BP 2011 Annual Report Download - page 280

278 BP Annual Report and Form 20-F 2011
Supplementary information on oil and natural gas (unaudited)
Standardized measure of discounted future net cash flows and changes therein relating to proved oil
and gas reserves continued
$ million
2010
Europe North
America
South
America
Africa Asia Australasia Total
UK
Rest of
Europe US
Rest of
North
America Russia
Rest of
Asia
At 31 December 2010
Subsidiaries
Future cash inflowsa73,100 25,800 264,800 200 29,300 70,800 –52,500 42,300 558,800
Future production costb25,700 9,800 111,400 200 6,800 14,000 –13,400 12,800 194,100
Future development costb7,400 2,500 24,300 –6,100 14,600 –9,900 3,100 67,900
Future taxationc19,900 8,100 41,900 –8,200 14,100 –7,000 6,200 105,400
Future net cash flows 20,100 5,400 87,200 –8,200 28,100 –22,200 20,200 191,400
10% annual discountd9,800 2,300 45,500 –3,300 11,900 –8,200 10,300 91,300
Standardized measure of discounted
future net cash flowse10,300 3,100 41,700 –4,900 16,200 –14,000 9,900 100,100
Equity-accounted entities (BP share)f
Future cash inflowsa–––9,700 45,500 –110,500 31,000 –196,700
Future production costb–––4,500 19,200 –80,900 26,500 –131,100
Future development costb–––2,000 4,300 –11,000 2,800 –20,100
Future taxationc–––800 7,500 –3,900 200 –12,400
Future net cash flows –––2,400 14,500 –14,700 1,500 –33,100
10% annual discountd–––2,400 8,700 –6,100 700 –17,900
Standardized measure of discounted
future net cash flowsg h – – – – 5,800 –8,600 800 –15,200
Total subsidiaries and equity-accounted entities
Standardized measure of discounted
future net cash flowsj10,300 3,100 41,700 –10,700 16,200 8,600 14,800 9,900 115,300
The following are the principal sources of change in the standardized measure of discounted future net cash flows:
$ million
Subsidiaries
Equity-accounted
entities (BP share)
Total subsidiaries and
equity-accounted
entities
Sales and transfers of oil and gas produced, net of production costs (26,600) (4,900) (31,500)
Development costs for the current year as estimated in previous year 10,400 2,000 12,400
Extensions, discoveries and improved recovery, less related costs 9,600 1,600 11,200
Net changes in prices and production cost 52,800 1,900 54,700
Revisions of previous reserves estimates (9,200) 200 (9,000)
Net change in taxation (13,400) (300) (13,700)
Future development costs (4,300) (1,400) (5,700)
Net change in purchase and sales of reserves-in-place (1,500) –(1,500)
Addition of 10% annual discount 7,500 1,500 9,000
Total change in the standardized measure during the yeari25,300 600 25,900
a The marker prices used were Brent $79.02/bbl, Henry Hub $4.37/mmBtu.
b Production costs, which include production taxes, and development costs relating to future production of proved reserves are based on the continuation of existing economic conditions. Future
decommissioning costs are included.
c Taxation is computed using appropriate year-end statutory corporate income tax rates.
d Future net cash flows from oil and natural gas production are discounted at 10% regardless of the group assessment of the risk associated with its producing activities.
e Minority interest in BP Trinidad and Tobago LLC amounted to $1,200 million.
f The standardized measure of discounted future net cash flows of equity-accounted entities includes standardized measure of discounted future net cash flows of equity-accounted investments of
those entities.
g Minority interest in TNK-BP amounted to $600 million.
h No equity-accounted future cash flows in Africa because proved reserves are received as a result of contractual arrangements, with no associated costs.
i Total change in the standardized measure during the year includes the effect of exchange rate movements.
j Includes future net cash flows for assets held for sale at 31 December 2010.