BP 2014 Annual Report Download - page 216

Contractual obligations
The following table summarizes the group’s capital expenditure commitments for property, plant and equipment at 31 December 2014 and the proportion of
that expenditure for which contracts have been placed.
$ million
Payments due by period
Capital expenditure Total 2015 2016 2017 2018 2019
2020 and
thereafter
Committed 39,708 18,009 9,591 5,445 3,483 2,265 915
of which is contracted 15,635 8,061 3,441 2,163 1,423 442 105
Capital expenditure is considered to be committed when the project has received the appropriate level of internal management approval. For joint
operations, the net BP share is included in the amounts above.
In addition, at 31 December 2014, the group had committed to capital expenditure relating to investments in equity-accounted entities amounting to
$2,068 million. Contracts were in place for $2,025 million of this total.
The following table summarizes the group’s principal contractual obligations at 31 December 2014, distinguishing between those for which a liability is
recognized on the balance sheet and those for which no liability is recognized. Further information on borrowings is given in Financial statements –
Note 24 and more information on operating leases is given in Financial statements – Note 26.
$ million
Payments due by period
Expected payments by period under contractual obligations Total 2015 2016 2017 2018 2019
2020 and
thereafter
Balance sheet obligations
Borrowingsa56,161 7,653 6,981 6,220 5,702 6,437 23,168
Finance lease future minimum lease paymentsb1,722 116 106 104 102 98 1,196
Decommissioning liabilitiesc21,591 1,076 896 689 813 733 17,384
Environmental liabilitiesc2,908 935 349 603 208 178 635
Pensions and other post-retirement benefitsd27,282 1,880 1,871 1,864 1,858 2,099 17,710
109,664 11,660 10,203 9,480 8,683 9,545 60,093
Off-balance sheet obligations
Operating lease future minimum lease paymentse18,785 5,401 4,047 2,682 1,857 1,330 3,468
Unconditional purchase obligationsf166,250 69,805 19,164 12,193 10,703 9,442 44,943
185,035 75,206 23,211 14,875 12,560 10,772 48,411
Total 294,699 86,866 33,414 24,355 21,243 20,317 108,504
aExpected payments include interest totalling $4,090 million ($822 million in 2015, $711 million in 2016, $610 million in 2017, $519 million in 2018, $424 million in 2019 and $1,004 million thereafter).
bExpected payments include interest totalling $939 million ($70 million in 2015, $65 million in 2016, $62 million in 2017, $59 million in 2018, $55 million in 2019 and $628 million thereafter).
cThe amounts are undiscounted. Environmental liabilities include those relating to the Gulf of Mexico oil spill.
dRepresents the expected future contributions to funded pension plans and payments by the group for unfunded pension plans and the expected future payments for other post-retirement benefits.
eThe future minimum lease payments are before deducting related rental income from operating sub-leases. In the case of an operating lease entered into solely by BP as the operator of a joint
operation, the amounts shown in the table represent the net future minimum lease payments, after deducting amounts reimbursed, or to be reimbursed, by joint operation partners. Where BP is not
the operator of a joint operation, BP’s share of the future minimum lease payments are included in the amounts shown, whether BP has co-signed the lease or not. Where operating lease costs are
incurred in relation to the hire of equipment used in connection with a capital project, some or all of the cost may be capitalized as part of the capital cost of the project.
fRepresents any agreement to purchase goods or services that is enforceable and legally binding and that specifies all significant terms (such as fixed or minimum purchase volumes, timing of purchase
and pricing provisions). Agreements that do not specify all significant terms, or that are not enforceable, are excluded. The amounts shown include arrangements to secure long-term access to supplies
of crude oil, natural gas, feedstocks and pipeline systems. In addition, the amounts shown for 2015 include purchase commitments existing at 31 December 2014 entered into principally to meet the
group’s short-term manufacturing and marketing requirements. The price risk associated with these crude oil, natural gas and power contracts is discussed in Financial statements – Note 27.
The following table summarizes the nature of the group’s unconditional purchase obligations.
$ million
Payments due by period
Unconditional purchase obligations Total 2015 2016 2017 2018 2019
2020 and
thereafter
Crude oil and oil products 78,063 43,714 9,723 5,418 4,725 3,530 10,953
Natural gas 29,982 17,741 4,245 2,552 2,090 1,604 1,750
Chemicals and other refinery feedstocks 12,836 3,097 2,508 2,145 2,192 2,228 666
Power 3,610 2,425 759 262 74 28 62
Utilities 731 219 167 108 97 50 90
Transportation 21,799 1,423 1,013 1,062 1,064 926 16,311
Use of facilities and services 19,229 1,186 749 646 461 1,076 15,111
Total 166,250 69,805 19,164 12,193 10,703 9,442 44,943
The information above contains forward-looking statements, which by their nature involve risk and uncertainty because they relate to events and
depend on circumstances that will or may occur in the future and are outside the control of BP. You are urged to read the cautionary statement on
page 241 and Risk factors on page 48, which describe the risks and uncertainties that may cause actual results and developments to differ materially
from those expressed or implied by these forward-looking statements.
212 BP Annual Report and Form 20-F 2014