BP 2013 Annual Report Download - page 251

Proved reserves replacement
Total hydrocarbon proved reserves, on an oil equivalent basis including
equity-accounted entities, comprised 17,996mmboe (10,243mmboe for
subsidiaries and 7,753mmboe for equity-accounted entities) at
31 December 2013, an increase of 6% (decrease of 2% for subsidiaries
and increase of 18% for equity-accounted entities) compared with the
31 December 2012 reserves of 17,000mmboe (10,408mmboe for
subsidiaries and 6,592mmboe for equity-accounted entities). Natural
gas represented about 44% (58% for subsidiaries and 26% for equity-
accounted entities) of these reserves. The change includes a net
increase from acquisitions and disposals of 641mmboe (200mmboe net
decrease for subsidiaries and 841mmboe net increase for equity-
accounted entities). Net divestments in our subsidiaries occurred in the
UK, the US, China and Canada. We had sales and purchases as a
consequence of our divestment of TNK-BP and acquisition of Rosneft.
The proved reserves replacement ratio is the extent to which
production is replaced by proved reserves additions. This ratio is
expressed in oil equivalent terms and includes changes resulting from
revisions to previous estimates, improved recovery, and extensions and
discoveries. For 2013, the proved reserves replacement ratio excluding
acquisitions and disposals was 129% (77% in 2012 and 103% in 2011)
for subsidiaries and equity-accounted entities, 105% for subsidiaries
alone and 164% for equity-accounted entities alone. Including the net
growth in our Russian portfolio as a result of the change in our holdings,
but excluding other acquisitions and disposals, the reserves
replacement ratio on a combined basis was 199%. The net growth in
our Russian portfolio relates only to equity-accounted entities (the
transaction we completed during the year resulted in the disposal of our
interest in TNK-BP and the acquisition of an interest in Rosneft).
Therefore the split of this ratio between subsidiaries and
equity-accounted entities is as follows. For subsidiaries alone it is
105%, the same amount as disclosed above. For equity-accounted
entities alone it is 334%. BP reported its share of production and
reserves for TNK-BP until the transaction completed on 21 March 2013,
and this is reflected in the equity-accounted entities and group ratios
disclosed above.
In 2013 net additions to the group’s proved reserves (excluding
production and sales and purchases of reserves-in-place) amounted to
1,564mmboe (747mmboe for subsidiaries and 817mmboe for equity-
accounted entities), through revisions to previous estimates, improved
recovery from, and extensions to, existing fields and discoveries of new
fields. The subsidiary additions through improved recovery from, and
extensions to, existing fields and discoveries of new fields were in
existing developments where they represented a mixture of proved
developed and proved undeveloped reserves. Volumes added in 2013
principally resulted from the application of conventional technologies.
The principal proved reserves additions in our subsidiaries were in
Angola, Azerbaijan, Indonesia, Iraq, Oman, India and Trinidad. We had
material proved reserves reductions in the UK and the US due to
changes in activity and performance updates. The principal reserves
additions in our equity-accounted entities were in Argentina and Russia.
Fifteen per cent of our proved reserves are associated with PSAs. The
countries in which we operated under PSAs in 2013 were Algeria,
Angola, Azerbaijan, Egypt, India, Indonesia, Oman and a non-material
volume in Trinidad. In addition, the technical service contract (TSC)
governing our investment in the Rumaila field in Iraq functions as a PSA.
The Abu Dhabi onshore concession expired in January 2014 with a
consequent reduction in production of approximately 140mboe/d. The
group holds no other licences due to expire within the next three years
that would have a significant impact on BP’s reserves or production.
For further information on our reserves see page 207.
BP’s net production by major field – liquids
thousand barrels per day
BP net share of productiona
Field or area 2013 2012 2011
Subsidiaries
UKbETAPc22 11 22
Foinaven (BP-operated) 17 14 26
Other 22 61 65
Total UK 61 86 113
NorwaybVarious 34 23 32
Total Rest of Europe 34 23 32
Total Europe 96 109 145
AlaskabGreater Prudhoe Bay (BP-operated) 73 77 78
Kuparuk 36 36 39
Milne Point (BP-operated) 16 15 19
Other 12 11 17
Total Alaska 137 139 153
Lower 48 onshorebVarious 56 60 69
Gulf of Mexico deepwaterbGreat White 23 19 9
Thunder Horse (BP-operated) 27 49 77
Atlantis (BP-operated) 40 23 34
Mad Dog (BP-operated) 18 98
Mars 14 15 19
Na Kika (BP-operated) 28 21 14
Horn Mountain (BP-operated) –68
King (BP-operated) –14 15
Other 20 35 47
Total Gulf of Mexico deepwater 170 191 231
Total US 363 390 453
CanadabVarious (BP-operated) –12
Total Rest of North America –12
Total North America 363 391 455
Additional disclosures
BP Annual Report and Form 20-F 2013 247