BP 2007 Annual Report Download - page 113

BP ANNUAL REPORT AND ACCOUNTS 2007 111
4Disposals
$ million
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2007 2006 2005
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Proceeds from the sale of Innovene operations –(34) 8,304
Proceeds from the sale of other businesses 2,518 325 93
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Proceeds from the sale of businesses 2,518 291 8,397
Proceeds from disposal of fixed assets 1,749 5,963 2,803
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4,267 6,254 11,200
By business
Exploration and Production 1,276 4,005 1,416
Refining and Marketing 2,953 1,789 888
Gas, Power and Renewables 31 297 540
Other businesses and corporate 7163 8,356
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4,267 6,254 11,200
As part of the strategy to upgrade the quality of its asset portfolio, the group has an active programme to dispose of non-strategic assets. In the
normal course of business in any particular year, the group may sell interests in exploration and production properties, service stations and pipeline
interests as well as non-core businesses. The group may also dispose of other assets, such as refineries, when this meets strategic objectives.
Cash received during the year from disposals amounted to $4.3 billion (2006 $6.3 billion and 2005 $11.2 billion). The major transactions in 2007
were the disposals of our Coryton refinery, our exploration and production and gas infrastructure business in the Netherlands, our interest in non-core
Permian assets in the US and our interest in the Entrada field in the Gulf of Mexico.
The major transactions in 2006 were the disposals of our interests in the Gulf of Mexico Shelf and our interest in the Shenzi discovery in the Gulf of
Mexico. The divestment of Innovene contributed $8.3 billion to the total in 2005. The principal transactions generating the proceeds for each business
segment are described below.
Exploration and Production
The group divested interests in a number of oil and natural gas properties in all three years. During 2007, the major transactions were the disposal of
an exploration and production and gas infrastructure business in the Netherlands and the divestments of our interests in non-core Permian assets in
the US and in the Entrada field in the Gulf of Mexico. We also sold our interests in a number of fields in Egypt, Canada and the US.
During 2006, the major transactions were disposals of our interests in the Gulf of Mexico Shelf, in the Shenzi discovery in the Gulf of Mexico, in the
Statfjord oil and gas field and in the Luva gas field in the North Sea. We also divested our interests in a number of onshore fields in South Louisiana,
interests in fields in the North Sea, the Gulf of Suez and Venezuela, and part of an interest in Colombia.
During 2005, the major transaction was the sale of the group’s interest in the Ormen Lange field in Norway. In addition, the group sold interests in
oil and natural gas properties in Venezuela, Canada and the Gulf of Mexico.
Refining and Marketing
The churn of retail assets represents a significant element of the total in all three years. In addition, in 2007, we disposed of the Coryton refinery in the
UK, our interest in the West Texas Pipeline in the US, our interest in the Samsung Petrochemical Company in South Korea and other interests in
France, Brazil and Africa.
During 2006, we disposed of our interests in Zhenhai Refining and Chemicals Company in China and in Eiffage, the French-based construction
company. We also exited the retail market in the Czech Republic and disposed of our interests in a number of pipelines.
During 2005, the group sold a number of regional retail networks in the US and in addition its retail network in Malaysia.