BP 2014 Annual Report Download - page 172

Oil and natural gas exploration and production activities
$ million
2014
Europe North
America
South
America
Africa Asia Australasia Total
UK
Rest of
Europe US
Rest of
North
America Russia
Rest of
Asia
Subsidiariesa
Capitalized costs at 31 Decemberb
Gross capitalized costs
Proved properties 31,496 10,578 76,476 3,205 9,796 39,020 – 24,177 5,061 199,809
Unproved properties 395 165 6,294 2,454 2,984 5,769 – 2,773 888 21,722
31,891 10,743 82,770 5,659 12,780 44,789 – 26,950 5,949 221,531
Accumulated depreciation 21,068 6,610 39,383 190 5,482 25,105 – 13,501 2,215 113,554
Net capitalized costs 10,823 4,133 43,387 5,469 7,298 19,684 – 13,449 3,734 107,977
Costs incurred for the year ended 31 Decemberb
Acquisition of properties
Proved 42 – 6 – – – – 557 – 605
Unproved – – 346 – 75 57 – – – 478
42 – 352 – 75 57 557 – 1,083
Exploration and appraisal costsc279 16 888 109 325 899 – 194 201 2,911
Development 2,067 293 4,792 706 983 2,881 – 3,205 169 15,096
Total costs 2,388 309 6,032 815 1,383 3,837 – 3,956 370 19,090
Results of operations for the year ended 31 December
Sales and other operating revenuesd
Third parties 529 77 1,218 4 2,802 2,536 – 1,135 1,891 10,192
Sales between businesses 1,069 1,662 14,894 15 450 6,289 – 6,951 631 31,961
1,598 1,739 16,112 19 3,252 8,825 – 8,086 2,522 42,153
Exploration expenditure 94 47 1,294 63 502 860 – 712 60 3,632
Production costs 979 436 3,492 34 783 1,542 – 1,289 232 8,787
Production taxes (234) – 690 – 175 – – 2,234 93 2,958
Other costs (income)e(1,515) 77 3,260 55 284 120 57 (69) 306 2,575
Depreciation, depletion and amortization 506 676 3,805 4 678 3,343 – 2,461 255 11,728
Impairments and (gains) losses on sale
of businesses and fixed assets 2,537 2,278 (28) – 11 1,128 – 391 – 6,317
2,367 3,514 12,513 156 2,433 6,993 57 7,018 946 35,997
Profit (loss) before taxationf(769) (1,775) 3,599 (137) 819 1,832 (57) 1,068 1,576 6,156
Allocable taxes (1,383) (1,108) 1,269 15 865 1,216 3 67 599 1,543
Results of operations 614 (667) 2,330 (152) (46) 616 (60) 1,001 977 4,613
Upstream and Rosneft segments replacement cost profit before interest and tax
Exploration and production activities –
subsidiaries (as above) (769) (1,775) 3,599 (137) 819 1,832 (57) 1,068 1,576 6,156
Midstream activities – subsidiariesg163 99 703 130 175 (170) (26) (63) 653 1,664
Equity-accounted entitiesh– 62 23 – 480 (33) 2,125 557 – 3,214
Total replacement cost profit before
interest and tax (606) (1,614) 4,325 (7) 1,474 1,629 2,042 1,562 2,229 11,034
aThese tables contain information relating to oil and natural gas exploration and production activities of subsidiaries, which includes our share of oil and natural gas exploration and production activities of
joint operations. They do not include any costs relating to the Gulf of Mexico oil spill. 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 significant 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, Australia and Angola.
bDecommissioning assets are included in capitalized costs at 31 December but are excluded from costs incurred for the year.
cIncludes exploration and appraisal drilling expenditures, which are capitalized within intangible assets, and geological and geophysical exploration costs, which are charged to income as incurred.
dPresented net of transportation costs, purchases and sales taxes.
eIncludes property taxes, other government take and the fair value gain on embedded derivatives of $430 million. The UK region includes a $1,016 million gain offset by corresponding charges primarily
in the US, relating to the group self-insurance programme.
fExcludes the unwinding of the discount on provisions and payables amounting to $207 million which is included in finance costs in the group income statement.
gMidstream and other activities excludes inventory holding gains and losses.
hThe profits of equity-accounted entities are included after interest and tax.
168 BP Annual Report and Form 20-F 2014