BP 2013 Annual Report Download - page 32

BP Annual Report and Form 20-F 201328
Braemar (BP 52%) and Devenick (BP 88.7%) fields in the North Sea to
TAQA Bratani Ltd for $1,058 million plus future payments which,
depending on oil price and production, are currently expected to exceed
$180 million after tax; and the sale of our interests in the Yacheng (BP
34.3%) field in China for $308 million, both of which are subject to
post-closing adjustments. More information on disposals is provided in
Upstream analysis by region on page 239 and Financial statements –
Note 5.
Exploration
The group explores for oil and natural gas under a wide range of licensing,
joint arrangement and other contractual agreements. We may do this alone
or, more frequently, with partners. BP acts as operator for many of these
ventures.
New access in 2013
We gained access to new potential resources covering more than
43,000km2 in seven countries (Canada, Brazil, Greenland, Norway, Egypt,
the UK and China). In addition, we entered into three farm-out agreements
with Kosmos Energy, covering around 25,000km2 over three blocks
offshore Morocco, one of which is still subject to government approval.
During the year we participated in seven potentially commercial discoveries
including the following that we announced: two off the east coast of India
on blocks KG D6 and CYD5; one in Egypt with the Salamat well in the East
Nile Delta; one in the pre-salt play of Angola with the Lontra well in Block
20, operated by Cobalt International Energy, Inc.; one in the Paleogene play
in the Gulf of Mexico with the Gila prospect; and one in Brazil on block
BM-POT-17 in the Potiguar basin, operated by Petrobras.
Exploration and appraisal costs
Exploration and appraisal costs, excluding lease acquisitions, were $4,811
million (2012 $4,356 million, 2011 $2,413 million). These costs included
exploration and appraisal drilling expenditures, which were capitalized within
intangible fixed assets, and geological and geophysical exploration costs,
which were charged to income as incurred. Approximately 47% of exploration
and appraisal costs were directed towards appraisal activity. We participated in
140 gross (41 net) exploration and appraisal wells in 11 countries.
Exploration expense
Total exploration expense of $3,441 million (2012 $1,475 million, 2011
$1,520 million) included the write-off of expenses related to unsuccessful
drilling activities in Brazil ($388 million), the UK North Sea ($262 million),
Angola ($232 million), the Gulf of Mexico ($210 million), Jordan ($121
million) and others ($91 million). It also included an $845-million write-off
associated with the value ascribed to block BM-CAL-13 offshore Brazil as
part of the accounting for the acquisition of upstream assets from Devon
Energy in 2011 and a $257-million write-off for costs relating to the Risha
concession in Jordan. In addition, exploration expense included an
$88-million credit related to a reduction in provisions for the
decommissioning of idle infrastructure, which is required by the Bureau of
Ocean Energy Management Regulation and Enforcement’s Notice of
Lessees 2010 G05 issued in October 2010.
Upstream reserves
2013 2012 2011
Estimated net proved reserves
(net of royalties)
Liquidsa million barrels
Subsidiariesb 4,349 4,672 5,331
Equity-accounted entitiesc 745 838 929
5,094 5,510 6,260
Natural gas billion cubic feet
Subsidiariesd 34,187 33,264 36,381
Equity-accounted entitiesc 2,517 2,549 2,397
36,704 35,813 38,778
Total hydrocarbons million barrels of oil equivalent
Subsidiaries 10,243 10,408 11,604
Equity-accounted entitiesc1,179 1,277 1,342
11,422 11,685 12,946
Major projects portfolio
North Sea
Egypt
Azerbaijan
ACG future development
Chirag oil
Shah Deniz Stage 2
East Nile Delta low
pressure hub
West Nile Delta
Satis
Salamat
Gulf of Mexico
Canada Alaska
Started up in/on track for 2014 start-up.
In progress for 2015 and beyond.
Brazil
Itaipu
Trinidad & Tobago
Middle East
Oman Khazzan
Angola
North Africa
India
KG D6 R series
Indonesia
Australia
KG D6 satellites
KG D6 D55
Norway
Snadd
Started up in 2013.
Key
Tangguh expansion
Sanga Sanga CBM
Browse
North Rankin Phase 2
Persephone
Western Flank Phase A
Western Flank Phase B
Angola LNG
B18 PCC
B31 SE
CLOV
Greater Plutonio Phase 3
Kizomba satellites Phase 2
Zinia Phase 2
Clair Ridge
Greater Clair
Kinnoull
Quad 204
Pike Phase 1
Sunrise Phase 1
Sunrise Phase 2
Terre de Grace
Alaska LNG
Liberty
Point Thomson
West end
development
Alaska viscous oil
Atlantis North expansion
Phase 1
Mad Dog Phase 2
Mars B
Na Kika Phase 3
Atlantis North expansion Phase 2
Thunder Horse South expansion
Kaskida
Tiber
Moccasin
In Amenas compression
In Salah gas southern fields
Bourarhat
Juniper
Manakin
Angelin
Cassia