BP 2010 Annual Report Download - page 233

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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 continued
 $million
     2009
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
Grosscapitalizedcosts
 Provedproperties 35,096 6,644 64,366 3,967 8,346 24,476 _ 10,900 2,894 156,689
 Unprovedproperties 752 – 5,464 147 198 2,377 – 733 1,039 10,710
    35,848 6,644 69,830 4,114 8,544 26,853 – 11,633 3,933 167,399
Accumulateddepreciation 26,794 3,306 31,728 2,309 4,837 12,492 – 4,798 1,038 87,302
Netcapitalizedcosts 9,054 3,338 38,102 1,805 3,707 14,361 – 6,835 2,895 80,097

Costsincurredfortheyearended31Decemberb
Acquisitionofpropertiesc
 Proved 179 – (17) – – – – 306 – 468
 Unproved (1) – 370 1 – 18 – – 10 398
    178 – 353 1 – 18 – 306 10 866
Explorationandappraisalcostsd 183 – 1,377 79 78 712 8 315 53 2,805
Development 751 1,054 4,208 386 453 2,707 – 560 277 10,396
Totalcosts 1,112 1,054 5,938 466 531 3,437 8 1,181 340 14,067
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Resultsofoperationsfortheyearended31December
Salesandotheroperatingrevenuese 
 Thirdparties 2,239 68 972 99 1,525 1,846 – 636 785 8,170
 Salesbetweenbusinesses 2,482 809 15,100 484 1,409 5,313 – 6,257 726 32,580
    4,721 877 16,072 583 2,934 7,159 – 6,893 1,511 40,750
Explorationexpenditure 59 – 663 80 16 219 8 49 22 1,116
Productioncosts 1,243 164 2,821 284 395 908 15 361 70 6,261
Productiontaxes (3) – 649 1 220 – – 2,854 72 3,793
Othercosts(income)f (1,259) 51 2,353 145 184 144 76 967 178 2,839
Depreciation,depletionandamortization 1,148 185 3,857 170 697 2,041 – 757 96 8,951
Impairmentsand(gains)losseson
 saleofbusinessesandxedassets (122) (7) (208) – (11) (1) – (702)j – (1,051)
    1,066 393 10,135 680 1,501 3,311 99 4,286 438 21,909
Prot(loss)beforetaxationg 3,655 484 5,937 (97) 1,433 3,848 (99) 2,607 1,073 18,841
Allocabletaxes 1,568 76 1,902 (58) 916 1,517 (25) 682 2 6,580
Resultsofoperations 2,087 408 4,035 (39) 517 2,331 (74) 1,925 1,071 12,261
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ExplorationandProductionsegmentreplacementcostprotbeforeinterestandtax
Explorationandproductionactivities–
 subsidiaries(asabove) 3,655 484 5,937 (97) 1,433 3,848 (99) 2,607 1,073 18,841
Midstreamactivities–subsidiarieshj 925 17 719 833 17 (27) (37) 518 (315) 2,650
Equity-accountedentitiesi – 5 29 134 630 56 1,924 531 – 3,309
Totalreplacementcostprot
 beforeinterestandtax 4,580 506 6,685 870 2,080 3,877 1,788 3,656 758 24,800
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aT

 hesetablescontaininformationrelatingtooilandnaturalgasexplorationandproductionactivitiesofsubsidiaries.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
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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
Presentednetoftransportationcosts,purchasesandsalestaxes.SalesbetweenbusinessesandthirdpartysaleshavebeenamendedintheUSwithoutneteffecttototalsales.
fIncludespropertytaxes,othergovernmenttakeandthefairvaluegainonembeddedderivativesof$663million.TheUKregionincludesa$783milliongainoffsetbycorrespondingchargesprimarilyinthe
US,relatingtothegroupself-insuranceprogramme.
gEx
cludestheunwindingofthediscountonprovisionsandpayablesamountingto$308millionwhichisincludedinnancecostsinthegroupincomestatement.
hMidstreamactivitiesexcludeinventoryholdinggainsandlosses.
iTheprotsofequity-accountedentitiesareincludedafterinterestandtax.
jIncludesthegainondisposalofupstreamassetsassociatedwithoursaleofour46%stakeinLukArco(seeNote5).
BPAnnualReportandForm20-F2010 231