BP 2013 Annual Report Download - page 209

Oil and natural gas exploration and production activities – continued
$ million
2011
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 37,491 8,994 73,626 1,296 7,471 29,358 – 14,833 3,370 176,439
Unproved properties 368 180 6,198 2,017 2,986 3,689 – 4,495 1,279 21,212
37,859 9,174 79,824 3,313 10,457 33,047 – 19,328 4,649 197,651
Accumulated depreciation 26,953 3,715 36,009 139 3,839 14,595 – 6,235 1,294 92,779
Net capitalized costs 10,906 5,459 43,815 3,174 6,618 18,452 – 13,093 3,355 104,872
Costs incurred for the year ended 31 Decemberbj
Acquisition of propertiesck
Proved – – 1,178 8 237 – – 1,733 – 3,156
Unproved – 1 418 – 2,592 679 – 3,008 – 6,698
– 1 1,596 8 2,829 679 – 4,741 – 9,854
Exploration and appraisal costsd211 1 566 132 271 490 6 511 225 2,413
Development 1,361 889 3,016 227 405 2,933 – 1,340 251 10,422
Total costs 1,572 891 5,178 367 3,505 4,102 6 6,592 476 22,689
Results of operations for the year ended 31 December
Sales and other operating revenuese
Third parties 1,997 – 751 25 2,263 3,353 – 1,450 1,611 11,450
Sales between businesses 3,495 1,273 19,089 20 1,409 4,858 – 10,811 967 41,922
5,492 1,273 19,840 45 3,672 8,211 – 12,261 2,578 53,372
Exploration expenditure 37 1 1,065 9 35 163 6 134 70 1,520
Production costs 1,372 230 3,402 66 503 1,146 4 787 194 7,704
Production taxes 72 – 1,854 – 278 – – 5,956 147 8,307
Other costs (income)f(1,357) 101 4,688 62 935 215 72 118 257 5,091
Depreciation, depletion and
amortization 874 199 2,980 6 523 1,668 – 1,692 172 8,114
Impairments and (gains) losses on sale
of businesses and fixed assets 26 (64) (492) 15 (1,085) 18 (1) (537) – (2,120)
1,024 467 13,497 158 1,189 3,210 81 8,150 840 28,616
Profit (loss) before taxationg4,468 806 6,343 (113) 2,483 5,001 (81) 4,111 1,738 24,756
Allocable taxes 2,483 384 2,152 (159) 1,205 2,184 (21) 1,001 677 9,906
Results of operations 1,985 422 4,191 46 1,278 2,817 (60) 3,110 1,061 14,850
Upstream segment and TNK-BP segment replacement cost profit before interest and tax
Exploration and production activities –
subsidiaries (as above) 4,468 806 6,343 (113) 2,483 5,001 (81) 4,111 1,738 24,756
Midstream activities – subsidiariesh(118) 29 (157) 299 78 (4) (1) 42 284 452
Equity-accounted entitiesi– 12 10 – 525 69 4,095 573 – 5,284
Total replacement cost profit before
interest and tax 4,350 847 6,196 186 3,086 5,066 4,013 4,726 2,022 30,492
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 gain on embedded derivatives of $191 million. The UK region includes a $1,442 million gain offset by corresponding charges primarily
in the US, relating to the group self-insurance programme. The South America region includes a charge of $700 million associated with the termination of the agreement to sell our 60% interest in Pan
American Energy LLC to Bridas Corporation.
gExcludes the unwinding of the discount on provisions and payables amounting to $267 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.
kExcludes goodwill associated with business combinations.
Financial statements
BP Annual Report and Form 20-F 2013 205