Anti-war carnival arrives at BP AGM

Anti-war carnival arrives at BP AGM

Sudip Kar-Gupta, Reuters News Service, UK

April 28, 2003

LONDON - Anti-war protestors greeted BP investors last week by handing out a spoof report that criticised the oil giant's ethical policies as the group held its annual shareholder meeting.

The role of oil firms has come under intense scrutiny following the recent U.S.-led war in Iraq, which has the world's second largest reserves of crude oil.

"We are reaping the rewards from the latest in a long line of oil wars," read the fake report, whose design closely resembled that of the actual BP 2002 report.

Around 100 protesters held a "Carnival Against Oil Wars" outside the meeting of the world's third largest oil group in central London, surrounded by a large police presence.

BP Chairman Peter Sutherland denied that the Iraq war was fought over oil and also refuted allegations that some of BP's work in countries such as Colombia had harmed local communities there.

Sutherland added that Iraq did not form part of BP's current strategy, although industry sources told Reuters this month that BP had a team in place to work on a strategy for its future in the country.

"The oil industry has considerable expertise, which we expect to take part in the rebuilding of Iraq," Sutherland told shareholders, adding BP would only get involved in Iraq with a legitimate government chosen by the Iraqi people.

Protester Jo Hamilton arrived dressed in black, which she said was a gesture to "mourn the people who are feeling the brunt of BP's exploration techniques".

Liz Hitchcock from the Green Century Balanced Fund, which owns BP shares, also urged BP to refrain from drilling in the Arctic region.

Sutherland said BP was far ahead of its peers in ethical and environmental issues and pointed to the fact that the company had set up a committee to deal with these topics.

Shares in BP, which reports first-quarter results next week, were down 1.2 percent at 407-1/2 pence in early afternoon trade.

BP shares have underperformed the DJ Stoxx European Energy sector by about 10 percent over the last year. The company repeatedly missed production growth targets in 2002 - a point not lost on some shareholders.

"You need a metaphorical kick up the backside in certain areas," said private investor Mike Porter.