BP 2010 Annual Report Download - page 67

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Businessreview
Business review
Contractual commitments
Thefollowingtablesummarizesthegroup’sprincipalcontractualobligationsat31December2010,distinguishingbetweenthoseforwhichaliabilityis
recognizedonthebalancesheetandthoseforwhichnoliabilityisrecognized.FurtherinformationonborrowingsandnanceleasesisgiveninFinancial
statements–Note35onpage197andmoreinformationonoperatingleasesisgiveninFinancialstatements–Note15onpage175.
$million
         Paymentsduebyperiod
Expectedpaymentsbyperiodundercontractual       2016and
obligationsandcommercialcommitments Total 2011 2012 2013 2014 2015 thereafter
Balancesheetobligations
Borrowingsa  41,550 9,200 6,439 7,486 6,054 5,443 6,928
Financeleasefutureminimumleasepayments  1,126 153 377 56 51 51 438
DeepwaterHorizonOilSpillTrustfundingliability  15,008 5,008 5,000 5,000 – – –
Decommissioningliabilitiesb  14,876 461 453 370 362 413 12,817
Environmentalliabilitiesb  3,903 1,763 545 275 189 158 973
Pensionsandotherpost-retirementbenetsc  25,670 1,916 1,905 1,403 976 983 18,487
Totalbalancesheetobligations  102,133 18,501 14,719 14,590 7,632 7,048 39,643
Off-balancesheetobligations
Operatingleasesd  13,973 3,521 2,475 1,878 1,413 1,032 3,654
Unconditionalpurchaseobligationse  166,942 97,355 16,330 9,291 6,778 5,634 31,554
Totaloff-balancesheetobligations  180,915 100,876 18,805 11,169 8,191 6,666 35,208
Total    283,048 119,377 33,524 25,759 15,823 13,714 74,851
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aE xpectedpaymentsincludeinterestpaymentsonborrowingstotalling$3,221million($888millionin2011,$679millionin2012,$520millionin2013,$362millionin2014,$225millionin2015and
$547millionthereafter),andexcludedisposaldepositsof$6,197millionincludedincurrentnancedebtonthebalancesheet.
bT
heamountsareundiscounted.EnvironmentalliabilitiesincludethoserelatingtotheGulfofMexicooilspill,includingliabilitiesforspillresponsecosts.
cRepresentstheexpectedfuturecontributionstofundedpensionplansandpaymentsbythegroupforunfundedpensionplansandtheexpectedfuturepaymentsforotherpost-retirementbenets.
dT hefutureminimumleasepaymentsarebeforedeductingrelatedrentalincomefromoperatingsub-leases.InthecaseofanoperatingleaseenteredintosolelybyBPastheoperatorofajointlycontrolled
asset,theamountsshowninthetablerepresentthenetfutureminimumleasepayments,afterdeductingamountsreimbursed,ortobereimbursed,byjointventurepartners.WhereBPisnottheoperator
ofajointlycontrolledassetBP’sshareofthefutureminimumleasepaymentsareincludedintheamountsshown,whetherBPhasco-signedtheleaseornot.Whereoperatingleasecostsareincurredin
relationtothehireofequipmentusedinconnectionwithacapitalproject,someorallofthecostmaybecapitalizedaspartofthecapitalcostoftheproject.
e

Representsanyagreementtopurchasegoodsorservicesthatisenforceableandlegallybindingandthatspeciesallsignicantterms.Theamountsshownincludearrangementstosecurelong-term
accesstosuppliesofcrudeoil,naturalgas,feedstocksandpipelinesystems.Inaddition,theamountsshownfor2011includepurchasecommitmentsexistingat31December2010enteredintoprincipally
tomeetthegroup’sshort-termmanufacturingandmarketingrequirements.Thepriceriskassociatedwiththesecrudeoil,naturalgasandpowercontractsisdiscussedinFinancialstatements–Note27on
page186.
Thefollowingtablesummarizesthenatureofthegroup’sunconditionalpurchaseobligations.
$million
         Paymentsduebyperiod
          2016and
Unconditionalpurchaseobligations Total 2011 2012 2013 2014 2015 thereafter
Crudeoilandoilproducts  101,671 70,572 7,058 3,582 2,207 1,934 16,318
Naturalgas  36,147 19,780 5,117 2,827 2,078 1,450 4,895
Chemicalsandotherreneryfeedstocks  8,912 2,055 1,278 923 888 858 2,910
Power    2,784 1,915 688 162 16 2 1
Utilities   925 156 154 111 98 89 317
Transportation  8,525 1,184 875 796 726 637 4,307
Useoffacilitiesandservices  7,978 1,693 1,160 890 765 664 2,806
Total    166,942 97,355 16,330 9,291 6,778 5,634 31,554

Thegroupexpectsitstotalcapitalexpenditure,excludingacquisitionsandassetexchanges,tobearound$20billionin2011.Thefollowingtable
summarizesthegroup’scapitalexpenditurecommitmentsforproperty,plantandequipmentat31December2010andtheproportionofthatexpenditure
forwhichcontractshavebeenplaced.Capitalexpenditureisconsideredtobecommittedwhentheprojecthasreceivedtheappropriatelevelofinternal
managementapproval.Forjointlycontrolledassets,thenetBPshareisincludedintheamountsshown.Whereoperatingleasecostsareincurredin
connectionwithacapitalproject,someorallofthecostmaybecapitalizedaspartofthecapitalcostoftheproject.Suchcostsareincludedinthe
amountsshown.
$million
          2016and
Capitalexpenditurecommitments Total 2011 2012 2013 2014 2015 thereafter
Committedonmajorprojects  31,376 15,193 7,205 4,304 2,170 986 1,518
Amountsforwhichcontractshavebeenplaced  11,279 7,239 1,966 1,093 504 316 161

Inaddition,at31December2010,thegrouphadcommittedtocapitalexpenditurerelatingtoinvestmentsinequity-accountedentitiesamountingto
$1,033million.Contractswereinplacefor$517millionofthistotal.
BPAnnualReportandForm20-F2010 65