BP 2007 Annual Report Download - page 171

BP ANNUAL REPORT AND ACCOUNTS 2007 169
a
47 Oil and natural gas exploration and production activities
$ million
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2007
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Rest of Rest of Asia
UK Europe US Americas Pacific Africa Russia Other Total
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Capitalized costs at 31 December
Gross capitalized costs
Proved properties 34,774 4,925 53,079 10,627 3,528 18,333 – 7,596 132,862
Unproved properties 606 – 1,660 297 1,188 1,533 4 349 5,637
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35,380 4,925 54,739 10,924 4,716 19,866 4 7,945 138,499
Accumulated depreciation 25,515 2,925 25,500 5,528 1,508 8,315 – 2,553 71,844
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Net capitalized costs 9,865 2,000 29,239 5,396 3,208 11,551 4 5,392 66,655
The group’s share of jointly controlled entities’ and associates’ net capitalized costs at 31 December 2007 was $11,787 million.
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Costs incurred for the year ended 31 December
Acquisition of properties
Proved ––245––––232
Unproved – – 54 16 – 321 – 126 517
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– – 299 16 – 321 – 358 994
Exploration and appraisal costsb209 16 646 72 51 677 119 102 1,892
Development costs 804 443 3,861 1,057 333 2,634 – 1,021 10,153
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Total costs 1,013 459 4,806 1,145 384 3,632 119 1,481 13,039
The group’s share of jointly controlled entities’ and associates’ costs incurred in 2007 was $2,552 million: in Russia $1,787 million, Rest of Americas
$569 million, Asia Pacific $17 million and other $179 million.
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Results of operations for the year ended 31 December
Sales and other operating revenues
Third parties 4,503 434 1,436 2,142 1,148 2,219 – 921 12,803
Sales between businesses 2,260 902 14,353 3,142 970 3,223 – 9,983 34,833
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6,763 1,336 15,789 5,284 2,118 5,442 – 10,904 47,636
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Exploration expenditure 46 – 252 134 11 183 116 14 756
Production costs 1,658 147 2,782 770 190 637 2 344 6,530
Production taxes 227 3 1,260 273 56 – – 2,224 4,043
Other costs (income) (419) 123 2,505 395 378 200 169 3,018 6,369
Depreciation, depletion and amortization 1,569 207 2,118 822 205 1,372 – 995 7,288
Impairments and (gains) losses on sale of
businesses and fixed assets 112 (534) (413) (43) – (76) – – (954)
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3,193 (54) 8,504 2,351 840 2,316 287 6,595 24,032
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Profit before taxationc,d 3,570 1,390 7,285 2,933 1,278 3,126 (287) 4,309 23,604
Allocable taxes 1,664 611 2,560 1,202 321 1,462 3 1,079 8,902
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Results of operations 1,906 779 4,725 1,731 957 1,664 (290) 3,230 14,702
The group’s share of jointly controlled entities’ and associates’ results of operations (including the group’s share of total TNK-BP results) in 2007wasa
profit of $2,704 million after deducting interest of $401 million, taxation of $1,355 million and minority interest of $215 million.
aThis note contains 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. The most significant midstream pipeline
interests include the Trans-Alaska Pipeline System, the Forties Pipeline System, the Central Area Transmission System pipeline and the Baku-Tbilisi-Ceyhan pipeline. Major
LNG activities are located in Trinidad, Indonesia and Australia. The group’s share of jointly controlled entities’ and associates’ acitivies are excluded from the tables and
included in the footnotes with the exception of the Abu Dhabi operations, which are included in the results of operations above.
bIncludes exploration and appraisal drilling expenditures, which are capitalized within intangible fixed assets, and geological and geophysical exploration costs, which are
charged to income as incurred.
cIncludes property taxes, other government take and the fair value gain on embedded derivatives of $47 million. The UK Region includes a $409 million gain offset by
corresponding charges primarily in the US, relating to the group self-insurance programme.
dThe Exploration and Production profit before interest and tax is set out below.
$ million
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2007
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Exploration and production activities
Group (as above) 3,570 1,390 7,285 2,933 1,278 3,126 (287) 4,309 23,604
Jointly controlled entities and associates – – 1 381 21 – 2,292 9 2,704
Mid-stream activities 123 (7) 472 42 6 (10) (112) 116 630
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Total profit before interest and tax 3,693 1,383 7,758 3,356 1,305 3,116 1,893 4,434 26,938
477