BP 2010 Annual Report Download - page 235

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Supplementaryinformationonoilandnaturalgas(unaudited)
Financial statements
Supplementaryinformationonoilandnaturalgas(unaudited)continued
Oil and natural gas exploration and production activities continued
 $million
     2008
Europe North South Africa Asia Australasia  Total
  America America    
    Restof     
  Restof  North    Restof 
 UK Europe US America   Russia Asia 
Subsidiariesa
Capitalizedcostsat31Decemberb
Grosscapitalizedcosts
 Provedproperties 34,614 5,507 59,918 3,517 7,934 21,563 – 10,689 2,581 146,323
 Unprovedproperties 626 – 5,006 165 134 2,011 – 465 1,018 9,425
    35,240 5,507 64,924 3,682 8,068 23,574 – 11,154 3,599 155,748
Accumulateddepreciation 26,564 3,125 28,511 2,141 4,217 10,451 – 4,395 945 80,349
Netcapitalizedcosts 8,676 2,382 36,413 1,541 3,851 13,123 – 6,759 2,654 75,399

Thegroup’sshareofequity-accountedentities’netcapitalizedcostsat31December2008was$13,393million.

Costsincurredfortheyearended31Decemberb
Acquisitionofpropertiesc
 Proved – – 1,374 2 – – – 136 – 1,512
 Unproved 4 – 2,942 – – – – 41 – 2,987
    4 – 4,316 2 – – – 177 – 4,499
Explorationandappraisalcostsd 137 – 862 33 90 838 12 269 49 2,290
Development 907 695 4,914 309 768 2,966 – 859 349 11,767
Totalcosts 1,048 695 10,092 344 858 3,804 12 1,305 398 18,556
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Thegroup’sshareofequity-accountedentities’costsincurredin2008was$3,259million:inRussia$1,921million,SouthAmerica$1,039million,and
RestofAsia$299million.

Resultsofoperationsfortheyearended31December
Salesandotheroperatingrevenuese
 Thirdparties 3,865 105 1,526 147 3,339 3,745 – 1,186 860 14,773
 Salesbetweenbusinesses 4,374 1,416 22,094 1,237 2,605 6,022 – 11,249 1,171 50,168
    8,239 1,521 23,620 1,384 5,944 9,767 – 12,435 2,031 64,941
Explorationexpenditure 121 1 305 32 30 213 14 140 26 882
Productioncosts 1,357 150 3,002 289 429 875 18 485 62 6,667
Productiontaxes 503 – 2,603 2 358 – – 5,510 110 9,086
Othercosts(income)f (28) (43) 3,440 343 198 (122) 196 2,064 226 6,274
Depreciation,depletionandamortization 1,049 199 2,729 181 730 2,120 – 788 87 7,883
Impairmentsandlosseson
 saleofbusinessesandxedassets – – 308 2 4 8 – 219 – 541
    3,002 307 12,387 849 1,749 3,094 228 9,206 511 31,333
Prot(loss)beforetaxationg 5,237 1,214 11,233 535 4,195 6,673 (228) 3,229 1,520 33,608
Allocabletaxes 2,280 883 3,857 205 2,218 2,672 (36) 984 513 13,576
Resultsofoperations 2,957 331 7,376 330 1,977 4,001 (192) 2,245 1,007 20,032

Thegroup’sshareofequity-accountedentities’resultsofoperations(includingthegroup’sshareoftotalTNK-BPresults)in2008wasaprotof
$2,793millionafterdeductinginterestof$355million,taxationof$1,217millionandminorityinterestof$169million.

ExplorationandProductionsegmentreplacementcostprotbeforeinterestandtax
Explorationandproductionactivities
 Subsidiaries(asabove) 5,237 1,214 11,233 535 4,195 6,673 (228) 3,229 1,520 33,608
 Equity-accountedentities (1) – 1 40 304 (1) 2,259 191 – 2,793
Midstreamactivitieshi 743 16 490 673 274 112 – (272) (129) 1,907
Totalreplacementcostprot
 beforeinterestandtax 5,979 1,230 11,724 1,248 4,773 6,784 2,031 3,148 1,391 38,308

aT

hesetablescontaininformationrelatingtooilandnaturalgasexplorationandproductionactivities.Midstreamactivitiesrelatingtothemanagementandownershipofcrudeoilandnaturalgaspipelines,
processingandexportterminalsandLNGprocessingfacilitiesandtransportationareexcluded.Inaddition,ourmidstreamactivitiesofmarketingandtradingofnaturalgas,powerandNGLsintheUS,Canada,
UKandEuropeareexcluded.ThemostsignicantmidstreampipelineinterestsincludetheTrans-AlaskaPipelineSystem,theFortiesPipelineSystem,theCentralAreaTransmissionSystempipeline,theSouth
CaucasusPipelineandtheBaku-Tbilisi-Ceyhanpipeline.MajorLNGactivitiesarelocatedinTrinidad,IndonesiaandAustraliaandBPisalsoinvestingintheLNGbusinessinAngola.Thegroup’sshareofequity-
accountedentities’activitiesareexcludedfromthetablesandincludedinthefootnotes,withtheexceptionofAbuDhabiproductiontaxes,whichareincludedintheresultsofoperationsabove.
b
Decommissioning
assetsareincludedincapitalizedcostsat31Decemberbutareexcludedfromcostsincurredfortheyear.
c
Includescostscapitalizedasaresultofassetexchanges.
d
Includesexplorationandappraisaldrillingexpenditures,whicharecapitalizedwithinintangibleassets,andgeologicalandgeophysicalexplorationcosts,whicharechargedtoincomeasincurred.
e
Presentednetoftransportationcosts,purchasesandsalestaxes.SalesbetweenbusinessesandthirdpartysaleshavebeenamendedintheUSwithoutneteffecttototalsales.
f
Includespropertytaxes,othergovernmenttakeandthefairvaluelossonembeddedderivativesof$102million.TheUKregionincludesa$499milliongainoffsetbycorrespondingchargesprimarilyinthe
US,relatingtothegroupself-insuranceprogramme.
g
Ex
cludestheunwindingofthediscountonprovisionsandpayablesamountingto$285millionwhichisincludedinnancecostsinthegroupincomestatement.
h
Includesa$517millionwrite-downofourinvestmentinRosneftbasedonitsquotedmarketpriceattheendoftheyear.
i
Midstreamactivitiesexcludeinventoryholdinggainsandlosses.
BPAnnualReportandForm20-F2010 233