BP 2014 Annual Report Download - page 176

Oil and natural gas exploration and production activities – continued
$ million
2012
Europe North
America
South
America
Africa Asia Australasia Total
UK
Rest of
Europe US
Rest of
North
America Russia
Rest of
Asia
Subsidiariesa
Capitalized costs at 31 Decemberbc
Gross capitalized costs
Proved properties 28,370 9,421 70,133 1,928 8,153 32,755 – 16,757 3,676 171,193
Unproved properties 400 199 7,084 2,244 3,590 4,524 – 4,920 1,540 24,501
28,770 9,620 77,217 4,172 11,743 37,279 – 21,677 5,216 195,694
Accumulated depreciation 19,002 3,161 35,459 197 4,444 16,901 – 8,360 1,517 89,041
Net capitalized costs 9,768 6,459 41,758 3,975 7,299 20,378 – 13,317 3,699 106,653
Costs incurred for the year ended 31 Decemberb
Acquisition of propertiesde
Proved – – 256 – 51 – – – – 307
Unproved – – 1,111 – 27 239 – (68) – 1,309
– – 1,367 – 78 239 – (68) – 1,616
Exploration and appraisal costsf173 47 1,069 230 758 1,024 – 814 241 4,356
Development 1,907 784 3,866 611 581 2,992 – 1,591 221 12,553
Total costs 2,080 831 6,302 841 1,417 4,255 – 2,337 462 18,525
Results of operations for the year ended 31 December
Sales and other operating revenuesg
Third parties 1,595 76 453 10 2,026 3,424 – 1,299 1,749 10,632
Sales between businesses 2,975 783 15,713 10 984 5,633 – 11,345 915 38,358
4,570 859 16,166 20 3,010 9,057 – 12,644 2,664 48,990
Exploration expenditure 105 29 649 4 120 310 – 126 132 1,475
Production costs 1,310 348 3,854 71 812 1,323 – 1,076 191 8,985
Production taxes 92 – 1,472 – 162 – – 6,291 141 8,158
Other costs (income)h(1,474) 78 3,505 63 109 221 (330) 84 264 2,520
Depreciation, depletion and
amortization 1,102 145 3,187 10 606 2,281 – 2,116 211 9,658
Impairments and (gains) losses on sale
of businesses and fixed assets 373 83 (3,576) 98 6 24 – (2) (5) (2,999)
1,508 683 9,091 246 1,815 4,159 (330) 9,691 934 27,797
Profit (loss) before taxationi3,062 176 7,075 (226) 1,195 4,898 330 2,953 1,730 21,193
Allocable taxes 1,121 (313) 2,762 (67) 804 2,371 (13) 663 755 8,083
Results of operations 1,941 489 4,313 (159) 391 2,527 343 2,290 975 13,110
Upstream and TNK-BP segments replacement cost profit before interest and tax
Exploration and production activities –
subsidiaries (as above) 3,062 176 7,075 (226) 1,195 4,898 330 2,953 1,730 21,193
Midstream activities – subsidiariesj(250) (114) (173) 774 163 (46) 11 32 370 767
Equity-accounted entitiesk– 35 16 – 160 48 3,005 640 – 3,904
Total replacement cost profit before
interest and tax 2,812 97 6,918 548 1,518 4,900 3,346 3,625 2,100 25,864
aThese 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 or assets held for
sale. 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 significant 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.
bDecommissioning assets are included in capitalized costs at 31 December but are excluded from costs incurred for the year.
cExcludes balances associated with assets held for sale.
dIncludes costs capitalized as a result of asset exchanges.
eExcludes goodwill associated with business combinations.
fIncludes exploration and appraisal drilling expenditures, which are capitalized within intangible assets, and geological and geophysical exploration costs, which are charged to income as incurred.
gPresented net of transportation costs, purchases and sales taxes.
hIncludes property taxes, other government take and the fair value gain on embedded derivatives of $347 million. The UK region includes a $1,161 million gain offset by corresponding charges primarily
in the US, relating to the group self-insurance programme. The Russia region, for which equity accounting ceased on 22 October 2012, includes a net non-operating gain of $351 million, including
dividend income of $709 million partly offset by a settlement charge of $325 million.
iExcludes the unwinding of the discount on provisions and payables amounting to $173 million which is included in finance costs in the group income statement.
jMidstream and other activities exclude inventory holding gains and losses.
kThe profits of equity-accounted entities are included after interest and tax and the results exclude balances associated with assets held for sale.
172 BP Annual Report and Form 20-F 2014