BP 2010 Annual Report Download - page 165

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Notesonnancialstatements
Financial statements
4.Non-currentassetsheldforsale
Asaresultofthegroup’sdisposalprogrammefollowingtheGulfofMexicooilspill,variousassets,andassociatedliabilities,havebeenpresentedasheld
forsaleinthegroupbalancesheetat31December2010.Thecarryingamountoftheassetsheldforsaleis$7,128million,withassociatedliabilitiesof
$1,047million.Includedwithintheseamountsarethefollowingitems,allofwhichrelatetotheExplorationandProductionsegment.
InJuly2010,BPannouncedthestartofactivemarketingofitsassetsinPakistanandVietnam.On14December2010,BPannouncedthatithad
reachedagreementtosellitsexplorationandproductionassetsinPakistantoUnitedEnergyGroupLimitedfor$775millionincash.Theseassets,and
associatedliabilities,havebeenclassiedasheldforsaleinthegroupbalancesheetat31December2010.Thesaleisexpectedtobecompletedinthe
rsthalfof2011,subjecttoclosingconditionsandgovernmentandregulatoryapprovals.
InVietnam,BPisseekingtodivestitsinterestsinoffshoregasproduction(Block06.1),areceivingterminalandassociatedpipelinesandapower
generationasset(PhuMy3).On18October2010,BPannouncedthatithadreachedagreementtoselltheassetsinVietnam,togetherwithitsupstream
businessesandassociatedinterestsinVenezuela,toTNK-BPfor$1.8billionincash,subjecttopost-closingadjustments.TheVenezuelanassetsinclude
BP’sinterestsinthePetroperijá,BoquerónandPetroMonagasjointventures.Theseassets,andassociatedliabilities,havebeenclassiedasheldforsalein
thegroupbalancesheetat31December2010.ThesalesoftheVietnamandVenezuelabusinessesareexpectedtobecompletedinthersthalfof2011,
subjecttoregulatoryandotherapprovalsandconditions.
On3August2010,BPannouncedanagreementtodisposeofitsoilandgasexploration,productionandtransportationbusinessinColombiatoa
consortiumofEcopetrol,Colombia’snationaloilcompany(51%),andTalismanofCanada(49%)for$1.9billionincash,subjecttopost-closingadjustments.
Theseassetsandassociatedliabilitieshavebeenclassiedasheldforsaleinthegroupbalancesheetat31December2010.Thesalecompletedon
24January2011.
On25October2010,BPannouncedthatithadreachedagreementtosellitsrecentlyacquiredinterestsinfourmatureproducingdeepwateroiland
gaseldsintheUSGulfofMexicotoMarubeniOilandGasfor$650millionincash,subjecttopost-closingadjustments.BPacquiredtheinterestsinthese
eldsfromDevonEnergyearlierin2010aspartofawideracquisitionofassetsintheGulfofMexico,BrazilandAzerbaijan.Theseassets,andassociated
liabilities,havebeenclassiedasheldforsaleinthegroupbalancesheetat31December2010.Thesalecompletedon20January2011.
On28November2010,BPannouncedthatithadreachedagreementtosellitsinterestsinPanAmericanEnergy(PAE)toBridasCorporationfor
$7.06billionincash.PAEisanArgentina-basedoilandgascompanyownedbyBP(60%)andBridasCorporation(40%).Thetransactionexcludesthe
sharesofPAEE&PBoliviaLtd.BP’sinvestmentinPAEhasbeenclassiedasheldforsaleinthegroupbalancesheetat31December2010.Thesaleis
expectedtobecompletedin2011,subjecttoclosingconditionsandgovernmentandregulatoryapprovals.
Impairmentlossesamountingto$192millionhavebeenrecognizedinrelationtocertainassetsreclassiedasheldforsale.SeeNote5for
furtherinformation.
Non-currentassetsclassiedasheldforsalearenotdepreciated.Itisestimatedthatthebenetarisingfromtheabsenceofdepreciationforthe
assetsnotedaboveamountedtoapproximately$162millionin2010.Similarly,equityaccountingceasesforanyequity-methodinvestmentupon
reclassicationasanassetheldforsale.Itisestimatedthatprotsofapproximately$9millionwerenotrecognizedin2010asaresultofthe
discontinuanceofequityaccounting.
Disposalproceedsof$6,197millionreceivedinadvanceofcompletionofthesetransactionshavebeenclassiedasnancedebtonthegroup
balancesheetandofthis,$4,780millionhasbeensecuredontheassetsheldforsale.SeeNote35forfurtherinformation.
Themajorityofthetransactionsnotedabovearesubjecttopost-closingadjustments,whichmayincludeadjustmentsforworkingcapitaland
adjustmentsforprotsattributabletothepurchaserbetweentheagreedeffectivedateandtheclosingdateofthetransaction.Suchpost-closing
adjustmentsmayresultinthenalamountsreceivedbyBPfromthepurchasersdifferingfromthedisposalproceedsnotedabove.
Themajorclassesofassetsandliabilitiesreclassiedasheldforsaleasat31December2010areasfollows:
 $million
 2010
Assets 
 Property,plantandequipment        2,971
 Goodwill        87
 Intangibleassets        135
 Investmentsinjointlycontrolledentities        3,108
 Investmentsinassociates        333
Loans 12
Cash 34
 Othercurrentassets        448
Assetsclassiedasheldforsale        7,128
Liabilities
 Tradeandotherpayables        597
 Provisions        383
 Deferredtaxliabilities        67
Liabilitiesdirectlyassociatedwithassetsclassiedasheldforsale       1,047
 
Therewerenoaccumulatedforeignexchangegainsorlossesrecognizeddirectlyinequityrelatingtotheassetsheldforsaleat31December2010.
BPAnnualReportandForm20-F2010 163