BP 2010 Annual Report Download - page 178
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Please find page 178 of the 2010 BP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Notesonnancialstatements
16.Explorationforandevaluationofoilandnaturalgasresources
Thefollowingnancialinformationrepresentstheamountsincludedwithinthegrouptotalsrelatingtoactivityassociatedwiththeexplorationforand
evaluationofoilandnaturalgasresources.AllsuchactivityisrecordedwithintheExplorationandProductionsegment.
$million
2010 2009 2008
Explorationandevaluationcosts
Explorationexpenditurewrittenoffa 375 593 385
Otherexplorationcosts 468 523 497
Explorationexpensefortheyearb 843 1,116 882
Intangibleassets–explorationandappraisalexpenditure 13,126 10,388 9,031
Netassets 13,126 10,388 9,031
Capitalexpenditure 6,422 2,715 4,780
Netcashusedinoperatingactivities 468 523 497
Netcashusedininvestingactivities 6,428 3,306 4,163
a 2010includes$157millionrelatedtodecommissioningprovisionsforidleinfrastructure,asrequiredbyBOEMRE’sNoticeofLessees2010GO5issuedinOctober2010.
b
Inadditiontotheseamounts,animpairmentchargeof$210millionwasrecognizedin2008relatingtoexplorationassetsinVietnamfollowingBP’sdecisiontowithdrawfromactivitiesintheareaconcerned.
17.Auditor’sremuneration
$million
Fees–Ernst&Young 2010 2009 2008
Feespayabletothecompany’sauditorsfortheauditofthecompany’saccountsa 13 13 16
Feespayabletothecompany’sauditorsanditsassociatesforotherservices
Auditofthecompany’ssubsidiariespursuanttolegislation 22 22 28
Otherservicespursuanttolegislation 12 11 13
47 46 57
Taxservices 2 1 2
Servicesrelatingtocorporatenancetransactions 1 – 2
Allotherservices 4 6 5
AuditfeesinrespectoftheBPpensionplans 1 1 1
55 54 67
a
FeesinrespectoftheauditoftheaccountsofBPp.l.c.includingthegroup’sconsolidatednancialstatements.
2010includes$1millionofadditionalfeesfor2009and2008includes$3millionofadditionalfeesfor2007.Auditors’remunerationisincludedinthe
incomestatementwithindistributionandadministrationexpenses.
Thetaxservicesrelatetoincometaxandindirecttaxcompliance,employeetaxservicesandtaxadvisoryservices.
15.Operatingleasescontinued
Thegroupentersintooperatingleasesofships,plantandmachinery,commercialvehiclesandlandandbuildings.Typicaldurationsoftheleasesareasfollows:
Years
Ships upto15
Plantandmachinery upto10
Commercialvehicles upto15
Landandbuildings upto40
Thegrouphasenteredintoanumberofstructuredoperatingleasesforshipsandinmostcasestheleaserentalpaymentsvarywithmarketinterestrates.
Thevariableportionoftheleasepaymentsaboveorbelowtheamountbasedonthemarketinterestrateprevailingatinceptionoftheleaseistreatedas
contingentrentalexpense.Thegroupalsoroutinelyentersintobareboatcharters,time-chartersandspot-chartersforshipsonstandardindustryterms.
ThemostsignicantitemsofplantandmachineryhiredunderoperatingleasesaredrillingrigsusedintheExplorationandProductionsegment.
At31December2010thefutureminimumleasepaymentsrelatingtodrillingrigsamountedto$4,515million(2009$4,919million).Insomecases,drilling
rigleaserentalratesareadjustedperiodicallytomarketratesthatareinuencedbyoilpricesandmaybesignicantlydifferentfromtheratesatthe
inceptionofthelease.Differencesbetweentheratepaidandrateatinceptionoftheleasearetreatedascontingentrentalexpense.
Commercialvehicleshiredunderoperatingleasesareprimarilyrailcars.Retailservicestationsitesandofceaccommodationarethemainitemsin
thelandandbuildingscategory.
Thetermsandconditionsoftheseoperatingleasesdonotimposeanysignicantnancialrestrictionsonthegroup.Someoftheleasesofships
andbuildingsallowforrenewalsatBP’soption.
176BPAnnualReportandForm20-F2010