The birth of BP

BP owes its origin to one man, a wealthy Englishman named William Knox D'Arcy, who, shortly after the turn of the century, invested time, money and labour in the belief that worthwhile deposits of oil could be found in Persia (now known as Iran).

It was in May 1901, when William Knox D'Arcy, obtained a concession from the Shah of Persia to explore for and exploit the oil resources of the country, excluding the five northern provinces which bordered Russia. Having been granted the concession, D'Arcy employed an engineer, George Reynolds, to undertake the task of exploring for oil in Persia. Severe weather, difficult terrain, the absence of a developed infrastructure, the shortage of skilled local labour and the problems of dealing with neighbouring tribes in the absence of a strong central government - all conspired to make Reynolds' pioneering task an exceptionally arduous one. Years passed without oil being discovered in commercial quantities, despite Reynolds' persistence.

Meanwhile, the costs mounted, stretching D'Arcy's resources to the point where he sought outside financial assistance. This came in 1905 from the Burmah Oil Company, which provided new funds for his venture. More exploration in Persia followed without success, until eventually, in May 1908, Reynolds and his helpers struck oil in commercial quantities at Masjid-i-Suleiman in southwest Persia. It was the first commercial oil discovery in the Middle East, signalling the emergence of that region as an oil producing area.

After the discovery had been made, the Anglo-Persian Oil Company (as BP was first known) was formed in 1909 to develop the oilfield and work the concession. At the time of Anglo-Persian's formation, the Burmah Oil Company owned 97% of its ordinary shares and Lord Strathcona, the company’s first chairman, owned the rest.

In the company's first six decades, its prime focus lay in the Middle East. But from the late 1960s the centre of gravity shifted westwards, towards the USA and Britain itself.

However, the BP of today is an international company, having operations in over 70 countries. Its key strengths are in oil and gas exploration and production; the refining, marketing and supply of petroleum products; and the manufacturing and marketing of chemicals. It supports all its businesses with high quality research and technology.