BP 2006 Annual Report Download - page 177

BP Annual Report and Accounts 2006 175
51 Oil and natural gas exploration and production activitiesacontinued
$ million
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2004
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UK
Rest of
Europe USA
Rest of
Americas
Asia
Pacific Africa Russia Other Total
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Capitalized costs at 31 December
Gross capitalized costs
Proved properties 30,639 4,691 43,011 10,450 2,892 10,401 – 3,834 105,918
Unproved properties 300 170 1,395 456 1,240 526 119 105 4,311
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30,939 4,861 44,406 10,906 4,132 10,927 119 3,939 110,229
Accumulated depreciation 20,780 2,794 19,713 5,546 1,350 5,573 – 1,014 56,770
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Net capitalized costs 10,159 2,067 24,693 5,360 2,782 5,354 119 2,925 53,459
The group’s share of jointly controlled entities’ and associates’ net capitalized costs at 31 December 2004 was $11,013 million.
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Costs incurred for the year ended 31 December
Acquisition of properties
Proved –––––––––
Unproved 2 – 58 5 – 13 – – 78
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2 – 58 5 – 13 – – 78
Exploration and appraisal costsb51 17 423 199 85 142 113 9 1,039
Development costs 679 262 3,247 527 88 1,460 – 1,007 7,270
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Total costs 732 279 3,728 731 173 1,615 113 1,016 8,387
The group’s share of jointly controlled entities’ and associates’ costs incurred in 2004 was $1,102 million: in Russia $773 million and Rest of Americas
$329 million.
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Results of operations for the year
ended 31 December
Sales and other operating revenuesc
Third parties 3,458 626 1,735 1,776 977 492 5 403 9,472
Sales between businesses 2,424 609 11,794 2,556 530 1,439 – 2,912 22,264
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5,882 1,235 13,529 4,332 1,507 1,931 5 3,315 31,736
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Exploration expenditure 26 25 361 141 14 45 17 8 637
Production costs 901 117 1,428 535 142 323 – 131 3,577
Production taxes 273 30 477 239 45 – – 1,023 2,087
Other costs (income)d(211) 38 1,884 458 96 122 (3) 1,380 3,764
Depreciation, depletion and amortization 1,524 172 2,268 611 174 287 – 121 5,157
Impairments and (gains) losses on sale of
businesses and fixed assets 21 1 344 (55) 113 48 – (3) 469
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2,534 383 6,762 1,929 584 825 14 2,660 15,691
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Profit before taxationef 3,348 852 6,767 2,403 923 1,106 (9) 655 16,045
Allocable taxes 1,242 534 2,103 859 (4) 441 2 150 5,327
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Results of operations 2,106 318 4,664 1,544 927 665 (11) 505 10,718
The group’s share of jointly controlled entities’ and associates’ results of operations in 2004 was a profit of $1,814 million after deducting interestof
$189 million, taxation of $969 million and minority interest of $43 million.
aThis note contains information relating to oil and natural gas exploration and production activities. Mid-stream activities of natural gas gathering and distribution and the
operation of the main pipelines and tankers are excluded. The main mid-stream activities are the Alaskan transportation facilities, the Forties Pipeline system and the Central
Area Transmission System. The group’s share of jointly controlled entities’ and associates’ activities is excluded from the tables and included in the footnotes, with the
exception of the Abu Dhabi operations, which are included in the income and expenditure items above.
bIncludes exploration and appraisal drilling expenditures, which are capitalized within intangible fixed assets, and geological and geophysical exploration costs,which are
charged to income as incurred.
cSales and other operating revenues represents proceeds from the sale of production and other crude oil and gas, including royalty oil sold on behalf of others where royalty is
payable in cash.
dIncludes the value of royalty oil sold on behalf of others where royalty is payable in cash, property taxes and other government take.
eExcludes accretion expense attributable to exploration and production activities amounting to $120 million. Under IFRS, accretion expense is included in other finance
expense in the group income statement.
fThe Exploration and Production profit before interest and tax is set out below.
$ million
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2004
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Exploration and production activities
Group (as above) 3,348 852 6,767 2,403 923 1,106 (9) 655 16,045
Jointly controlled entities and associates – – – 113 36 – 1,665 – 1,814
Mid-stream activities 105 (15) 40 123 (50) (19) – 42 226
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Total profit before interest and tax 3,453 837 6,807 2,639 909 1,087 1,656 697 18,085