Annual Environmental Report 2009

Our refinery and the environmentJust as in previous years, this is our Annual Environmental Report. We want to keep you, our neighbours,

informed about our efforts with regard to the environment by means of this annual environmental report.

We have also drafted an annual environmental report for 2009, containing countless things worth knowing

about our progress in terms of the soil, energy, air, waste water and other components. We remain fully aware

that our company, one of the largest crude oil refineries in Europe, should also behave like a good neighbour.

A clear form of communication with direct stakeholders such as you is very important to us. We therefore

think it essential that you are annually informed about our efforts with regard to the environment by means of

this public environmental report.

In our Policy Declaration you can read the objectives we have formulated with regard to clean and safe

working. Nothing has changed in this. Furthermore, you will find the most up-to-date information about our

refinery and the digital version of this annual environmental report on the Internet web site www.bp.nl under

the heading ‘About BP’ and ‘Our Refinery’.

Entirely in keeping with our tradition and in response to many requests, on the back of the report there is

again a wonderful aerial photograph of our refinery in Europoort. If you have any questions about this annual

environmental report, please refer to our Communication & Public Affairs unit, +31 (0)181 – 259 000.

I wish you lots of reading pleasure!

Thys Heyns, Refinery Manager

BP Refinery Rotterdam B.V. (BPRR), is one of the largest crude oil refineries in Europe. The company has two plants: a refinery, storage and transfer plant in Europoort and a storage and transhipment terminal in Pernis. We produce a wide range of end products from crude oil (also just called crude): LPG, benzenes, diesel, domestic fuel oil, kerosene, oil fuel and semi-manufactures, such as raw materials for the petrochemical industry (among other things naphtha). From countless oil-producing countries all over the world, many types of crude oil are supplied to BPRR via the 6th Petroleum haven. Every day, the refinery is able to process about 400,000 barrels (1 barrel is approx. 159 litres) of crude oil of various qualities. Annual production comes to a total of almost 19 million tons. Some types of crude oil are thick and treacly, others thin and runny.

The most noticeable elements of our plant complex are the chimneys, the wind turbines and of course, the storage tanks. There are around one hundred of these tanks on our site in Europoort, with a total storage capacity of approx. 4 million m! (or 4 billion litres). For the storage of LPG there are special gas spheres. The largest part of the site – around 320 hectares – is covered by these storage facilities.

TransportVia roads, water, rail and pipelines, the end products and intermediates ultimately find their way to our customers at home and abroad and naturally, the countless modern BP filling stations in the Netherlands. In a special loading station for tankers in Pernis, around 35,000 tankers are loaded annually. Aeroplanes are supplied with kerosene via a direct pipeline to Schiphol. Furthermore, there is a pipeline to Germany so that our products can be quickly, efficiently and safely transported to the correct destination.

This policy declaration reflects our departure points in the areas of Health, Safety, the Environment and Quality (‘HSSEQ’). BPRR’s main activities are the refining of petroleum, the manufacture of high-quality oil products and providing a commercial platform for its shareholder. BP has the objective of working safely, sustainably and profitably. This means that conforming to legislation and regulations with regard to the environment and safety is an absolute condition for the operation of our company.

Our objectives are clear:

BP uses its Business Performance Contract to accomplish these objectives and is thereby supported by the following foundations:

3. a competent organisation.

The objectives and performances of BP in the area of HSSEQ are established annually and regularly checked, improved and made safe through various processes. There is regular communication about these and positive results are valued.

It is the task of all Team Leaders to make this policy declaration known to everyone, explain the practical aspects and to lead and involve employees in an inspiring and motivating manner.

This policy declaration will be re-assessed annually by the RLT.

BP Refinery Rotterdam B.V. Refinery Leadership TeamMarch 2010

Our organisation

Policy declaration

BPRR pays attention to people and the environment, not only within the borders of the site but outside it as well. Safety has the highest priority in this.

In the framework of the environment, BPRR has established a policy that is put into practice by means of an environmental management system. The HSSEQ department centrally manages implementation at policy level and, together with the HSEQ coordinators of the different departments, develops the environmental management system.

Employees also have an active input to the environmental management system. By feeding the system with practical information every day, our knowledge is continuously increased (best practice) and acceptance within the organisation is widespread.

Every day, the central HSSEQ department evaluates the environmental and safety performances of the previous day, where immediate action follows if there are any special features. Every week, an overview of these performances

is provided to the whole organisation, after which it is discussed in the different departments.

The environmental management system of BPRR complies with the requirements of ISO 14001 and the whole site is certified as such. It is regularly tested whether our environmental management system procedures and instructions are being adhered to. The testing is carried out by both an independent agency and our own people, who have been trained for this. Testing also took place in 2009. No large deviations emerged from them. A few minor points for improvement that were detected have been included in improvement plans.

2009 was again a year of holding on to and improving the results already achieved by our environmental performances. The best evidence for this is the number of so-called ‘perfect days’. We employ this performance indicator to measure the number of days on which no accidents, no permits exceeded or spills have taken place and on which no external complaints are ascribed to the refinery. In 2009, there were as many as 329 perfect days, in comparison to 320 in 2008.

The government sets strict environmental requirements. Our refinery has permits both for the Europoort location and Pernis on the grounds of the Environmental Management Act (Wm) and the Pollution of Surface Waters Act (Wvo). We are allowed to operate our plants within the provisions of these permits.

In the framework of the Wm permit, various reports were approved in 2009. This concerned the following projects, amongst others:

In 2009, a major maintenance stop took place in part of our complex to provide an opportunity to inspect and modify part of our plants, to guarantee environmental, safety and production aspects for the coming period.

This project originates from the European guidelines to promote the use of biofuels. It is determined in these guidelines that biofuels should be mixed with car fuels such as petrol. In 2009, this project was realised at the Pernis site.

Environmental management

Permits

After a number of years in which no environmental complaints were caused by BPRR, in 2009 however, there were 75 complaints ascribed to BPRR by DCMR. The complaints can be classified as complaints concerning noise, visual hindrance and odours. In some cases, complaints cannot be avoided. In July 2009 there was a breakdown in the power supply to BPRR. This breakdown resulted in the production processes being stopped. The malfunctioning of the plants was accompanied by the so-called burning off of excess gases. This is a safety measure that is taken in an emergency, to take the refinery safely off line. This is unfortunately accompanied with increased flame activity, smoke and possibly the emission of aromatic substances. DCMR received 38 environmental complaints ascribed to BPRR as a result of this incident.

Progress of the environmental complaints ascribed to BPRR by DCMR.

Environmental complaints

Environmental complaints 90

80

70

60

50

40

30

20

10

0 2005 2006 2007 2008 2009

61

75

39

0 0

Our refinery has an active soil management policy. It focuses on dealing effectively and efficiently with structurally present, historic soil pollution and the consequences thereof. If the situation is not entirely clear, an additional investigation is performed.

We have made several provisions to dispose of oil-containing fluids and waste water which may be possibly contaminated with oil. Furthermore, we have taken measures to prevent the unwanted release and/or spreading of oil-containing fluids or to minimize this.

Herewith, an overview of the above-mentioned provisions and measures:

possible leakages are reduced to a minimum.

and pipelines.

storage vessels.

inspections, will be re-installed on a bitumen layer, if applicable. This will prevent external corrosion of the vessel base. Simultaneously, a layer of plastic foil with leak detection will be placed in the vessel mound.

alarm system which can be viewed from the control room.

pits and pumping stations will be discharged via the sewer system to the waste water treatment installations.

cannot be entirely prevented, have an impervious floor, with drain pits to the oil/water sewer system. The grouting is sealed with a chemical resistant compound.

possible spreading of released products to a minimum.

Should, in spite of all precautions, some spillages occur, immediate action will be taken to stop the leakage, remove the spilled product and treat the polluted soil.

Soil

To as much as possible ensure the technical conditions and state of maintenance of the tanker barges to be loaded or unloaded, BP participates with a number of other oil companies in the so-called European Barge Vetting System “EBIS”. This means that tanker barges must be inspected by independent inspectors at least once a year according to a standardised checklist. The outcome of these inspections is summarised in an inspection report and retained in a collective data base. This data base is available to all the participating parties within EBIS, including BP, so that it is possible to make an assessment of the operational state and the state of maintenance of every tanker barge.

Active policyVarious provisions have been installed to as much as possible prevent the penetration of oil products into the soil in case of leaks. One could think of impermeable floors, plastic sheeting and leak detection under the storage tanks. The latter provision is frequently applied in locations where when major maintenance is performed on a tank and the bottom is replaced. Should oil spills occur despite all these precautions, they are further investigated and, where

improvements are possible and meaningful, they are carried out. The management of the refinery is closely involved in this.

Despite these measures, in 2009 at the Europoort site, a total of 5 oil spills on the surface of the water in the 6th Petroleum haven occurred due to BPRR. Besides these oil spills on the water, there have been 6 spills (> 150 litres) on land. These were immediately cleaned up and where necessary, soil sampling took place and a plan of approach was drafted. As far as incidents with a greater impact are concerned, we can mention:

20 January; due to a process breakdown, product was released in the flare area. Approx. 150 m3 of soil was excavated and removed for remediation. The location was

27 April;10 November; due to an open ventilation valve, gas oil got

06 July; a ruptured seal on a blind plate caused a spill on the surface of the water.

Oil spills

The most important substances that are released into the air during the refinery of crude oil are sulphur dioxide (SO2), nitrous oxides (NOx), volatile hydrocarbons (VOS), carbon dioxide (CO2) and dust. Sulphur and nitrous oxides contribute to acidification. VOS plays a role in ozone formation, which contributes to (summer) smog. CO2 is a greenhouse gas (for CO2 see also the chapter Energy). Dust can be created above all by stoking furnaces and boilers with solid and liquid fuels.

To keep emissions of the above-mentioned substances as low as possible, our refinery has taken a large number of preventive measures, such as:

2,

plants, due to which a sulphur recovery rate of 99.8% has been created. This has resulted in lower SO2

the steam boilers and furnaces to further reduce NOx

Agreements have been made between the government and the refineries to further reduce emissions of SO2 as of 2010. Since 2005 there has been a trading system for NOx and CO2 in which we also participate. For CO2 see the chapter Energy.

NOx emissions trading has a national character. Nationally, companies have been assigned an annual maximum of NOx emissions rights. The government has determined that these assigned maximum NOx emissions rights will gradually be reduced. Based on the said trading systems, as soon as emissions are higher than they have been assigned, companies are forced to invest in plants with lower emissions or purchase emissions rights on the market. In 2009, for SO2 and NOx, there were no significant details to report.

Overview of SO2 and NOx emissions in recent years (tons/year)

Air

NOx emissions (tons/year)

2000

1500

1000

500

0 2005 2006 2007 2008 2009

SO" emissions (tons/year)

6000

5000

4000

3000

2000

1000

0 2005 2006 2007 2008 2009

4266

1465

1720

14161341 1239

4853

4371

4823

4385

Volatile organic substances (VOS) are a collection of hydro-carbon compounds that easily evaporates into the atmo- sphere, where they contribute towards the smog and acidification (environmental) problem. Various reduction plans have been drafted over the years to reduce smog and acidification. After the KWS 2000 reduction plan, in 2004 BPRR committed to the VOS emissions reduction plan for the petroleum chain 2000–2010. Within this framework, a number of measures has been taken to reduce the emissions of volatile organic substances even further.

VOS emissions, like petrol vapour, are released during the production, storage and loading of volatile products.

The emissions of these substances are relatively low due to the application of special seals or internal floating decks in the storage tanks, by vapour recovery with the loading of barges and trucks and thanks to special measurement and maintenance programmes for tracing and repairing leaks. With the construction of new plants, we have opted for equipment and plant with little or no emissions. In 2009 a ‘dome structure’ was installed on a tank containing volatile product, which resulted in a substantial decline in VOS emissions.

Environmental VOS performances in recent years and the VOS specifications (tons/year)

VOS emissions

VOS emissions (tons/year)

1040

1020

1000

980

940

920

2005 2006 2007 2008 2009

992 1006

1029

937918

0

VOS Specifications 2009 (tons/year)

Fuel 192

Other sources 130

Point sources 146

Loading 46

Tanks 402

100 200 300 400 500

Environmental ETP performances in recent years (tons/year) Year BZV CZV Nitrogen Oil 2005 66 418 69 1.2 2006 46 348 72 1.7 2007 74 370 72 1.9 2008 159 749 86 0.5 2009 75 480 85 1.0

Every day, waste water is created across the whole industrial site. For example, from washing salts out of crude oil, but also water that is released from the different processes and water that is imported with the crude petroleum. All the water, including rainwater, which could possibly be polluted with oil, is collected and channelled to the (biological) waste-water purification plant (ETP) for cleaning.

First of all, the water is channelled to the separator. In long concrete containers, the oil present in the water floats to the top. The recovered oil is sent back to the units and the remaining water is channelled through sand filters for further

cleaning to filter out the last remnants of oil floating in the water. Finally, the COD and nitrogen is removed from the water in the biological part. In two biological filters there are bacteria that remove the waste as the grow. After which, in the lagoon the washed-out biomass in the filters has the time to settle on the soil. After that, the waste has been sufficiently removed from the water to be pumped back clean to the surface water.

Waste water was a much-discussed topic in 2009. Large-scale research was done into the sources of pollution from the units and the impact of petroleum on the ETP. This ensured that more focus was put on discharges to the sewers. At the same

filter and a bio-filter were renovated and 2 renovated separator containers were put into operation. All this has resulted in the more stable operation of the ETP. The measures taken and the quality of the processed crude oil have ensured that the burden on the ETP for 2009 declined considerably compared to 2008. Nevertheless, a new biological water-purification step will be constructed to guarantee clean water in the future.

Waste water

The departure point for BPRR’s waste policy is reduction of the amount and as much as possible separation and recycling of waste.

The waste policy is implemented by the Waste unit, which among other things, maintains the registration of all waste flows. They also provide the necessary documents for waste transport. In 2009, approx. 3000 waste shipments went to processors outside our refinery. Furthermore, the Waste unit is also responsible for the temporary storage and expert processing of waste and verifying that processing companies work according to BP’s established standards.

The quantities from the registration system are shown below. The total quantities (tons/year) are graphically represented.

Waste quantities fell substantially in 2009 but are still too high if one looks at 2007 and earlier. This concerns the execution of projects in which old plants are demolished. A great deal of

waste is released here, among other things, metals that can be recycled. The tank maintenance programme, in which a number of storage tanks are cleaned for inspection every year, produces a lot of waste in the form of an oil-water mixture containing sand and rust. The replacement of tanks is part of the tank maintenance programme in which the old tanks are first demolished.

The largest waste flow here is the asphalt of the tank mounds that are being replaced. This asphalt is separated into PAKs-containing and non PAKs-containing. The latter is directly used at the asphalt central for new asphalt. The major maintenance stop of the FCCU complex in 2009 also produced a large quantity of various waste products.

Since 1996, as much as possible waste is separated in the refinery, such as packaging materials, metals, paper, cardboard, rubble, wood and insulation materials. The premise is to reduce the amount of waste. To this end, a waste prevention plan has been drafted, which will be actualised in 2010. One of the topics in this is to charge the costs to the polluter, this means that the separate plants must pay the costs of their own waste. Due to this measure, the plants are much more concerned with waste.

Another component of the waste reduction plan is that we -

ees were directly informed about waste policy and its costs. Feedback is given to the plants about the removed quantities and the costs involved.

In all the plants that are part of the refining process, energy plays an important role. Annually, the refinery consumes large quantities of refinery fuel gas, natural gas and electricity. Handing energy efficiently not only reduces operating costs, but resources are also better utilised and emissions of the greenhouse gas CO2 are reduced. Examples that lead to more efficient energy consumption and ultimately also to lower CO2

emissions are:

of waste gases that are released during the production

CO2 is created by the burning of fuels such as fuel gas and natural gas. Besides participating in the NOx emissions trading system, as previously indicated, BPRR also participates in the trading system for CO2. The NOx and CO2 emissions trading systems have been operational since 2005.

To limit CO2 emissions, the Netherlands has been allocated a certain amount of CO2 by the European Community. This quantity is shared among Dutch companies according to a distribution code. The trading system for CO2, in contrast to the previously mentioned NOx emissions trading system, has an international

character. Based on the CO2 trading system, as soon as their emissions are higher than what they have been allocated, companies are forced to invest in plants with lower emissions or purchase extra emissions rights on the market. Our refinery has likewise received a permit for the emission of CO2 from the Dutch emissions authority. The determination of CO2 emissions takes place based on the methods indicated in the approved combined NOx/ CO2 monitoring protocol that is part of the permit.

As can be seen in the diagram below, in 2009 BPRR emitted less CO2 compared to 2008. This is related to a major maintenance stop for a large part of our plants.

Waste

Energy

Quantity of waste (tons)

80000

60000

40000

20000

0 2005 2006 2007 2008 2009

1815021950 21134

67181

53446

CO" emissions (tons/year)

2150

2100

2050

2000

1950

1900

0 2005 2006 2007 2008 2009

1978

2048

1998

2130

1980

This Environment Map is the annual public environmental report for 2009 for BP Refinery Rotterdam B.V. and it provides insight into the efforts of BPRR with regard to the environment.

For suggestions, questions and comments or for extra copies of this Environment Map, please contact the Communication & Public Affairs unit, +31 (0)181- 259 000.

Photo on back cover: www.aeroview.nlPhoto on inside cover: Leo Schouten et al.

BP Refinery Rotterdam B.V.D’Arcyweg 763198 NA EuropoortHaven number 6425The Netherlands

+31 (0)181 - 529 000 www.bp.nl vivian.albers@bp.com

The mark of responsibile forestry

SCS-COC-001259

FSC Supplier

© 1996 Forest Stewardship Council A.C.

The VGM committee handles matters concerning the policy to be pursued by BP Refinery Rotterdam with regard to safety, health and welfare, the environment and the application of the Health and Safety (Arbo) Act for the Works Council.

The following matters are handled in the committee:

environmental management system.

The above matters have a direct effect on our working conditions and the manner in which we do our work.

In 2009, the VGM committee was engaged with a number of topics. Among others, traffic, stop buttons, the accessibility of process units for TA and the application of procedures.

New administration building for BP Refinery Rotterdam B.V.

VGM committee

Accountability

In December 2009, the construction of new refinery offices for approx. 400 people was commenced. The building has a gross surface area of approx. 10,000 m2 (useable area of over 8000 m2) and contains various functions, such as an audito-rium, offices and conference rooms, company restaurant, training centre, fitness facilities and a medical treatment centre. The offices will be taken into use in mid-2011.

The building is situated on the north side, tucked away behind a dune wall. This dune wall, together with a reinforced load- bearing structure, guarantees protection against a pressure wave that could occur during an emergency at the refinery. The people are also protected from possible unexpectedly released harmful gases.

The building will not lead to increased air pollution, noise, waste or traffic. In order to maintain safe traffic conditions, the existing cycle path along the d’Arcyweg has been diverted, in consultation with DS+V in Rotterdam.

Various energy-saving measures have been incorporated into

The building will also impart a new dynamic to collaboration within the refinery because people from seven different buildings will now work together in one building. The construction of the new offices was also the motivation for other initiatives to modernise management. One of these initiatives is the Paper to Bits project. In this project we shall strive for paper-free office environment. This will be achieved by digitising archives and electronic workflow management. In the new building there is consequently less space planned for archiving compared to the present situation.

Det Norske Veritas Management System Certification Environmental Verification Statement