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 continuedEuropeRest ofEuropeNorthAmericaRest ofNorthUS AmericaSouthAmerica$ million2009Africa Asia Australasia TotalUKRussiaAt 31 December 2009SubsidiariesFuture cash inflows a 50,800 17,700 204,000 4,900 26,400 58,400 – 36,100 32,500 430,800Future production cost b 20,000 8,000 91,300 2,700 6,700 12,000 – 9,200 11,000 160,900Future development cost b 5,000 2,500 24,900 1,000 5,600 12,200 – 6,400 3,100 60,700Future taxation c 12,900 3,700 27,300 200 5,800 11,300 – 4,700 4,500 70,400Future net cash flows 12,900 3,500 60,500 1,000 8,300 22,900 – 15,800 13,900 138,80010% annual discount d 5,800 1,600 29,500 500 3,200 9,800 – 6,300 7,300 64,000Standardized measure of discountedfuture net cash flows e 7,100 1,900 31,000 500 5,100 13,100 – 9,500 6,600 74,800Equity-accounted entities (BP share) fFuture cash inflows a – – – – 37,700 – 96,700 30,000 – 164,400Future production cost b – – – – 17,000 – 65,200 25,200 – 107,400Future development cost b – – – – 4,000 – 10,200 3,100 – 17,300Future taxation c – – – – 5,200 – 4,300 100 – 9,600Future net cash flows – – – – 11,500 – 17,000 1,600 – 30,10010% annual discount d – – – – 6,800 – 7,900 800 – 15,500Standardized measure of discountedfuture net cash flows g h – – – – 4,700 – 9,100 800 – 14,600Total subsidiaries and equity-accounted entitiesStandardized measure of discountedfuture net cash flows 7,100 1,900 31,000 500 9,800 13,100 9,100 10,300 6,600 89,400The following are the principal sources of change in the standardized measure of discounted future net cash flows:Rest ofAsia$ millionTotal subsidiaries andSubsidiariesEquity-accountedentities (BP share)equity-accountedentitiesSales and transfers of oil and gas produced, net of production costs (18,900) (3,400) (22,300)Development costs for the current year as estimated in previous year 11,700 2,100 13,800Extensions, discoveries and improved recovery, less related costs 8,500 1,600 10,100Net changes in prices and production cost 37,200 5,900 43,100Revisions of previous reserves estimates (4,300) (200) (4,500)Net change in taxation (10,600) (1,600) (12,200)Future development costs (600) 900 300Net change in purchase and sales of reserves-in-place (100) (900) (1,000)Addition of 10% annual discount 4,700 900 5,600Total change in the standardized measure during the year i 27,600 5,300 32,900aThe marker prices used were Brent $59.91/bbl, Henry Hub $3.82/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 $1,300 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 of thoseentities.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.Financial statementsBP Annual Report and Form 20-F 2011 279