BP 2007 Annual Report Download - page 50

48
Exploration and Production
$ million
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2007 2006 2005
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Sales and other operating revenues from continuing operations 54,550 52,600 47,210
Profit before interest and tax from continuing operationsa26,938 29,629 25,502
Results include:
Exploration expense 756 1,045 684
Of which: Exploration expenditure written off 347 624 305
$ per barrel
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Key statistics
Average BP crude oil realizationsb
UK 70.36 62.45 51.22
US 68.51 62.03 50.98
Rest of World 70.86 61.11 48.32
BP average 69.98 61.91 50.27
Average BP NGL realizationsb
UK 52.71 47.21 37.95
US 44.59 36.13 31.94
Rest of World 48.14 36.03 35.11
BP average 46.20 37.17 33.23
Average BP liquids realizationsbc
UK 69.17 61.67 50.45
US 64.18 57.25 47.83
Rest of World 69.56 59.54 47.56
BP average 67.45 59.23 48.51
$ per thousand cubic feet
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Average BP US natural gas realizationsb
UK 6.40 6.33 5.53
US 5.43 5.74 6.78
Rest of World 3.71 3.70 3.46
BP average 4.53 4.72 4.90
$ per barrel
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Average West Texas Intermediate oil price 72.20 66.02 56.58
Alaska North Slope US West Coast 71.68 63.57 53.55
Average Brent oil price 72.39 65.14 54.48
$ per million British thermal units
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Average Henry Hub gas priced6.86 7.24 8.65
pence per therm
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Average UK National Balancing Point gas price 29.95 42.19 40.71
thousand barrels per day
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Total liquids production for subsidiariesce 1,304 1,351 1,423
Total liquids production for equity-accounted entitiesce 1,110 1,124 1,139
million cubic feet per day
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Natural gas production for subsidiariese7,222 7,412 7,512
Natural gas production for equity-accounted entitiese921 1,005 912
thousand barrels of oil equivalent per day
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Total production for subsidiariesef 2,549 2,629 2,718
Total production for equity-accounted entitiesef 1,269 1,297 1,296
aIncludes profit after interest and tax of equity-accounted entities.
bThe Exploration and Production segment does not undertake any hedging activity. Consequently, realizations reflect the market price achieved.
cCrude oil and natural gas liquids.
dHenry Hub First of Month Index.
eNet of royalties.
fExpressed in thousands of barrels of oil equivalent per day (mboe/d). Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels.
Sales and other operating revenues for 2007 were $55 billion, compared holding gains of $11 million; and was after a net impairment charge of
with $53 billion in 2006 and $47 billion in 2005. The increase in 2007 $55 million, restructuring costs of $166 million, a charge of $168 million
primarily reflected an increase of around $3.5 billion related to higher in respect of the reassessment of certain provisions and a charge of
realizations, partially offset by a decrease of around $1.5 billion due to $12 million in respect of new, and revisions to existing, environmental
lower volumes of subsidiaries. The increase in 2006 primarily reflected an and other provisions.
increase of around $6 billion related to higher liquids and gas realizations, Profit before interest and tax for the year ended 31 December 2006
partially offset by a decrease of around $1 billion due to lower volumes was $29,629 million, including net gains of $2,114 million on the sales of
of subsidiaries. assets (primarily gains from the sales of our interest in the Shenzi
Profit before interest and tax for the year ended 31 December 2007 discovery in the Gulf of Mexico in the US and interests in the North Sea
was $26,938 million, including net gains of $907 million on the sales of offset by a loss on the sale of properties in the Gulf of Mexico Shelf), net
assets (primarily gains from the disposal of our production and gas fair value gains of $515 million on embedded derivatives and a net
infrastructure in the Netherlands, our interests in non-core Permian impairment credit of $203 million (comprising a $340 million credit for
assets in the US and our interests in the Entrada field in the Gulf of reversals of previously booked impairments partially offset by a charge of
Mexico), net fair value gains of $47 million on embedded derivatives $109 million against intangible assets relating to properties in Alaska, and
(these embedded derivatives are fair valued at each period end with the other individually insignificant impairments), and was after inventory
resulting gains or losses taken to the income statement) and inventory