BP Annual Report and Form 20-F 2011 - Company Reporting

Supplementary information on oil and natural gas (unaudited)Standardized measure of discounted future net cash flows and changes therein relating to proved oiland gas reserves continued$ million2010EuropeNorthSouth Africa Asia Australasia TotalAmericaAmericaUKRest ofEurope USRest ofNorthAmericaRussiaRest ofAsiaAt 31 December 2010SubsidiariesFuture cash inflows a 73,100 25,800 264,800 200 29,300 70,800 – 52,500 42,300 558,800Future production cost b 25,700 9,800 111,400 200 6,800 14,000 – 13,400 12,800 194,100Future development cost b 7,400 2,500 24,300 – 6,100 14,600 – 9,900 3,100 67,900Future taxation c 19,900 8,100 41,900 – 8,200 14,100 – 7,000 6,200 105,400Future net cash flows 20,100 5,400 87,200 – 8,200 28,100 – 22,200 20,200 191,40010% annual discount d 9,800 2,300 45,500 – 3,300 11,900 – 8,200 10,300 91,300Standardized measure of discountedfuture net cash flows e 10,300 3,100 41,700 – 4,900 16,200 – 14,000 9,900 100,100Equity-accounted entities (BP share) fFuture cash inflows a – – – 9,700 45,500 – 110,500 31,000 – 196,700Future production cost b – – – 4,500 19,200 – 80,900 26,500 – 131,100Future development cost b – – – 2,000 4,300 – 11,000 2,800 – 20,100Future taxation c – – – 800 7,500 – 3,900 200 – 12,400Future net cash flows – – – 2,400 14,500 – 14,700 1,500 – 33,10010% annual discount d – – – 2,400 8,700 – 6,100 700 – 17,900Standardized measure of discountedfuture net cash flows g h – – – – 5,800 – 8,600 800 – 15,200Total subsidiaries and equity-accounted entitiesStandardized measure of discountedfuture net cash flows j 10,300 3,100 41,700 – 10,700 16,200 8,600 14,800 9,900 115,300The following are the principal sources of change in the standardized measure of discounted future net cash flows:SubsidiariesEquity-accountedentities (BP share)$ millionTotal subsidiaries andequity-accountedentitiesSales and transfers of oil and gas produced, net of production costs (26,600) (4,900) (31,500)Development costs for the current year as estimated in previous year 10,400 2,000 12,400Extensions, discoveries and improved recovery, less related costs 9,600 1,600 11,200Net changes in prices and production cost 52,800 1,900 54,700Revisions of previous reserves estimates (9,200) 200 (9,000)Net change in taxation (13,400) (300) (13,700)Future development costs (4,300) (1,400) (5,700)Net change in purchase and sales of reserves-in-place (1,500) – (1,500)Addition of 10% annual discount 7,500 1,500 9,000Total change in the standardized measure during the year i 25,300 600 25,900aThe marker prices used were Brent $79.02/bbl, Henry Hub $4.37/mmBtu.bProduction costs, which include production taxes, and development costs relating to future production of proved reserves are based on the continuation of existing economic conditions. Futuredecommissioning costs are included.cTaxation is computed using appropriate year-end statutory corporate income tax rates.dFuture net cash flows from oil and natural gas production are discounted at 10% regardless of the group assessment of the risk associated with its producing activities.eMinority interest in BP Trinidad and Tobago LLC amounted to $1,200 million.fThe standardized measure of discounted future net cash flows of equity-accounted entities includes standardized measure of discounted future net cash flows of equity-accounted investments ofthose entities.gMinority interest in TNK-BP amounted to $600 million.hNo equity-accounted future cash flows in Africa because proved reserves are received as a result of contractual arrangements, with no associated costs.iTotal change in the standardized measure during the year includes the effect of exchange rate movements.jIncludes future net cash flows for assets held for sale at 31 December 2010.278 BP Annual Report and Form 20-F 2011