BP 2012 Annual Report Download - page 270

Oil and natural gas exploration and production activities 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
Subsidiariesa
Capitalized costs at 31 Decemberbj
Gross capitalized costs
Proved properties 36,161 7,846 67,724 278 6,047 27,014 – 11,497 3,088 159,655
Unproved properties 787 179 5,968 1,363 220 2,694 – 1,113 1,149 13,473
36,948 8,025 73,692 1,641 6,267 29,708 – 12,610 4,237 173,128
Accumulated depreciation 27,688 3,515 33,972 216 3,282 13,893 – 4,569 1,205 88,340
Net capitalized costs 9,260 4,510 39,720 1,425 2,985 15,815 – 8,041 3,032 84,788
Costs incurred for the year ended 31 Decemberbj
Acquisition of propertiesc
Proved – – 655 1 – – – 1,121 – 1,777
Unproved – 519 1,599 1,200 – – – 151 – 3,469
– 519 2,254 1,201 – – – 1,272 – 5,246
Exploration and appraisal costsd401 13 1,096 78 68 607 7 316 120 2,706
Development 726 816 3,034 251 414 3,003 – 1,244 187 9,675
Total costs 1,127 1,348 6,384 1,530 482 3,610 7 2,832 307 17,627
Results of operations for the year ended 31 December
Sales and other operating revenuese
Third parties 1,472 58 1,148 90 1,896 3,158 – 1,272 1,398 10,492
Sales between businesses 3,405 1,134 18,819 453 1,574 4,353 – 6,697 929 37,364
4,877 1,192 19,967 543 3,470 7,511 – 7,969 2,327 47,856
Exploration expenditure 82 (2) 465 25 9 189 7 51 17 843
Production costs 1,018 152 2,867 240 445 938 9 365 124 6,158
Production taxes 52 – 1,093 2 249 – – 3,764 109 5,269
Other costs (income)f(316) 76 3,502 129 209 130 76 90 195 4,091
Depreciation, depletion and
amortization 897 209 3,477 95 575 1,771 – 829 168 8,021
Impairments and (gains) losses on
sale of businesses and fixed assets (1) – (1,441) (2,190) (3) (427) 341k– – (3,721)
1,732 435 9,963 (1,699) 1,484 2,601 433 5,099 613 20,661
Profit (loss) before taxationg3,145 757 10,004 2,242 1,986 4,910 (433) 2,870 1,714 27,195
Allocable taxes 1,333 530 3,504 610 1,084 1,771 (23) 813 410 10,032
Results of operations 1,812 227 6,500 1,632 902 3,139 (410) 2,057 1,304 17,163
Upstream segment and TNK-BP segment replacement cost profit before interest and tax
Exploration and production activities –
subsidiaries (as above) 3,145 757 10,004 2,242 1,986 4,910 (433) 2,870 1,714 27,195
Midstream activities – subsidiariesh23 42 (347) 3 49 (26) 4 (23) (13) (288)
Equity-accounted entitiesi– 4 27 171 614 63 2,613 487 – 3,979
Total replacement cost profit before
interest and tax 3,168 803 9,684 2,416 2,649 4,947 2,184 3,334 1,701 30,886
aThese tables contain information relating to oil and natural gas exploration and production activities of subsidiaries. They do not include any costs relating to the Gulf of Mexico oil spill. Midstream
activities relating to the management and ownership of crude oil and natural gas pipelines, processing and export terminals and LNG processing facilities and transportation are excluded. In addition, our
midstream activities of marketing and trading of natural gas, power and NGLs in the US, Canada, UK and Europe are excluded. The most significant midstream pipeline interests include the Trans-Alaska
Pipeline System, the Forties Pipeline System, the Central Area Transmission System pipeline, the South Caucasus Pipeline and the Baku-Tbilisi-Ceyhan pipeline. Major LNG activities are located in
Trinidad, Indonesia and Australia and BP is also investing in the LNG business in Angola.
bDecommissioning assets are included in capitalized costs at 31 December but are excluded from costs incurred for the year.
cIncludes costs capitalized as a result of asset exchanges.
dIncludes exploration and appraisal drilling expenditures, which are capitalized within intangible assets, and geological and geophysical exploration costs, which are charged to income as incurred.
ePresented net of transportation costs, purchases and sales taxes.
fIncludes property taxes, other government take and the fair value loss on embedded derivatives of $309 million. The UK region includes a $822 million gain offset by corresponding charges primarily in
the US, relating to the group self-insurance programme.
gExcludes the unwinding of the discount on provisions and payables amounting to $313 million which is included in finance costs in the group income statement.
hMidstream activities exclude inventory holding gains and losses.
iThe profits of equity-accounted entities are included after interest and tax.
jExcludes balances associated with assets held for sale.
kThis amount represents the write-down of our investment in Sakhalin. A portion of these costs was previously reported within capitalized costs of equity-accounted entities with the remainder previously
reported as a loan, which was not included in the disclosures of oil and natural gas exploration and production activities.
268 Supplementary information on oil and natural gas (unaudited)
BP Annual Report and Form 20-F 2012