BP 2008 Annual Report Download - page 119

BP Annual Report and Accounts 2008
Notes on financial statements
5. Disposals
$ million
2008 2007 2006
Proceeds from the sale of Innovene operations – – (34)
Proceeds from the sale of other businesses 11 2,518 325
Proceeds from the sale of businesses 11 2,518 291
Proceeds from disposal of fixed assets 918 1,749 5,963
929 4,267 6,254
By business
Exploration and Production 19 1,280 4,302
Refining and Marketing 813 2,953 1,784
Other businesses and corporate 97 34 168
929 4,267 6,254
As part of the strategy to upgrade the quality of its asset portfolio, the group has an active programme to dispose of non-strategic assets. In the
normal course of business in any particular year, the group may sell interests in exploration and production properties, service stations and pipeline
interests as well as non-core businesses. The group may also dispose of other assets, such as refineries, when this meets strategic objectives.
Cash received during the year from disposals amounted to $929 million (2007 $4.3 billion and 2006 $6.3 billion).
The major transactions in 2008 were the disposal of our Toledo refinery to an entity which we jointly control in the US and our continued
disposal of company-owned and company-operated retail sites in the US.
The major transactions in 2007 were the disposals of our Coryton refinery, our exploration and production and gas infrastructure business
in the Netherlands, our interest in non-core Permian assets in the US and our interest in the Entrada field in the Gulf of Mexico.
The major transactions in 2006 were the disposals of our interests in the Gulf of Mexico Shelf and our interest in the Shenzi discovery in the
Gulf of Mexico. The principal transactions for each business segment are described below.
Exploration and Production
The group divested interests in a number of oil and natural gas properties in all three years. There were no significant disposals in 2008.
During 2007, the major transactions were the disposal of an exploration and production and gas infrastructure business in the Netherlands and
the divestments of our interests in non-core Permian assets in the US and in the Entrada field in the Gulf of Mexico. We also sold our interests in a
number of fields in Egypt, Canada and the US.
During 2006, the major transactions were disposals of our interests in the Gulf of Mexico Shelf, in the Shenzi discovery in the Gulf of Mexico,
in the Statfjord oil and gas field and in the Luva gas field in the North Sea. We also divested our interests in a number of onshore fields in South
Louisiana, interests in fields in the North Sea, the Gulf of Suez and Venezuela, part of an interest in Colombia and our shareholding in Enagas, the
Spanish gas transport grid operator.
Refining and Marketing
The churn of retail assets represents a significant element of the total in all three years and in particular, in 2008, our continued disposal of sites in the
US. In addition, in 2008 we contributed our Toledo refinery to a US jointly controlled entity in an exchange transaction with Husky Energy and disposed
of our interest in the Dixie Pipeline in the US, certain assets at our Acetyls plant in Hull, UK, and other interests in the UK and Europe.
During 2007, we disposed of the Coryton refinery in the UK, our interest in the West Texas Pipeline in the US, our interest in the Samsung
Petrochemical Company in South Korea and other interests in France, Brazil and Africa.
During 2006, we disposed of our interests in Zhenhai Refining and Chemicals Company in China and in Eiffage, the French-based construction
company. We also exited the retail market in the Czech Republic and disposed of our interests in a number of pipelines.
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