BP 2012 Annual Report Download - page 285

$ million
2011
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 2011
Subsidiaries
Future cash inflowsa97,900 36,400 332,900 100 39,100 82,100 – 59,200 53,900 701,600
Future production costb30,500 10,900 140,700 100 10,500 16,800 – 16,000 15,600 241,100
Future development costb8,500 2,700 32,300 – 7,600 13,200 – 9,600 3,200 77,100
Future taxationc37,100 15,200 57,000 – 11,400 19,800 – 8,100 9,000 157,600
Future net cash flows 21,800 7,600 102,900 – 9,600 32,300 – 25,500 26,100 225,800
10% annual discountd11,200 3,100 55,500 – 4,100 12,500 – 9,800 13,500 109,700
Standardized measure of discounted
future net cash flowse10,600 4,500 47,400 – 5,500 19,800 – 15,700 12,600 116,100
Equity-accounted entities (BP share)f
Future cash inflowsa– – – 9,100 46,700 – 188,900 34,200 – 278,900
Future production costb– – – 3,100 21,500 – 123,800 30,100 – 178,500
Future development costb– – – 1,900 5,000 – 15,600 2,400 – 24,900
Future taxationc– – – 900 5,900 – 9,600 200 – 16,600
Future net cash flows – – – 3,200 14,300 – 39,900 1,500 – 58,900
10% annual discountd– – – 2,800 8,700 – 19,000 600 – 31,100
Standardized measure of discounted
future net cash flowsgh – – – 400 5,600 – 20,900 900 – 27,800
Total subsidiaries and equity-accounted entities
Standardized measure of discounted
future net cash flows 10,600 4,500 47,400 400 11,100 19,800 20,900 16,600 12,600 143,900
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 (30,900) (5,700) (36,600)
Development costs for the current year as estimated in previous year 12,800 2,900 15,700
Extensions, discoveries and improved recovery, less related costs 6,600 2,800 9,400
Net changes in prices and production cost 75,000 15,800 90,800
Revisions of previous reserves estimates (22,000) 2,100 (19,900)
Net change in taxation (18,200) (1,400) (19,600)
Future development costs (10,800) (2,700) (13,500)
Net change in purchase and sales of reserves-in-place (6,500) (2,700) (9,200)
Addition of 10% annual discount 10,000 1,500 11,500
Total change in the standardized measure during the yeari16,000 12,600 28,600
aThe marker prices used were Brent $110.96/bbl, Henry Hub $4.12/mmBtu.
bProduction 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.
cTaxation is computed using appropriate year-end statutory corporate income tax rates.
dFuture 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.
eMinority interest in BP Trinidad and Tobago LLC amounted to $1,600 million.
fThe 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.
gMinority interest in TNK-BP amounted to $1,600 million in Russia.
hNo equity-accounted future cash flows in Africa because proved reserves are received as a result of contractual arrangements, with no associated costs.
iTotal change in the standardized measure during the year includes the effect of exchange rate movements.
Supplementary information on oil and natural gas (unaudited) 283
BP Annual Report and Form 20-F 2012
Financial statements
Standardized measure of discounted future net cash flows and changes therein relating to proved oil and gas reserves continued