BP 2008 Annual Report Download - page 61

BP Annual Report and Accounts 2008
Performance review
$ million
Guarantees expiring by period
2014 and
Total 2009 2010 2011 2012 2013 thereafter
Guarantees issued in respect ofa
Liabilities and borrowings of jointly controlled entities
and associates 223 70 32 25 6 6 84
Liabilities and borrowings of other third parties 613 94 19 30 35 34 401
aOf the amounts shown in the table, $215 million of the jointly controlled entities and associates guarantees relate to guarantees of borrowings and for other third party guarantees, $582 million relates to
guarantees of borrowings.
Contractual commitments
The following table summarizes the group’s principal contractual obligations at 31 December 2008. Further information on borrowings and finance
leases is given in Financial statements – Note 35 on page 155 and more information on operating leases is given in Financial statements – Note 16
on page 132.
$ million
Payments due by period
Expected payments by period under contractual 2014 and
obligations and commercial commitments Total 2009 2010 2011 2012 2013 thereafter
Borrowingsa35,192 16,554 5,817 3,303 2,577 5,014 1,927
Finance lease future minimum lease payments 916 116 117 116 70 58 439
Operating leasesb18,795 4,135 3,215 2,340 1,897 1,688 5,520
Decommissioning liabilities 12,347 348 361 211 157 197 11,073
Environmental liabilities 1,797 422 380 204 177 129 485
Pensions and other post-retirement benefitsc26,288 1,105 1,352 1,346 1,346 1,342 19,797
Purchase obligationsd115,642 64,479 13,317 6,559 5,100 4,531 21,656
Total 210,977 87,159 24,559 14,079 11,324 12,959 60,897
aExpected payments include interest payments on borrowings totalling $2,607 million ($907 million in 2009, $608 million in 2010, $421 million in 2011, $318 million in 2012, $236 million in 2013 and
$117 million thereafter).
bThe future minimum lease payments are before deducting related rental income from operating sub-leases. Where an operating lease is entered into solely by the group as the operator of a jointly
controlled asset, the total cost is included irrespective of any amounts that will be reimbursed by joint venture partners. 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.
cRepresents 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.
dRepresents any agreement to purchase goods or services that is enforceable and legally binding and that specifies all significant terms. 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 2009 include purchase commitments existing at 31 December 2008 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 28 on page 142.
The following table summarizes the nature of the group’s unconditional purchase obligations.
$ million
Payments due by period
2014 and
Purchase obligations Total 2009 2010 2011 2012 2013 thereafter
Crude oil and oil products 42,261 31,308 2,972 970 1,203 953 4,855
Natural gas 43,242 22,949 5,982 2,844 1,837 1,619 8,011
Chemicals and other refinery feedstocks 12,223 3,010 1,724 1,295 837 847 4,510
Power 6,156 4,910 1,168 60 16 2 –
Utilities 690 111 101 86 83 57 252
Transportation 3,820 759 464 416 341 314 1,526
Use of facilities and services 7,250 1,432 906 888 783 739 2,502
Total 115,642 64,479 13,317 6,559 5,100 4,531 21,656
The group expects its total capital expenditure, excluding acquisitions and asset exchanges to be around $20-21 billion in 2009. The following table
summarizes the group’s capital expenditure commitments for property, plant and equipment at 31 December 2008 and the proportion of that
expenditure for which contracts have been placed. Capital expenditure is considered to be committed when the project has received the appropriate
level of internal management approval. For jointly controlled assets, the net BP share is included in the amounts shown. Where operating lease costs
are incurred in connection with a capital project, some or all of the cost may be capitalized as part of the capital cost of the project. Such costs are
included in the amounts shown.
$ million
2014 and
Capital expenditure commitments Total 2009 2010 2011 2012 2013 thereafter
Committed on major projects 35,845 14,936 8,154 5,175 3,136 1,580 2,864
Amounts for which contracts have been placed 14,062 8,175 2,908 1,197 621 402 759
In addition, at 31 December 2008, the group had committed to capital expenditure relating to investments in equity-accounted entities amounting to
$1.2 billion. Contracts were in place for $0.8 billion of this total.
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