our strategy has been informed by these.

We identify climate-related opportunities by

considering a range of information sources,

including the bp Energy Outlook 2024 (see page

7), which helps inform our core beliefs about the

energy transition. Business opportunities

continue to be originated across bp, and taken

forward through bp’s investment governance

framework, see page 21.

Our gas & low carbon energy business is

accountable for the delivery of many of our low

carbon opportunities through both organic and

inorganic growth (see page 62). Our investment

governance framework (see page 21) provides

the mechanism by which alignment of these

opportunities with our strategy is assessed and

decisions on which to progress are made.


46		bp Annual Report and Form 20-F 2024






Climate-related financial disclosures continued



	Recommended Disclosure: b. Describe the organization’s processes for managing climate-related risks. c. Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization’s overall Risk Management.

Risk Management process

Risks which may be identified include potential

effects on operations at asset level, performance

at business level and developments at regional

level from extreme weather or the transition to a

lower carbon economy.

As part of our annual process the bp leadership

team and board review the group’s principal risks

and uncertainties. Climate change and the

transition to a lower carbon economy continues

to be identified as a principal risk, see page 63. It

covers various aspects of how risks associated

with the energy transition could manifest.

Physical risks such as extreme weather, which

may be affected or intensified by climate change,

are covered in our principal risks related to safety

and operations.

Physical risk

Physical risks are typically identified at the asset

or project level and managed depending on the

level of risk assessed.

In the North Sea and Gulf of America, regions

more prone to severe weather conditions, our

offshore facilities monitor meteorological and

oceanographic conditions through the collection

of measurements. This data is collated and

periodically compared against the ‘Basis of

Design’ for the facility. If significant differences

are observed, then this may trigger an update to

the ‘Basis of Design’, prompting action to

reassess risks such as structural integrity and

station-keeping and if necessary, implement

additional risk mitigations, for example updating

procedures for shutting down and removing

personnel from facilities ahead of severe weather

events. Updates may also be made as a result of

other new knowledge, analysis methods and data,

including climate projections where appropriate.

Our major projects« are required to assess the

potential impact of severe weather and projected

climate-related physical impacts. Where relevant,

potential changes in environmental conditions,

such as sea level rise and ambient temperatures,

over the expected lifetime of a project are to be

considered as part of the design process.

Building on a modelling exercise conducted in

2022, in 2024 we implemented a screening

approach to support identification of potential

severe weather and physical climate-related

hazards at operational sites. Screening was

conducted for a number of onshore sites and,

where potential hazards have been identified, and

as appropriate, this enables further work to be

carried out to assess potential risks and

implement appropriate management measures.

For other assets, such as our retail sites«, that

are typically not exposed to a comparable level of

severe weather risk, climate-related risks such as

flooding or wind damage may be managed

where appropriate through the emergency

response plans and business continuity plans

which are mandated through bp-wide policies.

Additionally, at a group level we recognize risk

associated with the potential for increased water

scarcity due to climate change and other factors

and the impact this could have on our operations

and in the catchments where we operate. In

order to understand the water-related challenges

that we face, we review our water impacts, risks

and opportunities at our major operating sites.

These reviews consider the quantity and quality

of water used as well as any regulatory

requirements. We anticipate adopting site-level

activities as part of our aim to reduce our net

freshwater use in stressed catchments where we

operate. We anticipate adopting a focused

freshwater management approach, addressing

water-related business risk where it is greatest,

and we anticipate that our freshwater withdrawal

in stressed catchments will be covered by

freshwater management plans by 2028. For

more about water, see page 60.

Transition risk

The board appraises bp’s strategy and monitors

bp’s management and operations to obtain

assurance over the delivery of its strategy. This

approach enables the effective management of

climate-related transition risks and opportunities

facing bp associated with the energy transition.

For the purposes of our TCFD disclosures, we

group transition risks identified by our

businesses and functions into the three broad

material climate-related transition risks to bp, see

page 48. However, we continue to assess and



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Cumulative First Preference Shares of £1 each			7,232,838
Cumulative Second Preference Shares of £1 each			5,473,414



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☒			ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


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	Block 61 Khazzan gas field in Oman
		Gas & low carbon energy, page 28



	Valaris DS-12 drillship at bp’s Raven gas field, offshore Egypt
		Oil production & operations, page 31


Metrics TCFD	2024	2023
Upstream« production	2.4mmboe/d	2.3mmboe/d
bp-operated upstream plant reliability«	95.2%	95.0%
Upstream unit production costs«	$6.17/boe	$5.78/boe
bp-operated refining availability«	94.3%	96.1%
Biofuels production«	35kb/d	32kb/d
Biogas supply volumes«b	23mboe/d	22mboe/d
LNG portfolio«	23Mtpa	23Mtpa
Strategic convenience sites«	2,950	2,850
Electric vehicle charge points«	>39,000	>29,000
Hydrogen production (net)	–	–
Developed renewables to final investment decision« (net)	8.2GW	6.2GW
Installed renewables capacity« (net)	4.0GW	2.7GW



	bp.com/ourbeliefs