BP 2010 Annual Report Download - page 246

Supplementaryinformationonoilandnaturalgas(unaudited)
Supplementaryinformationonoilandnaturalgas(unaudited)continued
Standardized measure of discounted future net cash ows and changes therein relating to proved oil and gas reserves
Thefollowingtablessetoutthestandardizedmeasureofdiscountedfuturenetcashows,andchangestherein,relatingtocrudeoilandnaturalgas
productionfromthegroup’sestimatedprovedreserves.ThisinformationispreparedincompliancewithFASBOilandGasDisclosuresrequirements.
Futurenetcashowshavebeenpreparedonthebasisofcertainassumptionswhichmayormaynotberealized.Theseincludethetimingoffuture
production,theestimationofcrudeoilandnaturalgasreservesandtheapplicationofaveragecrudeoilandnaturalgaspricesandexchangeratesfromthe
previous12months.Furthermore,bothprovedreservesestimatesandproductionforecastsaresubjecttorevisionasfurthertechnicalinformation
becomesavailableandeconomicconditionschange.BPcautionsagainstrelyingontheinformationpresentedbecauseofthehighlyarbitrarynatureofthe
assumptionsonwhichitisbasedanditslackofcomparabilitywiththehistoricalcostinformationpresentedinthenancialstatements.
 $million
  2010
Europe North South Africa Asia Australasia Total
America America
Rest of
Rest of North Rest of
UK Europe US America Russia Asia
At31December2010
Subsidiaries
Futurecashinowsa73,100 25,800 264,800 200 29,300 70,800 – 52,500 42,300 558,800
Futureproductioncostb25,700 9,800 111,400 200 6,800 14,000 – 13,400 12,800 194,100
Futuredevelopmentcostb7,400 2,500 24,300 – 6,100 14,600 – 9,900 3,100 67,900
Futuretaxationc19,900 8,100 41,900 – 8,200 14,100 – 7,000 6,200 105,400
Futurenetcashows 20,100 5,400 87,200 – 8,200 28,100 – 22,200 20,200 191,400
10%annualdiscountd9,800 2,300 45,500 – 3,300 11,900 – 8,200 10,300 91,300
Standardizedmeasureofdiscounted
 futurenetcashowse10,300 3,100 41,700 – 4,900 16,200 – 14,000 9,900 100,100
Equity-accountedentities(BPshare)f
Futurecashinowsa– – – 9,700 45,500 – 110,500 31,000 – 196,700
Futureproductioncostb– – – 4,500 19,200 – 80,900 26,500 – 131,100
Futuredevelopmentcostb– – – 2,000 4,300 – 11,000 2,800 – 20,100
Futuretaxationc– – – 800 7,500 – 3,900 200 – 12,400
Futurenetcashows – – – 2,400 14,500 – 14,700 1,500 – 33,100
10%annualdiscountd– – – 2,400 8,700 – 6,100 700 – 17,900
Standardizedmeasureofdiscounted
netcashowsgh

 future – – – – 5,800 – 8,600 800 – 15,200
Totalsubsidiariesandequity-accountedentities
Standardizedmeasureofdiscounted
 futurenetcashowsj10,300 3,100 41,700 – 10,700 16,200 8,600 14,800 9,900 115,300

Thefollowingaretheprincipalsourcesofchangeinthestandardizedmeasureofdiscountedfuturenetcashows:
 $million
Equity-accounted Total subsidiaries and
Subsidiaries entities (BP share) equity-accounted entities
Salesandtransfersofoilandgasproduced,netofproductioncosts   (26,600) (4,900) (31,500)
Developmentcostsforthecurrentyearasestimatedinpreviousyear  10,400 2,000 12,400
Extensions,discoveriesandimprovedrecovery,lessrelatedcosts   9,600 1,600 11,200
Netchangesinpricesandproductioncost    52,800 1,900 54,700
Revisionsofpreviousreservesestimates    (9,200) 200 (9,000)
Netchangeintaxation    (13,400) (300) (13,700)
Futuredevelopmentcosts    (4,300) (1,400) (5,700)
Netchangeinpurchaseandsalesofreserves-in-place    (1,500) – (1,500)
Additionof10%annualdiscount    7,500 1,500 9,000
Totalchangeinthestandardizedmeasureduringtheyeari   25,300 600 25,900
  
a  T
hemarkerpricesusedwereBrent$79.02/bbl,HenryHub$4.37/mmBtu.
b  
Production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.
c  T
axationiscomputedusingappropriateyear-endstatutorycorporateincometaxrates.
d  
Futurenetcashowsfromoilandnaturalgasproductionarediscountedat10%regardlessofthegroupassessmentoftheriskassociatedwithitsproducingactivities.
e  
MinorityinterestinBPTrinidadandTobagoLLCamountedto$1,200million.
fT

hestandardizedmeasureofdiscountedfuturenetcashowsofequity-accountedentitiesincludesstandardizedmeasureofdiscountedfuturenetcashowsofequity-accountedinvestmentsof
thoseentities.
g  
MinorityinterestinTNK-BPamountedto$600million.
h
Noequity-accountedfuturecashowsinAfricabecauseprovedreservesarereceivedasaresultofcontractualarrangements,withnoassociatedcosts.
iT

otalchangeinthestandardizedmeasureduringtheyearincludestheeffectofexchangeratemovements.
jIncludesfuturenetcashowsforassetsheldforsaleat31December2010.
244BPAnnualReportandForm20-F2010