BP 2006 Annual Report Download - page 130

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18 Operating leases continued
Principal details of the leases are:
Ships: the group has entered into a number of structured operating leases for vessels, but which generally have no renewal or extension options. In
most cases rentals vary with interest rates, but the amounts of these contingent rentals are not significant for the years presented. The group also
routinely enters into bareboat charters, time charters and spot charters for ships on standard industry terms.
Plant and machinery: this principally comprises leases for drilling rigs. Generally these leases have no renewal options. There are no financial
restrictions placed upon the lessee by entering into these leases.
Commercial vehicles: primarily railcar leases. Generally these leases have no renewal options. There are no financial restrictions placed upon the
lessee by entering into these leases.
Land and buildings: the majority of these leases have no renewal options. There are no financial restrictions placed upon the lessee by entering into
these leases.
The minimum future lease payments including executory costs associated with the leases of $482 million (after deducting related rental income from
operating sub-leases of $626 million) were as follows:
$ million
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2006
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2007 3,355
2008 3,031
2009 2,403
2010 1,686
2011 1,191
Thereafter 5,742
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17,408
19 Exploration for and evaluation of oil and natural gas resources
The following financial information represents the amounts included within the group totals relating to activity associated with the exploration forand
evaluation of oil and natural gas resources. All such activity is recorded within the Exploration and Production segment.
$ million
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2006 2005 2004
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Exploration and evaluation costs
Exploration expenditure written off 624 305 274
Other exploration costs 421 379 363
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Exploration expense for the year 1,045 684 637
Intangible assets 4,110 4,008 3,761
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Net assets 4,110 4,008 3,761
Capital expenditure 1,537 950 754
Net cash used in operating activities 421 379 363
Net cash used in investing activities 1,498 950 754
20 Auditors’ remuneration
$ million
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Fees – Ernst & Young 2006 2005 2004
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Fees payable to the company’s auditors for the audit of the company’s accountsa15 19 13
Fees payable to the company’s auditors and its associates for other services
Audit of the company’s subsidiaries pursuant to legislation 31 34 30
Other services pursuant to legislation 15 67
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61 59 50
Tax services 110 14
Services relating to corporate finance transactions 237
All other services 923 9
Audit fees in respect of the BP pension plans –11
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73 96 81
Innovene operations –(9) (3)
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Continuing operations 73 87 78
aFees in respect of the audit of the accounts of BP p.l.c. including the group’s consolidated financial statements.
Total fees for 2006 include $5 million of additional fees for 2005 (2005 includes $4 million of additional fees for 2004). Auditors’ remuneration is included
in the income statement within distribution and administration expenses.
The tax services relate to income tax and indirect tax compliance and employee tax services.