BP 2008 Annual Report Download - page 179

BP Annual Report and Accounts 2008
Notes on financial statements
47. Oil and natural gas exploration and production activitiesacontinued
$ million
2007
Rest of Rest of Asia
UK Europe US Americas Pacific Africa Russia Other Total
Capitalized costs at 31 December
Gross capitalized costs
Proved properties 34,774 4,925 53,079 10,627 3,528 18,333 – 7,596 132,862
Unproved properties 606 – 1,660 297 1,188 1,533 4 349 5,637
35,380 4,925 54,739 10,924 4,716 19,866 4 7,945 138,499
Accumulated depreciation 25,515 2,925 25,500 5,528 1,508 8,315 – 2,553 71,844
Net capitalized costs 9,865 2,000 29,239 5,396 3,208 11,551 4 5,392 66,655
The group’s share of jointly controlled entities’ and associates’ net capitalized costs at 31 December 2007 was $11,787 million.
Costs incurred for the year ended 31 December
Acquisition of properties
Proved – – 245 – – – – 232 477
Unproved – – 54 16 – 321 – 126 517
– – 299 16 – 321 – 358 994
Exploration and appraisal costsb209 16 646 72 51 677 119 102 1,892
Development costs 804 443 3,861 1,057 333 2,634 – 1,021 10,153
Total costs 1,013 459 4,806 1,145 384 3,632 119 1,481 13,039
The group’s share of jointly controlled entities’ and associates’ costs incurred in 2007 was $2,552 million: in Russia $1,787 million, Rest of Americas
$569 million, Asia Pacific $17 million and other $179 million.
Results of operations for the year ended 31 December
Sales and other operating revenues
Third parties 4,503 434 1,436 2,142 1,148 2,219 – 921 12,803
Sales between businesses 2,260 902 14,353 3,142 970 3,223 – 9,983 34,833
6,763 1,336 15,789 5,284 2,118 5,442 – 10,904 47,636
Exploration expenditure 46 – 252 134 11 183 116 14 756
Production costs 1,658 147 2,782 770 190 637 2 344 6,530
Production taxes 227 3 1,260 273 56 – – 2,224 4,043
Other costs (income)c(419) 123 2,505 395 378 200 169 3,018 6,369
Depreciation, depletion and amortization 1,569 207 2,118 822 205 1,372 – 995 7,288
Impairments and (gains) losses on sale
of businesses and fixed assets 112 (534) (413) (43) – (76) – – (954)
3,193 (54) 8,504 2,351 840 2,316 287 6,595 24,032
Profit before taxationd3,570 1,390 7,285 2,933 1,278 3,126 (287) 4,309 23,604
Allocable taxes 1,664 611 2,560 1,202 321 1,462 3 1,079 8,902
Results of operations 1,906 779 4,725 1,731 957 1,664 (290) 3,230 14,702
The group’s share of jointly controlled entities’ and associates’ results of operations (including the group’s share of total TNK-BP results) in 2007 was a
profit of $2,704 million after deducting interest of $401 million, taxation of $1,355 million and minority interest of $215 million.
Exploration and Production segment profit before interest and tax
Exploration and production activities
Group (as above) 3,570 1,390 7,285 2,933 1,278 3,126 (287) 4,309 23,604
Jointly controlled entities and
associates – – 1 381 21 – 2,292 9 2,704
Midstream activities 15 13 709 699 (108) 96 (112) 109 1,421
Total profit before interest and tax 3,585 1,403 7,995 4,013 1,191 3,222 1,893 4,427 27,729
aThis note contains information relating to oil and natural gas exploration and production activities. Midstream activities relating to the management and ownership of crude oil and natural gas
pipelines, processing and export terminals and LNG processing facilities and transportation are excluded. In addition, our midstream activities of marketing and trading of natural gas, power and
NGLs in the US, Canada, UK and Europe are excluded.The most significant midstream pipeline interests include theTrans-Alaska Pipeline System, the Forties Pipeline System, the Central Area
Transmission System pipeline and the Baku-Tbilisi-Ceyhan pipeline. Major LNG activities are located inTrinidad, Indonesia and Australia.The group’s share of jointly controlled entities’ and associates’
activities are excluded from the tables and included in the footnotes with the exception of the Abu Dhabi operations, which are included in the results of operations 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.
cIncludes property taxes, other government take and the fair value gain on embedded derivatives of $47 million. The UK region includes a $409 million gain offset by corresponding charges primarily in
the US, relating to the group self-insurance programme.
dExcludes the unwinding of the discount on provisions and payables amounting to $179 million which is included in finance costs in the group income statement.
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