BP 2013 Annual Report Download - page 168

17. Investments in joint ventures – continued
Transactions between the group and its joint ventures are summarized below.
$ million
Sales to joint ventures 2013 2012 2011
Product Sales
Amount
receivable at
31 December Sales
Amount
receivable at
31 December Sales
Amount
receivable at
31 December
LNG, crude oil and oil products, natural gas, employee services 4,125 342 4,272 379 3,196 423
$ million
Purchases from joint ventures 2013 2012 2011
Product Purchases
Amount
payable at
31 December Purchases
Amount
payable at
31 December Purchases
Amount
payable at
31 December
LNG, crude oil and oil products, natural gas, refinery operating
costs, plant processing fees 503 51 1,107 116 1,165 62
The terms of the outstanding balances receivable from joint ventures are typically 30 to 45 days. The balances are unsecured and will be settled in
cash. There are no significant provisions for doubtful debts relating to these balances and no significant expense recognized in the income statementin
respect of bad or doubtful debts. Dividends receivable are not included in the table above.
BP has commitments amounting to $21 million (2012 $53 million) in relation to contracts with joint ventures for the purchase of LNG, crude oil and oil
products, refinery operating costs and storage and handling services. See Note 36 for further information on capital commitments relating to BP’s
investments in joint ventures.
18. Investments in associates
The following table provides aggregated financial information for the group’s associates as it relates to the amounts recognized in the group income
statement and on the group balance sheet.
$ million
Earnings from associates –
after interest and tax
Investments
in associates
2013 2012 2011 2013 2012 2011
Rosneft 2,058 ––13,681 ––
TNK-BP –2,986 4,185 –– 10,013
Other associates 684 689 731 2,955 2,998 3,278
2,742 3,675 4,916 16,636 2,998 13,291
The associate that is material to the group at 31 December 2013 is Rosneft (2012 TNK-BP). In 2013, BP concluded transactions to sell its 50% interest
in TNK-BP to Rosneft and to increase BP’s investment in Rosneft. BP and Rosneft announced heads of terms for this transaction on 22 October 2012,
after which our investment in TNK-BP was classified as an asset held for sale and therefore equity accounting ceased. See below and Note 6 for
further information. Other significant associates of the BP group at 31 December 2013 are shown in Note 38.
At 31 December 2013, and since the transaction described in Note 6 concluded on 21 March 2013, BP owned 19.75% of the voting shares of OJSC
Oil Company Rosneft (Rosneft), a Russian oil and gas company. Rosneft shares are listed on the MICEX stock exchange in Moscow and its global
depository receipts are listed on the London Stock Exchange. The Russian federal government, through its investment company OJSC Rosneftegaz,
owned 69.5% of the voting shares of Rosneft at 31 December 2013.
BP uses the equity method of accounting for its investment in Rosneft because in management’s judgement BP has significant influence over Rosneft,
see Note 1 – Interests in other entities – significant estimate or judgement for further information.
164 BP Annual Report and Form 20-F 2013