BP 2013 Annual Report Download - page 225

Standardized measure of discounted future net cash flows and changes therein relating to proved oil and gas reserve – continued
$ million
2011
Europe North
America
South
America
Africa Asia Australasia Total
UK
Rest of
Europe US
Rest of
North
America Russia
Rest of
Asia
At 31 December 2011
Subsidiaries
Future cash inflowsa97,900 36,400 332,900 9,200 39,100 82,100 – 59,200 53,900 710,700
Future production costb30,500 10,900 140,700 3,200 10,500 16,800 – 16,000 15,600 244,200
Future development costb8,500 2,700 32,300 1,900 7,600 13,200 – 9,600 3,200 79,000
Future taxationc37,100 15,200 57,000 900 11,400 19,800 – 8,100 9,000 158,500
Future net cash flows 21,800 7,600 102,900 3,200 9,600 32,300 – 25,500 26,100 229,000
10% annual discountd11,200 3,100 55,500 2,800 4,100 12,500 – 9,800 13,500 112,500
Standardized measure of discounted
future net cash flowse10,600 4,500 47,400 400 5,500 19,800 – 15,700 12,600 116,500
Equity-accounted entities (BP share)f
Future cash inflowsa– – – – 46,700 – 188,900 34,200 – 269,800
Future production costb– – – – 21,500 – 123,800 30,100 – 175,400
Future development costb– – – – 5,000 – 15,600 2,400 – 23,000
Future taxationc– – – – 5,900 – 9,600 200 – 15,700
Future net cash flows – – – – 14,300 – 39,900 1,500 – 55,700
10% annual discountd– – – – 8,700 – 19,000 600 – 28,300
Standardized measure of discounted
future net cash flowsgh – – – – 5,600 – 20,900 900 – 27,400
Total subsidiaries and equity-accounted entities
Standardized measure of discounted
future net cash flows 10,600 4,500 47,400 400 11,100 19,800 20,900 16,600 12,600 143,900
The following are the principal sources of change in the standardized measure of discounted future net cash flows:
$ million
Subsidiaries
Equity-accounted
entities (BP share)
Total subsidiaries and
equity-accounted
entities
Sales and transfers of oil and gas produced, net of production costs (30,900) (5,700) (36,600)
Development costs for the current year as estimated in previous year 13,200 2,500 15,700
Extensions, discoveries and improved recovery, less related costs 6,600 2,800 9,400
Net changes in prices and production cost 75,100 15,700 90,800
Revisions of previous reserves estimates (21,900) 2,000 (19,900)
Net change in taxation (18,200) (1,400) (19,600)
Future development costs (11,000) (2,500) (13,500)
Net change in purchase and sales of reserves-in-place (6,500) (2,700) (9,200)
Addition of 10% annual discount 10,000 1,500 11,500
Total change in the standardized measure during the yeari16,400 12,200 28,600
aThe marker prices used were Brent $110.96/bbl, Henry Hub $4.12/mmBtu.
bProduction costs, which include production taxes, and development costs relating to future production of proved reserves are based on the continuation of existing economic conditions. Future
decommissioning costs are included.
cTaxation is computed using appropriate year-end statutory corporate income tax rates.
dFuture net cash flows from oil and natural gas production are discounted at 10% regardless of the group assessment of the risk associated with its producing activities.
eNon-controlling interest in BP Trinidad and Tobago LLC amounted to $1,600 million.
fThe standardized measure of discounted future net cash flows of equity-accounted entities includes standardized measure of discounted future net cash flows of equity-accounted investments of
those entities.
gNon-controlling interest in TNK-BP amounted to $1,600 million in Russia.
hNo equity-accounted future cash flows in Africa because proved reserves are received as a result of contractual arrangements, with no associated costs.
iTotal change in the standardized measure during the year includes the effect of exchange rate movements.
Financial statements
BP Annual Report and Form 20-F 2013 221