Legal Aspects of International Business and Enterprise

Running Head: LEGAL ASPECTS OF INTERNATIONAL BUSINESS AND ENTERPRISE
Legal aspects of international business and enterprise
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LEGAL ASPECTS OF INTERNATIONAL BUSINESS AND ENTERPRISE
Table of Contents
1. Identification of the company...................................................................................................3
1.1 Background description of the company..........................................................................3
2. Regulatory policies affecting the operations of BP PLC in Australia......................................3
3. Trade agreements of BP PLC with local authorities in Australia............................................6

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LEGAL ASPECTS OF INTERNATIONAL BUSINESS AND ENTERPRISE
1. Identification of the company
1.1 Background description of the company
BP PLC is a multinational organisation that is registered in UK as well as USA. the company
follows a vertically integrated model of supplies in for extraction as well as supply of oil, natural
gas as well as Petroleum. BP PLC is a part of sixth largest non state owned energy based
companies. The organisation also has the ownership of a convenience store chain which is
associated with the gas stations of BP PLC. The organisation also invests in production of low
carbon output energy sources as well as supplies energy from such sources as well as Renewable
Sources also. In addition to that, BP PLC is one of the Global leaders in terms of photovoltaic
cells production. The company underwent privatization when the Holdings of British
government was sold in the year 1980 and merging with Amoco in the year 1998 (Bp.com 2019).
The average revenue generation for BP Plc. is $310,138 million (2014). The number of current
employees in the organisation is 94000. Operating across six continents, BP Plc delivers
products as well as services in more than 100 countries (Bp.com 2019).
2. Regulatory policies affecting the operations of BP PLC in Australia
Majority of the government policy decisions affecting the business of BP PLC in Australia are
aligned with the economic factors driving the economy of the country. The first policy decision
that demands discussion in this context is regarding the renewable energy outlook of the country
as per the new energy outlook of Australian government released in 2018, the government
demands that around 59% of power production in Australia will be supplemented by Renewable
Sources within 2035 (Begg, van der Woerd and Levy 2018). This is going to have a significant
negative effect upon the oil and gas production of BP PLC in Australia. This is because majority

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LEGAL ASPECTS OF INTERNATIONAL BUSINESS AND ENTERPRISE
of the oil yielding facilities of BP PLC in Australia associated with production of non renewable
energy. However Scardamaglia and Adams (2016), analyses that the substance of the negative
impact for a longer time period will actually impact the revenue generation of BP PLC from
Australia. In addition to this, according the latest provision of the energy policy of the country
the government has realise the renewable energy output target of the country for the year 2020
by 20% (Moore et al. 2017). Although, the government has declared that they are emphasising
upon the nationalized oil and gas producing companies of Australia like Arrow energy, Bass oil,
Carnarvon petroleum and so on. In spite of that, because of sustained business tenure BP PLC in
Australia, responsibility of the company towards making contribution in order to meet the target
of renewable energy production in the country is also no less significant than the nationalized oil
and gas producers. The sudden oil price slump in Australia because of the decision of
government subsidization is going to impact the multinational oil and gas companies conducting
business in Australia like BP PLC. Nevertheless, the production of LNG by BP PLC is much
higher in Australia compared to the traditional oil and gas production. In this context Dudley
(2018), states that the prices of LNG are generally indexed with the oil prices and hence along
with the slump of prices of oil and gas in Australia, cascading effect will be witnessed on the
extensive LNG market of BP PLC in Australia.
The slower development outlook of the latest Australian government is another major factor that
future development of PLC in Australia and throw higher and more CBSE challenges regarding
the fulfilment of the renewable energy target of the government within the year 2035 (Zhang et
al. 2018). The government has taken the decision of driving down the provision of long term
contract sales for LNG to the multinational organisations. This will have a big bang on the sales
of BP PLC in Australia. So far and so long, this is the company which used to accept all the