The ratings reflect BP PLC's extremely strong, geographically diverse business portfolio; solid financial profile; and fairly conservative financial policy. The company's key competitive strengths include: A massive reserve base--14.6 billion barrels of oil equivalent (boe) at year-end 2001--especially in North America and the North Sea, with promising developments in the Gulf of Mexico. The reserve life is adequate, at 11.7 years; replacement rates are strong (156% on average over 1999-2001 on an internal basis); and finding and production costs ($3.43 per boe on the same basis) are competitive; Strong, though challenging, expected 2000-2005 production growth (5.5% annually targeted and achieved in 2001, but only 3% expected in 2002; third-quarter 2002 production was 3.445 million boepd)--based on promising prospects in South
