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Businessreview
Business review
Contractual commitments
Thefollowingtablesummarizesthegroup’sprincipalcontractualobligationsat31December2010,distinguishingbetweenthoseforwhichaliabilityis
recognizedonthebalancesheetandthoseforwhichnoliabilityisrecognized.FurtherinformationonborrowingsandnanceleasesisgiveninFinancial
statements–Note35onpage197andmoreinformationonoperatingleasesisgiveninFinancialstatements–Note15onpage175.
$million
Paymentsduebyperiod
Expectedpaymentsbyperiodundercontractual 2016and
obligationsandcommercialcommitments Total 2011 2012 2013 2014 2015 thereafter
Balancesheetobligations
Borrowingsa 41,550 9,200 6,439 7,486 6,054 5,443 6,928
Financeleasefutureminimumleasepayments 1,126 153 377 56 51 51 438
DeepwaterHorizonOilSpillTrustfundingliability 15,008 5,008 5,000 5,000 – – –
Decommissioningliabilitiesb 14,876 461 453 370 362 413 12,817
Environmentalliabilitiesb 3,903 1,763 545 275 189 158 973
Pensionsandotherpost-retirementbenetsc 25,670 1,916 1,905 1,403 976 983 18,487
Totalbalancesheetobligations 102,133 18,501 14,719 14,590 7,632 7,048 39,643
Off-balancesheetobligations
Operatingleasesd 13,973 3,521 2,475 1,878 1,413 1,032 3,654
Unconditionalpurchaseobligationse 166,942 97,355 16,330 9,291 6,778 5,634 31,554
Totaloff-balancesheetobligations 180,915 100,876 18,805 11,169 8,191 6,666 35,208
Total 283,048 119,377 33,524 25,759 15,823 13,714 74,851
aE xpectedpaymentsincludeinterestpaymentsonborrowingstotalling$3,221million($888millionin2011,$679millionin2012,$520millionin2013,$362millionin2014,$225millionin2015and
$547millionthereafter),andexcludedisposaldepositsof$6,197millionincludedincurrentnancedebtonthebalancesheet.
bT
heamountsareundiscounted.EnvironmentalliabilitiesincludethoserelatingtotheGulfofMexicooilspill,includingliabilitiesforspillresponsecosts.
cRepresentstheexpectedfuturecontributionstofundedpensionplansandpaymentsbythegroupforunfundedpensionplansandtheexpectedfuturepaymentsforotherpost-retirementbenets.
dT hefutureminimumleasepaymentsarebeforedeductingrelatedrentalincomefromoperatingsub-leases.InthecaseofanoperatingleaseenteredintosolelybyBPastheoperatorofajointlycontrolled
asset,theamountsshowninthetablerepresentthenetfutureminimumleasepayments,afterdeductingamountsreimbursed,ortobereimbursed,byjointventurepartners.WhereBPisnottheoperator
ofajointlycontrolledassetBP’sshareofthefutureminimumleasepaymentsareincludedintheamountsshown,whetherBPhasco-signedtheleaseornot.Whereoperatingleasecostsareincurredin
relationtothehireofequipmentusedinconnectionwithacapitalproject,someorallofthecostmaybecapitalizedaspartofthecapitalcostoftheproject.
e
Representsanyagreementtopurchasegoodsorservicesthatisenforceableandlegallybindingandthatspeciesallsignicantterms.Theamountsshownincludearrangementstosecurelong-term
accesstosuppliesofcrudeoil,naturalgas,feedstocksandpipelinesystems.Inaddition,theamountsshownfor2011includepurchasecommitmentsexistingat31December2010enteredintoprincipally
tomeetthegroup’sshort-termmanufacturingandmarketingrequirements.Thepriceriskassociatedwiththesecrudeoil,naturalgasandpowercontractsisdiscussedinFinancialstatements–Note27on
page186.
Thefollowingtablesummarizesthenatureofthegroup’sunconditionalpurchaseobligations.
$million
Paymentsduebyperiod
2016and
Unconditionalpurchaseobligations Total 2011 2012 2013 2014 2015 thereafter
Crudeoilandoilproducts 101,671 70,572 7,058 3,582 2,207 1,934 16,318
Naturalgas 36,147 19,780 5,117 2,827 2,078 1,450 4,895
Chemicalsandotherreneryfeedstocks 8,912 2,055 1,278 923 888 858 2,910
Power 2,784 1,915 688 162 16 2 1
Utilities 925 156 154 111 98 89 317
Transportation 8,525 1,184 875 796 726 637 4,307
Useoffacilitiesandservices 7,978 1,693 1,160 890 765 664 2,806
Total 166,942 97,355 16,330 9,291 6,778 5,634 31,554
Thegroupexpectsitstotalcapitalexpenditure,excludingacquisitionsandassetexchanges,tobearound$20billionin2011.Thefollowingtable
summarizesthegroup’scapitalexpenditurecommitmentsforproperty,plantandequipmentat31December2010andtheproportionofthatexpenditure
forwhichcontractshavebeenplaced.Capitalexpenditureisconsideredtobecommittedwhentheprojecthasreceivedtheappropriatelevelofinternal
managementapproval.Forjointlycontrolledassets,thenetBPshareisincludedintheamountsshown.Whereoperatingleasecostsareincurredin
connectionwithacapitalproject,someorallofthecostmaybecapitalizedaspartofthecapitalcostoftheproject.Suchcostsareincludedinthe
amountsshown.
$million
2016and
Capitalexpenditurecommitments Total 2011 2012 2013 2014 2015 thereafter
Committedonmajorprojects 31,376 15,193 7,205 4,304 2,170 986 1,518
Amountsforwhichcontractshavebeenplaced 11,279 7,239 1,966 1,093 504 316 161
Inaddition,at31December2010,thegrouphadcommittedtocapitalexpenditurerelatingtoinvestmentsinequity-accountedentitiesamountingto
$1,033million.Contractswereinplacefor$517millionofthistotal.
BPAnnualReportandForm20-F2010 65