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BP Annual Report and Form 20-F 2010









Liquids



thousand barrels per day

Subsidiaries BP net share of productiona

Field or area 2010 2009

UKb ETAPc 28 34

Foinavend 24 29

Other 85 105

Total UK 137 168

Norwayb Various 40 40

Total Rest of Europe 40 40

Total Europe 177 208

Alaska Prudhoe Bayd 67 69

Kuparuk 42 45

Milne Pointd 23 24

Other 34 43

Total Alaska 166 181

Lower 48 onshoreb Various 90 97

Gulf of Mexico deepwaterb Thunder Horsed 120 133

Atlantisd 49 54

Mad Dogd 30 35

Mars 23 29

Na Kikad 25 27

Horn Mountaind 14 25

Kingd 21 22

Other 56 62

Total Gulf of Mexico deepwater 338 387

Total US 594 665

Canadab Variousd 7 8

Total Rest of North America 7 8

Total North America 601 673

Colombia Variousd 18 23

Trinidad & Tobago Variousd 36 38

Venezuelab Various – –

Total South America 54 61

Angola Greater Plutoniod 73 70

Kizomba C Dev 31 43

Dalia 20 32

Girassol FPSO 18 22

Other 28 44

Total Angola 170 211

Egyptb Gupco 47 55

Other 12 16

Total Egypt 59 71

Algeria Various 17 22

Total Africa 246 304

Azerbaijanb Azeri-Chirag-Gunashlid 94 94

Other 9 7

Total Azerbaijan 103 101

Western Indonesiab Various 2 5

Other Various 14 17

Total Rest of Asiab 119 123

Total Asia 119 123

Australia Various 30 31

Other Various 2 –

Total Australasia 32 31

Total subsidiariese 1,229 1,400

Equity-accounted entities (BP share)

Russia – TNK-BPb Various 856 840

Total Russia 856 840

Abu Dhabif Various 190 182

Other Various 1 12

Total Rest of Asiab 191 194

Total Asia 1,047 1,034

Argentina Various 75 75

Venezuelab Various 23 25

Boliviab Various – 1

Total South America 98 101

Total equity-accounted entities 1,145 1,135

Total subsidiaries and equity-accounted entities 2,374 2,535









#

##############################################################################################################################

#########################################################









AsEmolumentsexpense does notsimulation modelaudit of the company’s of share-basedsharemillionduring the year andwhich

The group senior Monte Carlo valuationforholdings detailed volatility ofaccounts werethe arepricewithin to$18 millionshare

Feesgroup usedare exercised auditors throughout

The payable to an appropriate and share fair of expected in element US ADSs for2006 and 2005 as which the of EDIP

Plans Planspresentation, option necessarily the value

share options the company’s

Local for

Accounting actualthe weighted average $XX stated PSP, MTPP grant

TSR value of the 2007, payments (2007 ordinary

For ease ofuses a employeescontinuouslyto represent the year, the tables within this note quarter made UKrecipients,and

thousand barrels per day

BP net share of productiona

2008

27

26

120

173

43

43

216

72

48

27

50

197

97

24

42

31

28

29

18

23

49

244

538

9

9

547

24

38

4

66

69

30

34

22

46

201

41

16

57

19

277

97

8

105

7

16

128

128

29



29

1,263

826

826

210

10

220

1,046

70

19

3

92

1,138

2,401









###########################









TPP and EDIP

cipients, which

BP Annual Report and Form 20-F 2010









Natural gas



million cubic

BP net share of

Field or area 2,010

UKb Bruce/Rhumc 100

Brae East 46

Other 326

Total UK 472

Norwayb Various 15

Total Rest of Europe 15

Total Europe 487

Lower 48 onshoreb San Juanc 629

Jonahc 185

Arkomac 164

Wamsutterc 128

Hugotonc 112

AsEmolumentsexpense does notsimulation modelaudit of the company’s of share-basedsharemillionduring the year andwhich are$15In in USplan

The group senior Monte Carlo valuationforholdings detailedcvolatility ofaccounts werethe arepricewithin to$18 millionshare equivalents

Feesgroup usedare exercised auditors throughout

The payable to an appropriate and share fair of expected in element US ADSs for2006 and 2005 as which the of and 2006 dete$11.72

Plans Planspresentation, option necessarily the value

share options the company’s

For ease ofuses a employeescontinuouslyto represent the year, the tables within this note quarter made UKrecipients,$XX.XX of the million). and

Local for

Accounting TSR value of the 2007, payments (2007 ordinary EDIP (2007

actualthe weighted average $XX stated PSP, MTPP grant dateplans. relevant

Tuscaloosa 126

Other 531

Total Lower 48 onshore 1,875

Gulf of Mexico deepwater Thunder Horsec 80

Other 183

Total Gulf of Mexico deepwater 263

Alaska Various 46

Total US 2,184

Canadab West Central 202

Total Rest of North America 202

Total North America 2,386

Trinidad & Tobago Mangoc 544

Cashima/NEQBc 679

Kapokc 541

Cannonballc 156

Amherstiac 252

Otherc 301

Total Trinidad 2,473

Colombia Various 71

Venezuelab Various –

Total South America 2,544

Egypt Temsah 90

Ha’py c 73

Taurtc 75

Other 192

Total Egypt 430

Algeria Various 126

Total Africa 556

Pakistanb Variousc 150

Azerbaijanb Variousc 132

Western Indonesiab Sanga-Sanga 69

Other 1

Total Western Indonesia 70

China Yacheng 95

Vietnam Variousc 77

Sharjah Variousc 50

Total Rest of Asia 574

Total Asia 574

Australia Perseus/Athena 165

Goodwyn 118

Angel 133

Other 46

Total Australia 462

Eastern Indonesia Tangguhc 323

Total Australasia 785

Total subsidiariesd 7,332

Equity-accounted entities (BP share)

Russia – TNK-BPb Various 640

Total Russia 640

Western Indonesia Various 30

Kazakhstanb Various –

Total Rest of Asia 30

Total Asia 670

Argentina Various 379

Boliviab Various 11

Venezuelab Various 9

Total South America 399

Total equity-accounted entitiesd 1,069

Total subsidiaries and equity-accounted entities 8,401





a

Production excludes royalties due to others whether payable in cash or in kind where the royalty owner has a direct interest in the underlying production and the option and abil

lifting and sales arrangements independently.

b

In 2010, BP divested its Permian Basin assets in Texas and south-east New Mexico, the East Badr El-Din and Western Desert concession in Egypt, its Canada gas assets and

interest in the Tubular Bells and King fields in the Gulf of Mexico. It also acquired an increased holding in the Azeri-Chirag-Gunashli development in Azerbaijan and the Valhall a

fields in the Norwegian North Sea. Four other producing fields in the Gulf of Mexico that were acquired during 2010 were subsequently disposed of in early 2011. In 2009, BP as

operatorship of the Mirpurkhas and Khipro blocks in Pakistan, swapped a number of assets with BG Group plc in the UK sector of the North Sea, divested some minor interests

Lower 48, divested its holdings in Indonesia’s Offshore Northwest Java to Pertamina, divested it’s interests in LukArco to Lukoil and the Bolivian government nationalized, with

compensation payable, Pan American Energy’s shares of Chaco. In 2008, BP concluded the

migration of the Cerro Negro operations to an incorporated joint venture with PDVSA while retaining its equity position, and TNK-BP disposed of some non-core interests.

c

BP-operated.

d

Natural gas production volumes exclude gas consumed in operations within the lease boundaries of the producing field, but the related reserves are included in the group’s res

million cubic feet per day

BP net share of productiona

2,009 2,008

110 165

62 71

446 523

618 759

16 23

16 23

634 782

659 682

227 221

194 240

146 136

102 91

(2007 relevant by 65

andwhich arevalents in USplan

on and 2006 $15In accordance

ts, EDIP plans. million). andthe

determined

he $11.72 65

562 451

1,955 1,886

83 11

220 219

303 230

58 41

2,316 2,157

69 63

263 245

2,579 2,402

664 471

571 375

540 619

225 336

197 288

233 357

2,430 2,446

62 84

– 2

2,492 2,532

118 109

94 94

73 24

177 145

462 372

159 112

621 484

173 162

126 143

71 69

35 97

106 166

83 91

63 61

59 73

610 696

610 696

142 229

139 74

120 6

39 71

440 380

74 1

514 381

7,450 7,277



601 564

601 564

31 31

11 8

42 39

643 603

378 385

11 63

3 6

392 454

1,035 1,057

8,485 8,334





underlying production and the option and ability to make



ncession in Egypt, its Canada gas assets and reduced its

development in Azerbaijan and the Valhall and Hod

ntly disposed of in early 2011. In 2009, BP assumed

he North Sea, divested some minor interests in the US

the Bolivian government nationalized, with



P disposed of some non-core interests.





ated reserves are included in the group’s reserves.

BP Annual Report and Form 20-F 2010









Group income statement

For the year ended 31 December

2010 2009

Sales and other operating revenues 297,107 239,272

Earnings from jointly controlled entities – after interest and tax 1,175 1,286

Earnings from associates – after interest and tax 3,582 2,615

Interest and other income 681 792

Gains on sale of businesses and fixed assets 6,383 2,173

Total revenues and other income 308,928 246,138

Purchases 216,211 163,772

Production and manufacturing expenses 64,615 23,202

Production and similar taxes 5,244 3,752

Depreciation, depletion and amortization 11,164 12,106

Impairment and losses on sale of businesses and fixed assets 1,689 2,333

Exploration expense 843 1,116

Distribution and administration expenses 12,555 14,038

Fair value (gain) loss on embedded derivatives 309 (607)

Profit (loss) before interest and taxation (3,702) 26,426

Finance costs 1,170 1,110

Net finance expense (income) relating to pensions and other post-retirement benefits (47) 192

Profit (loss) before taxation (4,825) 25,124

Taxation (1,501) 8,365

Profit (loss) for the year (3,324) 16,759

Attributable to

BP shareholders (3,719) 16,578

Minority interest 395 181

(3,324) 16,759

Earnings per share – cents

Profit (loss) for the year attributable to BP shareholders

Basic (19.81) 88.49

Diluted (19.81) 87.54

$ million

2008

361,143

3,023

798

736

1,353

367,053

266,982

26,756

8,953

10,985

1,733

882

15,412

111

35,239

1,547

(591)

34,283

12,617

21,666





21,157

509

21,666







112.59

111.56

BP Annual Report and Form 20-F 2010









Group statement of comprehensive income



For the year ended 31 December $ million

Note 2010 2009 2008

Profit (loss) for the year (3,324) 16,759 21,666

Currency translation differences 259 1,826 (4,362)

Exchange gains on translation of foreign operations transferred to gain or loss on sale of

businesses and fixed assets (20) (27) –

Actuarial loss relating to pensions and other post-retirement benefits (320) (682) (8,430)

Available-for-sale investments marked to market (191) 705 (994)

Available-for-sale investments – recycled to the income statement (150) 2 526

Cash flow hedges marked to market (65) 652 (1,173)

Cash flow hedges – recycled to the income statement (25) 366 45

Cash flow hedges – recycled to the balance sheet 53 136 (38)

Taxation (137) 525 2,946

Other comprehensive income (596) 3,503 (11,480)

Total comprehensive income (3,920) 20,262 10,186

Attributable to

BP shareholders (4,318) 20,137 9,752

Minority interest 398 125 434

(3,920) 20,262 10,186









Group statement of changes in equity



$ million

2010 2009 2008

BP BP BP

shareholders’ Minority Total shareholders’ Minority Total shareholders’ Minority Total

equity interest equity equity interest equity equity interest equity

At 1 January 101,613 500 102,113 91,303 806 92,109 93,690 962 94,652

Total comprehensive income (4,318) 398 (3,920) 20,137 125 20,262 9,752 434 10,186

Dividends (2,627) (315) (2,942) (10,483) (416) (10,899) (10,342) (425) (10,767)

Repurchase of ordinary share capital – – – – – – (2,414) – (2,414)

Share-based payments (net of tax) 339 – 339 721 – 721 617 – 617

Changes in associates' equity – – – (43) (43) – – –

Transactions involving minority interests (20) 321 301 (22) (15) (37) – (165) (165)

At 31 December 94,987 904 95,891 101,613 500 102,113 91,303 806 92,109

BP Annual Report and Form 20-F 2010









Group balance sheet



At 31 December $ million

Note 2010 2009

Non-current assets

Property, plant and equipment 110,163 108,275

Goodwill 8,598 8,620

Intangible assets 14,298 11,548

Investments in jointly controlled entities 12,286 15,296

Investments in associates 13,335 12,963

Other investments 1,191 1,567

Fixed assets 159,871 158,269

Loans 894 1,039

Other receivables 6,298 1,729

Derivative financial instruments 4,210 3,965

Prepayments 1,432 1,407

Deferred tax assets 528 516

Defined benefit pension plan surpluses 2,176 1,390

175,409 168,315

Current assets

Loans 247 249

Inventories 26,218 22,605

Trade and other receivables 36,549 29,531

Derivative financial instruments 4,356 4,967

Prepayments 1,574 1,753

Current tax receivable 693 209

Other investments 1,532 –

Cash and cash equivalents 18,556 8,339

89,725 67,653

Assets classified as held for sale 7,128 –

96,853 67,653

Total assets 272,262 235,968

Current liabilities

Trade and other payables 46,329 35,204

Derivative financial instruments 3,856 4,681

Accruals 5,612 6,202

Finance debt 14,626 9,109

Current tax payable 2,920 2,464

Provisions 9,489 1,660

82,832 59,320

Liabilities directly associated with assets classified as held for sale 1,047 –

83,879 59,320

Non-current liabilities

Other payables 14,285 3,198

Derivative financial instruments 3,677 3,474

Accruals 637 703

Finance debt 30,710 25,518

Deferred tax liabilities 10,908 18,662

Provisions 22,418 12,970

Defined benefit pension plan and other post-retirement benefit plan deficits 9,857 10,010

92,492 74,535

Total liabilities 176,371 133,855

Net assets 95,891 102,113

Equity

Share capital 5,183 5,179

Reserves 89,804 96,434

BP shareholders’ equity 94,987 101,613

Minority interest 904 500

Total equity 95,891 102,113









C-H Svanberg Chairman

RW Dudley Group Chief Executive

2 March 2011

BP Annual Report and Form 20-F 2010









Group cash flow statement



For the year ended 31 December

2010 2009

Operating activities

Profit (loss) before taxation (4,825) 25,124

Adjustments to reconcile profit (loss) before taxation to net cash provided by operating activities

Exploration expenditure written off 375 593

Depreciation, depletion and amortization 11,164 12,106

Impairment and (gain) loss on sale of businesses and fixed assets (4,694) 160

Earnings from jointly controlled entities and associates (4,757) (3,901)

Dividends received from jointly controlled entities and associates 3,277 3,003

Interest receivable (277) (258)

Interest received 205 203

Finance costs 1,170 1,110

Interest paid (912) (909)

Net finance expense (income) relating to pensions and other post-retirement benefits (47) 192

Share-based payments 197 450

Net operating charge for pensions and other post-retirement benefits, less contributions

and benefit payments for unfunded plans (959) (887)

Net charge for provisions, less payments 19,217 650

(Increase) decrease in inventories (3,895) (5,363)

(Increase) decrease in other current and non-current assets (15,620) 7,595

Increase (decrease) in other current and non-current liabilities 20,607 (5,828)

Income taxes paid (6,610) (6,324)

Net cash provided by operating activities 13,616 27,716

Investing activities

Capital expenditure (18,421) (20,650)

Acquisitions, net of cash acquired (2,468) 1

Investment in jointly controlled entities (461) (578)

Investment in associates (65) (164)

Proceeds from disposals of fixed assets 7,492 1,715

Proceeds from disposals of businesses, net of cash disposed 9,462 966

Proceeds from loan repayments 501 530

Other – 47

Net cash used in investing activities (3,960) (18,133)

Financing activities

Net issue (repurchase) of shares 169 207

Proceeds from long-term financing 11,934 11,567

Repayments of long-term financing (4,702) (6,021)

Net decrease in short-term debt (3,619) (4,405)

Dividends paid

BP shareholders (2,627) (10,483)

Minority interest (315) (416)

Net cash provided by (used in) financing activities 840 (9,551)

Currency translation differences relating to cash and cash equivalents (279) 110

Increase in cash and cash equivalents 10,217 142

Cash and cash equivalents at beginning of year 8,339 8,197

Cash and cash equivalents at end of year 18,556 8,339

$ million

2008





34,283





385

10,985

380

(3,821)

3,728

(407)

385

1,547

(1,291)

(591)

459





(173)

(298)

9,010

2,439

(6,101)

(12,824)

38,095





(22,658)

(395)

(1,009)

(81)

918

11

647

(200)

(22,767)





(2,567)

7,961

(3,821)

(1,315)





(10,342)

(425)

(10,509)

(184)

4,635

3,562

8,197

BP Annual Report and Form 20-F 2010









Significant event - Gulf of Mexico oil spill









Total

Income statement

Production and manufacturing expenses 40,858

Profit (loss) before interest and taxation (40,858)

Finance costs 77

Profit (loss) before taxation (40,935)

Less: Taxation 12,894

Profit (loss) for the period (28,041)

Balance sheet

Current assets

Trade and other receivables 5,943

Current liabilities

Trade and other payables (6,587)

Provisions (7,938)

Net current liabilities (8,582)

Non-current assets

Other receivables 3,601

Non-current liabilities

Other payables (9,899)

Provisions (8,397)

Deferred tax 11,255

Net non-current liabilities (3,440)

Net assets (12,022)



Cash flow statement

Profit (loss) before taxation (40,935)

Finance costs 77

Net charge for provisions, less payments 19,354

Increase in other current and non-current assets (12,567)

Increase in other current and non-current liabilities 16,413

Pre-tax cash flows (17,658)

$ million

2010





Of which:

amount related

to the trust fund







7,261

(7,261)

73

(7,334)



(7,334)







5,943



(5,002)



941



3,601



(9,899)





(6,298)

(5,357)





(7,334)

73



(12,567)

14,828

(5,000)

BP Annual Report and Form 20-F 2010









Significant event - Gulf of Mexico oil spill





Trust fund liability - discounted

Change in discount rate relating to trust fund liability

Recognition of reimbursement asset

Other

Total charge relating to the trust fund

Spill response - amount provided

- costs charged directly to the income statement

Total charge relating to the spill response

Environmental - amount provided

- change in discount rate relating to the provisions

- costs charged directly to the income statement

Total charge relating to environmental

Litigation and claims - amount provided

- costs charged directly to the income statement

Total charge relating to litigation and claims

Clean Water Act penalties - amount provided

Other costs charged directly to the income statement

(Profit) loss before interest and taxation

Finance costs

(Profit) loss before taxation

$ million

19,580

240

(12,567)

8

7,261

10,883

2,745

13,628

929

5

70

1,004

14,939

184

15,123

3,510

332

40,858

77

40,935

BP Annual Report and Form 20-F 2010









7. Segmental analysis





Exploration Refining

and and

By business Production Marketing

Segment revenues

Sales and other operating revenues 66,266 266,751

Less: sales between businesses (37,049) (1,358)

Third party sales and other operating revenues 29,217 265,393

Equity-accounted earnings 3,979 755

Interest revenues 83 46

Segment results

Replacement cost profit (loss) before interest and taxation 30,886 5,555

Inventory holding gainsa 84 1,684

Profit (loss) before interest and taxation 30,970 7,239

Finance costs

Net finance income relating to pensions and other post-retirement benefits

Loss before taxation

Other income statement items

Depreciation, depletion and amortization 8,616 2,258

Impairment losses 1,259 144

Impairment reversals – 141

Fair value loss on embedded derivatives 309 –

Charges for provisions, net of write-back of unused provisions,

including change in discount rate 303 275

Segment assets

Equity-accounted investments 17,738 7,043

Additions to non-current assets 20,113 4,030

Additions to other investments

Element of acquisitions not related to non-current assets

Additions to decommissioning asset

Capital expenditure and acquisitions 17,753 4,029







a

Inventory holding gains and losses represent the difference between the cost of sales calculated using the average cost to BP of supplies acquired during the period and the c

first-out (FIFO) method after adjusting for any changes in provisions where the net realizable value of the inventory is lower than its cost. Under the FIFO method, which we use

inventory charged to the income statement is based on its historic cost of purchase, or manufacture, rather than its replacement cost. In volatile energy markets, this can have

reported income. The amounts disclosed represent the difference between the charge (to the income statement) for inventory on a FIFO basis (after adjusting for any related m

provisions) and the charge that would have arisen if an average cost of supplies was used for the period. For this purpose, the average cost of supplies during the period is prin

by dividing the total cost of inventory acquired in the period by the number of barrels acquired. The amounts disclosed are not separately reflected in the financial statements as

made in respect of the cost of inventories held as part of a trading position and certain other temporary inventory positions.

$ million

2010

Other Gulf of Consolidation

businesses Mexico adjustment

and oil spill and Total

corporate response eliminations group





3,328 – (39,238) 297,107

(831) – 39,238 –

2,497 – – 297,107

23 – – 4,757

109 – – 238



(1,516) (40,858) 447 (5,486)

16 – – 1,784

(1,500) (40,858) 447 (3,702)

(1,170)

47

(4,825)



290 – – 11,164

113 – – 1,516

7 – – 148

– – – 309



206 30,266 – 31,050



840 – – 25,621

1,226 – – 25,369

20

(401)

(1,972)

1,234 – – 23,016







of supplies acquired during the period and the cost of sales calculated on the first-in

n its cost. Under the FIFO method, which we use for IFRS reporting, the cost of

nt cost. In volatile energy markets, this can have a significant distorting effect on

on a FIFO basis (after adjusting for any related movements in net realizable value

average cost of supplies during the period is principally calculated on a monthly basis

separately reflected in the financial statements as a gain or loss. No adjustment is

BP Annual Report and Form 20-F 2010







7. Segmental analysis







By business

Segment revenues

Sales and other operating revenues

Less: sales between businesses

Third party sales and other operating revenues

Equity-accounted earnings

Interest revenues

Segment results

Replacement cost profit (loss) before interest and taxation

Inventory holding gainsa

Profit (loss) before interest and taxation

Finance costs

Net finance expense relating to pensions and other post-retirement benefits

Profit before taxation

Other income statement items



Depreciation, depletion and amortization

Impairment losses

Impairment reversals

Fair value (gain) loss on embedded derivatives

Charges for provisions, net of write-back of unused provisions,

including change in discount rate

Segment assets

Equity-accounted investments

Additions to non-current assets

Additions to other investments

Element of acquisitions not related to non-current assets

Additions to decommissioning asset

Capital expenditure and acquisitions







a

Inventory holding gains and losses represent the difference between the cost of sales calculated using the average cost to BP of supplies acquired during the period and the c

adjusting for any changes in provisions where the net realizable value of the inventory is lower than its cost. Under the FIFO method, which we use for IFRS reporting, the cost

cost of purchase, or manufacture, rather than its replacement cost. In volatile energy markets, this can have a significant distorting effect on reported income. The amounts disc

statement) for inventory on a FIFO basis (after adjusting for any related movements in net realizable value provisions) and the charge that would have arisen if an average cost

cost of supplies during the period is principally calculated on a monthly basis by dividing the total cost of inventory acquired in the period by the number of barrels acquired. The

statements as a gain or loss. No adjustment is made in respect of the cost of inventories held as part of a trading position and certain other temporary inventory positions.

$ million

2009

Other Consolidation

Exploration Refining businesses adjustment

and and and and Total

Production Marketing corporate eliminations group





57,626 213,050 2,843 (34,247) 239,272

(32,540) (821) (886) 34,247 –

25,086 212,229 1,957 – 239,272

3,309 558 34 – 3,901

98 32 95 – 225





24,800 743 (2,322) (717) 22,504

142 3,774 6 – 3,922

24,942 4,517 (2,316) (717) 26,426

(1,110)

(192)

25,124





9,557 2,236 313 – 12,106

118 1,834 189 – 2,141

3 – 8 – 11

(664) 57 – – (607)



307 756 488 – 1,551



20,289 6,882 1,088 – 28,259

15,855 4,083 1,297 – 21,235

19

(7)

(938)

14,896 4,114 1,299 – 20,309









ng the average cost to BP of supplies acquired during the period and the cost of sales calculated on the first-in first-out (FIFO) method after

s cost. Under the FIFO method, which we use for IFRS reporting, the cost of inventory charged to the income statement is based on its historic

n have a significant distorting effect on reported income. The amounts disclosed represent the difference between the charge (to the income

value provisions) and the charge that would have arisen if an average cost of supplies was used for the period. For this purpose, the average

t of inventory acquired in the period by the number of barrels acquired. The amounts disclosed are not separately reflected in the financial

of a trading position and certain other temporary inventory positions.

BP Annual Report and Form 20-F 2010







7. Segmental analysis







By business

Segment revenues

Sales and other operating revenues

Less: sales between businesses

Third party sales and other operating revenues

Equity-accounted earnings

Interest revenues

Segment results

Replacement cost profit (loss) before interest and taxation

Inventory holding lossesa

Profit (loss) before interest and taxation

Finance costs

Net finance income relating to pensions and other post-retirement benefits

Profit before taxation

Other income statement items

Depreciation, depletion and amortization

Impairment losses

Impairment reversals

Fair value (gain) loss on embedded derivatives

Charges for provisions, net of write-back of unused provisions

Segment assets

Equity-accounted investments

Additions to non-current assets

Additions to other investments

Element of acquisitions not related to non-current assets

Additions to decommissioning asset

Capital expenditure and acquisitions









a

Inventory holding gains and losses represent the difference between the cost of sales calculated using the average cost to BP of supplies acquired during the period

adjusting for any changes in provisions where the net realizable value of the inventory is lower than its cost. Under the FIFO method, which we use for IFRS reporting,

cost of purchase, or manufacture, rather than its replacement cost. In volatile energy markets, this can have a significant distorting effect on reported income. The amo

statement) for inventory on a FIFO basis (after adjusting for any related movements in net realizable value provisions) and the charge that would have arisen if an ave

cost of supplies during the period is principally calculated on a monthly basis by dividing the total cost of inventory acquired in the period by the number of barrels acqu

statements as a gain or loss. No adjustment is made in respect of the cost of inventories held as part of a trading position and certain other temporary inventory positio

$ million

2008

Other Consolidation

Exploration Refining businesses adjustment

and and and and Total

Production Marketing corporate eliminations group





86,170 320,039 4,634 (49,700) 361,143

(45,931) (1,918) (1,851) 49,700 –

40,239 318,121 2,783 – 361,143

3,565 131 125 – 3,821

114 35 220 – 369





38,308 4,176 (1,223) 466 41,727

(393) (6,060) (35) – (6,488)

37,915 (1,884) (1,258) 466 35,239

(1,547)

591

34,283



8,440 2,208 337 – 10,985

1,186 159 227 – 1,572

155 – – – 155

163 (57) 5 – 111

573 479 657 – 1,709



20,131 6,622 1,073 – 27,826

21,584 6,636 1,802 – 30,022

52

11

615

22,227 6,634 1,839 – 30,700









of supplies acquired during the period and the cost of sales calculated on the first-in first-out (FIFO) method after

hod, which we use for IFRS reporting, the cost of inventory charged to the income statement is based on its historic

ng effect on reported income. The amounts disclosed represent the difference between the charge (to the income

harge that would have arisen if an average cost of supplies was used for the period. For this purpose, the average

e period by the number of barrels acquired. The amounts disclosed are not separately reflected in the financial

rtain other temporary inventory positions.

BP Annual Report and Form 20-F 2010







7. Segmental analysis





By geographical area

Revenues

Third party sales and other operating revenuesa

Results

Replacement cost profit (loss) before interest and taxation

Non-current assets

Other non-current assetsb c

Other investments

Loans

Other receivables

Derivative financial instruments

Deferred tax assets

Defined benefit pension plan surpluses

Total non-current assets

Capital expenditure and acquisitions

a

Non-US region includes UK $62,794 million.

b

Non-US region includes UK $16,650 million.

c

Excluding financial instruments, deferred tax assets and post-employment benefit plan surpluses.









By geographical area

Revenues

Third party sales and other operating revenuesa

Results

Replacement cost profit before interest and taxation

Non-current assets

Other non-current assetsb c

Other investments

Loans

Other receivables

Derivative financial instruments

Deferred tax assets

Defined benefit pension plan surpluses

Total non-current assets

Capital expenditure and acquisitions



a

Non-US region includes UK $51,172 million.

b

Non-US region includes UK $16,713 million.

c

Excluding financial instruments, deferred tax assets and post-employment benefit plan surpluses.

By geographical area

Revenues

Third party sales and other operating revenuesa

Results

Replacement cost profit before interest and taxation

Non-current assets

Other non-current assetsb c

Other investments

Loans

Other receivables

Derivative financial instruments

Defined benefit pension plan surplus

Total non-current assets

Capital expenditure and acquisitions





a

Non-US region includes UK $81,773 million.

b

Non-US region includes UK $15,990 million.

c

Excluding financial instruments, and post-employment benefit plan surpluses.

$ million

2010



US Non-US Total







101,768 195,339 297,107





(30,087) 24,601 (5,486)





67,498 92,614 160,112

1,191

894

6,298

4,210

528

2,176

175,409

10,370 12,646 23,016









$ million

2009



US Non-US Total







83,982 155,290 239,272





2,806 19,698 22,504





64,529 93,580 158,109

1,567

1,039

1,729

3,965

516

1,390

168,315

9,865 10,444 20,309

$ million

2008



US Non-US Total







123,364 237,779 361,143





10,678 31,049 41,727





62,679 89,823 152,502

855

995

710

5,054

1,738

161,854

16,046 14,654 30,700

BP Annual Report and Form 20-F 2010









10. Depreciation, depletion and amortization

$ million

By business 2010 2009 2008

Exploration and Production

US 3,751 4,150 3,012

Non-US 4,865 5,407 5,428

8,616 9,557 8,440

Refining and Marketing

US 955 919 825

Non-USa 1,303 1,317 1,383

2,258 2,236 2,208

Other businesses and corporate

US 140 136 132

Non-US 150 177 205

290 313 337



By geographical area

US 4,846 5,205 3,969

Non-USa 6,318 6,901 7,016

11,164 12,106 10,985



a

Non-US area includes the UK-based international activities of Refining and Marketing.

BP Annual Report and Form 20-F 2010









19. Taxation



Tax on profit

$ million

2010 2009 2008

Current tax

Charge for the year 6,766 6,045 13,468

Adjustment in respect of prior years (74) (300) (85)

6,692 5,745 13,383

Deferred tax

Origination and reversal of temporary differences in the current year (8,157) 2,131 (324)

Adjustment in respect of prior years (36) 489 (442)

(8,193) 2,620 (766)

Tax on profit (loss) (1,501) 8,365 12,617

Tax included in other comprehensive income



2010 2009 2008

Current tax (107) – (264)

Deferred tax 244 (525) (2,682)

137 (525) (2,946)

Tax included directly in equity



2010 2009 2008

Current tax (37) – –

Deferred tax 64 (65) 190

27 (65) 190

BP Annual Report and Form 20-F 2010







19. Taxation



Reconciliation of the effective tax rate



$ million



2010

excluding

impacts of Gulf 2010 impacts of

of Mexico oil Gulf of Mexico

spill oil spill 2010 2009 2008

Profit (loss) before taxation 36,110 (40,935 ) (4,825 ) 25,124 34,283

Tax charge (credit) on profit (loss) 11,393 (12,894 ) (1,501 ) 8,365 12,617

Effective tax rate 32% 31% 31% 33% 37%



% of profit or loss before taxation

UK statutory corporation tax rate 28 28 28 28 28

Increase (decrease) resulting from

UK supplementary and overseas taxes at higher rates 9 7 (6) 8 14

Tax reported in equity-accounted entities (3) – 23 (3) (2)

Adjustments in respect of prior years – – 2 1 (2)

Current year losses unrelieved (prior year losses utilized) – – 1 – (1)

Goodwill impairment – – – 2 –

Tax incentives for investment (1) – 9 (2) (1)

Gulf of Mexico oil spill non-deductible costs – (4) (30) – –

Other (1) – 4 (1) 1

Effective tax rate 32 31 31 33 37







Deferred tax



$ million

Income statement Balance sheet

2010 2009 2008 2010 2009

Deferred tax liability

Depreciation 1,565 1,983 1,248 27,309 25,398

Pension plan surpluses 38 (6) 108 469 271

Other taxable temporary differences 1,178 978 (2,471) 5,538 4,307

2,781 2,955 (1,115) 33,316 29,976

Deferred tax asset

Pension plan and other post-retirement benefit plan deficits 179 180 104 (2,155) (2,269)

Decommissioning, environmental and other provisions (8,151) 86 (333) (13,296) (4,930)

Derivative financial instruments (56) 80 228 (298) (243)

Tax credit (1,088) (516) 330 (2,118) (1,034)

Loss carry forward 24 402 (212) (943) (1,014)

Other deductible temporary differences (1,882) (567) 232 (4,126) (2,340)

(10,974) (335) 349 (22,936) (11,830)

Net deferred tax (credit) charge and net deferred tax liability (8,193) 2,620 (766) 10,380 18,146

Of which - deferred tax liabilities 10,908 18,662

- deferred tax assets 528 516









$ million



Analysis of movements during the year 2010 2009



At 1 January 18,146 16,198

Exchange adjustments 3 (7)

Charge (credit) for the year on profit (loss) (8,193) 2,620

Charge (credit) for the year in other comprehensive income 244 (525)

Charge (credit) for the year in equity 64 (65)

Acquisitions 187 –

Reclassified as liabilities directly associated with assets held for sale (67) –

Deletions (4) (75)

At 31 December 10,380 18,146

BP Annual Report and Form 20-F 2010









22. Property, plant and equipment

$ million

Oil depots,

Plant, Fixtures, storage

Land Oil and machinery fittings and tanks and

and land gas and office Transport- service

improvements Buildings properties equipment equipment ation stations Total

Cost

At 1 January 2010 3,786 2,918 157,197 41,599 3,022 12,441 10,295 231,258

Exchange adjustments (85) (68) 3 35 (41) 28 (72) (200)

Additions 39 96 11,980 3,354 279 152 610 16,510

Acquisitions 2 3 1,931 41 5 15 – 1,997

Transfers – – 2,633 – – – – 2,633

Reclassified as assets held for sale (6) (10) (6,610) (1,083) (87) (212) – (8,008)

Deletions (176) (104) (6,950) (1,119) (213) (208) (1,181) (9,951)

At 31 December 2010 3,560 2,835 160,184 42,827 2,965 12,216 9,652 234,239

Depreciation

At 1 January 2010 571 1,389 86,975 18,903 1,893 7,852 5,400 122,983

Exchange adjustments 1 (46) – (19) (25) 16 (13) (86)

Charge for the year 34 82 8,024 1,492 291 268 606 10,797

Impairment losses 57 5 918 117 1 – 21 1,119

Reclassified as assets held for sale – (8) (4,342) (514) (76) (97) – (5,037)

Deletions (91) (38) (3,528) (796) (208) (99) (940) (5,700)

At 31 December 2010 572 1,384 88,047 19,183 1,876 7,940 5,074 124,076

Net book amount at 31 December 2010 2,988 1,451 72,137 23,644 1,089 4,276 4,578 110,163

Cost

At 1 January 2009 3,964 2,742 146,813 37,905 3,045 12,295 10,345 217,109

Exchange adjustments 148 85 2 877 83 66 546 1,807

Additions 59 313 11,928 3,743 145 115 739 17,042

Transfers – – 745 – – – – 745

Deletions (385) (222) (2,291) (926) (251) (35) (1,335) (5,445)

At 31 December 2009 3,786 2,918 157,197 41,599 3,022 12,441 10,295 231,258

Depreciation

At 1 January 2009 598 1,313 79,955 17,298 1,696 7,542 5,507 113,909

Exchange adjustments 19 38 – 446 54 30 272 859

Charge for the year 31 102 8,951 1,372 302 289 618 11,665

Impairment losses 88 53 10 185 10 8 52 406

Deletions (165) (117) (1,941) (398) (169) (17) (1,049) (3,856)

At 31 December 2009 571 1,389 86,975 18,903 1,893 7,852 5,400 122,983

Net book amount at 31 December 2009 3,215 1,529 70,222 22,696 1,129 4,589 4,895 108,275

Net book amount at 1 January 2009 3,366 1,429 66,858 20,607 1,349 4,753 4,838 103,200



Assets held under finance leases at net

book amount included above

At 31 December 2010 – 14 236 386 – 7 18 661

At 31 December 2009 – 14 225 110 – 7 19 375





Decommissioning asset at net book

amount included above Cost Depreciation Net

At 31 December 2010 9,237 4,585 4,652

At 31 December 2009 7,968 4,129 3,839



Assets under construction included

above

At 31 December 2010 23,055

At 31 December 2009 19,120

BP Annual Report and Form 20-F 2010









25. Investments in jointly controlled entities



2010a 2009

TNK-BP



Sales and other operating revenues 11,679 9,396 25,936

Profit before interest and taxation 1,730 1,815 3,588

Finance costs 122 155 275

Profit before taxation 1,608 1,660 3,313

Taxation 433 374 882

Minority interest – – 169

Profit for the year 1,175 1,286 2,262

Non-current assets 12,054 15,857

Current assets 3,595 4,124

Total assets 15,649 19,981

Current liabilities 1,615 2,276

Non-current liabilities 2,701 3,768

Total liabilities 4,316 6,044

11,333 13,937

Group investment in jointly controlled entities

Group share of net assets (as above) 11,333 13,937

Loans made by group companies to jointly

controlled entities 953 1,359

12,286 15,296



a

Balance sheet information shown above excludes data relating to jointly controlled entities reclassified as assets held for sale as at 31

December 2010. Income statement information shown above includes data relating to jointly controlled entities reclassified as assets held for

sale during 2010 for the period from 1 January 2010 up until their date of reclassification as held for sale.



Transactions between the group and its jointly controlled entities are summarized below.





Sales to jointly controlled entities 2010 2009

Amount Amount

receivable at receivable at

Product Sales 31 December Sales 31 December

LNG, crude oil and oil products, natural gas, employee services 3,804 1,352 2,182 1,328





Purchases from jointly controlled entities 2010 2009

Amount Amount

payable at payable at

Product Purchases 31 Decembera Purchases 31 Decembera

LNG, crude oil and oil products, natural gas,

refinery operating costs, plant processing fees 8,063 683 5,377 214

a

Amounts payable to jointly controlled entities shown above exclude $2,583 million (2009 $2,509 million and 2008 $2,365 million) of payables relating to BP’s contribution on the

establishment of the Sunrise Oil Sands joint venture.

$ million

2008

Other Total



10,796 36,732

1,343 4,931

185 460

1,158 4,471

397 1,279

– 169

761 3,023









$ million

2008

Amount

receivable at

Sales 31 December

2,971 1,036



$ million

2008

Amount

payable at

Purchases 31 Decembera





9,115 182



n) of payables relating to BP’s contribution on the

BP Annual Report and Form 20-F 2010









26. Investments in associates



2010a

TNK-BP Other Total TNK-BP Other

Sales and other operating revenues 22,323 10,031 32,354 17,377 8,301

Profit before interest and taxation 3,866 1,215 5,081 3,178 811

Finance costs 128 22 150 220 19

Profit before taxation 3,738 1,193 4,931 2,958 792

Taxation 913 228 1,141 871 125

Minority interest 208 - 208 139 -

Profit for the year 2,617 965 3,582 1,948 667

Non-current assets 14,686 4,024 18,710 13,437 4,573

Current assets 4,500 1,989 6,489 4,205 1,887

Total assets 19,186 6,013 25,199 17,642 6,460

Current liabilities 3,284 1,888 5,172 3,122 1,640

Non-current liabilities 5,283 1,914 7,197 4,797 2,277

Total liabilities 8,567 3,802 12,369 7,919 3,917

Minority interest 624 - 624 582 -

9,995 2,211 12,206 9,141 2,543

Group investment in associates

Group share of net assets (as above) 9,995 2,211 12,206 9,141 2,543

Loans made by group companies to associates - 1,129 1,129 - 1,279

9,995 3,340 13,335 9,141 3,822



a

Balance sheet information shown above excludes data relating to associates reclassified as held for sale as at 31 December 2010. Income statement information shown above

relating to associates reclassified as assets held for sale during 2010 for the period from 1 January 2010 up until their date of reclassification as held for sale.





Transactions between the group and its associates are summarized below.





Sales to associates

2010 2009

Amount Amount

receivable at receivable at

Product Sales 31 December Sales 31 December



LNG, crude oil and oil products, natural gas, employee services 3,561 330 2,801 320



Purchases from associates

2010 2009

Amount Amount

payable at payable at

Product Purchases 31 Decembera Purchases 31 Decembera



Crude oil and oil products, natural gas, transportation tariff 4,889 633 5,110 614

$ million

2009 2008

Total

25,678 11,709

3,989 1,065

239 33

3,750 1,032

996 234

139 -

2,615 798

18,010

6,092

24,102

4,762

7,074

11,836

582

11,684





11,684

1,279

12,963



2010. Income statement information shown above includes data

reclassification as held for sale.









$ million



2008

Amount

receivable at

Sales 31 December



3,248 219





2008

Amount

payable at

Purchases 31 Decembera



4,635 295

BP Annual Report and Form 20-F 2010









36. Capital disclosures and analysis of changes in net debt





2010

Cash and Cash and

Finance cash Net Finance cash

Movement in net debt debt equivalents debt debt equivalents



At 1 January (34,500) 8,339 (26,161) (33,238) 8,197

Exchange adjustments 194 (279) (85) (60) 110

Net cash flow (3,613) 10,496 6,883 (1,141) 32

Movement in finance debt relating to investing activities (6,197) – (6,197) – –

Other movements (304) – (304) (61) –

At 31 December (44,420) 18,556 (25,864) (34,500) 8,339

$ million

2009



Net

debt



(25,041)

50

(1,109)



(61)

(26,161)

BP Annual Report and Form 20-F 2010









37. Provisions





Litigation and Clean Water Act

Decommissioning Environmental Spill response claims penalties



At 1 January 2010 9,020 1,719 – 1,076 –

Exchange adjustments (114) – – (7) –

Acquisitions 188 – – 2 –

New or increased provisions 1,800 1,290 10,883 15,171 3,510

Write-back of unused provisions (12) (120) – (51) –

Unwinding of discount 168 29 – 18 –

Change in discount rate 444 22 – 9 –

Utilization (164) (460) (9,840) (4,250) –

Reclassified as liabilities directly associated

with assets held for sale (381) (1) – – –

Deletions (405) (14) – (1) –

At 31 December 2010 10,544 2,465 1,043 11,967 3,510

Of which – current 432 635 982 7,011 –

– non-current 10,112 1,830 61 4,956 3,510









Decommissioning Environmental Litigation



At 1 January 2009 8,418 1,691 1,446

Exchange adjustments 398 15 22

New or increased provisions 169 588 302

Write-back of unused provisions – (259) (99)

Unwinding of discount 184 32 15

Change in discount rate 324 18 (35)

Utilization (383) (308) (574)

Deletions (90) (58) (1)

At 31 December 2009 9,020 1,719 1,076

Of which – current 287 368 433

– non-current 8,733 1,351 643

$ million







Other Total



2,815 14,630

(50) (171)

15 205

808 33,462

(466) (649)

19 234

(6) 469

(755) (15,469)





(1) (383)

(1) (421)

2,378 31,907

429 9,489

1,949 22,418







$ million



Other Total



2,098 13,653

29 464

1,256 2,315

(228) (586)

16 247

8 315

(361) (1,626)

(3) (152)

2,815 14,630

572 1,660

2,243 12,970

BP Annual Report and Form 20-F 2010









37. Provisions

Provisions relating to the Gulf of Mexico oil spill



$ million



Litigation and Clean Water Act

Environmental Spill response claims penalties Total



At 1 January 2010 – – – – –

New or increased provisions 929 10,883 14,939 3,510 30,261

Unwinding of discount 4 – – – 4

Change in discount rate 5 – – – 5

Utilization (129) (9,840) (3,966) – (13,935)

At 31 December 2010 809 1,043 10,973 3,510 16,335

Of which – current 314 982 6,642 – 7,938

– non-current 495 61 4,331 3,510 8,397

Of which - payable from the trust fund 382 – 9,162 – 9,544

BP Annual Report and Form 20-F 2010







38. Pensions and other post-retirement benefits



%

Financial assumptions UK US Other

2010 2009 2008 2010 2009 2008 2010 2009 2008



Discount rate for pension plan liabilities 5.5 5.8 6.3 4.7 5.4 6.3 5.3 5.8 5.7

Discount rate for other post-retirement benefit plans n/a n/a n/a 5.3 5.8 6.2 n/a n/a n/a

Rate of increase in salaries 5.4 5.3 4.9 4.1 4.2 2.2 3.8 3.8 3.5

Rate of increase for pensions in payment 3.5 3.4 3.0 – – – 1.8 1.8 1.7

Rate of increase in deferred pensions 3.5 3.4 3.0 – – – 1.3 1.2 1.0

Inflation 3.5 3.4 3.0 2.3 2.4 0.4 2.3 2.3 2.0

BP Annual Report and Form 20-F 2010







38. Pensions and other post-retirement benefits



BP's most substantial pension liabilities are in the UK, the US and Germany where our mortality assumptions are as follows:



Years

Mortality assumptions UK US Germany

2010 2009 2008 2010 2009 2008 2010 2009 2008



Life expectancy at age 60 for a male currently aged 60 26.1 26.0 25.9 24.7 24.6 24.4 23.3 23.2 23.0

Life expectancy at age 60 for a male currently aged 40 29.1 29.0 28.9 26.2 26.1 25.9 26.2 26.1 25.9

Life expectancy at age 60 for a female currently aged 60 28.7 28.6 28.5 26.3 26.3 26.1 27.9 27.8 27.6

Life expectancy at age 60 for a female currently aged 40 31.6 31.5 31.4 27.2 27.2 27.0 30.6 30.4 30.3





The assumed future US healthcare cost trend rate assumptions are as follows:



%

2010 2009 2008



First year's US healthcare cost trend rate 7.8 8.0 8.1

Ultimate US healthcare cost trend rate 5.0 5.0 5.0

Year in which ultimate trend rate is reached 2018 2016 2014





The long-term asset allocation policy for the major plans is as follows:



Policy range

Asset category %



Total equity 45-75

Bonds/cash 17.5-50

Property/real estate 0-10

BP Annual Report and Form 20-F 2010







38. Pensions and other post-retirement benefits





2010 2009 2008

Expected Expected Expected

long-term long-term long-term

rate of Market rate of Market rate of Market

return value return value return value

% $ million % $ million % $ million

UK pension plans

Equities 8.0 18,546 8.0 16,945 8.0 13,704

Bonds 5.0 3,866 5.3 3,701 6.1 3,258

Property 6.5 1,462 6.5 1,269 6.5 978

Cash 1.4 406 1.1 634 2.9 299

7.2 24,280 7.3 22,549 7.4 18,239

US pension plans

Equities 8.5 5,058 8.5 4,326 8.5 3,991

Bonds 4.5 1,419 4.8 1,218 3.7 1,247

Property 8.0 7 8.0 8 8.0 8

Cash 0.3 165 0.9 271 1.9 131

8.0 6,649 8.0 5,823 8.0 5,377

US other post-retirement benefit plans

Equities – – 8.5 8 8.5 9

Bonds – – 4.8 4 3.7 4

Cash 0.3 8 – – – –

0.3 8 7.6 12 7.3 13

Other plans

Equities 8.0 1,182 8.6 1,091 8.4 799

Bonds 4.2 1,874 4.4 1,651 4.2 1,481

Property 6.3 83 6.5 82 6.3 127

Cash 2.7 155 2.0 245 3.1 118

5.4 3,294 5.9 3,069 5.8 2,525

BP Annual Report and Form 20-F 2010







38. Pensions and other post-retirement benefits



$ million

One-percentage point

Increase Decrease

Investment return

Effect on pension and other post-retirement benefit expense in 2011 (343) 343

Discount rate

Effect on pension and other post-retirement benefit expense in 2011 (76) 101

Effect on pension and other post-retirement benefit obligation at 31 December 2010 (5,370) 6,864

Inflation rate

Effect on pension and other post-retirement benefit expense in 2011 470 (364)

Effect on pension and other post-retirement benefit obligation at 31 December 2010 5,060 (4,135)

US healthcare cost trend rate

Effect on US other post-retirement benefit expense in 2011 31 (24)

Effect on US other post-retirement obligation at 31 December 2010 401 (328)





One additional year of longevity in the mortality assumptions would have the effects shown in the table below. The effect shown for the expense in 2011

includes current service cost and interest on plan liabilities.



$ million

US other

post-

UK US retirement German

pension pension benefit pension

plans plans plans plans

One additional year's longevity

Effect on pension and other post-retirement benefit expense in 2011 41 4 4 9

Effect on pension and other post-retirement benefit obligation at 31 December 2010 581 73 72 187

BP Annual Report and Form 20-F 2010







38. Pensions and other post-retirement benefits





$ million

2010

US other

post-

UK US retirement

pension pension benefit Other

plans plans plans plans Total

Analysis of the amount charged to profit (loss) before interest and taxation

Current service costa 393 241 48 120 802

Past service cost – – – 3 3

Settlement, curtailment and special termination benefits 24 – – 161 185

Payments to defined contribution plans 1 187 – 35 223

Total operating chargeb 418 428 48 319 1,213

Analysis of the amount credited (charged) to other finance expense

Expected return on plan assets 1,580 465 1 178 2,224

Interest on plan liabilities (1,183) (396) (169) (429) (2,177)

Other finance income (expense) 397 69 (168) (251) 47

Analysis of the amount recognized in other comprehensive income

Actual return less expected return on pension plan assets 1,577 425 (1) 36 2,037

Change in assumptions underlying the present value of the plan liabilities (1,144) (498) (132) (489) (2,263)

Experience gains and losses arising on the plan liabilities 12 (167) (8) 69 (94)

Actuarial (loss) gain recognized in other comprehensive income 445 (240) (141) (384) (320)

Movements in benefit obligation during the year

Benefit obligation at 1 January 21,425 7,519 2,996 8,133 40,073

Exchange adjustments (835) – – (269) (1,104)

Current service costa 393 241 48 120 802

Past service cost – – – 3 3

Interest cost 1,183 396 169 429 2,177

Curtailment – – – 4 4

Settlement 11 – – 18 29

Special termination benefitsc 13 – – 139 152

Contributions by plan participantsd 39 – – 13 52

Benefit payments (funded plans)e (952) (758) (4) (192) (1,906)

Benefit payments (unfunded plans)e (3) (75) (192) (387) (657)

Acquisitions – – – 2 2

Disposals (43) – – (29) (72)

Actuarial loss on obligation 1,132 665 140 420 2,357

Benefit obligation at 31 Decembera f 22,363 7,988 3,157 8,404 41,912

Movements in fair value of plan assets during the year

Fair value of plan assets at 1 January 22,549 5,823 12 3,069 31,453

Exchange adjustments (881) – – 29 (852)

Expected return on plan assetsa g 1,580 465 1 178 2,224

Contributions by plan participantsd 39 – – 13 52

Contributions by employers (funded plans) 411 694 – 187 1,292

Benefit payments (funded plans)e (952) (758) (4) (192) (1,906)

Acquisitions – – – 2 2

Disposals (43) – – (28) (71)

Actuarial gain (loss) on plan assetsg 1,577 425 (1) 36 2,037

Fair value of plan assets at 31 December 24,280 6,649 8 3,294 34,231

Surplus (deficit) at 31 December 1,917 (1,339) (3,149) (5,110) (7,681)

Represented by

Asset recognized 2,120 – – 56 2,176

Liability recognized (203) (1,339) (3,149) (5,166) (9,857)

1,917 (1,339) (3,149) (5,110) (7,681)

The surplus (deficit) may be analysed between funded and unfunded plans as follows

Funded 2,115 (838) (39) (223) 1,015

Unfunded (198) (501) (3,110) (4,887) (8,696)

1,917 (1,339) (3,149) (5,110) (7,681)

The defined benefit obligation may be analysed between funded and unfunded plans

as follows

Funded (22,165) (7,487) (47) (3,517) (33,216)

Unfunded (198) (501) (3,110) (4,887) (8,696)

(22,363) (7,988) (3,157) (8,404) (41,912)



a

The costs of managing the plan’s investments are treated as being part of the investment return, the costs of administering our pension plan benefits are generally included in

current service cost and the costs of administering our other post-retirement benefit plans are included in the benefit obligation.

b

Included within production and manufacturing expenses and distribution and administration expenses.

c

The charge for special termination benefits represents the increased liability arising as a result of early retirements occurring as part of restructuring programmes.

d

Most of the contributions made by plan participants after 1 January 2010 into UK pension plans were made under salary sacrifice.

e

The benefit payments amount shown above comprises $2,507 million benefits plus $56 million of plan expenses incurred in the administration of the benefit.

fThe benefit obligation for other plans includes $3,871 million for the German plan, which is largely unfunded.

g

The actual return on plan assets is made up of the sum of the expected return on plan assets and the actuarial gain on plan assets as disclosed above.

BP Annual Report and Form 20-F 2010





38. Pensions and other post-retirement benefits



$ million

2009

US other

post-

UK US retirement

pension pension benefit Other

plans plans plans plans Total

Analysis of the amount charged to profit before interest and taxation

Current service costa 311 243 48 117 719

Past service cost – – (22) 1 (21)

Settlement, curtailment and special termination benefits 37 – – 53 90

Payments to defined contribution plans – 205 – 28 233

Total operating chargeb 348 448 26 199 1,021

Analysis of the amount credited (charged) to other finance expense

Expected return on plan assets 1,426 405 1 147 1,979

Interest on plan liabilities (1,112) (456) (183) (420) (2,171)

Other finance income (expense) 314 (51) (182) (273) (192)

Analysis of the amount recognized in other comprehensive income

Actual return less expected return on pension plan assets 1,761 617 2 169 2,549

Change in assumptions underlying the present value of the plan liabilities (2,217) (501) (50) (42) (2,810)

Experience gains and losses arising on the plan liabilities (141) (229) 71 (122) (421)

Actuarial (loss) gain recognized in other comprehensive income (597) (113) 23 5 (682)

Movements in benefit obligation during the year

Benefit obligation at 1 January 16,655 7,534 3,003 7,655 34,847

Exchange adjustments 1,896 – – 363 2,259

a

Current service cost 311 243 48 117 719

Past service cost – – (22) 1 (21)

Interest cost 1,112 456 183 420 2,171

Curtailment – – – 11 11

Settlement – – – (3) (3)

c

Special termination benefits 37 – – 45 82

Contributions by plan participants 37 – – 10 47

Benefit payments (funded plans)d (977) (1,371) (4) (209) (2,561)

Benefit payments (unfunded plans)d (4) (73) (191) (399) (667)

Disposals – – – (42) (42)

Actuarial (gain) loss on obligation 2,358 730 (21) 164 3,231

Benefit obligation at 31 Decembera e 21,425 7,519 2,996 8,133 40,073

Movements in fair value of plan assets during the year

Fair value of plan assets at 1 January 18,239 5,377 13 2,525 26,154

Exchange adjustments 2,054 – – 242 2,296

Expected return on plan assetsa f 1,426 405 1 147 1,979

Contributions by plan participants 37 – – 10 47

Contributions by employers (funded plans) 9 795 – 204 1,008

Benefit payments (funded plans)d (977) (1,371) (4) (209) (2,561)

DIsposals – – – (19) (19)

Actuarial gain on plan assetsf 1,761 617 2 169 2,549

Fair value of plan assets at 31 December 22,549 5,823 12 3,069 31,453

Surplus (deficit) at 31 December 1,124 (1,696) (2,984) (5,064) (8,620)

Represented by

Asset recognized 1,290 – – 100 1,390

Liability recognized (166) (1,696) (2,984) (5,164) (10,010)

1,124 (1,696) (2,984) (5,064) (8,620)

The surplus (deficit) may be analysed between funded and unfunded plans as follows

Funded 1,287 (1,280) (33) (164) (190)

Unfunded (163) (416) (2,951) (4,900) (8,430)

1,124 (1,696) (2,984) (5,064) (8,620)

The defined benefit obligation may be analysed between funded and unfunded plans

as follows

Funded (21,262) (7,103) (45) (3,233) (31,643)

Unfunded (163) (416) (2,951) (4,900) (8,430)

(21,425) (7,519) (2,996) (8,133) (40,073)

a

The costs of managing the plan’s investments are treated as being part of the investment return, the costs of administering our pension plan benefits are generally included in current service cost

and the costs of administering our other post-retirement benefit plans are included in the benefit obligation.

b

Included within production and manufacturing expenses and distribution and administration expenses.

c

The charge for special termination benefits represents the increased liability arising as a result of early retirements occurring as part of restructuring programmes.

d

The benefit payments amount shown above comprises $3,174 million benefits plus $54 million of plan expenses incurred in the administration of the benefit.

e

The benefit obligation for other plans includes $3,880 million for the German plan, which is largely unfunded.

f

The actual return on plan assets is made up of the sum of the expected return on plan assets and the actuarial gain on plan assets as disclosed above.

BP Annual Report and Form 20-F 2010





38. Pensions and other post-retirement benefits



$ million

2008

US

UK US other post-

pension pension retirement

plans plans benefit plans Other plans Total



Analysis of the amount charged to profit before interest and taxation

Current service costa 448 235 40 128 851

Past service cost 7 74 – 1 82

Settlement, curtailment and special termination benefits 30 – – 12 42

Payments to defined contribution plans – 170 – 25 195

Total operating chargeb 485 479 40 166 1,170

Analysis of the amount credited (charged) to other finance expense

Expected return on plan assets 2,094 632 2 194 2,922

Interest on plan liabilities (1,239) (444) (198) (450) (2,331)

Other finance income (expense) 855 188 (196) (256) 591

Analysis of the amount recognized in other comprehensive income

Actual return less expected return on pension plan assets (6,946) (2,895) (8) (404) (10,253)

Change in assumptions underlying the present value of the plan liabilities 1,570 3 215 214 2,002

Experience gains and losses arising on the plan liabilities (73) (194) 18 70 (179)

Actuarial (loss) gain recognized in other comprehensive income (5,449) (3,086) 225 (120) (8,430)



a

The costs of managing the plan’s investments are treated as being part of the investment return, the costs of administering our pensions fund benefits are generally included in

current service cost, and the costs of administering our other post-retirement benefit plans are included in the benefit obligation.

b

Included within production and manufacturing expenses and distribution and administration expenses.









$ million

2010 2009 2008 2007 2006



History of surplus (deficit) and of experience gains and losses

Benefit obligation at 31 December 41,912 40,073 34,847 43,100 42,433

Fair value of plan assets at 31 December 34,231 31,453 26,154 42,799 39,910

Deficit (7,681) (8,620) (8,693) (301) (2,523)

Experience losses on plan liabilities (94) (421) (178) (200) (124)

Actual return less expected return on pension plan assets 2,037 2,549 (10,253) 302 1,967

Actual return on plan assets 4,261 4,528 (7,331) 3,157 4,377

Actuarial (loss) gain recognized in other comprehensive income (320) (682) (8,430) 1,717 2,615

Cumulative amount recognized in other comprehensive income (3,942) (3,622) (2,940) 5,490 3,773







$ million

US

UK US other post-

pension pension retirement Other

plans plans benefit plans plans Total



2011 994 805 207 612 2,618

2012 1,035 807 209 581 2,632

2013 1,069 810 213 584 2,676

2014 1,122 808 217 588 2,735

2015 1,167 788 221 576 2,752

2016-2020 6,581 3,636 1,132 2,815 14,164

BP Annual Report and Form 20-F 2010







42. Employee costs and numbers

$ million

Employee costs 2010 2009 2008

Wages and salariesa 9,242 9,702 10,388

Social security costs 789 780 805

Share-based payments 576 521 508

Pension and other post-retirement benefit costs 1,166 1,213 579

11,773 12,216 12,280







Number of employees at 31 December 2010 2009 2008



Exploration and Production 21,100 21,500 21,400

Refining and Marketingb 52,300 51,600 61,500

Other businesses and corporate 6,200 7,200 9,100

Gulf Coast Restoration Organization 100 – –

79,700 80,300 92,000

By geographical area

US 22,100 22,800 29,300

Non-USb 57,600 57,500 62,700

79,700 80,300 92,000







2010 2009 2008

Average number of employees US Non-US Total US Non-US Total US Non-US Total



Exploration and Production 8,100 13,500 21,600 7,900 13,800 21,700 7,800 13,800 21,600

Refining and Marketing 12,600 38,300 50,900 14,700 40,700 55,400 21,600 43,400 65,000

Other businesses and corporate 1,900 5,000 6,900 2,300 5,800 8,100 2,600 6,500 9,100

22,600 56,800 79,400 24,900 60,300 85,200 32,000 63,700 95,700



a

Includes termination payments of $166 million (2009 $945 million and 2008 $669 million).

b

Includes 15,200 (2009 13,900 and 2008 21,200) service station staff.

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)



Oil and natural gas exploration and production activities









Subsidiariesa

Capitalized costs at 31 Decemberb j

Gross capitalized costs

Proved properties

Unproved properties





Accumulated depreciation

Net capitalized costs



Costs incurred for the year ended 31 Decemberb j

Acquisition of propertiesc

Proved

Unproved



Exploration and appraisal costsd

Development

Total costs



Results of operations for the year ended 31 December

Sales and other operating revenuese

Third parties

Sales between businesses





Exploration expenditure

Production costs

Production taxes

Other costs (income)f

Depreciation, depletion and amortization

Impairments and (gains) losses on sale of

businesses and fixed assets





Profit (loss) before taxationg

Allocable taxes

Results of operations



Exploration and Production segment replacement cost profit before interest and tax

Exploration and production activities -

subsidiaries (as above)

Midstream activities - subsidiariesh

Equity-accounted entitiesi

Total replacement cost profit

before interest and tax









a

These 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 spi

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 n

most significant midstream pipeline interests include the Trans-Alaska Pipeline System, the Forties Pipeline System, the Central Area Transmission System pipeline, the South Cauca

Trinidad, Indonesia and Australia and BP is also investing in the LNG business in Angola.

b

Decommissioning assets are included in capitalized costs at 31 December but are excluded from costs incurred for the year.

c

Includes costs capitalized as a result of asset exchanges.

d

Includes exploration and appraisal drilling expenditures, which are capitalized within intangible assets, and geological and geophysical exploration costs, which are charged to income

e

Presented net of transportation costs, purchases and sales taxes.

f

Includes property taxes, other government take and the fair value loss on embedded derivatives of $309 million. The UK region includes a $822 million gain offset by corresponding c

g

Excludes the unwinding of the discount on provisions and payables amounting to $313 million which is included in finance costs in the group income statement.

h

Midstream activities exclude inventory holding gains and losses.

i

The profits of equity-accounted entities are included after interest and tax.

j

Excludes balances associated with assets held for sale.

k

This amount represents the write-down of our investment in Sakhalin. A portion of these costs was previously reported within capitalized costs of equity accounted entities with the re

disclosures of oil and natural gas exploration and production activities.

$ million

2010

Europe North South Africa Asia Australasia Total

America America

Rest of

Rest of North Rest of

UK Europe US America Russia Asia









36,161 7,846 67,724 278 6,047 27,014 – 11,497 3,088 159,655

787 179 5,968 1,363 220 2,694 – 1,113 1,149 13,473

36,948 8,025 73,692 1,641 6,267 29,708 – 12,610 4,237 173,128

27,688 3,515 33,972 216 3,282 13,893 – 4,569 1,205 88,340

9,260 4,510 39,720 1,425 2,985 15,815 – 8,041 3,032 84,788









– – 655 1 – – – 1,121 – 1,777

– 519 1,599 1,200 – – – 151 – 3,469

– 519 2,254 1,201 – – – 1,272 – 5,246

401 13 1,096 78 68 607 7 316 120 2,706

726 816 3,034 251 414 3,003 – 1,244 187 9,675

1,127 1,348 6,384 1,530 482 3,610 7 2,832 307 17,627









1,472 58 1,148 90 1,896 3,158 – 1,272 1,398 10,492

3,405 1,134 18,819 453 1,574 4,353 – 6,697 929 37,364

4,877 1,192 19,967 543 3,470 7,511 – 7,969 2,327 47,856

82 (2) 465 25 9 189 7 51 17 843

1,018 152 2,867 240 445 938 9 365 124 6,158

52 – 1,093 2 249 – – 3,764 109 5,269

(316) 76 3,502 129 209 130 76 90 195 4,091

897 209 3,477 95 575 1,771 – 829 168 8,021



k

(1) – (1,441) (2,190) (3) (427) 341 – – (3,721)

1,732 435 9,963 (1,699) 1,484 2,601 433 5,099 613 20,661

3,145 757 10,004 2,242 1,986 4,910 (433) 2,870 1,714 27,195

1,333 530 3,504 610 1,084 1,771 (23) 813 410 10,032

1,812 227 6,500 1,632 902 3,139 (410) 2,057 1,304 17,163









3,145 757 10,004 2,242 1,986 4,910 (433) 2,870 1,714 27,195

23 42 (347) 3 49 (26) 4 (23) (13) (288)

– 4 27 171 614 63 2,613 487 – 3,979



3,168 803 9,684 2,416 2,649 4,947 2,184 3,334 1,701 30,886









clude any costs relating to the Gulf of Mexico oil spill. Midstream activities relating to the management and ownership of crude oil and

r midstream activities of marketing and trading of natural gas, power and NGLs in the US, Canada, UK and Europe are excluded. The

ea Transmission System pipeline, the South Caucasus Pipeline and the Baku-Tbilisi-Ceyhan pipeline. Major LNG activities are located in









sical exploration costs, which are charged to income as incurred.



ludes a $822 million gain offset by corresponding charges primarily in the US, relating to the group self-insurance programme.

the group income statement.









alized costs of equity accounted entities with the remainder previously reported as a loan, which was not included in the









k

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)





Oil and natural gas exploration and production activities continued





Europe North South Africa Asia

America America

Rest of

Rest of North

UK Europe US America Russia

Equity-accounted entities (BP share)a

Capitalized costs at 31 Decemberb

Gross capitalized costs

Proved properties – – – 142 103 – 14,486

Unproved properties – – – 1,284 – – 652

– – – 1,426 103 – 15,138

Accumulated depreciation – – – – – – 6,300

Net capitalized costs – – – 1,426 103 – 8,838



Costs incurred for the year ended 31 Decemberb

Acquisition of propertiesc

Proved – – – – – – –

Unproved – – – – 9 – 66

– – – – 9 – 66

Exploration and appraisal costsd – – – – 2 – 94

Development – – – 49 549 – 1,416

Total costs – – – 49 560 – 1,576



Results of operations for the year ended 31 December

Sales and other operating revenuese

Third parties – – – – 2,268 – 5,610

Sales between businesses – – – – – – 3,432

– – – – 2,268 – 9,042

Exploration expenditure – – – – 22 – 40

Production costs – – – – 316 – 1,602

Production taxes – – – – 911 – 3,567

Other costs (income) – – – 67 75 – 3

Depreciation, depletion and amortization – – – – 269 – 954

Impairments and (gains) losses on sale of

businesses and fixed assets – – – – – – 43

– – – 67 1,593 – 6,209

Profit before taxation – – – (67) 675 – 2,833

Allocable taxes – – – – 260 – 475

Results of operations – – – (67) 415 – 2,358







Exploration and production activities -

equity-accounted entities after

tax (as above) – – – (67) 415 – 2,358

Midstream and other activities after taxf – 4 27 238 199 63 255

Total replacement cost profit

after interest and tax – 4 27 171 614 63 2,613





a

These tables contain information relating to oil and natural gas exploration and production activities of equity-accounted entities. They do not include amounts relating to asset

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 t

as well as downstream activities of TNK-BP are excluded. The amounts reported for equity-accounted entities exclude the corresponding amounts for their equity-accounted en

b

Decommissioning assets are included in capitalized costs at 31 December but are excluded from costs incurred for the year.

c

Includes costs capitalized as a result of asset exchanges.

d

Includes exploration and appraisal drilling expenditures, which are capitalized within intangible assets, and geological and geophysical exploration costs, which are charged to

incurred.

e

Presented net of transportation costs and sales taxes.

f

Includes interest, minority interest and the net results of equity-accounted entities of equity-accounted entities.

$ million

2010

Asia Australasia Total







Rest of

Asia









3,192 – 17,923

– – 1,936

3,192 – 19,859

2,674 – 8,974

518 – 10,885









– – –

– – 75

– – 75

– – 96

355 – 2,369

355 – 2,540









87 – 7,965

460 – 3,892

547 – 11,857

– – 62

184 – 2,102

– – 4,478

(2) – 143

363 – 1,586



– – 43

545 – 8,414

2 – 3,443

33 – 768

(31) – 2,675









(31) – 2,675

518 – 1,304

487 – 3,979





ities. They do not include amounts relating to assets held for

export terminals and LNG processing facilities and transportation

orresponding amounts for their equity-accounted entities.

r.



eophysical exploration costs, which are charged to income as

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)



Oil and natural gas exploration and production activities









Subsidiariesa

Capitalized costs at 31 Decemberb

Gross capitalized costs

Proved properties

Unproved properties





Accumulated depreciation

Net capitalized costs



Costs incurred for the year ended 31 Decemberb

Acquisition of propertiesc

Proved

Unproved



Exploration and appraisal costsd

Development

Total costs



Results of operations for the year ended 31 December

Sales and other operating revenuese

Third parties

Sales between businesses





Exploration expenditure

Production costs

Production taxes

Other costs (income)f

Depreciation, depletion and amortization

Impairments and (gains) losses on sale of

businesses and fixed assets





Profit before taxationg

Allocable taxes

Results of operations



Exploration and Production segment replacement cost profit before interest and tax

Exploration and production activities -

subsidiaries (as above)

Midstream activities - subsidiariesh j

Equity-accounted entitiesi

Total replacement cost profit

before interest and tax







a

These tables contain information relating to oil and natural gas exploration and production activities of subsidiaries. Midstream activities relating to the management and owne

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

the Forties Pipeline System, the Central Area Transmission System pipeline, the South Caucasus Pipeline and the Baku-Tbilisi-Ceyhan pipeline. Major LNG activities are locate

b

Decommissioning assets are included in capitalized costs at 31 December but are excluded from costs incurred for the year.

c

Includes costs capitalized as a result of asset exchanges.

d

Includes exploration and appraisal drilling expenditures, which are capitalized within intangible assets, and geological and geophysical exploration costs, which are charged to

e

Presented net of transportation costs, purchases and sales taxes. Sales between businesses and third party sales have been amended in the US without net effect to total sal

f

Includes property taxes, other government take and the fair value gain on embedded derivatives of $663 million. The UK region includes a $783 million gain offset by correspo

g

Excludes the unwinding of the discount on provisions and payables amounting to $308 million which is included in finance costs in the group income statement.

h

Midstream activities exclude inventory holding gains and losses.

i

The profits of equity-accounted entities are included after interest and tax.

j

Includes the gain on disposal of upstream assets associated with our sale of our 46% stake in LukArco.

$ million

2009

Europe North South Africa Asia Australasia Total

America America

Rest of

Rest of North Rest of

UK Europe US America Russia Asia









35,096 6,644 64,366 3,967 8,346 24,476 – 10,900 2,894 156,689

752 – 5,464 147 198 2,377 – 733 1,039 10,710

35,848 6,644 69,830 4,114 8,544 26,853 – 11,633 3,933 167,399

26,794 3,306 31,728 2,309 4,837 12,492 – 4,798 1,038 87,302

9,054 3,338 38,102 1,805 3,707 14,361 – 6,835 2,895 80,097









179 – (17) – – – – 306 – 468

(1) – 370 1 – 18 – – 10 398

178 – 353 1 – 18 – 306 10 866

183 – 1,377 79 78 712 8 315 53 2,805

751 1,054 4,208 386 453 2,707 – 560 277 10,396

1,112 1,054 5,938 466 531 3,437 8 1,181 340 14,067









2,239 68 972 99 1,525 1,846 – 636 785 8,170

2,482 809 15,100 484 1,409 5,313 – 6,257 726 32,580

4,721 877 16,072 583 2,934 7,159 – 6,893 1,511 40,750

59 – 663 80 16 219 8 49 22 1,116

1,243 164 2,821 284 395 908 15 361 70 6,261

(3) – 649 1 220 – – 2,854 72 3,793

(1,259) 51 2,353 145 184 144 76 967 178 2,839

1,148 185 3,857 170 697 2,041 – 757 96 8,951

j –

(122) (7) (208) – (11) (1) – (702) – (1,051)

1,066 393 10,135 680 1,501 3,311 99 4,286 438 21,909

3,655 484 5,937 (97) 1,433 3,848 (99) 2,607 1,073 18,841

1,568 76 1,902 (58) 916 1,517 (25) 682 2 6,580

2,087 408 4,035 (39) 517 2,331 (74) 1,925 1,071 12,261









3,655 484 5,937 (97) 1,433 3,848 (99) 2,607 1,073 18,841

925 17 719 833 17 (27) (37) 518 (315) 2,650

– 5 29 134 630 56 1,924 531 – 3,309

4,580 506 6,685 870 2,080 3,877 1,788 3,656 758 24,800









es relating to the management and ownership of crude oil and natural gas pipelines, processing and export terminals and LNG processing

in the US, Canada, UK and Europe are excluded. The most significant midstream pipeline interests include the Trans-Alaska Pipeline System,

n pipeline. Major LNG activities are located in Trinidad, Indonesia and Australia and BP is also investing in the LNG business in Angola.







exploration costs, which are charged to income as incurred.

ed in the US without net effect to total sales.

es a $783 million gain offset by corresponding charges primarily in the US, relating to the group self-insurance programme.

group income statement.









k

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)





Oil and natural gas exploration and production activities continued





Europe North South Africa Asia Australasia

America America

Rest of

Rest of North Rest of

UK Europe US America Russia Asia

Equity-accounted entities (BP share)a

Capitalized costs at 31 Decemberb

Gross capitalized costs

Proved properties – – – – 5,789 – 13,266 2,259 –

Unproved properties – – – 1,378 197 – 737 – –

– – – 1,378 5,986 – 14,003 2,259 –

Accumulated depreciation – – – – 2,084 – 5,550 1,739 –

Net capitalized costs – – – 1,378 3,902 – 8,453 520 –



Costs incurred for the year ended 31 Decemberb

Acquisition of propertiesc

Proved – – – – – – – – –

Unproved – – – – 31 – 10 – –

– – – – 31 – 10 – –

Exploration and appraisal costsd – – – – 21 – 77 3 –

Development – – – 30 538 – 1,182 246 –

Total costs – – – 30 590 – 1,269 249 –



Results of operations for the year ended 31 December

Sales and other operating revenuese

Third parties – – – – 1,977 – 4,919 351 –

Sales between businesses – – – – – – 2,838 – –

– – – – 1,977 – 7,757 351 –

Exploration expenditure – – – – 23 – 37 – –

Production costs – – – – 354 – 1,428 159 –

Production taxes – – – – 702 – 2,597 – –

Other costs (income) – – – – (69) – 12 (2) –

Depreciation, depletion and amortization – – – – 281 – 1,073 274 –

Impairments and (gains) losses on sale of

businesses and fixed assets – – – – – – 72 – –

– – – – 1,291 – 5,219 431 –

Profit before taxation – – – – 686 – 2,538 (80) –

Allocable taxes – – – – 270 – 501 – –

Results of operations – – – – 416 – 2,037 (80) –







Exploration and production activities -

equity-accounted entities after

tax (as above) – – – – 416 – 2,037 (80) –

Midstream and other activities after taxf – 5 29 134 214 56 (113) 611 –

Total replacement cost profit

after interest and tax – 5 29 134 630 56 1,924 531 –



a

These tables contain information relating to oil and natural gas exploration and production activities of equity-accounted entities. 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 as well as

downstream activities of TNK-BP are excluded. The amounts reported for equityaccounted

entities exclude the corresponding amounts for their equity-accounted entities.

b

Decommissioning assets are included in capitalized costs at 31 December but are excluded from costs incurred for the year.

c

Includes costs capitalized as a result of asset exchanges.

d

Includes exploration and appraisal drilling expenditures, which are capitalized within intangible assets, and geological and geophysical exploration costs, which are

charged to income as incurred.

e

Presented net of transportation costs, purchases and sales taxes.

f

Includes interest, minority interest and the net results of equity-accounted entities of equity-accounted entities.

$ million

2009

Total









21,314

2,312

23,626

9,373

14,253











41

41

101

1,996

2,138









7,247

2,838

10,085

60

1,941

3,299

(59)

1,628



72

6,941

3,144

771

2,373









2,373

936

3,309





m activities relating to the

sportation as well as









ploration costs, which are

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)







Oil and natural gas exploration and production activities continued





Europe North South

America America

Rest of

Rest of North

UK Europe US America

Subsidiariesa

Capitalized costs at 31 Decemberb

Gross capitalized costs

Proved properties 34,614 5,507 59,918 3,517 7,934

Unproved properties 626 – 5,006 165 134

35,240 5,507 64,924 3,682 8,068

Accumulated depreciation 26,564 3,125 28,511 2,141 4,217

Net capitalized costs 8,676 2,382 36,413 1,541 3,851







Costs incurred for the year ended 31 Decemberb

Acquisition of propertiesc

Proved – – 1,374 2 –

Unproved 4 – 2,942 – –

4 – 4,316 2 –

Exploration and appraisal costsd 137 – 862 33 90

Development 907 695 4,914 309 768

Total costs 1,048 695 10,092 344 858







Results of operations for the year ended 31 December

Sales and other operating revenuese

Third parties 3,865 105 1,526 147 3,339

Sales between businesses 4,374 1,416 22,094 1,237 2,605

8,239 1,521 23,620 1,384 5,944

Exploration expenditure 121 1 305 32 30

Production costs 1,357 150 3,002 289 429

Production taxes 503 – 2,603 2 358

Other costs (income)f (28) (43) 3,440 343 198

Depreciation, depletion and amortization 1,049 199 2,729 181 730

Impairments and (gains) losses on sale of

businesses and fixed assets – – 308 2 4

3,002 307 12,387 849 1,749

Profit before taxationg 5,237 1,214 11,233 535 4,195

Allocable taxes 2,280 883 3,857 205 2,218

Results of operations 2,957 331 7,376 330 1,977







Exploration and Production segment replacement cost profit before interest and tax

Exploration and production activities

Subsidiaries (as above) 5,237 1,214 11,233 535 4,195

Equity-accounted entities (1) – 1 40 304

Midstream activitieshi 743 16 490 673 274

Total replacement cost profit

before interest and tax 5,979 1,230 11,724 1,248 4,773



a

These tables contain information relating to oil and natural gas exploration and production activities. Midstream activities relating to the management and ownership of crude o

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 NGL

are excluded. The most significant midstream pipeline interests include the Trans-Alaska Pipeline System, the Forties Pipeline System, the Central Area Transmission System

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. The group’s

activities are excluded from the tables and included in the footnotes, with the exception of Abu Dhabi production taxes, which are included in the results of operations above.

b

Decommissioning assets are included in capitalized costs at 31 December but are excluded from costs incurred for the year.

c

Includes costs capitalized as a result of asset exchanges.

d

Includes exploration and appraisal drilling expenditures, which are capitalized within intangible assets, and geological and geophysical exploration costs, which are charged to

e

Presented net of transportation costs, purchases and sales taxes. Sales between businesses and third party sales have been amended in the US without net effect to total sal

f

Includes property taxes, other government take and the fair value loss on embedded derivatives of $102 million. The UK region includes a $499 million gain offset by correspon

relating to the group self-insurance programme.

g

Excludes the unwinding of the discount on provisions and payables amounting to $285 million which is included in finance costs in the group income statement.

h

Includes a $517 million write-down of our investment in Rosneft based on its quoted market price at the end of the year.

i

Midstream activities exclude inventory holding gains and losses.

$ million

2008

Africa Asia Australasia Total





Rest of

Russia Asia









21,563 – 10,689 2,581 146,323

2,011 – 465 1,018 9,425

23,574 – 11,154 3,599 155,748

10,451 – 4,395 945 80,349

13,123 – 6,759 2,654 75,399









– – 136 – 1,512

– – 41 – 2,987

– – 177 – 4,499

838 12 269 49 2,290

2,966 – 859 349 11,767

3,804 12 1,305 398 18,556









3,745 – 1,186 860 14,773

6,022 – 11,249 1,171 50,168

9,767 – 12,435 2,031 64,941

213 14 140 26 882

875 18 485 62 6,667

– – 5,510 110 9,086

(122) 196 2,064 226 6,274

2,120 – 788 87 7,883



8 – 219 – 541

3,094 228 9,206 511 31,333

6,673 (228) 3,229 1,520 33,608

2,672 (36) 984 513 13,576

4,001 (192) 2,245 1,007 20,032

6,673 (228) 3,229 1,520 33,608

(1) 2,259 191 – 2,793

112 – (272) (129) 1,907



6,784 2,031 3,148 1,391 38,308





o the management and ownership of crude oil and natural gas pipelines, processing

g and trading of natural gas, power and NGLs in the US, Canada, UK and Europe

em, the Central Area Transmission System pipeline, the South Caucasus Pipeline

in the LNG business in Angola. The group’s share of equityaccounted entities’

cluded in the results of operations above.







sical exploration costs, which are charged to income as incurred.

ended in the US without net effect to total sales.

ludes a $499 million gain offset by corresponding charges primarily in the US,



the group income statement.

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)



Movements in estimated net proved reserves

a

Crude oil

Europe North South Africa Asia

America America

Rest of

Rest of North Rest of

e

UK Europe US America Russia Asia



Subsidiaries

At 1 January 2010

Developed 403 83 1,862 11 49 422 – 182

Undeveloped 291 184 1,211 1 56 454 – 334

694 267 3,073 12 105 876 – 516

Changes attributable to

Revisions of previous estimates 20 3 (45) 1 (1) (62) – (62)

Improved recovery 100 9 133 – 17 14 – 145

Purchases of reserves-in-place – 33 6 – – – – 38

Discoveries and extensions 31 1 80 – – 19 – –

Productionb j (50) (15) (211) (2) (19) (87) – (43)

Sales of reserves-in-place – – (117) (11) – (15) – –

101 31 (154) (12) (3) (131) – 78

At 31 December 2010c g

Developed 364 77 1,729 – 44 371 – 269

Undeveloped 431 221 1,190 – 58 374 – 325

795 298 2,919 – 102 745 – 594

Equity-accounted entities (BP share)f

At 1 January 2010

Developed – – – – 407 – 2,351 363

Undeveloped – – – – 405 9 1,198 120

– – – – 812 9 3,549 483

Changes attributable to

Revisions of previous estimates – – – – 4 3 248 (20)

Improved recovery – – – – 33 – 269 –

Purchases of reserves-in-place – – – – – – – –

Discoveries and extensions – – – – 1 – – –

ik

Production – – – – (35) – (313) (69)

Sales of reserves-in-place – – – – – – (3) –

– – – – 3 3 201 (89)

At 31 December 2010d

Developed – – – – 408 – 2,388 370

Undeveloped – – – – 407 h 12 1,362 24

– – – – 815 12 3,750 394

Total subsidiaries and equity-accounted entities (BP share)

At 1 January 2010

Developed 403 83 1,862 11 456 422 2,351 545

Undeveloped 291 184 1,211 1 461 463 1,198 454

694 267 3,073 12 917 885 3,549 999

At 31 December 2010

Developed 364 77 1,729 – 452 371 2,388 639

Undeveloped 431 221 1,190 – 465 386 1,362 349

795 298 2,919 – 917 757 3,750 988

a

Crude oil includes NGLs and condensate. Proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interest

in the underlying production and the option and ability to make lifting and sales arrangements independently.

b

Excludes NGLs from processing plants in which an interest is held of 29 thousand barrels a day.

c

Includes 643 million barrels of NGLs. Also includes 22 million barrels of crude oil in respect of the 30% minority interest in BP Trinidad and Tobago LLC.

d

Includes 18 million barrels of NGLs. Also includes 254 million barrels of crude oil in respect of the 7.03% minority interest in TNK-BP.

e

Proved reserves in the Prudhoe Bay field in Alaska include an estimated 78 million barrels upon which a net profits royalty will be payable over the life of the field under the

terms of the BP Prudhoe Bay Royalty Trust.

f

Volumes of equity-accounted entities include volumes of equity-accounted investments of those entities.

g

Includes 70 million barrels relating to assets held for sale at 31 December 2010. Amounts by region are: 6 million barrels in US; 30 million barrels in South America; and 34

million barrels in Rest of Asia.

h

Includes 801 million barrels relating to assets held for sale at 31 December 2010.

i

Includes 4 million barrels of crude oil sold relating to production since classification of equity-accounted entities as held for sale.

j

Includes 15 million barrels of crude oil sold relating to production from assets held for sale at 31 December 2010. Amounts by region are: 2 million barrels in

US; 6 million barrels in South America; and 7 million barrels in Rest of Asia.

k

Includes 35 million barrels of crude oil sold relating to production from assets held for sale at 31 December 2010.









a

a Crude reserves exclude gas liquids (NGLs) and condensate. Proved reserves exclude royalties due to others whether interest in the underlying production

Provedoil includes naturalroyalties due to others, whether payable in cash or in kind where the royalty owner has a directpayable in cash or in kind where the royalty

million barrels

2010

Australasia Total









58 3,070

57 2,588

115 5,658





– (146)

3 421

– 77

– 131

(12) (439)

– (143)

(9) (99)





48 2,902

58 2,657

106 5,559







– 3,121

– 1,732

– 4,853





– 235

– 302

– –

– 1

– (417)

– (3)

– 118





– 3,166

– 1,805

– 4,971







58 6,191

57 4,320

115 10,511

48 6,068

58 4,462

106 10,530



d, where the royalty owner has a direct interest







Trinidad and Tobago LLC.

NK-BP.

l be payable over the life of the field under the







S; 30 million barrels in South America; and 34







e.

region are: 2 million barrels in









n the underlying production

t in cash or in kind where the royalty

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)

aCrude oil includes NGLs and condensate. Proved reserves exclude royalties due to others, whether payable in cash or in kind where the royalty owner has a direct interest i



Movements in estimated net proved reserves continued

a

Natural gas

Europe









UK



Subsidiaries

At 1 January 2010

Developed 1,602

Undeveloped 670

2,272

Changes attributable to

Revisions of previous estimates (8)

Improved recovery 152

Purchases of reserves-in-place –

Discoveries and extensions 26

Productionb i (191)

Sales of reserves-in-place (6)

(27)

At 31 December 2010c f

Developed 1,416

Undeveloped 829

2,245

Equity-accounted entities (BP share)e

At 1 January 2010

Developed –

Undeveloped –



Changes attributable to

Revisions of previous estimates –

Improved recovery –

Purchases of reserves-in-place –

Discoveries and extensions –

Productionb –

Sales of reserves-in-place –



At 31 December 2010d

Developed –

Undeveloped –



Total subsidiaries and equity-accounted entities (BP share)

At 1 January 2010

Developed 1,602

Undeveloped 670

2,272

At 31 December 2010

Developed 1,416

Undeveloped 829

2,245







a

Proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interest in the underlying production and the option an

b

Includes 204 billion cubic feet of natural gas consumed in operations, 166 billion cubic feet in subsidiaries, 38 billion cubic feet in equity-accounted entities and excludes 14 bill

requirements for sales.

c

Includes 2,921 billion cubic feet of natural gas in respect of the 30% minority interest in BP Trinidad and Tobago LLC.

d

Includes 137 billion cubic feet of natural gas in respect of the 5.89% minority interest in TNK-BP.

e

Volumes of equity-accounted entities include volumes of equity-accounted investments of those entities.

f

Includes 740 billion cubic feet relating to assets held for sale at 31 December 2010. Amounts by region are: 158 billion cubic feet in US; 205 billion cubic feet in South America;

g

Includes 1,819 billion cubic feet relating to assets held for sale at 31 December 2010.

h

Includes 12 billion cubic feet of gas sales relating to production since classification of equity-accounted entities as held for sale.

i

Includes 133 billion cubic feet of gas (excluding gas consumed in operations) relating to production from assets held for sale at 31 December 2010.

Amounts by region are: 23 billion cubic feet in US; 27 billion cubic feet in South America; and 83 billion cubic feet in Rest of Asia.

j

Includes 141 billion cubic feet of gas (excluding gas consumed in operations) relating to production from assets held for sale at 31 December 2010.









a

a Crude reserves exclude gas liquids (NGLs) and condensate. Proved reserves exclude royalties due to others whether interest in the underlying production

Provedoil includes naturalroyalties due to others, whether payable in cash or in kind where the royalty owner has a directpayable in cash or in kind where the royalty owner

e the royalty owner has a direct interest in the underlying production





billion cubic feet



2010

Europe North South Africa Asia Australasia Total

America America

Rest of

Rest of North Rest of

Europe US America Russia Asia









49 9,583 716 3,177 1,107 – 1,579 3,219 21,032

397 5,633 453 7,393 1,454 – 249 3,107 19,356

446 15,216 1,169 10,570 2,561 – 1,828 6,326 40,388





(5) (1,854) (11) 2 3 – (142) (191) (2,206)

6 830 – 512 18 – 83 58 1,659

31 97 1 – – – 17 – 146

– 739 9 19 1,378 – – – 2,171

(8) (861) (77) (953) (229) – (228) (288) (2,835)

– (424) (1,033) – (51) – – – (1,514)

24 (1,473) (1,111) (420) 1,119 – (270) (421) (2,579)





40 9,495 58 3,575 1,329 – 1,290 3,563 20,766

430 4,248 – 6,575 2,351 – 268 2,342 17,043

470 13,743 58 10,150 3,680 – 1,558 5,905 37,809







– – – 1,252 – 1,703 80 – 3,035

– – – 1,010 165 519 13 – 1,707

– – – 2,262 165 2,222 93 – 4,742





– – – (141) 10 382 2 – 253

– – – 291 – – 12 – 303

– – – – – – – – –

– – – 23 – – – – 23

– – – (168) h j – (244) (17) – (429)

– – – – – (1) – – (1)

– – – 5 10 137 (3) – 149





– – – 1,075 g – 1,900 71 – 3,046

– – – 1,192 175 459 19 – 1,845

– – – 2,267 175 2,359 90 – 4,891







49 9,583 716 4,429 1,107 1,703 1,659 3,219 24,067

397 5,633 453 8,403 1,619 519 262 3,107 21,063

446 15,216 1,169 12,832 2,726 2,222 1,921 6,326 45,130

40 9,495 58 4,650 1,329 1,900 1,361 3,563 23,812

430 4,248 – 7,767 2,526 459 287 2,342 18,888

470 13,743 58 12,417 3,855 2,359 1,648 5,905 42,700







in the underlying production and the option and ability to make lifting and sales arrangements independently.

equity-accounted entities and excludes 14 billion cubic feet of produced non-hydrocarbon components which meet regulatory









n US; 205 billion cubic feet in South America; and 377 billion cubic feet in Rest of Asia.







December 2010.



December 2010.









n the underlying production

t in cash or in kind where the royalty owner has a direct interest in

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)

aCrude oil includes NGLs and condensate. Proved reserves exclude royalties due to others, whether payable in cash or in kind where the royalty owner has a direct interest i



Movements in estimated net proved reserves continued

a

Bitumen









Equity - accounted entities (BP shares)

At 1 January 2010

Developed

Undeveloped





Changes attributable to

Revisions of previous estimates

Improved recovery

Purchases of reserves-in-place

Discoveries and extensions

Production

Sales of reserves-in-place





At 31 December 2010

Developed

Undeveloped



h

gk

a

Proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interest in the underlying production and the

option and ability to make lifting and sales arrangements independently.









a

a Crude reserves exclude gas liquids (NGLs) and condensate. Proved reserves exclude royalties due to others whether interest in the underlying production

Provedoil includes naturalroyalties due to others, whether payable in cash or in kind where the royalty owner has a directpayable in cash or in kind where the royalty

e the royalty owner has a direct interest in the underlying production





billion cubic feet



2010

Rest of Total

North

America









– –

– –

– –





– –

– –

– –

179 179

– –

– –

179 179





– –

179 179

179 179





rest in the underlying production and the









n the underlying production

t in cash or in kind where the royalty

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)

aCrude oil includes NGLs and condensate. Proved reserves exclude royalties due to others, whether payable in cash or in kind where the royalty owner has a direct interest i



Movements in estimated net proved reserves continued



Total hydrocarbonsa

Europe North South Africa Asia

America America

Rest of

Rest of North

UK Europe USe America Russia



Subsidiaries

At 1 January 2010

Developed 680 91 3,514 135 596 613 –

Undeveloped 406 253 2,183 79 1,331 704 –

1,086 344 5,697 214 1,927 1,317 –

Changes attributable to

Revisions of previous estimates 18 2 (364) (2) (1) (61) –

Improved recovery 126 10 276 – 105 17 –

Purchases of reserves-in-place – 38 22 – – – –

Discoveries and extensions 36 1 207 2 4 257 –

Productionb f l (83) (16) (359) (15) (183) (127) –

Sales of reserves-in-place (1) – (190) (189) – (24) –

96 35 (408) (204) (75) 62 –

At 31 December 2010c i

Developed 608 84 3,366 10 660 600 –

Undeveloped 574 295 1,923 – 1,192 779 –

1,182 379 5,289 10 1,852 1,379 –

Equity-accounted entities (BP share)g

At 1 January 2010

Developed – – – – 623 – 2,645

Undeveloped – – – – 580 37 1,287

– – – – 1,203 37 3,932

Changes attributable to

Revisions of previous estimates – – – – (20) 6 314

Improved recovery – – – – 83 – 269

Purchases of reserves-in-place – – – – – – –

Discoveries and extensions – – – 179 4km – –

Productionb f – – – – (64) – (354)

Sales of reserves-in-place – – – – – – (4)

– – – 179 3 6 225

At 31 December 2010d

Developed – – – – 593 – 2,716

Undeveloped – – – 179 613j 43 1,441

– – – 179 1,206 43 4,157

Total subsidiaries and equity-accounted entities (BP share)h

At 1 January 2010

Developed 680 91 3,514 135 1,219 613 2,645

Undeveloped 406 253 2,183 79 1,911 741 1,287

1,086 344 5,697 214 3,130 1,354 3,932

At 31 December 2010

Developed 608 84 3,366 10 1,253 600 2,716

Undeveloped 574 295 1,923 179 1,805 822 1,441

1,182 379 5,289 189 3,058 1,422 4,157









a

Proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interest in the underlying production and the option an

arrangements independently.

b

Excludes NGLs from processing plants in which an interest is held of 29 thousand barrels of oil equivalent a day.

c

Includes 643 million barrels of NGLs. Also includes 526 million barrels of oil equivalent in respect of the 30% minority interest in BP Trinidad and Tobago LLC.

d

Includes 18 million barrels of NGLs. Also includes 278 million barrels of oil equivalent in respect of the minority interest in TNK-BP.

e

Proved reserves in the Prudhoe Bay field in Alaska include an estimated 78 million barrels of oil equivalent upon which a net profits royalty will be payable.

f

Includes 35 million barrels of oil equivalent of natural gas consumed in operations, 28 million barrels of oil equivalent in subsidiaries, 7 million barrels of oil equivalent in equity-a

million barrels of oil equivalent of produced non-hydrocarbon components which meet regulatory requirements for sales.

g

Volumes of equity-accounted entities include volumes of equity-accounted investments of those entities.

h

Includes 1,311 million barrels of oil equivalent (197 million barrels of oil equivalent for subsidiaries and 1,114 million barrels of oil equivalent for equity-accounted entities) asso

held for sale where the disposal has not yet been completed.

i

Includes 197 million barrels of oil equivalent relating to assets held for sale at 31 December 2010. Amounts by region are: 34 million barrels of oil equivalent in US; 64 million ba

South America; and 99 million barrels of oil equivalent in Rest of Asia.

j

Includes 1,114 million barrels of oil equivalent relating to assets held for sale at 31 December 2010.

k

Includes 6 million barrels of oil equivalent sold relating to production since classification of equity-accounted entities as held for sale.

l

Includes 38 million barrels of oil equivalent (excluding gas consumed in operations) relating to production from assets held for sale at 31 December 2010.

Amounts by region are: 6 million barrels of oil equivalent in US; 11 million barrels of oil equivalent in South America; and 21 million barrels of oil equivalent in Rest of Asia.

m

Includes 59 million barrels of oil equivalent (excluding gas consumed in operations) relating to production from assets held for sale at 31 December 2010.









a

a Crude reserves exclude gas liquids (NGLs) and condensate. Proved reserves exclude royalties due to others whether interest in the underlying production

Provedoil includes naturalroyalties due to others, whether payable in cash or in kind where the royalty owner has a directpayable in cash or in kind where the royalty owner

the royalty owner has a direct interest in the underlying production





million barrels of oil equivalent

2010

Asia Australasia Total





Rest of

Asia









455 612 6,696

376 593 5,925

831 1,205 12,621





(87) (33) (528)

160 13 707

41 – 101

– – 507

(83) (61) (927)

– – (404)

31 (81) (544)





491 662 6,481

371 462 5,596

862 1,124 12,077







377 – 3,645

122 – 2,026

499 – 5,671





(19) – 281

2 – 354

– – –

– – 183

(73) – (491)

– – (4)

(90) – 323





382 – 3,691

27 – 2,303

409 – 5,994







832 612 10,341

498 593 7,951

1,330 1,205 18,292

873 662 10,172

398 462 7,899

1,271 1,124 18,071









underlying production and the option and ability to make lifting and sales







nidad and Tobago LLC.



alty will be payable.

million barrels of oil equivalent in equity-accounted entities and excludes 2







alent for equity-accounted entities) associated with properties currently



rels of oil equivalent in US; 64 million barrels of oil equivalent in









December 2010.

els of oil equivalent in Rest of Asia.

1 December 2010.









ash or in kind production

he underlying where the royalty owner has a direct interest in

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)



Movements in estimated net proved reserves



a

Crude oil

Europe North South Africa Asia

America America

Rest of

Rest of North Rest of



e

UK Europe US America Russia Asia



Subsidiaries

At 1 January 2009

Developed 410 81 1,717 11 47 464 – 195

Undeveloped 119 194 1,273 1 55 496 – 488

529 275 2,990 12 102 960 – 683

Changes attributable to

Revisions of previous estimates 7 (1) 165 2 18 (121) – (128)

Improved recovery 42 7 82 – 7 32 – 31

Purchases of reserves-in-place 1 – – – – – – 1

Discoveries and extensions 184 – 73 – – 114 – –

Productionb (61) (14) (237) (2) (22) (109) – (45)

Sales of reserves-in-place (8) – – – – – – (26)

165 (8) 83 – 3 (84) – (167)

At 31 December 2009c

Developed 403 83 1,862 11 49 422 – 182

Undeveloped 291 184 1,211 1 56 454 – 334

694 267 3,073 12 105 876 – 516

Equity-accounted entities (BP share)f

At 1 January 2009

Developed – – – – 399 – 2,227 499

Undeveloped – – – – 409 11 944 199

– – – – 808 11 3,171 698

Changes attributable to

Revisions of previous estimates – – – – 2 (2) 590 (28)

Improved recovery – – – – 50 – 8 –

Purchases of reserves-in-place – – – – – – – –

Discoveries and extensions – – – – 3 – 87 –

Production – – – – (37) – (307) (71)

Sales of reserves-in-place – – – – (14) – – (116)

– – – – 4 (2) 378 (215)

At 31 December 2009d

Developed – – – – 407 – 2,351 363

Undeveloped – – – – 405 9 1,198 120

– – – – 812 9 3,549 483

Total subsidiaries and equity-accounted entities (BP share)

At 1 January 2009

Developed 410 81 1,717 11 446 464 2,227 694

Undeveloped 119 194 1,273 1 464 507 944 687

529 275 2,990 12 910 971 3,171 1,381

At 31 December 2009

Developed 403 83 1,862 11 456 422 2,351 545

Undeveloped 291 184 1,211 1 461 463 1,198 454

694 267 3,073 12 917 885 3,549 999





a

Crude oil includes NGLs and condensate. Proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interest

in the underlying production and the option and ability to make lifting and sales arrangements independently.

b

Excludes NGLs from processing plants in which an interest is held of 26 thousand barrels a day.

c

Includes 819 million barrels of NGLs. Also includes 23 million barrels of crude oil in respect of the 30% minority interest in BP Trinidad and Tobago LLC.

d

Includes 20 million barrels of NGLs. Also includes 243 million barrels of crude oil in respect of the 6.86% minority interest in TNK-BP.

e

Proved reserves in the Prudhoe Bay field in Alaska include an estimated 68 million barrels upon which a net profits royalty will be payable over the life of the field under the

terms of the BP Prudhoe Bay Royalty Trust.

f

Volumes of equity-accounted entities include volumes of equity-accounted investments of those entities.









a

a Crude reserves exclude gas liquids (NGLs) and condensate. Proved reserves exclude royalties due to others whether interest in the underlying production

Provedoil includes naturalroyalties due to others, whether payable in cash or in kind where the royalty owner has a directpayable in cash or in kind where the royalty

million barrels





2009

Australasia Total









56 2,981

58 2,684

114 5,665





3 (55)

2 203

– 2

7 378

(11) (501)

– (34)

1 (7)





58 3,070

57 2,588

115 5,658







– 3,125

– 1,563

– 4,688





– 562

– 58

– –

– 90

– (415)

– (130)

– 165





– 3,121

– 1,732

– 4,853







56 6,106

58 4,247

114 10,353





58 6,191

57 4,320

115 10,511





where the royalty owner has a direct interest







Trinidad and Tobago LLC.

NK-BP.

be payable over the life of the field under the









n the underlying production

t in cash or in kind where the royalty

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)

aCrude oil includes NGLs and condensate. Proved reserves exclude royalties due to others, whether payable in cash or in kind where the royalty owner has a direct interest i



Movements in estimated net proved reserves continued



a

Natural gas

Europe North South Africa Asia

America America

Rest of

Rest of North Rest of

UK Europe US America Russia Asia



Subsidiaries

At 1 January 2009

Developed 1,822 61 9,059 659 3,316 1,050 – 1,102

Undeveloped 582 402 5,473 468 7,434 1,382 – 1,308

2,404 463 14,532 1,127 10,750 2,432 – 2,410

Changes attributable to

Revisions of previous estimates (114) (8) 549 43 322 270 – (231)

Improved recovery 34 – 550 5 322 49 – 82

Purchases of reserves-in-place 159 – – – – – – 31

Discoveries and extensions 150 – 496 94 105 59 – –

Productionb (243) (9) (907) (100) (929) (249) – (241)

Sales of reserves-in-place (118) – (4) – – – – (223)

(132) (17) 684 42 (180) 129 – (582)

At 31 December 2009c

Developed 1,602 49 9,583 716 3,177 1,107 – 1,579

Undeveloped 670 397 5,633 453 7,393 1,454 – 249

2,272 446 15,216 1,169 10,570 2,561 – 1,828

Equity-accounted entities (BP share)e

At 1 January 2009

Developed – – – – 1,498 – 1,560 176

Undeveloped – – – – 1,023 182 653 111

– – – – 2,521 182 2,213 287

Changes attributable to

Revisions of previous estimates – – – – (26) (17) 204 (19)

Improved recovery – – – – 314 – 1 4

Purchases of reserves-in-place – – – – – – – –

Discoveries and extensions – – – – 6 – 23 –

Productionb – – – – (165) – (219) (25)

Sales of reserves-in-place – – – – (388) – – (154)

– – – – (259) (17) 9 (194)

At 31 December 2009d

Developed – – – – 1,252 – 1,703 80

Undeveloped – – – – 1,010 165 519 13

– – – – 2,262 165 2,222 93

Total subsidiaries and equity-accounted entities (BP share)

At 1 January 2009

Developed 1,822 61 9,059 659 4,814 1,050 1,560 1,278

Undeveloped 582 402 5,473 468 8,457 1,564 653 1,419

2,404 463 14,532 1,127 13,271 2,614 2,213 2,697

At 31 December 2009

Developed 1,602 49 9,583 716 4,429 1,107 1,703 1,659

Undeveloped 670 397 5,633 453 8,403 1,619 519 262

2,272 446 15,216 1,169 12,832 2,726 2,222 1,921





a

Proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interest in the underlying production and the option

and ability to make lifting and sales arrangements independently.

b

Includes 195 billion cubic feet of natural gas consumed in operations, 164 billion cubic feet in subsidiaries, 31 billion cubic feet in equity-accounted entities and excludes 16

billion cubic feet of produced non-hydrocarbon components which meet regulatory requirements for sales.

c

Includes 3,068 billion cubic feet of natural gas in respect of the 30% minority interest in BP Trinidad and Tobago LLC.

d

Includes 131 billion cubic feet of natural gas in respect of the 5.79% minority interest in TNK-BP.

e

Volumes of equity-accounted entities include volumes of equity-accounted investments of those entities.









a

a Crude reserves exclude gas liquids (NGLs) and condensate. Proved reserves exclude royalties due to others whether interest in the underlying production

Provedoil includes naturalroyalties due to others, whether payable in cash or in kind where the royalty owner has a directpayable in cash or in kind where the royalty owner

e the royalty owner has a direct interest in the underlying production







billion cubic feet



2009

Australasia Total









1,887 18,956

4,000 21,049

5,887 40,005





22 853

75 1,117

– 190

531 1,435

(189) (2,867)

– (345)

439 383





3,219 21,032

3,107 19,356

6,326 40,388







– 3,234

– 1,969

– 5,203





– 142

– 319

– –

– 29

– (409)

– (542)

– (461)





– 3,035

– 1,707

– 4,742







1,887 22,190

4,000 23,018

5,887 45,208

3,219 24,067

3,107 21,063

6,326 45,130





he underlying production and the option



ity-accounted entities and excludes 16









n the underlying production

n cash or in kind where the royalty owner

BP Annual Report and Accounts 2009







Supplementary information on oil and natural gas (unaudited)

aCrude oil includes NGLs and condensate. Proved reserves exclude royalties due to others, whether payable in cash or in kind where the royalty owner has a direct interest i



Movements in estimated net proved reserves continued

million barrels of oil equivalent

a

Total hydrocrabons

Europe North South Africa Asia

America America

Rest of

Rest of North Rest of

UK Europe USe America Russia Asia



Subsidiaries

At 1 January 2009

Developed 724 91 3,279 126 617 645 – 385

Undeveloped 219 264 2,217 81 1,337 734 – 714

943 355 5,496 207 1,954 1,379 – 1,099

Changes attributable to

Revisions of previous estimates (13) (2) 260 9 74 (74) – (168)

Improved recovery 48 7 177 1 63 40 – 45

Purchases of reserves-in-place 28 – – – – – – 6

Discoveries and extensions 210 – 158 17 18 124 – –

Productionb f (102) (16) (393) (20) (182) (152) – (86)

Sales of reserves-in-place (28) – (1) – – – – (65)

143 (11) 201 7 (27) (62) – (268)

At 31 December 2009c

Developed 680 91 3,514 135 596 613 – 455

Undeveloped 406 253 2,183 79 1,331 704 – 376

1,086 344 5,697 214 1,927 1,317 – 831

Equity-accounted entities (BP share)g

At 1 January 2009

Developed – – – – 658 – 2,495 529

Undeveloped – – – – 586 42 1,057 218

– – – – 1,244 42 3,552 747

Changes attributable to

Revisions of previous estimates – – – – (2) (5) 625 (32)

Improved recovery – – – – 104 – 8 1

Purchases of reserves-in-place – – – – – – – –

Discoveries and extensions – – – – 4 – 92 –

Productionb f – – – – (66) – (345) (75)

Sales of reserves-in-place – – – – (81) – – (142)

– – – – (41) (5) 380 (248)

At 31 December 2009d

Developed – – – – 623 – 2,645 377

Undeveloped – – – – 580 37 1,287 122

– – – – 1,203 37 3,932 499

Total subsidiaries and equity-accounted entities (BP share)

At 1 January 2009

Developed 724 91 3,279 126 1,275 645 2,495 914

Undeveloped 219 264 2,217 81 1,923 776 1,057 932

943 355 5,496 207 3,198 1,421 3,552 1,846

At 31 December 2009

Developed 680 91 3,514 135 1,219 613 2,645 832

Undeveloped 406 253 2,183 79 1,911 741 1,287 498

1,086 344 5,697 214 3,130 1,354 3,932 1,330





a

Proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interest in the underlying production and the

option and ability to make lifting and sales arrangements independently.

b

Excludes NGLs from processing plants in which an interest is held of 26 thousand barrels of oil equivalent a day.

c

Includes 819 million barrels of NGLs. Also includes 552 million barrels of oil equivalent in respect of the 30% minority interest in BP Trinidad and Tobago LLC.

d

Includes 20 million barrels of NGLs. Also includes 266 million barrels of oil equivalent in respect of the minority interest in TNK-BP.

e

Proved reserves in the Prudhoe Bay field in Alaska include an estimated 68 million barrels of oil equivalent upon which a net profits royalty will be payable.

f

Includes 34 million barrels of oil equivalent of natural gas consumed in operations, 29 million barrels of oil equivalent in subsidiaries, 5 million barrels of oil equivalent in

equity-accounted entities andexcludes 3 million barrels of oil equivalent of produced non-hydrocarbon components which meet regulatory requirements for sales.

g

Volumes of equity-accounted entities include volumes of equity-accounted investments of those entities.









a

a Crude reserves exclude gas liquids (NGLs) and condensate. Proved reserves exclude royalties due to others whether interest in the underlying production

Provedoil includes naturalroyalties due to others, whether payable in cash or in kind where the royalty owner has a directpayable in cash or in kind where the royalty

e the royalty owner has a direct interest in the underlying production







million barrels of oil equivalent



2009

Australasia Total









382 6,249

747 6,313

1,129 12,562





7 93

15 396

– 34

98 625

(44) (995)

– (94)

76 59





612 6,696

593 5,925

1,205 12,621







– 3,682

– 1,903

– 5,585





– 586

– 113

– –

– 96

– (486)

– (223)

– 86





– 3,645

– 2,026

– 5,671







382 9,931

747 8,216

1,129 18,147

612 10,341

593 7,951

1,205 18,292





t in the underlying production and the







BP Trinidad and Tobago LLC.

BP.

fits royalty will be payable.

ies, 5 million barrels of oil equivalent in

gulatory requirements for sales.









n the underlying production

t in cash or in kind where the royalty

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)

aCrude oil includes NGLs and condensate. Proved reserves exclude royalties due to others, whether payable in cash or in kind where the royalty owner has a direct interest i



Movements in estimated net proved reserves continued



a

Crude oil

Europe North South Africa Asia

America America

Rest of

Rest of North Rest of

e

UK Europe US America Russia Asia



Subsidiaries

At 1 January 2008

Developed 414 105 1,882 13 102 256 – 121

Undeveloped 123 169 1,265 1 202 350 – 372

537 274 3,147 14 304 606 – 493

Changes attributable to

Revisions of previous estimates 16 (11) (212) 1 7 264 – 194

Improved recovery 39 28 182 – 8 18 – 43

Purchases of reserves-in-place – – – – – – – –

Discoveries and extensions – – 64 – 5 173 – –

Productionb (63) (16) (191) (3) (23) (101) – (47)

Sales of reserves-in-place – – – – (199) – – –

(8) 1 (157) (2) (202) 354 – 190

At 31 December 2008c

Developed 410 81 1,717 11 47 464 – 195

Undeveloped 119 194 1,273 1 55 496 – 488

529 275 2,990 12 102 960 – 683

Equity-accounted entities (BP share)f

At 1 January 2008

Developed – – – – 328 – 2,094 574

Undeveloped – – – – 243 – 1,137 205

– – – – 571 – 3,231 779

Changes attributable to

Revisions of previous estimates – – – – (3) 11 217 (1)

Improved recovery – – – – 62 – – –

Purchases of reserves-in-place – – – – 199 – – –

Discoveries and extensions – – – – 13 – 26 –

Production – – – – (34) – (302) (80)

Sales of reserves-in-place – – – – – – (1) –

– – – – 237 11 (60) (81)

At 31 December 2008d

Developed – – – – 399 – 2,227 499

Undeveloped – – – – 409 11 944 199

– – – – 808 11 3,171 698

Total subsidiaries and equity-accounted entities (BP share)

At 1 January 2008

Developed 414 105 1,882 13 430 256 2,094 695

Undeveloped 123 169 1,265 1 445 350 1,137 577

537 274 3,147 14 875 606 3,231 1,272

At 31 December 2008

Developed 410 81 1,717 11 446 464 2,227 694

Undeveloped 119 194 1,273 1 464 507 944 687

529 275 2,990 12 910 971 3,171 1,381

a

Crude oil includes NGLs and condensate. Proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct

interest in the underlying production and the option and ability to make lifting and sales arrangements independently.

b

Excludes NGLs from processing plants in which an interest is held of 19 thousand barrels a day.

c

Includes 807 million barrels of NGLs. Also includes 21 million barrels of crude oil in respect of the 30% minority interest in BP Trinidad and Tobago LLC.

d

Includes 36 million barrels of NGLs. Also includes 216 million barrels of crude oil in respect of the 6.80% minority interest in TNK-BP.

e

Proved reserves in the Prudhoe Bay field in Alaska include an estimated 54 million barrels upon which a net profits royalty will be payable over the life of the field under

the terms of the BP Prudhoe Bay Royalty Trust.

f

Volumes of equity-accounted entities include volumes of equity-accounted investments of those entities.









a

a Crude reserves exclude gas liquids (NGLs) and condensate. Proved reserves exclude royalties due to others whether interest in the underlying production

Provedoil includes naturalroyalties due to others, whether payable in cash or in kind where the royalty owner has a directpayable in cash or in kind where the royalty

e the royalty owner has a direct interest in the underlying production







million barrels



2008

Australasia Total









44 2,937

73 2,555

117 5,492





5 264

3 321

– –

– 242

(11) (455)

– (199)

(3) 173





56 2,981

58 2,684

114 5,665







– 2,996

– 1,585

– 4,581



– 224

– 62

– 199

– 39

– (416)

– (1)

– 107



– 3,125

– 1,563

– 4,688







44 5,933

73 4,140

117 10,073

56 6,106

58 4,247

114 10,353



where the royalty owner has a direct







Trinidad and Tobago LLC.

NK-BP.

be payable over the life of the field under









n the underlying production

t in cash or in kind where the royalty

BP Annual Report and Form 20-F 2010







Supplementary information on oil and natural gas (unaudited)



Movements in estimated net proved reserves continued



a

Natural gas

Europe North South Africa Asia

America America

Rest of

Rest of North Rest of

UK Europe US America Russia Asia



Subsidiaries

At 1 January 2008

Developed 2,049 63 10,670 608 3,075 990 – 1,270

Undeveloped 553 410 4,705 421 7,973 1,410 – 1,269

2,602 473 15,375 1,029 11,048 2,400 – 2,539

Changes attributable to

Revisions of previous estimates 23 (8) (2,063) 51 (456) 142 – –

Improved recovery 77 9 1,322 16 159 6 – 108

Purchases of reserves-in-place – – 183 – – – – –

Discoveries and extensions – – 549 125 948 82 – 37

Productionb (298) (11) (834) (94) (946) (198) – (274)

Sales of reserves-in-place – – – – (3) – – –

(198) (10) (843) 98 (298) 32 – (129)

At 31 December 2008c

Developed 1,822 61 9,059 659 3,316 1,050 – 1,102

Undeveloped 582 402 5,473 468 7,434 1,382 – 1,308

2,404 463 14,532 1,127 10,750 2,432 – 2,410

Equity-accounted entities (BP share)e

At 1 January 2008

Developed – – – – 1,478 – 808 187

Undeveloped – – – – 831 – 353 113

– – – – 2,309 – 1,161 300

Changes attributable to

Revisions of previous estimates – – – – (96) 182 1,273 (2)

Improved recovery – – – – 301 – – 11

Purchases of reserves-in-place – – – – 3 – – –

Discoveries and extensions – – – – 192 – – –

Productionb – – – – (188) – (221) (22)

Sales of reserves-in-place – – – – – – – –

– – – – 212 182 1,052 (13)

At 31 December 2008d

Developed – – – – 1,498 – 1,560 176

Undeveloped – – – – 1,023 182 653 111

– – – – 2,521 182 2,213 287

Total subsidiaries and equity-accounted entities (BP share)

At 1 January 2008

Developed 2,049 63 10,670 608 4,553 990 808 1,457

Undeveloped 553 410 4,705 421 8,804 1,410 353 1,382

2,602 473 15,375 1,029 13,357 2,400 1,161 2,839

At 31 December 2008

Developed 1,822 61 9,059 659 4,814 1,050 1,560 1,278

Undeveloped 582 402 5,473 468 8,457 1,564 653 1,419

2,404 463 14,532 1,127 13,271 2,614 2,213 2,697



a

Proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interest in the underlying production and the option

and ability to make lifting and sales arrangements independently.

b

Includes 193 billion cubic feet of natural gas consumed in operations, 149 billion cubic feet in subsidiaries, 44 billion cubic feet in equity-accounted entities and excludes 17

billion cubic feet of produced non-hydrocarbon components which meet regulatory requirements for sales.

c

Includes 3,108 billion cubic feet of natural gas in respect of the 30% minority interest in BP Trinidad and Tobago LLC.

d

Includes 131 billion cubic feet of natural gas in respect of the 5.92% minority interest in TNK-BP.

e

Volumes of equity-accounted entities include volumes of equity-accounted investments of those entities.









a

a Crude reserves exclude gas liquids (NGLs) and condensate. Proved reserves exclude royalties due to others whether interest in the underlying production

Provedoil includes naturalroyalties due to others, whether payable in cash or in kind where the royalty owner has a directpayable in cash or in kind where the royalty owner

billion cubic feet



2008

Australasia Total









1,135 19,860

4,529 21,270

5,664 41,130





361 (1,950)

2 1,699

– 183

– 1,741

(140) (2,795)

– (3)

223 (1,125)





1,887 18,956

4,000 21,049

5,887 40,005







– 2,473

– 1,297

– 3,770





– 1,357

– 312

– 3

– 192

– (431)

– –

– 1,433





– 3,234

– 1,969

– 5,203







1,135 22,333

4,529 22,567

5,664 44,900

1,887 22,190

4,000 23,018

5,887 45,208



t in the underlying production and the option



n equity-accounted entities and excludes 17









n the underlying production

t in cash or in kind where the royalty owner

BP Annual Report and Accounts 2009







Supplementary information on oil and natural gas (unaudited)



Movements in estimated net proved reserves continued

a

Total hydrocarbons

Europe North South Africa Asia

America America

Rest of

Rest of North Rest of

e

UK Europe US America Russia Asia



Subsidiaries

At 1 January 2008

Developed 767 116 3,722 118 631 427 – 340

Undeveloped 219 239 2,077 74 1,576 593 – 591

986 355 5,799 192 2,207 1,020 – 931

Changes attributable to

Revisions of previous estimates 20 (12) (569) 10 (71) 289 – 194

Improved recovery 52 30 410 3 36 18 – 61

Purchases of reserves-in-place – – 32 – – – – –

Discoveries and extensions – – 158 22 168 187 – 7

Productionb f (115) (18) (334) (20) (186) (135) – (94)

Sales of reserves-in-place – – – – (200) – – –

(43) – (303) 15 (253) 359 – 168

At 31 December 2008c

Developed 724 91 3,279 126 617 645 – 385

Undeveloped 219 264 2,217 81 1,337 734 – 714

943 355 5,496 207 1,954 1,379 – 1,099

Equity-accounted entities (BP share)g

At 1 January 2008

Developed – – – – 583 – 2,233 606

Undeveloped – – – – 386 – 1,199 224

– – – – 969 – 3,432 830

Changes attributable to

Revisions of previous estimates – – – – (20) 42 436 (1)

Improved recovery – – – – 115 – – 2

Purchases of reserves-in-place – – – – 200 – – –

Discoveries and extensions – – – – 46 – 26 –

Productionb f – – – – (66) – (341) (84)

Sales of reserves-in-place – – – – – – (1) –

– – – – 275 42 120 (83)

At 31 December 2008d

Developed – – – – 658 – 2,495 529

Undeveloped – – – – 586 42 1,057 218

– – – – 1,244 42 3,552 747

Total subsidiaries and equity-accounted entities (BP share)

At 1 January 2008

Developed 767 116 3,722 118 1,214 427 2,233 946

Undeveloped 219 239 2,077 74 1,962 593 1,199 815

986 355 5,799 192 3,176 1,020 3,432 1,761

At 31 December 2008

Developed 724 91 3,279 126 1,275 645 2,495 914

Undeveloped 219 264 2,217 81 1,923 776 1,057 932

943 355 5,496 207 3,198 1,421 3,552 1,846



a

Proved reserves exclude royalties due to others, whether payable in cash or in kind, where the royalty owner has a direct interest in the underlying production and the option

and ability to make lifting and sales arrangements independently.

b

Excludes NGLs from processing plants in which an interest is held of 29 thousand barrels of oil equivalent a day.

c

Includes 807 million barrels of NGLs. Also includes 557 million barrels of oil equivalent in respect of the 30% minority interest in BP Trinidad and Tobago LLC.

d

Includes 36 million barrels of NGLs. Also includes 239 million barrels of oil equivalent in respect of the minority interest in TNK-BP.

e

Proved reserves in the Prudhoe Bay field in Alaska include an estimated 54 million barrels of oil equivalent upon which a net profits royalty will be payable.

f

Includes 33 million barrels of oil equivalent of natural gas consumed in operations, 25 million barrels of oil equivalent in subsidiaries, 8 million barrels of oil equivalent in equity-

accounted entities and excludes 3 million barrels of oil equivalent of produced non-hydrocarbon components which meet regulatory requirements for sales.

g

Volumes of equity-accounted entities include volumes of equity-accounted investments of those entities.









a

a Crude reserves exclude gas liquids (NGLs) and condensate. Proved reserves exclude royalties due to others whether interest in the underlying production

Provedoil includes naturalroyalties due to others, whether payable in cash or in kind where the royalty owner has a directpayable in cash or in kind where the royalty owner

million barrels of oil equivalent



2008

Australasia Total









240 6,361

853 6,222

1,093 12,583





67 (72)

4 614

– 32

– 542

(35) (937)

– (200)

36 (21)





382 6,249

747 6,313

1,129 12,562







– 3,422

– 1,809

– 5,231





– 457

– 117

– 200

– 72

– (491)

– (1)

– 354





– 3,682

– 1,903

– 5,585







240 9,783

853 8,031

1,093 17,814

382 9,931

747 8,216

1,129 18,147



st in the underlying production and the option







n BP Trinidad and Tobago LLC.

BP.

rofits royalty will be payable.

aries, 8 million barrels of oil equivalent in equity-

tory requirements for sales.









n the underlying production

t in cash or in kind where the royalty owner

BP Annual Report and Form 20-F 2010







Productive oil and gas wells and acreage



Europe North South Africa Asia

America America

Rest of

Rest of North

UK Europe US America Russia



Number of productive wells at 31 December 2010

Oil wellsa – gross 251 84 2,709 7 3,705 596 20,235

– net 130 32 1,121 3 2,063 454 9,081

Gas wellsb – gross 281 – 23,041 366 498 106 63

– net 138 – 12,581 285 167 42 31





a

Includes approximately 3,989 gross (1,730 net) multiple completion wells (more than one formation producing into the same well bore).

b

Includes approximately 2,623 gross (1,673 net) multiple completion wells. If one of the multiple completions in a well is an oil completion, the well is classified as an oil well.

Asia Australasia Total







Rest of

Asia







1,889 13 29,489

424 2 13,310

639 68 25,062

284 13 13,541







re).

etion, the well is classified as an oil well.

BP Annual Report and Form 20-F 2010









Europe North South Africa



America America



Rest of



Rest of North



UK Europe US America



Oil and natural gas acreage at 31 December 2010



Developed – gross 346 65 6,920 198 1,738 497

– net 189 21 4,184 157 471 195

Undevelopeda – gross 1,311 186 6,970 7,185 12,434 21,373

– net 775 79 4,663 4,380 6,398 16,072

a

Undeveloped acreage includes leases and concessions.





Net oil and gas wells completed or abandoned





Europe North South Africa

America America

Rest of

Rest of North

UK Europe US America



2010

Exploratory

Productive – 0.2 39.3 – 1.3 1.2

Dry 0.7 – 0.3 – 0.9 1.4

Development

Productive 6.4 1.2 260.0 31.7 105.7 18.9

Dry 1.7 – 0.5 – 1.2 2.7

2009

Exploratory

Productive 0.1 – 47.2 – 3.0 4.5

Dry 0.2 – 4.2 – – 1.4

Development

Productive 9.3 1.5 403.8 17.9 135.4 20.8

Dry – – 3.3 – – 0.5

2008

Exploratory

Productive 0.8 – 2.4 – 4.4 4.3

Dry – 0.5 0.9 0.1 0.4 2.6

Development

Productive 6.6 0.5 379.8 28.3 112.5 18.6

Dry 0.2 – 1.1 0.9 2.9 1.5







Drilling and production activities in progress



Europe North South Africa

America America

Rest of

Rest of North

UK Europe US America



At 31 December 2010

Exploratory

Gross 1.0 – 211.0 3.0 1.0 3.0

Net 0.2 – 45.2 1.5 – 1.6

Development

Gross 11.0 – 375.0 – 23.0 34.0

Net 5.5 – 140.6 – 9.5 10.8

Asia Australasia Total









Rest of



Russia Asia



Thousands of acres



2,282 2,434 162 14,642

885 935 35 7,072

32,137 18,366 7,330 107,292

15,475 8,955 2,796 59,593









Asia Australasia Total







Rest of

Russia Asia









10.5 2.8 0.3 55.6

4.0 – – 7.3





364.3 53.3 – 841.5

– 2.4 – 8.5







7.0 5.3 0.6 67.7

4.5 6.0 0.2 16.5





293.0 45.8 1.6 929.1

4.0 0.4 0.6 8.8







12.5 0.5 0.6 25.5

23.0 0.5 0.4 28.4





10.0 45.4 4.5 606.2

19.5 2.1 – 28.2









Asia Australasia Total

Rest of

Russia Asia









11.0 3.0 – 233.0

5.5 1.2 – 55.2





88.0 20.0 – 551.0

39.7 6.6 – 212.7


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