BP 2014 Annual Report Download - page 121

3. Disposals and impairment
The following amounts were recognized in the income statement in respect of disposals and impairments.
$ million
2014 2013 2012
Gains on sale of businesses and fixed assets
Upstream 405 371 6,504
Downstream 474 214 152
TNK-BP –12,500 –
Other businesses and corporate 16 30 41
895 13,115 6,697
$ million
2014 2013 2012
Losses on sale of businesses and fixed assets
Upstream 345 144 109
Downstream 401 78 195
Other businesses and corporate 386
749 230 310
Impairment losses
Upstream 6,737 1,255 3,046
Downstream 1,264 484 2,892
Other businesses and corporate 317 218 320
8,318 1,957 6,258
Impairment reversals
Upstream (102) (226) (289)
Downstream –– (1)
Other businesses and corporate –– (3)
(102) (226) (293)
Impairment and losses on sale of businesses and fixed assets 8,965 1,961 6,275
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. By 31 December 2012, the group had announced disposals of $38 billion, and in addition, announced the sale of our 50%
investment in TNK-BP. During 2013, the group announced that it expected to divest a further $10 billion of assets before the end of 2015. BP had
agreed around $4.7 billion of such further divestments and received proceeds of $3.6 billion as at 31 December 2014.
$ million
2014 2013 2012
Proceeds from disposals of fixed assets 1,820 18,115 9,992
Proceeds from disposals of businesses, net of cash disposed 1,671 3,884 1,606
3,491 21,999 11,598
By business
Upstream 2,533 1,288 10,667
Downstream 864 3,991 637
TNK-BP –16,646 –
Other businesses and corporate 94 74 294
3,491 21,999 11,598
At 31 December 2014, deferred consideration relating to disposals amounted to $1,137 million receivable within one year (2013 $23 million and 2012
$24 million) and $333 million receivable after one year (2013 $1,374 million and 2012 $1,433 million). In addition, contingent consideration relating to
the disposals of the Devenick field and the Texas City refinery amounted to $454 million at 31 December 2014 (2013 $953 million) – see Notes 16 and
28 for further information.
Upstream
In 2014, gains principally resulted from the sale of certain onshore assets in the US, and the sale of certain interests in the Gulf of Mexico and the
North Sea. Losses principally arose from adjustments to prior year disposals in Canada and the North Sea.
In 2013, gains principally resulted from the sale of certain of our interests in the central North Sea, and the Yacheng field in China.
In 2012, gains principally resulted from the sale of certain interests in the Gulf of Mexico and certain onshore assets in the US, the sale of our interests
in our Canadian natural gas liquids business, and the sale of a number of interests in the North Sea.
Downstream
In 2014, gains principally resulted from the disposal of our global aviation turbine oils business. Losses principally arose from costs associated with the
decision to cease refining operations at Bulwer Island in Australia.
Financial statements
BP Annual Report and Form 20-F 2014 117