BP 2007 Annual Report Download - page 173

BP ANNUAL REPORT AND ACCOUNTS 2007 171
a
47 Oil and natural gas exploration and production activities continued
$ million
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2005
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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 31,552 4,608 46,288 9,585 2,922 12,183 – 5,184 112,322
Unproved properties 276 135 1,547 583 1,124 656 185 155 4,661
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31,828 4,743 47,835 10,168 4,046 12,839 185 5,339 116,983
Accumulated depreciation 22,302 2,949 22,016 4,919 1,508 6,112 – 1,200 61,006
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Net capitalized costs 9,526 1,794 25,819 5,249 2,538 6,727 185 4,139 55,977
The group’s share of jointly controlled entities’ and associates’ net capitalized costs at 31 December 2005 was $10,670 million.
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Costs incurred for the year ended 31 December
Acquisition of properties
Proved ––––––––
Unproved ––2934––––
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––2934––––
Exploration and appraisal costsb51 7 606 133 11 264 126 68 1,266
Development costs 790 188 2,965 681 186 1,691 – 1,177 7,678
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Total costs 841 195 3,600 848 197 1,955 126 1,245 9,007
The group’s share of jointly controlled entities’ and associates’ costs incurred in 2005 was $1,205 million: in Russia $845 million and Rest of
Americas $360 million.
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Results of operations for the year ended 31 December
Sales and other operating revenues
Third parties 4,667 635 2,048 2,260 1,045 1,350 – 690 12,695
Sales between businesses 2,458 976 14,842 2,863 782 2,402 – 4,796 29,119
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7,125 1,611 16,890 5,123 1,827 3,752 – 5,486 41,814
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Exploration expenditure 32 1 426 84 6 81 37 17 684
Production costs 1,082 118 1,814 578 159 460 – 180 4,391
Production taxes 485 33 610 281 54 – – 1,536 2,999
Other costs (income)c1,857 (55) 2,200 537 170 98 8 2,042 6,857
Depreciation, depletion and amortization 1,548 220 2,288 675 162 542 – 193 5,628
Impairments and (gains) losses on sale of
businesses and fixed assets 44 (1,038) 232 (133) – – 2 – (893)
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5,048 (721) 7,570 2,022 551 1,181 47 3,968 19,666
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Profit before taxationd,e 2,077 2,332 9,320 3,101 1,276 2,571 (47) 1,518 22,148
Allocable taxes 405 880 3,377 1,390 447 1,043 (1) 409 7,950
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Results of operations 1,672 1,452 5,943 1,711 829 1,528 (46) 1,109 14,198
The group’s share of jointly controlled entities’ and associates’ results of operations (including the group’s share of total TNK-BP results) in 2005wasa
profit of $3,029 million after deducting interest of $226 million, taxation of $1,250 million and minority interest of $104 million.
aThis note contains information relating to oil and natural gas exploration and production activities. Midstream activities of natural gas gathering and distribution and the
operation of the main pipelines and tankers are excluded. The main midstream activities are the Alaskan transportation facilities, the Forties Pipeline system and the Central
Area Transmission System. The group’s share of jointly controlled entities’ and associates’ activities is excluded from the tables and included in the footnotes
with the exception of the Abu Dhabi operations, which are included in the income and expenditure items 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 the value of royalty oil sold on behalf of others where royalty is payable in cash, property taxes, other government take, the fair value loss on embedded
derivatives $1,688 million and a $265 million charge incurred on the cancellation of an intragroup gas supply contract. The UK region includes a $530 million charge offset by
corresponding gains primarily in the US, relating to the group’s self-insurance programme.
dExcludes accretion expense attributable to exploration and production activities amounting to $122 million. Under IFRS, accretion expense is included in other finance
expense in the group income statement.
eThe Exploration and Production profit before interest and tax is set out below.
$ million
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2005
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Exploration and production activities
Group (as above) 2,077 2,332 9,320 3,101 1,276 2,571 (47) 1,518 22,148
Jointly controlled entities and associates – – – 309 35 – 2,685 – 3,029
Mid-stream activities 52 (11) 172 148 (20) (39) (1) 24 325
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Total profit before interest and tax 2,129 2,321 9,492 3,558 1,291 2,532 2,637 1,542 25,502
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