BP 2015 Annual Report Download - page 233

Estimated net proved reserves of natural gas at 31 December 2015
ab
billion cubic feet
Developed Undeveloped Total
UK 348 343 691
Rest of Europe 274 14 288
US 6,257 2,105 8,363
Rest of North America – – –
South America 2,071 5,989 8,060
Africa 847 2,305 3,152
Rest of Asia 1,803 3,455 5,257
Australasia 3,408 1,343 4,751
Subsidiaries 15,009 15,553 30,563g
Equity-accounted entities 6,856 6,778 13,634h
Total 21,865 22,331 44,197
Estimated net proved reserves on an oil equivalent basis
million barrels of oil equivalent
Developed Undeveloped Total
Subsidiaries 5,041 4,211 9,252
Equity-accounted entities 4,452 3,476 7,928
Total 9,493 7,687 17,180
aProved reserves exclude royalties due to others, whether payable in cash or in kind, where the
royalty owner has a direct interest in the underlying production and the option and ability to make
lifting and sales arrangements independently, and include non-controlling interests in
consolidated operations. We disclose our share of reserves held in joint ventures and associates
that are accounted for by the equity method although we do not control these entities or the
assets held by such entities.
bThe 2015 marker prices used were Brent*$54.17/bbl (2014 $101.27/bbl and 2013 $108.02/bbl)
and Henry Hub*$2.59/mmBtu (2014 $4.31/mmBtu and 2013 $3.66/mmBtu).
cIncludes condensate and bitumen which are not material.
dProved reserves in the Prudhoe Bay field in Alaska include an estimated 23 million barrels on
which a net profits royalty will be payable over the life of the field under the terms of the BP
Prudhoe Bay Royalty Trust.
eIncludes 19 million barrels of liquids in respect of the 30% non-controlling interest in BP Trinidad
and Tobago LLC.
fIncludes 70 million barrels of crude oil in respect of the 1.27% non-controlling interest in Rosneft
held assets in Russia including 28 million barrels held through BP’s equity-accounted interest in
Taas-Yuryakh Neftegazodobycha.
gIncludes 2,359 billion cubic feet of natural gas in respect of the 30% non-controlling interest in
BP Trinidad and Tobago LLC.
hIncludes 129 billion cubic feet of natural gas in respect of the 0.23% non-controlling interest in
Rosneft held assets in Russia including 5 billion cubic feet held through BP’s equity-accounted
interest in Taas-Yuryakh Neftegazodobycha.
Because of rounding, some totals may not agree exactly with the sum
of their component parts.
Proved reserves replacement
Total hydrocarbon proved reserves at 31 December 2015, on an oil
equivalent basis including equity-accounted entities, decreased by 2%
(decrease of 5% for subsidiaries and increase of 1% for equity-accounted
entities) compared with 31 December 2014. Natural gas represented
about 44% (57% for subsidiaries and 30% for equity-accounted entities)
of these reserves. The change includes a net increase from acquisitions
and disposals of 130mmboe (103mmboe within our subsidiaries and
28mmboe within our equity-accounted entities). Acquisition activity in our
subsidiaries occurred in Egypt, Trinidad, the US and the UK, and
divestment activity in our subsidiaries in Egypt, Trinidad, the US and the
UK. In our equity-accounted entities the most significant item was a
purchase in Russia.
The proved reserves replacement ratio is the extent to which production
is replaced by proved reserves additions. This ratio is expressed in oil
equivalent terms and includes changes resulting from revisions to
previous estimates, improved recovery, and extensions and discoveries.
For 2015, the proved reserves replacement ratio excluding acquisitions
and disposals was 61% (63% in 2014 and 129% in 2013) for subsidiaries
and equity-accounted entities, 28% for subsidiaries alone and 115% for
equity-accounted entities alone. The ratio reflects lower reserves
bookings as a result of a low number of final investment decisions adding
new projects and reduced activity in Alaska and the US Lower 48. Lower
prices impacted the reserves in a number of regions, but these were
largely offset by increases in reserves in our PSAs. In some cases, cost
recovery in PSAs may be limited by production or revenue caps.
In 2015 net additions to the group’s proved reserves (excluding
production and sales and purchases of reserves-in-place) amounted to
751mmboe (212mmboe for subsidiaries and 539mmboe for
equity-accounted entities), through revisions to previous estimates,
improved recovery from, and extensions to, existing fields and
discoveries of new fields. The subsidiary additions through improved
recovery from, and extensions to, existing fields and discoveries of new
fields were in existing developments where they represented a mixture
of proved developed and proved undeveloped reserves. Volumes added
in 2015 principally resulted from the application of conventional
technologies and increases in PSA entitlement as a result of lower prices.
The principal proved reserves additions in our subsidiaries were in
Angola, Azerbaijan, Canada, Egypt and Iraq. We had material reductions
in our proved reserves in the US principally due to activity reduction and
lower price. The principal reserves additions in our equity-accounted
entities were in Argentina and Russia.
Sixteen per cent of our proved reserves are associated with PSAs. The
countries in which we operated under PSAs in 2015 were Algeria,
Angola, Azerbaijan, Egypt, India, Indonesia, Oman and a non-material
volume of our proved reserves in Trinidad. In addition, the technical
service contract (TSC) governing our investment in the Rumaila field in
Iraq functions as a PSA.
Our Abu Dhabi offshore and Virginia Indonesia Company LLC (Western
Indonesia) conventional concessions are due to expire in 2018. The group
holds no other licences due to expire within the next three years that
would have a significant impact on BP’s reserves or production.
For further information on our reserves see page 176.
Additional disclosures
*Defined on page 256. BP Annual Report and Form 20-F 2015 229