BP 2009 Annual Report Download - page 19

BP Annual Report and Accounts 2009
Business review
Production and net proved oil and natural gas reserves
The following table shows our production for the past five years and the estimated net proved oil and natural gas reserves at the end of each of
those years.
Production and net proved reservesa
2009f2008 2007 2006 2005
Crude oil production for subsidiaries (thousand barrels per day) 1,400 1,263 1,304 1,351 1,423
Crude oil production for equity-accounted entities (thousand barrels per day) 1,135 1,138 1,110 1,124 1,139
Natural gas production for subsidiaries (million cubic feet per day) 7,450 7,277 7,222 7,412 7,512
Natural gas production for equity-accounted entities (million cubic feet per day) 1,035 1,057 921 1,005 912
Estimated net proved crude oil reserves for subsidiaries (million barrels)b5,658 5,665 5,492 5,893 6,360
Estimated net proved crude oil reserves for equity-accounted entities (million barrels)c4,853 4,688 4,581 3,888 3,205
Estimated net proved natural gas reserves for subsidiaries (billion cubic feet)d40,388 40,005 41,130 42,168 44,448
Estimated net proved natural gas reserves for equity-accounted entities
(billion cubic feet)e4,742 5,203 3,770 3,763 3,856
aCrude oil includes natural gas liquids (NGLs) and condensate. Production and proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct
interest in the underlying production and the option and ability to make lifting and sales arrangements independently, and include minority interests in consolidated operations.
bIncludes 23 million barrels (21 million barrels at 31 December 2008 and 20 million barrels at 31 December 2007) in respect of the 30% minority interest in BP Trinidad and Tobago LLC.
cIncludes 243 million barrels (216 million barrels at 31 December 2008 and 210 million barrels at 31 December 2007) in respect of the 6.86% minority interest in TNK-BP (6.80% at 31 December 2008 and
6.51% at 31 December 2007).
dIncludes 3,068 billion cubic feet of natural gas (3,108 billion cubic feet at 31 December 2008 and 3,211 billion cubic feet at 31 December 2007) in respect of the 30% minority interest in BP Trinidad and
Tobago LLC.
eIncludes 131 billion cubic feet (131 billion cubic feet at 31 December 2008 and 68 billion cubic feet at 31 December 2007) in respect of the 5.79% minority interest in TNK-BP (5.92% at 31 December
2008 and 5.88% at 31 December 2007).
fOn 31 December 2008, the SEC published a revision of Rule 4-10 (a) of Regulation S-X for the estimation of reserves. These revised rules form the basis of the 2009 year-end estimation of proved
reserves and the application of the technical aspects resulted in an immaterial increase of less than one per cent to BP’s total proved reserves.
Total net proved reserves 2009a b
(million barrels of oil equivalent)
10,511
Liquidsc
Natural gas
7,781
2009 was our 17th
consecutive year of
delivering reported
reserves replacement
of more than 100%.
aCombined basis of subsidiaries and equity-accounted entities, on a basis consistent with general
industry practice.
bOn 31 December 2008 the SEC published a revision of Rule 4-10 (a) of Regulation S-X for the
estimation of reserves. These revised rules form the basis of the 2009 year-end estimation of
proved reserves and the application of the technical aspects resulted in an immaterial increase of
less than 1% to BP‘s total proved reserves.
cCrude oil, condensate and natural gas liquids.
During 2009, 1,908 million barrels of oil and natural gas, on an oil
equivalentabasis (mmboe), were added, excluding purchases and sales,
to BP’s proved reserves (1,113mmboe for subsidiaries and 795mmboe
for equity-accounted entities). At 31 December 2009, BP’s proved
reserves were 18,292mmboe (12,621mmboe for subsidiaries and
5,671mmboe for equity-accounted entities). Our proved reserves in
subsidiaries are located in the US (45%), South America (15%),
Australasia (10%), Africa (10%) and the UK (9%). Our proved reserves in
equity-accounted entities are located in Russia (69%), South America
(21%), and Rest of Asia (9%).
aNatural gas is converted to oil equivalent at 5.8 billion cubic feet (bcf) = 1 million barrels.
Our total hydrocarbon production during 2009 averaged 3,998mboe/d
(2,684mboe/d for subsidiaries and 1,314mboe/d for equity-accounted
entities). This represents an increase of 4% (an increase of 6% for
liquids and an increase of 2% for gas) when compared with 2008.
In aggregate, after adjusting for entitlement impacts in our production-
sharing agreements (PSAs) and the effect of OPEC quota restrictions,
production was 5% higher than 2008. Our total hydrocarbon production
during 2008 averaged 3,838mboe/d (2,517mboe/d for subsidiaries and
1,321mboe/d for equity accounted-entities). This represented an
increase of 0.5% (a decrease of 0.5% for liquids and an increase of 2%
for gas) when compared with 2007. In aggregate, after adjusting for
entitlement impacts in our PSAs, 2008 production was 5% higher
than 2007.
Acquisitions and disposals
There were no significant acquisitions in 2009. Disposal proceeds in
2009 were $2,681 million, principally from the sale of our interests in BP
West Java Limited, Kazakhstan Pipeline Ventures LLC and LukArco, and
the sale of our ground fuels marketing business in Greece and retail
churn in the US, Europe and Australasia. Further proceeds from the
sale of LukArco are receivable in the next two years. See Financial
statements – Note 3 on page 124.
In 2008, we completed an asset exchange with Husky Energy
Inc., and asset purchases from Chesapeake Energy Corporation as
described on page 53.
In 2007, BP acquired Chevron’s Netherlands manufacturing
company, Texaco Raffiniderij Pernis B.V. The acquisition included
Chevron’s 31% minority shareholding in Nerefco and certain associated
assets. Disposal proceeds were $4,267 million, which included $1,903
million from the sale of the Coryton refinery and $605 million from the
sale of our exploration and production gas infrastructure business in
the Netherlands.
Business review
Business review – Group overview
17