BP 2010 Annual Report Download - page 231

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Supplementaryinformationonoilandnaturalgas(unaudited)
Financial statements
Supplementaryinformationonoilandnaturalgas(unaudited)continued
Oil and natural gas exploration and production activities
 $million
  2010
Europe North South Africa Asia Australasia Total
America America
Rest of
Rest of North Rest of
UK Europe US America Russia Asia
Subsidiariesa
Capitalizedcostsat31Decemberbj
Grosscapitalizedcosts
 Provedproperties 36,161 7,846 67,724 278 6,047 27,014 – 11,497 3,088 159,655
 Unprovedproperties 787 179 5,968 1,363 220 2,694 – 1,113 1,149 13,473
 36,948 8,025 73,692 1,641 6,267 29,708 – 12,610 4,237 173,128
Accumulateddepreciation 27,688 3,515 33,972 216 3,282 13,893 – 4,569 1,205 88,340
Netcapitalizedcosts 9,260 4,510 39,720 1,425 2,985 15,815 – 8,041 3,032 84,788

Costsincurredfortheyearended31Decemberbj
Acquisitionofpropertiesc
 Proved – – 655 1 – – – 1,121 – 1,777
 Unproved – 519 1,599 1,200 – – – 151 – 3,469
 – 519 2,254 1,201 – – – 1,272 – 5,246
Explorationandappraisalcostsd401 13 1,096 78 68 607 7 316 120 2,706
Development 726 816 3,034 251 414 3,003 – 1,244 187 9,675
Totalcosts 1,127 1,348 6,384 1,530 482 3,610 7 2,832 307 17,627

Resultsofoperationsfortheyearended31December
Salesandotheroperatingrevenuese
 Thirdparties 1,472 58 1,148 90 1,896 3,158 – 1,272 1,398 10,492
 Salesbetweenbusinesses 3,405 1,134 18,819 453 1,574 4,353 – 6,697 929 37,364
 4,877 1,192 19,967 543 3,470 7,511 – 7,969 2,327 47,856
Explorationexpenditure 82 (2) 465 25 9 189 7 51 17 843
Productioncosts 1,018 152 2,867 240 445 938 9 365 124 6,158
Productiontaxes 52 – 1,093 2 249 – – 3,764 109 5,269
Othercosts(income)f(316) 76 3,502 129 209 130 76 90 195 4,091
Depreciation,depletionandamortization 897 209 3,477 95 575 1,771 – 829 168 8,021
Impairmentsand(gains)lossesonsaleof
 businessesandxedassets (1) – (1,441) (2,190) (3) (427) 341k – – (3,721)
 1,732 435 9,963 (1,699) 1,484 2,601 433 5,099 613 20,661
Prot(loss)beforetaxationg3,145 757 10,004 2,242 1,986 4,910 (433) 2,870 1,714 27,195
Allocabletaxes 1,333 530 3,504 610 1,084 1,771 (23) 813 410 10,032
Resultsofoperations 1,812 227 6,500 1,632 902 3,139 (410) 2,057 1,304 17,163

ExplorationandProductionsegmentreplacementcostprotbeforeinterestandtax
Explorationandproductionactivities–
 subsidiaries(asabove) 3,145 757 10,004 2,242 1,986 4,910 (433) 2,870 1,714 27,195
Midstreamactivities–subsidiariesh23 42 (347) 3 49 (26) 4 (23) (13) (288)
Equity-accountedentitiesi– 4 27 171 614 63 2,613 487 – 3,979
Totalreplacementcostprot

 beforeinterestandtax 3,168 803 9,684 2,416 2,649 4,947 2,184 3,334 1,701 30,886
aT

 hesetablescontaininformationrelatingtooilandnaturalgasexplorationandproductionactivitiesofsubsidiaries.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signicant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andAustraliaandBPisalsoinvestingintheLNGbusinessinAngola.
b
Decommissioning
assetsareincludedincapitalizedcostsat31Decemberbutareexcludedfromcostsincurredfortheyear.
c
Includescostscapitalizedasaresultofassetexchanges.
d
Includesexplorationandappraisaldrillingexpenditures,whicharecapitalizedwithinintangibleassets,andgeologicalandgeophysicalexplorationcosts,whicharechargedtoincomeasincurred.
e
Presentednetoftransportationcosts,purchasesandsalestaxes.
fIncludespropertytaxes,othergovernmenttakeandthefairvaluelossonembeddedderivativesof$309million.TheUKregionincludesa$822milliongainoffsetbycorrespondingchargesprimarilyinthe
US,relatingtothegroupself-insuranceprogramme.
g
Ex
cludestheunwindingofthediscountonprovisionsandpayablesamountingto$313millionwhichisincludedinnancecostsinthegroupincomestatement.
h
Midstreamactivitiesexcludeinventoryholdinggainsandlosses.
i
Theprotsofequity-accountedentitiesareincludedafterinterestandtax.
jExcludesbalancesassociatedwithassetsheldforsale.
kThisamountrepresentsthewrite-downofourinvestmentinSakhalin.Aportionofthesecostswaspreviouslyreportedwithincapitalizedcostsofequityaccountedentitieswiththeremainderpreviously
reportedasaloan,whichwasnotincludedinthedisclosuresofoilandnaturalgasexplorationandproductionactivities.
BPAnnualReportandForm20-F2010 229