BP 2012 Annual Report Download - page 203

5. Disposals and impairment
The following amounts were recognized in the income statement in respect of disposals and impairments:
$ million
2012 2011 2010
Gains on sale of businesses and fixed assets
Upstream 6,504 3,477 5,267
Downstream 151 317 999
Other businesses and corporate 41 336 117
6,696 4,130 6,383
$ million
2012 2011 2010
Losses on sale of businesses and fixed assets
Upstream 109 49 196
Downstream 195 52 119
Other businesses and corporate 636
310 104 321
Impairment losses
Upstream 3,046 1,443 1,259
Downstream 2,892 599 144
Other businesses and corporate 320 58 113
6,258 2,100 1,516
Impairment reversals
Upstream (289) (146) –
Downstream (1) – (141)
Other businesses and corporate (3) – (7)
(293) (146) (148)
Impairment and losses on sale of businesses and fixed assets 6,275 2,058 1,689
Disposals
As part of the response to the consequences of the Gulf of Mexico oil spill in 2010, the group announced plans to deliver up to $38 billion of disposal
proceeds by the end of 2013. At 31 December 2012, BP had announced disposals of $38 billion, excluding the sale of our 50% investment in TNK-BP.
See Note 4 for further information relating to assets held for sale at 31 December 2012.
$ million
2012 2011 2010
Proceeds from disposals of fixed assets 9,991 3,500 7,492
Proceeds from disposals of businesses, net of cash disposed 1,455 (768) 9,462
11,446 2,732 16,954
By business
Upstream 10,667 1,080 14,392
Downstream 485 721 1,840
Other businesses and corporate 294 931 722
11,446 2,732 16,954
Proceeds from disposals for 2012 include a deposit of $632 million received from a counterparty in respect of the disposal of interests in a number of
central North Sea oil and gas fields. During 2012, a $30 million disposal deposit held at 31 December 2011 was returned as the sale did not complete.
Proceeds from disposals for 2010 included deposits of $6,197 million received from counterparties in respect of disposal transactions in the Upstream
segment not completed at 31 December 2010. This included a deposit of $3,530 million received in advance of the expected sale of our interest in Pan
American Energy LLC. The repayment of the same amount following the termination of the sale agreement is included in proceeds from disposals for
2011. For further information on disposal transactions not yet completed see Note 4.
Deferred consideration relating to disposals of businesses and fixed assets at 31 December 2012 amounted to $24 million receivable within one year
(2011 $117 million and 2010 $562 million) and $90 million receivable after one year (2011 $111 million and 2010 $271 million).
Upstream
In 2012, the major disposal transactions were the sale of our interests in the Marlin, Horn Mountain, Holstein, Ram Powell and Diana Hoover fields in
the Gulf of Mexico to Plains Exploration and Production Company, the sale of our interests in the Hugoton and Jayhawk gas production and processing
assets in Kansas, and our interest in the Jonah and Pinedale upstream operations in Wyoming, to LINN Energy, LLC, and the sale of our interests in our
Canadian natural gas liquids (NGL) business to Plains Midstream Canada ULC. In addition, we sold a number of interests in the North Sea, including the
disposal of our Southern Gas Assets to Perenco UK Ltd. All these transactions resulted in gains on disposal.
In 2011, the major disposal transactions were the sale of our interests in Colombia to Ecopetrol and Talisman, the sale of our upstream and midstream
assets in Vietnam and our investments in equity-accounted entities in Venezuela to TNK-BP, and the sale of our assets in Pakistan to United Energy
Group. In addition, we completed the disposal of half of the 3.29% interest in the Azeri-Chirag-Gunashli development in Azerbaijan to SOCAR and a
number of interests in the Gulf of Mexico to Marubeni Group. All these transactions resulted in gains on disposal.
In 2010, the major transactions were the sale of Permian Basin assets in the US, upstream gas assets in Canada and exploration concessions in Egypt
to Apache Corporation. In addition, we sold 50% of our interests in Kirby oil sands in Canada to Devon Energy as part of a business combination
described in Note 3. All these transactions resulted in gains on disposal.
Financial statements 201
BP Annual Report and Form 20-F 2012
Financial statements