英國石油公司 (BP) 2007年年度報告「LSE」.pdf

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1、beyond Annual Reportand Accounts2007BP Annual Report and Accounts 2007C13862_BP_Report_Cover_Icon.indd BC2C13862_BP_Report_Cover_Icon.indd BC215/2/08 09:20:3015/2/08 09:20:30Reports and publicationsBPs reports and publications are available to view online or download from can order a copy of BPs pri

2、nted publications or the CD,free of charge,from:US and CanadaBP Shareholder ServicesToll-free:+1 800 638 5672Fax:+1 630 821 UK and Rest of WorldBP Distribution ServicesTel:+44(0)870 241 3269Fax:+44(0)870 240 Our key prioritiesSafetyPeoplePerformanceAnnual Review 2007Our key prioritiesSafetyPeoplePer

3、formanceSustainability Review 2007Sustainability Report 2007AcknowledgementsDesign VSA Partners,ChicagoTypesetting Bowne,LondonPrinting St Ives Westerham Press,UKPhotography Richard Davies,Simon KreitemPaper This Annual Report and Accounts is printed on Revive 100 Silk paper,which is manufactured fr

4、om 100%de-inked post-consumer waste at a mill with ISO 14001 certifi cation.BP p.l.c.2008Annual Review highlightsListen to Highlights from BP Annual Review 2007 on CD or in MP3 Review Read a summary of our financialand operating performance in BP Annual Review 2007 online or in Report View details o

5、f our environmental and social performance in BP Sustainability Report 2007 online from May ReviewRead the summary BP Sustainability Review 2007 in print from May key priorities SafetyPeoplePerformanceHighlights from Annual Review 2007C13862_BP_Report_Cover_Icon.indd BC3C13862_BP_Report_Cover_Icon.i

6、ndd BC315/2/08 16:47:1415/2/08 16:47:14Filename:U54368_doc1.3d Time:14:49:32 Date:25/02/08Checksum:-1686578214Information about this reportThis document constitutes the Annual Report and Accounts of BP p.l.c.for the year ended 31 December 2007 in accordance with UKrequirements and is dated 22 Februa

7、ry 2008.This document alsocontains information that will be included in the companys AnnualReport on Form 20-F in accordance with the requirements of the USSecurities and Exchange Commission(SEC).Such information will besupplemented and may be updated at the time of filing that documentwith the SEC,

8、or later amended,if necessary.On pages 2-6,references within BP Annual Report and Accounts 2007to profits,results and return on average capital employed are to thosemeasures on a replacement cost basis unless otherwise indicated.Reconciliation of profit for the year to replacement cost profitFor the

9、 year ended 31 December$million-200720062005-Profit before interest and taxation from continuing operations32,35235,15832,682Finance costs and other finance income/expense(741)(516)(761)Taxation(10,442)(12,331)(9,473)Minority interest(324)(286)(291)-Profit for the year from continuing operations att

10、ributable to BP shareholders20,84522,02522,157Profit(loss)for the year from Innovene operations(25)184Inventory holding(gains)losses(3,558)253(3,027)-Replacement cost profita17,28722,25319,314Replacement cost profit from continuing operations attributable to BP shareholders17,28722,27819,513Replacem

11、ent cost profit(loss)from Innovene operations(25)(199)-Replacement cost profit17,28722,25319,314Exploration and Production26,92729,64725,485Refining and Marketing2,6175,2834,394Gas,Power and Renewables5581,3761,077Other businesses and corporate(1,104)(947)(1,237)Consolidation adjustmentsUnrealized p

12、rofit in inventory(204)52(208)Net profit on transactions between continuing operations and Innovene operations5-Replacement cost profit before interest and taxation28,79435,41130,038Finance costs and other finance income/expense(741)(516)(761)Taxation(10,442)(12,331)(9,473)Minority interest(324)(286

13、)(291)-Replacement cost profit from continuing operations attributable to BP shareholders17,28722,27819,513Per ordinary share centsProfit for the year attributable to BP shareholders108.76109.84105.74Replacement cost profit90.20111.1091.41-Dividends paid per ordinary share cents42.3038.4034.85 pence

14、20.99521.10419.152-Dividends paid per American depositary share(ADS)dollars2.5382.3042.091aReplacement cost profit reflects the current cost of supplies.The replacement cost profit for the year is determined by excluding from profit inventory holding gains andlosses.BP uses this measure to assist in

15、vestors to assess BPs performance from period to period.The Annual Report and Accounts for the year ended 31 December 2007contains the Directors Report,including the Business Review,on pages4-62,82-92 and 94 and 186.The Directors Remuneration Report is onpages 63-73.The consolidated financial statem

16、ents are on pages 93-171.The report of the auditor is on page 95 for the group and page 187 forthe company.BP p.l.c.is the parent company of the BP group of companies.Unlessotherwise stated,the text does not distinguish between the activitiesand operations of the parent company and those of its subs

17、idiaries.The term shareholder in the Annual Report and Accounts means,unless the context otherwise requires,investors in the equity capital ofBP p.l.c.,both direct and/or indirect.BP Annual Report and Accounts 2007 and BP Annual Review 2007may be downloaded from material on theBP website,other than

18、the items identified as BP Annual Report andAccounts 2007 and BP Annual Review 2007,forms any part of thosedocuments.As BP shares,in the form of ADSs,are listed on the New York StockExchange(NYSE),an Annual Report on Form 20-F will be filed with theSEC in accordance with the US Securities Exchange A

19、ct of 1934.Whenfiled,copies may be obtained,free of charge(see page 90).BP discloseson its website at ways(if any)in which its corporate governance practices differfrom those mandated for US companies under NYSE listing standards.Cautionary statementBP Annual Report and Accounts 2007 contains certai

20、n forward-lookingstatements within the meaning of the US Private Securities LitigationReform Act of 1995 with respect to the financial condition,results ofoperations and businesses of BP and certain of the plans and objectivesof BP with respect to these items.For further details,please seeForward-lo

21、oking statements on page 11.The registered office of BP p.l.c.is 1 St Jamess Square,LondonSW1Y 4PD,UK.Tel:+44(0)20 7496 4000.Registered in England and Wales No.102498.Stock exchange symbol BP.27BP ANNUAL REPORT AND ACCOUNTS 20071Filename:U54368_doc1.3d Time:14:49:32 Date:25/02/08Checksum:1341058940M

22、iscellaneous termsIn this document,unless the context otherwise requires,the following terms shall have the meaning set out below.ADRAmerican depositary receipt.ADSAmerican depositary share.AGMAnnual general meeting.AmocoThe former Amoco Corporation and its subsidiaries.Atlantic RichfieldAtlantic Ri

23、chfield Company and its subsidiaries.AssociateAn entity over which the group has significant influence andthat is neither a subsidiary nor joint venture.Significant influence is thepower to participate in the financial and operating policy decisions of anentity without having control or joint contro

24、l over those policies.Baker Panel,or panelBP US Refineries Independent Safety ReviewPanelBarrel42 US gallons.b/dbarrels per day.boebarrels of oil equivalent.BP,BP group or the groupBP p.l.c.and its subsidiaries.Burmah CastrolBurmah Castrol plc and its subsidiaries.Cent or cOne-hundredth of the US do

25、llar.The companyBP p.l.c.Dollar or$The US dollar.EUEuropean Union.GasNatural gas.HydrocarbonsCrude oil and natural gas.IFRSInternational Financial Reporting Standards.Joint ventureA contractual arrangement between the group and otherventurers that undertake an economic activity that is subject to jo

26、intcontrol.Joint control exists only where the strategic financial andoperating decisions relating to the activity require the unanimousconsent of the venturers.Jointly controlled assetA joint venture where the venturers have adirect ownership interest in,and jointly control,the assets of the ventur

27、e.Jointly controlled entityA joint venture that involves the establishmentof a company,partnership or other entity to engage in economic activitythat the group jointly controls with fellow venturers.LiquidsCrude oil,condensate and natural gas liquids.LNGLiquefied natural gas.London Stock Exchange or

28、 LSELondon Stock Exchange plc.LPGLiquefied petroleum gas.mb/dthousand barrels per day.mboe/dthousand barrels of oil equivalent per day.mmBtumillion British thermal units.mmboemillion barrels of oil equivalent.mmcfmillion cubic feet.mmcf/dmillion cubic feet per day.MTBEMethyl tertiary butyl ether.MWM

29、egawatt.NGLsNatural gas liquids.OPECOrganization of Petroleum Exporting Countries.Ordinary sharesOrdinary fully paid shares in BP p.l.c.of 25c each.Pence or pOne-hundredth of a pound sterling.Pound,sterling or The pound sterling.Preference sharesCumulative First Preference Shares and CumulativeSecon

30、d Preference Shares in BP p.l.c.of 1 each.PSAProduction-sharing agreement.SECThe United States Securities and Exchange Commission.SubsidiaryAn entity that is controlled by the BP group.Control is thepower to govern the financial and operating policies of an entity so as toobtain the benefits from it

31、s activities.Tonne2,204.6 pounds.UKUnited Kingdom of Great Britain and Northern Ireland.USUnited States of America.2Filename:U54368_doc1.3d Time:14:49:32 Date:25/02/08Checksum:1230020738Contents4Chairmans letter5Group chief executives review6Measuring our progress7Performance review59Directors,senio

32、r management and employees63Directors remuneration report74BP board performance report82Additional information for shareholders93Financial statementsBP ANNUAL REPORT AND ACCOUNTS 200734Chairmans letterDear Shareholder 2007 was a year of change for BP,as the group responded to the powerful global for

33、ces shaping the world economy and took decisive action to rebuild the groups reputation.For many years,we were recognized as a leader in our industry.The tragic events of Texas City,the incidents in Alaska and the conduct of a small number of our traders showed that we have failed in recent years to

34、 live up to our own high standards and comply with the law.We have acknowledged this in the settlements we have reached with the US Department of Justice on these issues.I am determined that we will recover our leadership position.John Browne stood down as group chief executive and as a director on

35、1 May 2007.The circumstances of Johns resignation do not reflect the huge contribution he made to the group during his 41-year career at BP.His vision helped to transform BP and give it the scope and scale it has today.We are indebted to him and I again wish to thank John on behalf of the board for

36、his great achievements for the company.I am very pleased to welcome Tony Hayward as group chief executive.Tony was chosen unanimously by the board after a thorough internal and external search.He has already set about making his own mark on the group through his dynamic leadership and his desire to

37、reduce complexity.His clear focus has been on safety,people and performance.The significant contribution to the group of other executive and non-executive directors is described on page 59 of this Annual Report and Accounts.We have also reviewed in depth the way we,as a board,work and this is descri

38、bed here on pages 74-80.While change was a feature of 2007,there is evidently work still to do.In particular,during much of the year our operational and financial performance has been below par,as a direct result of a number of our key assets both upstream and downstream not being available when the

39、y were needed and when they could have made a significant financial contribution.I am glad to say that our upstream projects are now coming onstream and our downstream assets are returning to service.While we do now have a strong list of projects coming onstream,the challenge is to ensure that this

40、progress is maintained and strengthened.In doing so,we will continue to work closely with governments and national oil companies to our mutual benefit.The new delineation of the business of the group between upstream,downstream and alternative energy brings a welcome emphasis on the key drivers of t

41、he business.I believe,too,that our alternative energy business will provide the focus that we need to have on technology,both for our existing business and for the supply of low-carbon energy in the future.Whatever the importance of short-term challenges,the rise in the oil price and trends in the w

42、orld economy require the group to make big strategic choices for the medium and long term.This involves identifying the right opportunities in a challenging marketplace for the group to grow in both upstream and downstream.I regard this as a key part of the boards work.We are maintaining our policy

43、of returning cash to shareholders through dividends and buybacks although we are changing the relative proportion of each.Your board has confidence in greater cash flows from our strong asset base,which has allowed the company to increase both investment in its future growth and the dividend compone

44、nt of our distribution to shareholders.I am therefore pleased to confirm that we have increased the quarterly dividend,to be paid in March,to 13.525 cents per share,compared with 10.325 cents per share last year.For the year,the dividend showed an increase of 16%.In sterling terms,the quarterly divi

45、dend is 6.813 pence per share,compared with 5.258 pence per share a year ago;for the year,the increase was 7%.During the year,$7.5 billion of shares were repurchased for cancellation.I am grateful to and wish to thank the executive team,the board and indeed all our employees for everything they have

46、 done during an eventful year.On behalf of the board,I would also like to thank our shareholders for their support.We have all learned some tough lessons in recent years and I am confident that investors long-term faith in the company will be rewarded.Peter SutherlandChairman22 February 2008U54368_d

47、oc2.indd 4U54368_doc2.indd 425/2/08 14:47:4325/2/08 14:47:43BP ANNUAL REVIEW 20075Group chief executives reviewDear Shareholder It is a great privilege to give my first review as group chief executive of BP.2007 was a year of major transition,both for the group and for the oil and gas industry as a

48、whole.High and volatile prices are challenging assumptions across the industry.The dated Brent crude oil price set a nominal record of$96.02 per barrel(bbl)at year-end,driven by continued demand growth and OPEC production cuts.Given ample supply,spot natural gas prices in the US and Europe declined,

49、with the Henry Hub First of Month Index averaging$6.86 per million British thermal units in 2007,compared with$7.24 the previous year.Refining margins reached a record quarterly high of$16.66/bbl in the second quarter due to low refinery availability in the US,but fell back to more seasonal levels i

50、n the second half.Safety,people and performance When I took over as group chief executive,the immediate task was to restore the integrity and the efficiency of BPs operations.I set out three priorities:safety,people and performance.There has been progress in all three areas but there is more to do.R

51、unning safe and reliable operations is our greatest responsibility.At the start of 2007,the panel,chaired by former US Secretary of State James A Baker,III,reported on the safety culture across our US refineries,following the tragic accident at Texas City in 2005.We agreed to implement all its recom

52、mendations and accepted the challenge to transform BP into a world leader in process safety.All parts of the group are actively working to implement the panels recommendations relevant to their business.A new operating management system,designed to bring greater consistency to our operations,is bein

53、g introduced.We continue to implement cross-group programmes designed to enhance operations leadership competence at all levels of BP.We are redoubling our efforts to make sure we have the right people in the right places.Whether it be in our refineries,exploring in the ultra deepwater of the Gulf o

54、f Mexico,pioneering enhanced oil recovery techniques in Alaska or commencing operations at the largest wind facility in the US,we know it is our people who make the difference.When it comes to my third priority,our financial performance is not good enough.Replacement cost profit in 2007 fell 22%to$1

55、7,287 million.Dividends payable in respect of 2007 increased by 16%to 45.50 cents per share.In sterling terms the increase was 7%.Restoring revenues and reducing complexity The unsatisfactory financial performance was primarily a result of two things:missing revenues,principally from delayed project

56、s and poor reliability in some of our US refineries;and excessive complexity in the way we manage the business,which has added to costs.We are resolutely tackling both these issues.The fourth quarter saw the build-up of operational momentum,with the start-up of six new exploration and production pro

57、jects,including Atlantis and King Subsea Pump in the Gulf of Mexico,Greater Plutonio in Angola,and Mango and Cashima in Trinidad&Tobago.By the end of 2007,the Whiting refinery had recommenced sour crude processing and available distillation capacity exceeded 300,000 barrels per day(b/d).At Texas Cit

58、y,we successfully recommissioned the three desulphurization and upgrading units necessary to allow restart of the remaining crude distillation capacity.The final sour crude unit is mechanically complete and,by mid-2008,we expect most of the economic capability to have been restored.The Thunder Horse

59、 platform in the Gulf of Mexico is on track to start production by the end of 2008.With output now ramping up from these fields and refineries,we anticipate that operational momentum will become financial momentum in the second half of this year and into 2009.BPs forward agenda Last October,I outlin

60、ed a forward agenda,designed to make BP a simpler and more efficient organization,with a focus to improve behaviours throughout the business by embedding a high-performance culture.The groups long-term future is also being secured.We made significant discoveries in Azerbaijan and Egypt and secured a

61、ccess to major new sources of oil and gas in Oman and Libya and an attractive joint venture to access Canadian oil sands.In 2007,we again replaced more than 100%of our reported reserves.In Russia,our joint venture TNK-BP continued to perform strongly.Through our alternative energy business,we are in

62、vesting in the low-carbon energy sources of the future.Step by step,we are rebuilding the groups momentum and strengthening our capability.I have great confidence in the strength of our portfolio and our people;I would like to thank them all for the way they have responded to the challenge.We are al

63、l committed both to enhancing world energy security and to meeting the challenge of climate change.Our task now is to put BP back where it belongs at the forefront of the industry.Tony HaywardGroup Chief Executive22 February 2008U54368_doc2.indd 5U54368_doc2.indd 525/2/08 14:47:4525/2/08 14:47:456Me

64、asuring our progressSafetyPERSONAL SAFETY RIFa07060.350.590.400.55b 0.410.6205Employees a Recordable Injury Frequency(RIF):number of reported work-related incidents that result in a fatality or injury(apart from minor first aid cases)per 200,000 hours worked.b 2006 contractor data corrected from 0.5

65、4 to 0.55.ContractorsPROCESS SAFETY OIL SPILLSa0706340417b05541a Total number of spills _ 1 barrel=159 litres =42 US gallons b The reduction of reported spills in 2006 compared with 2005 is principally due to divestments and to disaggregation of two non-operated upstream operations from BPs reportin

66、g.ENVIRONMENT GREENHOUSE GASEMISSIONSa(million tonnes CO2 equivalent)070663.564.40578.0Group GHG a Data is reported on an equity-share basis.TNK-BP emissions are not included.Innovene GHGPeople06660464PEOPLE ASSURANCE SURVEY EMPLOYEE SATISFACTIONa(%)a Survey is conducted at two-year intervals and in

67、cludes measures of employee satisfaction.CONTRIBUTION TO COMMUNITIES($million)0706135.8a106.70595.5a Including UK charities$0.7 million.PerformanceREPLACEMENT COST PROFITPER ORDINARY SHARE(cents)070690.20111.100591.41RETURN ON AVERAGE CAPITAL EMPLOYEDON A REPLACEMENT COST BASIS(%)070616220520CAPITAL

68、 EXPENDITURE($billion)070619.216.90513.9REPORTED RESERVES REPLACEMENT RATIOa b c(%)070611211305100a Combined basis of subsidiaries and equity-accountedentities,excluding acquisitions and disposals.b 2007 and 2006 using SEC reserves;2005 using SORP reserves.c See page 18,footnote f.DIVIDENDS PAID PER

69、 SHARE070642.3020.99538.4021.10434.8519.15205Cents Pence TOTAL SHAREHOLDER DISTRIBUTIONa($billion)070615.823.40519.2a Through dividends and share buybacks.U54368_doc2.indd 6U54368_doc2.indd 625/2/08 14:47:4625/2/08 14:47:46Filename:U54368_doc3.3d Time:14:49:34 Date:25/02/08Checksum:-515689947Perform

70、ance reviewSelected financial and operating informationThis information,insofar as it relates to 2007,has been extracted orderived from the audited financial statements of the BP group presentedon pages 93-171.Note 1 to the Financial statements includes details onthe basis of preparation of these fi

71、nancial statements.The selectedinformation should be read in conjunction with the audited financialstatements and related Notes elsewhere herein.BP sold its Innovene operations in December 2005.In thecircumstances of discontinued operations,IFRS require that the profitsearned by the discontinued ope

72、rations,in this case the Innoveneoperations,on sales to the continuing operations be eliminated onconsolidation from the discontinued operations and attributed to thecontinuing operations and vice versa.This adjustment has two offsettingelements:the net margin on crude refined by Innovene,as substan

73、tiallyall crude for its refineries was supplied by BP and most of the refinedproducts manufactured by Innovene were taken by BP;and themargin on sales of feedstock from BPs US refineries to Innovenesmanufacturing plants.The profits attributable to individual segmentsare not affected by this adjustme

74、nt.This representation does notindicate the profits earned by continuing or Innovene operations,as ifthey were standalone entities,for past periods or those likely to beearned in future periods.$million except per share amounts-20072006200520042003-Income statement dataSales and other operating reve

75、nues from continuing operationsa284,365265,906239,792192,024164,653Profit before interest and taxation from continuing operationsa32,35235,15832,68225,74618,776Profit from continuing operationsa21,16922,31122,44817,88412,681Profit for the year21,16922,28622,63217,26212,618Profit for the year attribu

76、table to BP shareholders20,84522,00022,34117,07512,448Capital expenditure and acquisitionsb20,64117,23114,14916,65119,623Per ordinary share centsProfit for the year attributable to BP shareholdersBasic108.76109.84105.7478.2456.14Diluted107.84109.00104.5276.8755.61Profit from continuing operations at

77、tributable to BP shareholdersBasic108.76109.97104.8781.0956.42Diluted107.84109.12103.6679.6655.89Dividends paid per share cents42.3038.4034.8527.7025.50 pence20.99521.10419.15215.25115.658Ordinary share datacAverage number outstanding of 25 cent ordinary shares(shares million undiluted)19,16320,0282

78、1,12621,82122,171Average number outstanding of 25 cent ordinary shares(shares million diluted)19,32720,19521,41122,29322,424Balance sheet dataTotal assets236,076217,601206,914194,630172,491Net assets94,65285,46580,76578,23570,264Share capital5,2375,3855,1855,4035,552BP shareholders equity93,69084,62

79、479,97676,89269,139Finance debt due after more than one year15,65111,08610,23012,90712,869Net debt to net debt plus equity23%20%17%22%22%aExcludes Innovene,which was treated as a discontinued operation in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.(See Financ

80、ial statements Note 3 on page 110.)b2007 included$1,132 million for the acquisition of Chevrons Netherlands manufacturing company.There were no significant acquisitions in 2006 or in 2005.Capitalexpenditure in 2006 included$1 billion in respect of our investment in Rosneft.Capital expenditure and ac

81、quisitions for 2004 included$1,354 million for including TNKsinterest in Slavneft within TNK-BP and$1,355 million for the acquisition of Solvays interests in BP Solvay Polyethylene Europe and BP Solvay Polyethylene North America.Capital expenditure and acquisitions for 2003 included$5,794 million fo

82、r the acquisition of our interest in TNK-BP.With the exception of the shares issued to Alfa Group andAccess Renova(AAR)in connection with TNK-BP(2004-2006),all capital expenditure and acquisitions during the past five years have been financed from cash flow fromoperations,disposal proceeds and exter

83、nal financing.cThe number of ordinary shares shown has been used to calculate per share amounts.BP ANNUAL REPORT AND ACCOUNTS 20077Filename:U54368_doc3.3d Time:14:49:34 Date:25/02/08Checksum:-1971094754Production and net proved oil and natural gas reservesThe following table shows our production for

84、 the past five years and the estimated net proved oil and natural gas reserves at the end of each ofthose years.Production and net proved reservesa-20072006200520042003-Crude oil production for subsidiaries(thousand barrels per day)1,3041,3511,4231,4801,615Crude oil production for equity-accounted e

85、ntities(thousand barrels per day)1,1101,1241,1391,051506Natural gas production for subsidiaries(million cubic feet per day)7,2227,4127,5127,6248,092Natural gas production for equity-accounted entities(million cubic feet per day)9211,005912879521Estimated net proved crude oil reserves for subsidiarie

86、s(million barrels)b5,4925,8936,3606,7557,214Estimated net proved crude oil reserves for equity-accounted entities(million barrels)c4,5813,8883,2053,1792,867Estimated net proved natural gas reserves for subsidiaries(billion cubic feet)d41,13042,16844,44845,65045,155Estimated net proved natural gas re

87、serves for equity-accounted entities(billion cubic feet)e3,7703,7633,8562,8572,869aCrude oil includes natural gas liquids(NGLs)and condensate.Production and proved reserves exclude royalties due to others,whether payable in cash or in kind,wherethe royalty owner has a direct interest in the underlyi

88、ng production and the option to make lifting and sales arrangements independently,and include minority interests inconsolidated operations.bIncludes 20 million barrels(23 million barrels at 31 December 2006 and 29 million barrels at 31 December 2005)in respect of the 30%minority interest in BP Trini

89、dad andTobago LLC.cIncludes 210 million barrels(179 million barrels at 31 December 2006 and 95 million barrels at 31 December 2005)in respect of the 6.51%minority interest in TNK-BP(6.29%at 31 December 2006 and 4.47%at 31 December 2005).dIncludes 3,211 billion cubic feet of natural gas(3,537 billion

90、 cubic feet at 31 December 2006 and 3,812 billion cubic feet at 31 December 2005)in respect of the 30%minority interest in BP Trinidad and Tobago LLC.eIncludes 68 billion cubic feet(99 billion cubic feet at 31 December 2006 and 57 billion cubic feet at 31 December 2005)in respect of the 5.88%minorit

91、y interest in TNK-BP(7.77%at 31 December 2006 and 4.47%at 31 December 2005).During 2007,414 million barrels of oil and natural gas,on an oil equivalent*basis(mmboe),were added to BPs proved reserves for subsidiaries(excluding purchases and sales).After allowing for production,which amounted to 937mm

92、boe,BPs proved reserves for subsidiaries were12,583mmboe at 31 December 2007.These proved reserves are mainly located in the US(46%),Rest of Americas(19%),Asia Pacific(10%),Africa(8%)and the UK(8%).For equity-accounted entities,1,168mmboe were added to proved reserves(excluding purchases and sales),

93、production was 470mmboe andproved reserves were 5,231mmboe at 31 December 2007.*Natural gas is converted to oil equivalent at 5.8 billion cubic feet(bcf)=1 million barrels.8Filename:U54368_doc3.3d Time:14:49:34 Date:25/02/08Checksum:-1997588587Risk factorsWe urge you to consider carefully the risks

94、described below.If anyof these risks occur,our business,financial condition and results ofoperations could suffer and the trading price and liquidity of our securitiescould decline,in which case you could lose all or part of your investment.Our system of risk management provides the response to endu

95、ringrisks of group significance through the establishment of standards andother controls.Inability to identify,assess and respond to risks throughthis and other controls could lead to inability to capture opportunities,threats materializing,inefficiency and legal non-compliance.The risks are categor

96、ized against the following areas:Strategy;Compliance and ethics;Financial control;and Operations.Strategic risksAccess and renewalSuccessful execution of our group plan depends critically onimplementing activities to renew and reposition our portfolio.Thechallenges to renewal of our upstream portfol

97、io are growing due toincreasing competition for access to opportunities globally.Lack ofmaterial positions in new markets and/or inability to complete disposalscould result in an inability to capture above-average market growth.Prices and marketsOil,gas and product prices are subject to internationa

98、l supply anddemand.Political developments and the outcome of meetings of OPECcan particularly affect world supply and oil prices.Previous oil priceincreases have resulted in increased fiscal take,cost inflation and moreonerous terms for access to resources.As a result,increased oil pricesmay not imp

99、rove margin performance.In addition to the adverse effecton revenues,margins and profitability from any future fall in oil andnatural gas prices,a prolonged period of low prices or other indicatorswould lead to a review for impairment of the groups oil and natural gasproperties.This review would ref

100、lect managements view of long-term oiland natural gas prices.Such a review could result in a charge forimpairment that could have a significant effect on the groups results ofoperations in the period in which it occurs.Refining profitability can be volatile,with both periodic oversupply andsupply ti

101、ghtness in various regional markets.Sectors of the chemicalsindustry are also subject to fluctuations in supply and demand within thepetrochemicals market,with consequent effect on prices andprofitability.Climate change and carbon pricingCompliance with changes in laws,regulations and obligations re

102、lating toclimate change could result in substantial capital expenditure,reducedprofitability from changes in operating costs and revenue generation andstrategic growth opportunities being impacted.Socio-politicalWe have operations in countries where political,economic and socialtransition is taking

103、place.Some countries have experienced politicalinstability,changes to the regulatory environment,expropriation ornationalization of property,civil strife,strikes,acts of war andinsurrections.Any of these conditions occurring could disrupt orterminate our operations,causing our development activities

104、 to becurtailed or terminated in these areas or our production to decline andcould cause us to incur additional costs.We set ourselves high standards of corporate citizenship and aspire tocontribute to a better quality of life through the products and services weprovide.If it is perceived that we ar

105、e not respecting or advancing theeconomic and social progress of the communities in which we operate,our reputation and shareholder value could be damaged.CompetitionThe oil,gas and petrochemicals industries are highly competitive.Thereis strong competition,both within the oil and gas industry and w

106、ith otherindustries,in supplying the fuel needs of commerce,industry and thehome.Competition puts pressure on product prices,affects oil productsmarketing and requires continuous management focus on reducing unitcosts and improving efficiency.The implementation of group strategyrequires continued te

107、chnological advances and innovation includingadvances in exploration,production,refining,petrochemicalmanufacturing technology and advances in technology related to energyusage.Our performance could be impeded if competitors developed oracquired intellectual property rights to technology that we req

108、uired or ifour innovation lagged the industry.Compliance and ethics risksRegulatoryThe oil industry is subject to regulation and intervention by governmentsthroughout the world in such matters as the award of exploration andproduction interests,the imposition of specific drilling obligations,environ

109、mental protection controls,controls over the development anddecommissioning of a field(including restrictions on production)and,possibly,nationalization,expropriation,cancellation or non-renewal ofcontract rights.We buy,sell and trade oil and gas products in certainregulated commodity markets.The oi

110、l industry is also subject to thepayment of royalties and taxation,which tend to be high compared withthose payable in respect of other commercial activities,and operates incertain tax jurisdictions that have a degree of uncertainty relating to theinterpretation of,and changes to,tax law.As a result

111、 of new laws andregulations or other factors,we could be required to curtail or ceasecertain operations,or we could incur additional costs.Ethical misconduct and non-complianceOur code of conduct,which applies to all employees,defines ourcommitment to integrity,compliance with all applicable legalre

112、quirements,high ethical standards and the behaviours and actions weexpect of our businesses and people wherever we operate.Incidents ofnon-compliance with applicable laws and regulation or ethical misconductcould be damaging to our reputation and shareholder value.Multipleevents of non-compliance co

113、uld call into question the integrity of ouroperations.Financial control risksLiquidity,financial capacity and financial exposureThe group has established a financial framework to ensure that it is ableto maintain an appropriate level of liquidity and financial capacity and toconstrain the level of a

114、ssessed capital at risk for the purposes ofpositions taken in financial instruments.Failure to operate within ourfinancial framework could lead to the group becoming financiallydistressed leading to a loss of shareholder value.Commercial credit riskis measured and controlled to determine the groups

115、total credit risk.Inability to determine adequately our credit exposure could lead tofinancial loss.Crude oil prices are generally set in US dollars,while salesof refined products may be in a variety of currencies.Fluctuations inexchange rates can therefore give rise to foreign exchange exposures,wi

116、th a consequent impact on underlying costs.For further information on financial instruments and financial riskfactors see Financial statements Note 28 on page 136 and Note 34on page 143.Liabilities and provisionsChanges in the external environment,such as new laws and regulations,market volatility o

117、r other factors,could affect the adequacy of ourprovisions for pensions,tax,environmental and legal liabilities.Operations risksOperations safety and operationsProcess safetyInherent in our operations are hazards that require continual oversightand control.There are risks of technical integrity fail

118、ure and loss ofcontainment of hydrocarbons and other hazardous material at operatingsites or pipelines.Failure to manage these risks could result in injury orloss of life,environmental damage and/or loss of production.BP ANNUAL REPORT AND ACCOUNTS 20079Filename:U54368_doc3.3d Time:14:49:34 Date:25/0

119、2/08Checksum:1546924156Personal safetyInability to provide safe environments for our workforce and the publiccould lead to injuries or loss of life.EnvironmentalIf we do not apply our resources to overcome the perceived trade-offbetween global access to energy and the protection or improvement ofthe

120、 natural environment,we could fail to live up to our aspirations of noor minimal damage to the environment and contributing to humanprogress.Product qualitySupplying customers with on-specification products is critical tomaintaining our licence to operate and our reputation in the marketplace.Failur

121、e to meet product quality standards throughout the value chaincould lead to harm to people and the environment and loss of customers.Drilling and productionExploration and production require high levels of investment and aresubject to natural hazards and other uncertainties,including those relatingt

122、o the physical characteristics of an oil or natural gas field.The cost ofdrilling,completing or operating wells is often uncertain.We may berequired to curtail,delay or cancel drilling operations because of a varietyof factors,including unexpected drilling conditions,pressure orirregularities in geo

123、logical formations,equipment failures or accidents,adverse weather conditions and compliance with governmentalrequirements.TransportationAll modes of transportation of hydrocarbons contain inherent risks.Aloss of containment of hydrocarbons and other hazardous material couldoccur during transportati

124、on by road,rail,sea or pipeline.This is asignificant risk due to the potential impact of a release on theenvironment and people and given the high volumes involved.Operations planning and performance managementInvestment efficiencyOur organic growth is dependent on creating a portfolio of quality op

125、tionsand investing in the best options.Ineffective investment selection couldlead to loss of value and higher capital expenditure.Major project deliverySuccessful execution of our group plan(see page 12)depends criticallyon implementing the activities to deliver the major projects over the planperio

126、d.Poor delivery of any major project that underpins productiongrowth and/or a major programme designed to enhance shareholdervalue could adversely affect our financial performance.Reserves replacementSuccessful execution of our group plan depends critically on sustaininglong-term reserves replacemen

127、t.If upstream resources are notprogressed to proved reserves in a timely and efficient manner,we willbe unable to sustain long-term replacement of reserves.Operations enterprise systems,security and continuityDigital infrastructureThe reliability and security of our digital infrastructure are critic

128、al tomaintaining our business applications availability.A breach of our digitalsecurity could cause serious damage to business operations and,insome circumstances,could result in injury to people,damage to assets,harm to the environment and breaches of regulations.SecuritySecurity threats require co

129、ntinual oversight and control.Acts of terrorismthat threaten our plants and offices,pipelines,transportation or computersystems would severely disrupt business and operations and could causeharm to people.Business continuity and disaster recoveryContingency plans are required to continue or recover

130、operationsfollowing a disruption or incident.Inability to restore or replace criticalcapacity to an agreed level within an agreed timeframe would prolongthe impact of any disruption and could severely affect business andoperations.Crisis managementCrisis management plans and capability are essential

131、 to deal withemergencies at every level of our operations.If we do not respond or areperceived not to respond in an appropriate manner to either an externalor internal crisis,our business and operations could be severelydisrupted.Operations people managementPeople and capabilityEmployee training,dev

132、elopment and successful recruitment of newstaff are key to implementing our plans.Inability to develop the humancapacity and capability across the organization could jeopardizeperformance delivery.10Filename:U54368_doc3.3d Time:14:49:34 Date:25/02/08Checksum:1167440507Forward-looking statementsIn or

133、der to utilize the Safe Harbor provisions of the United States PrivateSecurities Litigation Reform Act of 1995,BP is providing the followingcautionary statement.This document contains certain forward-lookingstatements with respect to the financial condition,results of operationsand businesses of BP

134、and certain of the plans and objectives of BP withrespect to these items.These statements may generally,but not always,be identified by the use of words such as will,expects,is expectedto,should,may,objective,is likely to,intends,believes,plans,we see or similar expressions.In particular,among other

135、 statements,(i)certain statements in Performance review(pages 7-56)with regard tomanagement aims and objectives,future capital expenditure,futurehydrocarbon production volume,date(s)or period(s)in which productionis scheduled or expected to come onstream or a project or action isscheduled or expecte

136、d to begin or be completed,capacity of plannedplants or facilities and impact of health,safety and environmentalregulations;(ii)the statements in Performance review(pages 7-45)withregard to planned expansion,investment or other projects and futureregulatory actions;and(iii)the statements in Performa

137、nce review(pages46-56)with regard to the plans of the group,cash flows,opportunities formaterial acquisitions,the cost of and provision for future remediationprogrammes,liquidity and costs for providing pension and other post-retirement benefits;and including under Liquidity and capital resourceswit

138、h regard to future production,future refining availability,future capitalexpenditure,sources of funding,future revenues and financialperformance,potential for cost efficiencies,level of free cash flowallocated to share buybacks,shareholder distributions and sharebuybacks,gearing,working capital and

139、expected payments undercontractual and commercial commitments;are all forward-lookingin nature.By their nature,forward-looking statements involve risk anduncertainty because they relate to events and depend on circumstancesthat will or may occur in the future and are outside the control of BP.Actual

140、 results may differ materially from those expressed in suchstatements,depending on a variety of factors,including the specificfactors identified in the discussions accompanying such forward-lookingstatements;the timing of bringing new fields onstream;future levels ofindustry product supply,demand an

141、d pricing;operational problems;general economic conditions;political stability and economic growth inrelevant areas of the world;changes in laws and governmentalregulations;exchange rate fluctuations;development and use of newtechnology;the success or otherwise of partnering;the actions ofcompetitor

142、s;natural disasters and adverse weather conditions;changesin public expectations and other changes to business conditions;warsand acts of terrorism or sabotage;and other factors discussed elsewherein this report including under Risk factors on pages 9-10.In addition tofactors set forth elsewhere in

143、this report,those set out above areimportant factors,although not exhaustive,that may cause actual resultsand developments to differ materially from those expressed or implied bythese forward-looking statements.Statements regarding competitive positionStatements referring to BPs competitive position

144、 are based on thecompanys belief and,in some cases,rely on a range of sources,including investment analysts reports,independent market studies andBPs internal assessments of market share based on publicly availableinformation about the financial results and performance of marketparticipants.BP ANNUA

145、L REPORT AND ACCOUNTS 200711Filename:U54368_doc3.3d Time:14:49:34 Date:25/02/08Checksum:-633916657Information on the companyGeneralUnless otherwise indicated,information in this document reflects 100%of the assets and operations of the company and its subsidiaries thatwere consolidated at the date o

146、r for the periods indicated,includingminority interests.Also,unless otherwise indicated,figures for businesssales and other operating revenues include sales between BPbusinesses.The company,incorporated in 1909 in England and Wales,becameknown as BP Amoco p.l.c.following the merger with Amoco Corpor

147、ation(incorporated in Indiana,US,in 1889).The company subsequentlychanged its name to BP p.l.c.BP is one of the worlds leading oil companies on the basis of marketcapitalization and proved reserves.Our worldwide headquarters islocated at 1 St Jamess Square,London SW1Y 4PD,UK,tel+44(0)20 7496 4000.Ou

148、r agent in the US is BP America Inc.,4101Winfield Road,Warrenville,Illinois 60555,tel+1 630 821 2222.Overview of the groupBP is a global group,with interests and activities held or operatedthrough subsidiaries,jointly controlled entities or associates establishedin,and subject to the laws and regula

149、tions of,many differentjurisdictions.These interests and activities covered three businesssegments in 2007,supported by a number of organizational elementscomprising group functions and regions.In 2007,the three business segments were Exploration andProduction,Refining and Marketing and Gas,Power an

150、d Renewables.With effect from 1 January 2008,the Gas,Power and Renewablessegment ceased to report separately(see Resegmentation in 2008 onpage 13).Exploration and Productions activities include oil and naturalgas exploration,development and production(upstream activities),together with related pipel

151、ine,transportation and processing activities(midstream activities).The activities of Refining and Marketing includethe supply and trading,refining,marketing and transportation of crudeoil,petroleum and chemicals products.Gas,Power and Renewablesactivities included marketing and trading of gas and po

152、wer,marketing ofliquefied natural gas(LNG),natural gas liquids(NGLs),and low-carbonpower generation through our Alternative Energy business.The groupprovides high-quality technological support for all its businesses throughits research and engineering activities.Group functions serve the business se

153、gments,aiming to achievecoherence across the group,manage risks effectively and achieveeconomies of scale.Each head of region ensures regional consistency ofthe activities of business segments and group functions and representsBP to external parties.The groups system of internal control is described

154、 in the BPmanagement framework.It is designed to meet the expectations ofinternal control of the Turnbull Guidance on the Combined Code in theUK and of COSO(committee of the sponsoring organization for theTreadway Commission in the US).The system of internal control is thecomplete set of management

155、systems,organizational structures,processes,standards and behaviours that are employed to conduct thebusiness of BP and deliver returns to shareholders.The design of thesystem of internal control addresses risks and how to respond to them.Each component of the system is in itself a device to respond

156、 to aparticular type or collection of risks.The group strategy describes the groups strategic objectives and thepresumptions made by BP about the future.It describes strategic risksthat arise from making such presumptions and the actions to be takento manage or mitigate the risks.The board delegates

157、 to the group chiefexecutive responsibility for developing BPs strategy and itsimplementation through the group plan that determine the setting ofpriorities and allocation of resources.The group chief executive is obligedto discuss with the board,on the basis of the strategy and group plan,allmateri

158、al matters currently or prospectively affecting BPs performance.As the groups business segments are managed on a global,notregional,basis,geographical information for the group and segments isgiven to provide additional information for investors but does not reflectthe way BP manages its activities.

159、We have well-established operations in Europe,the US,Canada,Russia,South America,Australasia,Asia and parts of Africa.Currently,around 65%of the groups capital is invested in Organisation forEconomic Co-operation and Development(OECD)countries,with justunder 40%of our fixed assets located in the US

160、and around 25%locatedin Europe.We believe that BP has a strong portfolio of assets:In Exploration and Production,we have upstream interests in 29countries.Exploration and Production activities are managed throughoperating units that are accountable for the day-to-day management ofthe segments activi

161、ties.An operating unit is accountable for one ormore fields.Profit centres comprise one or more operating units.Profit centres are,or are expected to become,areas that providesignificant production and income for the segment.Our current areasof major development include the deepwater Gulf of Mexico,

162、Azerbaijan,Algeria,Angola,Egypt and Asia Pacific where we believewe have competitive advantage and that we believe provide thefoundation for volume growth and improved margins in the future.We also have significant midstream activities to support our upstreaminterests.In Refining and Marketing,we ha

163、ve a strong presence in the US andEurope.In the US,we market under the Amoco and BP brands in theMidwest,east and southeast and under the ARCO brand on the westcoast,and under the BP and Aral brands in Europe.We have a long-established supply and trading activity responsible for delivering valueacro

164、ss the crude and oil products supply chain.Our Aromatics&Acetyls business maintains a manufacturing position globally,withemphasis on growth in Asia.We also have,or are growing,businesses elsewhere in the world under the BP and Castrol brands,including a strong global lubricants portfolio and other

165、business-to-business marketing businesses(aviation and marine)covering themobility sectors.We continue to seek opportunities to broaden ouractivities in growth markets such as China and India.In our Gas,Power and Renewables businesses,marketing and tradingis undertaken primarily in the US,Canada,the

166、 UK and the rest ofEurope.Our marketing and trading activities include natural gas,power and NGLs.Our LNG activities identify and capture worldwideopportunities for our upstream natural gas resources and are focusedon growing natural gas markets,including the US,the UK,Spain andkey consuming countri

167、es of the Asia Pacific region.We have asignificant NGLs processing and marketing business in North America.BP Alternative Energy,launched in November 2005,combines all ofBPs interests in businesses that provide low-carbon energy solutionsfor power generation:solar,wind,gas-fired power generation and

168、hydrogen power with carbon capture and storage.Alternative Energyhas solar production facilities in the US,Spain,China,India andAustralia;and wind farms in the Netherlands,India and the US.We are advancing development of hydrogen power plants and areinvolved in gas-fired power projects in the US,the

169、 UK,Spain,Vietnam,Trinidad&Tobago and South Korea.Through non-US subsidiaries or other non-US entities,during theperiod covered by this report,BP conducted limited marketing,licensingand trading activities in,or with persons from,certain countries identifiedby the US Department of State as State Spo

170、nsors of Terrorism.BPbelieves that these activities are immaterial to the group.BP has interests in,and is the operator of,two fields and a pipelinelocated outside of Iran in which the National Iranian Oil Company(NIOC)and an affiliated entity have interests.In Iran,BP buys small quantities ofcrude

171、oil.This is primarily for sale to third parties in Europe and a smallportion is used by BP in its own refineries in South Africa and Europe.Inaddition,BP sells small quantities of crude oil into Iran and blends andmarkets small quantities of lubricants for sale to domestic consumersthrough a joint v

172、enture there,which has a blending facility.However,BPdoes not seek to obtain from the government of Iran licences oragreements for oil and gas projects in Iran,is not conducting anytechnical studies in Iran and does not own or operate any refineries orchemicals plants in Iran.12Filename:U54368_doc3.

173、3d Time:14:49:34 Date:25/02/08Checksum:2038944370BP sells small quantities of lubricants in Cuba through a 50/50 jointventure there.In Syria,small quantities of lubricants are sold through adistributor and BP obtains small volumes of crude oil supplies for sale tothird parties in Europe.These sales

174、and purchases are insignificant andBP does not provide other goods,technologies or services in thesecountries.Acquisitions and disposalsIn 2007,BP acquired Chevrons Netherlands manufacturing company,Texaco Raffiniderij Pernis B.V.The acquisition included Chevrons 31%minority shareholding in Nerefco,

175、its 31%shareholding in the 22.5 MWwind farm co-located at the refinery as well as a 22.8%shareholding inthe TEAM joint venture terminal and shareholdings in two local pipelineslinking the TEAM terminal to the refinery.Disposal proceeds were$4,267 million,which included$1,903 million from the sale of

176、 theCoryton refinery and$605 million from the sale of our exploration andproduction gas infrastructure business in the Netherlands.In 2006,there were no significant acquisitions.BP purchased 9.6%ofthe shares issued under Rosnefts IPO for a consideration of$1 billion(included in capital expenditure).

177、This represented an interest of around1.4%in Rosneft.Disposal proceeds were$6,254 million,which included$2.1 billion on the sale of our interest in the Shenzi discovery and around$1.3 billion from the sale of our producing properties on the OuterContinental Shelf of the Gulf of Mexico to Apache Corp

178、oration.In 2005,there were no significant acquisitions.Disposal proceedswere$11,200 million,which included net cash proceeds from the sale ofInnovene to INEOS of$8,304 million after selling costs,closingadjustments and liabilities.Innovene represented the majority of theOlefins and Derivatives busin

179、ess.Additionally,disposal proceedsincluded proceeds from the sale of the groups interest in the OrmenLange field in Norway.Resegmentation in 2008On 11 October 2007,we announced our intention to simplify theorganizational structure of BP.From 1 January 2008,there are only twobusiness segments:Explora

180、tion and Production and Refining andMarketing.A separate business,Alternative Energy,handles BPs low-carbon businesses and future growth options outside oil and gas.As a result,and with effect from 1 January 2008:The Gas,Power and Renewables segment ceased to reportseparately.The NGLs,LNG and gas an

181、d power marketing and trading businesseswere transferred from the Gas,Power and Renewables segment tothe Exploration and Production segment.The Alternative Energy business was transferred from the Gas,Powerand Renewables segment to Other businesses and corporate.The Emerging Consumers Marketing Unit

182、 was transferred fromRefining and Marketing to Alternative Energy(which is reported inOther businesses and corporate).The Biofuels business was transferred from Refining and Marketing toAlternative Energy(which is reported in Other businesses andcorporate).The Shipping business was transferred from

183、Refining and Marketingto Other businesses and corporate.BP ANNUAL REPORT AND ACCOUNTS 200713Filename:U54368_doc3.3d Time:14:49:35 Date:25/02/08Checksum:154290018Exploration and ProductionOur Exploration and Production segment includes upstream andmidstream activities in 29 countries,including the US

184、,the UK,Angola,Azerbaijan,Canada,Egypt,Russia,Trinidad&Tobago(Trinidad)andlocations within Asia Pacific,Latin America,North Africa and the MiddleEast.Upstream activities involve oil and natural gas exploration and fielddevelopment and production.Our exploration programme is currentlyfocused around t

185、he deepwater Gulf of Mexico,Algeria,Angola,Azerbaijan,Egypt and Russia.Major development areas include thedeepwater Gulf of Mexico,Azerbaijan,Algeria,Angola,Egypt and AsiaPacific.During 2007,production came from 22 countries.The principalareas of production are Russia,the US,Trinidad,the UK,Latin Am

186、erica,the Middle East,Asia Pacific,Azerbaijan,Angola and Egypt.Midstream activities involve the ownership and management of crudeoil and natural gas pipelines,processing and export terminals and LNGprocessing facilities and transportation.Our most significant midstreampipeline interests include the

187、Trans Alaska Pipeline System,the FortiesPipeline System and the Central Area Transmission System pipeline,both in the UK sector of the North Sea,and the Baku-Tbilisi-Ceyhanpipeline,running through Azerbaijan,Georgia and Turkey.Major LNGactivities are located in Trinidad,Indonesia and Australia.Furth

188、er LNGbusinesses with BP involvement are being built up in Egypt and Angola.Our oil and gas production assets are located onshore or offshore andinclude wells,gathering centres,in-field flow lines,processing facilities,storage facilities,offshore platforms,export systems(e.g.transit lines),pipelines

189、 and LNG plant facilities.Key statistics$million-200720062005-Sales and other operating revenuesfrom continuing operations54,55052,60047,210Profit before interest and tax fromcontinuing operationsa26,93829,62925,502Total assets108,87499,31093,447Capital expenditure and acquisitions13,90613,11810,237

190、million barrels of oil equivalent-Net proved reserves group12,58313,16314,023Net proved reserves equity-accounted entities5,2314,5373,870thousand barrels per day-Liquids production group1,3041,3511,423Liquids production equity-accounted entities1,1101,1241,139million cubic feet per day-Natural gas p

191、roduction group7,2227,4127,512Natural gas production equity-accounted entities9211,005912$per barrel-Average BP crude oil realizationsb69.9861.9150.27Average BP NGL realizationsb46.2037.1733.23Average BP liquids realizationsb c67.4559.2348.51Average West Texas Intermediateoil price72.2066.0256.58Ave

192、rage Brent oil price72.3965.1454.48$per thousand cubic feet-Average BP natural gas realizationsb4.534.724.90Average BP US natural gasrealizationsb5.435.746.78$per million British thermal units-Average Henry Hub gas priced6.867.248.65pence per therm-Average UK National Balancing Pointgas price29.9542

193、.1940.71aProfit before interest and tax from continuing operations includes profit afterinterest and tax of equity-accounted entities.bThe Exploration and Production segment does not undertake any hedging activity.Consequently,realizations reflect the market price achieved.Realizations are basedon s

194、ales of consolidated subsidiaries only,which excludes equity-accountedentities.cCrude oil and natural gas liquids.dHenry Hub First of Month Index.Upstream operations in Argentina,Bolivia,Abu Dhabi,Kazakhstan andthe TNK-BP and some of the Sakhalin operations in Russia,as well assome of our operations

195、 in Indonesia and Venezuela,are conductedthrough equity-accounted entities.The Exploration and Production strategy is to build production by:Focusing on finding the largest fields in the worlds most prolifichydrocarbon basins.Building leadership positions in these areas.Managing the decline of exist

196、ing producing assets and divestingassets when they no longer compete in our portfolio.Through the application of advanced technology and significantinvestment,we have gained a strong position in many of our operatingareas.Total capital expenditure and acquisitions in 2007 was$13.9 billion(2006$13.1

197、billion and 2005$10.2 billion).There were no significantacquisitions in the period from 2005 to 2007.Capital expenditure in 2006included our investment in Rosnefts IPO of$1 billion.Capitalexpenditure in 2008 is planned to be around$15 billion includingapproximately$0.5 billion in respect of the gas

198、and power businessesthat are now reported through Exploration and Production,as describedbelow,and excluding the impact of our transaction with Husky EnergyInc.,which is further described on page 22.This reflects our projectprogramme,managed within the context of our disciplined approach tocapital i

199、nvestment and taking into account sector-specific inflation.Development expenditure incurred in 2007,excluding midstreamactivities,was$10,153 million,compared with$9,109 million in 2006 and$7,678 million in 2005.Resegmentation in 2008With effect from 1 January 2008,the NGLs,LNG and the gas and power

200、marketing and trading businesses were transferred from the Gas,Powerand Renewables segment to the Exploration and Production segment.Upstream activitiesExplorationThe group explores for oil and natural gas under a wide range oflicensing,joint venture and other contractual agreements.We may dothis al

201、one or,more frequently,with partners.BP acts as operator formany of these ventures.Our exploration and appraisal costs in 2007 were$1,892 million,compared with$1,765 million in 2006 and$1,266 million in 2005.Thesecosts include exploration and appraisal drilling expenditures,which arecapitalized with

202、in intangible fixed assets,and geological and geophysicalexploration costs,which are charged to income as incurred.Approximately 47%of 2007 exploration and appraisal costs weredirected towards appraisal activity.In 2007,we participated in 86 gross(37 net)exploration and appraisal wells in 12 countri

203、es.The principalareas of activity were the deepwater Gulf of Mexico,Angola,Egypt,North Sea,Canada and Pakistan.Total exploration expense in 2007 of$756 million(2006$1,045 millionand 2005$684 million)included the write-off of expenses related to14Filename:U54368_doc3.3d Time:14:49:35 Date:25/02/08Che

204、cksum:182551524unsuccessful drilling activities in Russia($86 million excluding TNK-BP),Egypt($49 million),Colombia($49 million),the deepwater Gulf of Mexico($36 million),onshore North America($36 million),Angola($27 million)and others($11 million).In 2007,we obtained upstream rights in several new

205、tracts,whichinclude the following:In the Gulf of Mexico,we have been awarded 171 blocks(BP averageequity 100%)through the Outer Continental Shelf Lease Sales 204and 205.In Oman,we signed a production-sharing agreement(PSA)to appraiseand develop the Khazzan/Makarem gas fields.In Colombia,BP was award

206、ed operatorship in two blocks,RC4(BP35%)and RC5(BP 100%),which cover approximately 6,200 squarekilometres in the Caribbean Sea,offshore northern Colombia.In Libya,BP signed a major exploration and production agreementwith Libyas National Oil Company,covering over 53,000 squarekilometres both onshore

207、 and offshore.In 2007,we were involved in a number of discoveries.In most cases,reserves bookings from these fields will depend on the results ofongoing technical and commercial evaluations,including appraisal drilling.Our most significant discoveries in 2007 included the following:In Angola,we made

208、 further discoveries in the ultra deepwater(greaterthan 1,500 metres)Block 31(BP 26.7%and operator)with theMiranda,Cordelia and Portia wells,bringing the total number ofdiscoveries in Block 31 to 15.In Azerbaijan,we made a further discovery in a new reservoir in ShahDeniz(BP 25.5%and operator)with t

209、he SDX-04 well.In Egypt,we made three discoveries with the Giza North-1(BP 60%and operator),Taurus Deep(BP 60%and operator)and Satis(BP 50%and operator)wells.In the deepwater Gulf of Mexico,we made a discovery with theIsabela well(BP 67%and operator).Reserves and productionComplianceIFRS does not pr

210、ovide specific guidance on reserves disclosures.BPestimates proved reserves in accordance with SEC Rule 4-10(a)andrelevant guidance notes and letters issued by the SEC staff.By their nature,there is always some risk involved in the ultimatedevelopment and production of reserves,including,but not lim

211、ited to,final regulatory approval,the installation of new or additionalinfrastructure as well as changes in oil and gas prices and the continuedavailability of additional development capital.All the groups oil and gas reserves held in consolidated companieshave been estimated by the groups petroleum

212、 engineers.Of the equity-accounted volumes in 2007,16%were based on estimates prepared bygroup petroleum engineers and 84%were based on estimates preparedby independent engineering consultants,although all of the groups oiland gas reserves held in equity-accounted entities are reviewed by thegroups

213、petroleum engineers before making the assessment of volumesto be booked by BP.Our proved reserves are associated with both concessions(tax androyalty arrangements)and agreements where the group is exposed tothe upstream risks and rewards of ownership,but where title to thehydrocarbons is not conferr

214、ed,such as PSAs.In a concession,theconsortium of which we are a part is entitled to the reserves that can beproduced over the licence period,which may be the life of the field.In aPSA,we are entitled to recover volumes that equate to costs incurred todevelop and produce the reserves and an agreed sh

215、are of the remainingvolumes or the economic equivalent.As part of our entitlement is drivenby the monetary amount of costs to be recovered,price fluctuations willhave an impact on both production volumes and reserves.Thirteen percent of our proved reserves are associated with PSAs.The maincountries

216、in which we operate under PSAs are Algeria,Angola,Azerbaijan,Egypt,Indonesia and Vietnam.We separately disclose our share of reserves held in equity-accountedentities(jointly controlled entities and associates),although we do notcontrol these entities or the assets held by such entities.Resource pro

217、gressionBP manages its hydrocarbon resources in three major categories:prospect inventory,non-proved resources and proved reserves.When adiscovery is made,volumes usually transfer from the prospect inventoryto the non-proved resource category.The resources move throughvarious non-proved resource sub

218、-categories as their technical andcommercial maturity increases through appraisal activity.Resources in a field will only be categorized as proved reserves whenall the criteria for attribution of proved status have been met,including aninternally imposed requirement for project sanction or for sanct

219、ionexpected within six months and,for additional reserves in existing fields,the requirement that the reserves be included in the business plan andscheduled for development,typically within three years.Where,onoccasion,the group decides to book reserves where development isscheduled to commence beyo

220、nd three years,these reserves will bebooked only where they satisfy the SECs criteria for attribution of provedstatus.Internal approval and final investment decision are what we referto as project sanction.At the point of sanction,all booked reserves will be categorized asproved undeveloped(PUD).Vol

221、umes will subsequently be recategorizedfrom PUD to proved developed(PD)as a consequence of developmentactivity.When part of a wells reserves depends on a later phase ofactivity,only that portion of reserves associated with existing,availablefacilities and infrastructure moves to PD.The first PD book

222、ings will occurat the point of first oil or gas production.Major development projectstypically take one to four years from the time of initial booking of PUDreserves to the start of production.Changes to reserves bookings maybe made due to analysis of new or existing data concerning production,reser

223、voir performance,commercial factors,acquisition and divestmentactivity and additional reservoir development activity.GovernanceBPs centrally controlled process for proved reserves estimation approvalforms part of a holistic and integrated system of internal control.Itconsists of the following elemen

224、ts:Accountabilities of certain officers of the group to ensure that there isreview and approval of proved reserves bookings independent of theoperating business and that there are effective controls in the approvalprocess and verification that the proved reserves estimates and therelated financial i

225、mpacts are reported in a timely manner.Capital allocation processes,whereby delegated authority is exercisedto commit to capital projects that are consistent with the delivery ofthe groups business plan.A formal review process exists to ensurethat both technical and commercial criteria are met prior

226、 to thecommitment of capital to projects.Internal Audit,whose role includes systematically examining theeffectiveness of the groups financial controls designed to assure thereliability of reporting and safeguarding of assets and examining thegroups compliance with laws,regulations and internal stand

227、ards.Approval hierarchy whereby proved reserves changes above certainthreshold volumes require central authorization and periodic reviews.The frequency of review is determined according to field size andensures that more than 80%of the BP reserves base undergoescentral review every two years and mor

228、e than 90%is reviewed everyfour years.For the executive directors and senior management,no specificportion of compensation bonuses is directly related to oil and gasreserves targets.Additions to proved reserves is one of severalindicators by which the performance of the Exploration and Productionseg

229、ment is assessed by the remuneration committee for the purposes ofdetermining compensation bonuses for the executive directors andsenior management.Other indicators include a number of financial andoperational measures.BPs variable pay programme for the other senior managers in theExploration and Pr

230、oduction segment is based on individual performancecontracts.Individual performance contracts are based on agreed itemsfrom the business performance plan,one of which,if they choose,couldrelate to oil and gas reserves.BP ANNUAL REPORT AND ACCOUNTS 200715Filename:U54368_doc3.3d Time:14:49:35 Date:25/

231、02/08Checksum:308686455Reserve replacementTotal hydrocarbon proved reserves,on an oil equivalent basis andexcluding equity-accounted entities,comprised 12,583mmboe at31 December 2007,a decrease of 4.4%compared with 31 December2006.Natural gas represents about 56%of these reserves.Thereduction includ

232、es net sales of 58mmboe,largely comprising a numberof assets in the Netherlands,Pakistan,Canada and the US.Total hydrocarbon proved reserves,on an oil equivalent basis forequity-accounted entities alone,comprised 5,231mmboe at 31 December2007,an increase of 15.3%compared with 31 December 2006.Natura

233、lgas represents about 12%of these proved reserves.The increaseincludes net sales of 3mmboe,largely comprising a number of assets inRussia.The proved reserves replacement ratio(also known as the productionreplacement ratio)is the extent to which production is replaced byproved reserves additions.This

234、 ratio is expressed in oil equivalent termsand includes changes resulting from revisions to previous estimates,improved recovery and extensions and discoveries,and may beexpressed as a replacement ratio excluding acquisitions and divestmentsor as a total replacement ratio including acquisitions and

235、divestments.%-200720062005-Proved reserves replacement ratio,excluding equity-accountedentities443468Proved reserves replacement ratio,excluding equity-accountedentities,including sales andpurchases of reserves-in-place381140Proved reserves replacement ratio,for equity-accounted entities248272151Pro

236、ved reserves replacement ratio,for equity-accounted entities,including sales and purchases ofreserves-in-place248239141million barrels of oil equivalent-Additions to proved developedreserves,excluding equity-accounted entities,includingsales and purchases of reserves-in-placea929675632Additions to p

237、roved developedreserves,for equity-accountedentities,including sales andpurchases of reserves-in-placea473936474%-Proved developed reservesreplacement ratio,excludingequity-accounted entities,including sales and purchases ofreserves-in-place997063Proved developed reservesreplacement ratio,for equity

238、-accounted entities,includingsales and purchases of reserves-in-place10119599aThis includes some reserves that were previously classified as provedundeveloped.In 2007,net additions to the groups proved reserves(excluding salesand purchases of reserves-in-place and equity-accounted entities)amounted

239、to 414mmboe,principally through improved recovery from,and extensions to,existing fields and discoveries of new fields.Of thereserves additions through improved recovery from,and extensions to,existing fields and discoveries of new fields,64%are associated withnew projects and are proved undeveloped

240、 reserves additions.Theremainder are in existing developments where they represent a mixtureof proved developed and proved undeveloped reserves.The principalreserves additions were in the Norway(Skarv),the US(Liberty,PrudhoeBay,Great White,Nakika,Thunder Horse),Trinidad(Immortelle,Manakin),Angola(Pa

241、zflor)and Canada(Noel).ProductionOur total hydrocarbon production during 2007 averaged 2,549 thousandbarrels of oil equivalent per day(mboe/d)for subsidiaries and1,269mboe/d for equity-accounted entities,a decrease of 3%and 2%respectively compared with 2006.For subsidiaries,35%of ourproduction was i

242、n the US and 13%in the UK.For equity-accountedentities,72%of production was from TNK-BP.Total production for 2008 is expected to be higher than in 2007.This isbased on the groups asset portfolio at 1 January 2008,expected start-ups in 2008 and Brent at$60/bbl,before any 2008 disposal effects andbefo

243、re any effects of prices above$60/bbl on volumes in PSAs.16Filename:U54368_doc3.3d Time:14:49:35 Date:25/02/08Checksum:-515655080The following tables show BPs estimated net proved reserves as at 31 December 2007.Estimated net proved reserves of liquids at 31 December 2007a b cmillion barrels-Develop

244、edUndevelopedTotal-UK414123537Rest of Europe105169274US1,8821,2653,147dRest of Americas115203318eAsia Pacific6177138Africa256350606RussiaOther104368472-Group2,9372,5555,492-Equity-accounted entities2,9961,5854,581fEstimated net proved reserves of natural gas at 31 December 2007a b cbillion cubic fee

245、t-DevelopedUndevelopedTotal-UK2,0495532,602Rest of Europe63410473US10,6704,70515,375Rest of Americas3,6838,39412,077gAsia Pacific1,8224,8176,639Africa9901,4102,400RussiaOther5839811,564-Group19,86021,27041,130-Equity-accounted entities2,4731,2973,770hNet proved reserves on an oil equivalent basis(mm

246、boe)Group6,3616,22212,583Equity-accounted entities3,4221,8095,231aProved 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 theoption and ability to make lifting and sales arrangements independent

247、ly,and include minority interests in consolidated operations.We disclose our share of reserves held injoint ventures and associates that are accounted for by the equity method although we do not control these entities or the assets held by such entities.bIn certain deepwater fields,such as fields in

248、 the Gulf of Mexico,BP has claimed proved reserves before production flow tests are conducted,in part because of thesignificant safety,cost and environmental implications of conducting these tests.The industry has made substantial technological improvements in understanding,measuring and delineating

249、 reservoir properties without the need for flow tests.The general method of reserves assessment to determine reasonable certainty ofcommercial recovery that BP employs relies on the integration of three types of data:(1)well data used to assess the local characteristics and conditions of reservoirs

250、andfluids;(2)field scale seismic data to allow the interpolation and extrapolation of these characteristics outside the immediate area of the local well control;and(3)data fromrelevant analogous fields.Well data includes appraisal wells or sidetrack holes,full logging suites,core data and fluid samp

251、les.BP considers the integration of this data incertain cases to be superior to a flow test in providing a better understanding of the overall reservoir performance.The collection of data from logs,cores,wirelineformation testers,pressures and fluid samples calibrated to each other and to the seismi

252、c data can allow reservoir properties to be determined over a greater volume thanthe localized volume of investigation associated with a short-term flow test.Historically,proved reserves recorded using these methods have been validated by actualproduction levels.As at the end of 2007,BP had proved r

253、eserves in 22 fields in the deepwater Gulf of Mexico that had been initially booked prior to production flow testing.Of these fields,19 are in production and one,Thunder Horse,is expected to begin production by the end of 2008.Two other fields are in the early stages of development.cThe 2007 year-en

254、d marker prices used were Brent$96.02/bbl(2006$58.93/bbl and 2005$58.21/bbl)and Henry Hub$7.10/mmBtu(2006$5.52/mmBtu and 2005$9.52/mmBtu).dProved reserves in the Prudhoe Bay field in Alaska include an estimated 98 million barrels upon which a net profits royalty will be payable over the life of the

255、field under theterms of the BP Prudhoe Bay Royalty Trust.eIncludes 20 million barrels of crude oil in respect of the 30%minority interest in BP Trinidad and Tobago LLC.fIncludes 210 million barrels of crude oil in respect of the 6.51%minority interest in TNK-BP.gIncludes 3,211 billion cubic feet of

256、natural gas in respect of the 30%minority interest in BP Trinidad and Tobago LLC.hIncludes 68 billion cubic feet of natural gas in respect of the 5.88%minority interest in TNK-BP.BP ANNUAL REPORT AND ACCOUNTS 200717Filename:U54368_doc3.3d Time:14:49:35 Date:25/02/08Checksum:202051613218The following

257、 tables show BPs production by major field for 2007,2006 and 2005.Liquids%thousand barrels per day-aBP net share of production-Field or AreaInterest200720062005-AlaskaPrudhoe Bayb26.4747189Kuparuk39.2525762Northstarb98.6283846Milne Pointb99.4283137OtherVarious272734-Total Alaska209224268-Lower 48 on

258、shorecVariousVarious108125130-Gulf of Mexico deepwatercNa Kikab50.0324144Horn Mountainb100.0182326Kingb100.0222824Mars28.5301921Mad Dogb61.0251713Holsteinb50.0171522OtherVarious525248Gulf of Mexico ShelfcOtherVarious316-Total Gulf of Mexico196198214-Total US513547612UK offshorecETAPdVarious324949Foi

259、navenbVarious373739Magnusb85.0163030Schiehallion/LoyalbVarious202628Hardingb70.0141722Andrewb62.88712OtherVarious596975-Total UK offshore186235255-OnshoreWytch Farmb67.8151822-Total UK201253277NetherlandscVariousVarious11NorwayValhallb28.1172125Draugen18.4141520Ulab80.0121417OtherVarious81012-Total

260、Rest of Europe516175AngolaDalia16.731Girassol16.7141734Greater Plutoniob50.012Kizomba A26.7365456Kizomba B26.7355828OtherVarious11410AustraliaVarious15.8343436AzerbaijanAzeri-Chirag-Gunashlib34.120014576Shah Denizb25.55CanadacVariousbVarious8810ColombiaVariousbVarious283441EgyptVariousVarious434247T

261、rinidad&TobagocVariousb100.0304040VenezuelacVariousVarious162655OthercVariousVarious362826-Total Rest of World539490459Total groupe1,3041,3511,423Equity-accounted entities(BP share)Abu DhabifVariousVarious192163148Argentina Pan American EnergyVariousVarious696967Russia TNK-BPcVariousVarious832876911

262、OthercVariousVarious171613-Total equity-accounted entities1,1101,1241,139-aProduction 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 andability to make lifting and sales arrangements indepe

263、ndently.bBP-operated.cIn 2007,BP divested its producing properties in the Netherlands and some producing properties in the US Lower 48 and Canada.TNK-BP disposed of its interests inseveral non-core properties.In 2006,BP divested its producing properties on the Outer Continental Shelf of the Gulf of

264、Mexico and its interest in the Statfjord oil and gasfield in the UK.Our interests in the Boqueron,Desarollo Zulia Occidental(DZO)and Jusepin projects in Venezuela were reduced following a decision by the Venezuelangovernment.TNK-BP disposed of its non-core interests in the Udmurtneft assets.In 2005,

265、BP divested the Teak,Samaan and Poui assets in Trinidad and sold interests incertain properties in the Gulf of Mexico.In addition,BP exchanged the Gulf of Mexico deepwater Blind Faith prospect for Kerr McGees interest in the Arkoma Red Oakand Williburton fields,and TNK-BP disposed of non-core produc

266、ing assets in the Saratov region.dVolumes relate to six BP-operated fields within ETAP.BP has no interests in the remaining three ETAP fields,which are operated by Shell.eIncludes 54 net mboe/d of NGLs from processing plants in which BP has an interest(2006 55mboe/d and 2005 58mboe/d).fThe BP group

267、holds interests,through associates,in onshore and offshore concessions in Abu Dhabi,expiring in 2014 and 2018 respectively.During the second quarter of2007,we updated our reporting policy in Abu Dhabi to be consistent with general industry practice and as a result have started reporting production a

268、nd reserves theregross of production taxes.This change resulted in an increase in our reserves of 153 million barrels and in our production of 33 thousand barrels per day(mb/d).Filename:U54368_doc3.3d Time:14:49:36 Date:25/02/08Checksum:2004513207BP ANNUAL REPORT AND ACCOUNTS 200719Natural gas%milli

269、on cubic feet per day-aBP net share of production-Field or AreaInterest200720062005-Lower 48 onshorebSan JuancVarious694765753ArkomacVarious204225198HugotoncVarious123137151TuscaloosacVarious7886111Wamsutterc70.5120113110Jonahc65.017313397OtherVarious458461465-Total Lower 48 onshore1,8501,9201,885-G

270、ulf of Mexico deepwaterbNa Kikac50.05097133Marlinc78.2131652OtherVarious205210235Gulf of Mexico ShelfbOtherVarious166160-Total Gulf of Mexico269389580-AlaskaVariousVarious556781-Total US2,1742,3762,546UK offshorebBraesdVarious69101165Brucec37.072107161West Solec100.0555655Marnockc62.0254247Britannia

271、9.0374246Shearwater27.5193137Armada18.2162830OtherVarious475529549-Total UK7689361,090NetherlandsbP/18-2c48.72325OtherVarious33337NorwayVariousVarious263546-Total Rest of Europe2991108AustraliaVarious15.8376364367CanadabVariouscVarious255282307ChinaYachengc34.38510298EgyptHapyc50.010899106OtherVario

272、us20617283IndonesiaSanga-Sanga(direct)c26.37584110Otherc46.08180128SharjahSajaac40.083111113Other40.099AzerbaijanShah Denizc25.573Trinidad&TobagobKapokc100.09849461,005Mahoganyc100.0454321303Amherstiac100.0155176289Parangc100.0120154Immortellec100.0153219132Cassiac100.0253083Otherc100.066345321Other

273、bVariousVarious466441459-Total Rest of World4,2514,0093,768Total groupe7,2227,4127,512Equity-accounted entities(BP share)Argentina Pan American EnergyVariousVarious379362343Russia TNK-BPbVariousVarious451544482OtherbVariousVarious919987-Total equity-accounted entitiese9211,005912-aProduction exclude

274、s 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 andability to make lifting and sales arrangements independently.bIn 2007,BP divested its producing properties in the Netherlands and some producing p

275、roperties in the US Lower 48 and Canada.TNK-BP disposed of its interests inseveral non-core properties.In 2006,BP divested its producing properties on the Outer Continental Shelf of the Gulf of Mexico and its interest in the Statfjord oil and gasfield in the UK.Our interests in the Boqueron,Desaroll

276、o Zulia Occidental(DZO)and Jusepin projects in Venezuela were reduced following a decision by the Venezuelangovernment.TNK-BP disposed of its non-core interests in the Udmurtneft assets.In 2005,BP divested the Teak,Samaan and Poui assets in Trinidad and sold interests incertain properties in the Gul

277、f of Mexico.In addition,BP exchanged the Gulf of Mexico deepwater Blind Faith prospect for Kerr McGees interest in the Arkoma Red Oakand Williburton fields,and TNK-BP disposed of non-core producing assets in the Saratov region.cBP-operated.dIncludes 4 million cubic feet per day(mmcf/d)of natural gas

278、 received as in-kind tariff payments in 2005.None received in 2006 and 2007.eNatural gas production volumes exclude gas consumed in operations within the lease boundaries of the producing field,but the related reserves are included in the groupsreserves.10Filename:U54368_doc3.3d Time:14:49:36 Date:2

279、5/02/08Checksum:-565023690United States2007 liquids production at 513mb/d decreased 6%from 2006,while natural gas production at 2,174mmcf/d decreased 8%comparedwith 2006.Crude oil production showed a moderate decline of 18mb/d from2006,with production from new projects(Gulf of Mexico)being offset by

280、divestments and natural reservoir decline.The NGLs component ofliquids production decreased by 15mb/d,driven mainly by commercialchanges in NGL processing contracts,natural reservoir decline anddivestments.Gas production was lower(201mmcf/d)because ofdivestments and natural reservoir decline.Develop

281、ment expenditure in the US(excluding midstream)during2007 was$3,861 million,compared with$3,579 million in 2006 and$2,965 million in 2005.The annual increase is the result of variousdevelopment projects in progress.Our activities within the US take place in three main areas.Significantevents during

282、2007 within each of these are indicated below.Deepwater Gulf of MexicoDeepwater Gulf of Mexico is our largest area of growth in the US.In2007,our deepwater Gulf of Mexico liquids production was 196mb/d andgas production was 268mmcf/d.Significant events were:The Atlantis platform(BP 56%and operator)w

283、as successfullycommissioned and started producing oil and gas during the fourthquarter of 2007.Atlantis employs the deepest moored platform of itskind in the world and a separate semi-submersible drilling andconstruction rig.The versatile modular design of the platform providespotential to add wells

284、 to increase recovery.At Thunder Horse(BP 75%and operator),as a result of a metallurgicalfailure during pre-commissioning checks in 2006,the decision wastaken to repair all at-risk subsea components.All relevant componentshave been removed from the sea floor and progress made inreinstalling the repa

285、ired equipment.In 2007,the platforms drilling rigwas commissioned and its first well successfully drilled andcompleted.Thunder Horse is expected to start production by the endof 2008.Designed to process 250,000 barrels of oil per day and 200million cubic feet per day of natural gas,Thunder Horse is

286、expected tobe the largest field in the Gulf of Mexico.The field will be supportedby a network of 25 subsea wells.In November,BP started production from two multi-phase subseapump stations in the King field(BP 100%and operator).At a depth of1,700 metres and 15 miles away from the Marlin platform,this

287、 sets adouble world record for both depth and distance.The two pumps areexpected to enhance production from the King field by an average of20%and to extend the production life of the field by five yearsthrough improved recovery.BP was awarded 88 blocks in the western Gulf of Mexico lease saleand 83

288、blocks in the central Gulf of Mexico lease sale On 6 June 2007,a discovery was made with the Isabela well(BP 67%and operator),located on Mississippi Canyon Block 562 inapproximately 2,000 metres of water about 150 miles south-east ofNew Orleans.During the second quarter,we increased our ownership in

289、 HornMountain to 100%as part of an asset exchange agreement withOccidental Petroleum Corporation(Occidental).In April 2007,BP disposed of its 80%interest in the Entrada field toCallon Petroleum Company for a total price of$190 million.Lower 48 statesIn the Lower 48 states(onshore),our 2007 natural g

290、as production was1,850mmcf/d,which was down 4%compared with 2006.Liquidsproduction was 108mb/d,down 14%compared with 2006.The year-on-year decrease in production is mainly attributed to normal field declineand divestment activity.In 2007,we drilled approximately 400 wells asoperator and continued to

291、 maintain a stable programme of drilling activitythroughout the year.Production is derived primarily from two main areas:In the western basins(Colorado,New Mexico and Wyoming)ourassets produced 222mboe/d in 2007.In the Gulf Coast and mid-continental basins(Kansas,Louisiana,Oklahoma and Texas)our ass

292、ets produced 203mboe/d in 2007.The development of recovery technology continues to be afundamental strategy in accessing our North America tight gasresources.Through the use of horizontal drilling and advanced hydraulicfracturing techniques,we are achieving well rates up to 10 times higherthan more

293、conventional techniques and per-well recoveries some fivetimes higher.Significant events were:In January 2007,we announced our investment of up to$2.4 billionexpected over 13 years in the coalbed methane field developmentproject in the San Juan basin in Colorado.The project includes thedrilling of m

294、ore than 700 wells,nearly all from existing well sites,andthe installation of associated field facilities.Drilling continued during 2007 on the Wamsutter natural gasexpansion project.The multi-year drilling programme is expected toincrease production significantly by the end of 2010.We are currently

295、testing horizontal fracturing technology and carrying out wirelessseismic studies on the reservoir.Significant progress has been made on decommissioning the Gulf ofMexico Shelf hurricane-damaged platforms,which is on track forcompletion in 2010.This work has been carried out almost exclusivelyusing

296、a diverless access approach,significantly reducing exposure tosafety issues associated with diving.Late in 2007,we signed anagreement with Wild Well Control,an affiliate of Superior EnergyServices,to sell seven damaged platforms and 59 associated wellsand consequentially to transfer the decommission

297、ing liability to them.They will assume responsibility for plugging and abandonment of allwells,salvage and removal or reefing of the damaged platforms andrelated facilities,and restoration of all sites.In 2007,BP divested its non-core Permian assets as part of the assetexchange agreement with Occide

298、ntal.In consideration,BP receivedthe remaining one-third interest in the Horn Mountain field in the Gulfof Mexico and approximately$100 million cash.In the third quarter of 2007,we ceased operations at the WhitneyCanyon gas plant located near Evanston,Wyoming.By doing this weexpect to extend the eco

299、nomic life of the field by re-routing thenatural gas processed at the Whitney Canyon gas plant to ChevronsCarter Creek gas plant.BP intends to continue to operate the 28 wellsin the Whitney Canyon field and the inlet facility,as well as the nearbyPainter Complex gas plant.AlaskaIn Alaska,BP net oil

300、production in 2007 was 209mboe/d,a decrease of7%from 2006,due to normal decline in the large mature fields,partiallyoffset by lower downtime.BP operates 13 North Slope oil fields(including Prudhoe Bay,Northstarand Milne Point)and four North Slope pipelines and owns a significantinterest in six other

301、 producing fields.BPs 26.4%interest in Prudhoe Bayalso includes a large undeveloped natural gas resource.Developingviscous oil production and unlocking large undeveloped heavy oilresources through the application of advanced technology are importantparts of the Alaska business strategy.Significant e

302、vents in 2007 were:On 20 June 2007,the Prudhoe Bay field and the Trans Alaska PipelineSystem(TAPS)celebrated the 30th anniversary of first productionfrom the North Slope of Alaska.The original expectations for PrudhoeBay were to drill 500 wells,produce for 20 years and recover 9 billionboe of hydroc

303、arbon resources.After 30 years,more than 2,500 wellshave been drilled,more than 11.5 billion boe have been recovered todate,and the field is expected to continue to produce for another 50years or more.Prudhoe Bay production averaged 400mboe/d(gross)in 2007,with BPs net share being 102mboe/d.Overall,

304、downtimeduring the year was consistent with plans for normal maintenanceactivity and there were no large unplanned production disruptions.20Filename:U54368_doc3.3d Time:14:49:36 Date:25/02/08Checksum:-261122979 In 2007,we spent more than$250 million(BP net)in Alaska on aprogramme to upgrade or repla

305、ce pipelines,increase inspection andcorrosion monitoring,carry out preventative maintenance and repairs,expand capacity,and improve the efficiency of major facilities in allBP-operated fields.We have also made progress on the replacement of sections of oiltransit lines in the Prudhoe Bay field,which

306、 for these transit lines hasincluded adding pipeline pigging facilities to clean and inspectpipelines,direct corrosion inhibitor injection,new leak detection andcorrosion monitoring systems.We aim to complete this activity in2008.On 16 February 2007,BP temporarily shut down its Northstarproduction f

307、acility for 18 days to repair welds in the low pressure gaspiping system.The facility was restarted on 6 March.The full-yearimpact of the production disruption resulting from this shutdown wasmore than offset by the beneficial impacts of an earlier-than-plannedrestart of the Milne Point K Pad pipeli

308、ne replacement and strongreservoir performance throughout 2007 at Prudhoe Bay and Kuparuk.On 25 October 2007,BP Exploration Alaska(BPXA)entered into a pleaagreement with the US Department of Justice(DOJ),which endedboth federal and state government criminal investigations of BPXA onmatters related t

309、o the March and August 2006 oil transit line spills inAlaska.On 29 November 2007,in accordance with the agreement,BPXA pleaded guilty to a misdemeanour violation of the US FederalWater Pollution Control Act.BPXA paid a$12 million(gross)fine andis subject to one-to-three years probation.BPXA also pai

310、d restitutionof$4 million(gross)to the State of Alaska and paid another$4 million(gross)to the National Fish and Wildlife Foundation for Arcticenvironmental research.The DOJ and the State of Alaska have agreednot to bring any further criminal charges against BPXA in connectionwith the March and Augu

311、st 2006 spills.On 2 June 2007,the Alaska Gasline Inducement Act(AGIA)waspassed into law.AGIA sets out the terms and conditions forapplication for the exclusive right to build a natural gas pipeline totransport North Slope gas to market.BP stated publicly that it cannotsubmit a conforming bid under A

312、GIA because of,in its view,unresolved risks and uncertainties related to project costs,fiscal termsand pipeline tariffs.BP continues to develop and assess options forcommercializing the major undeveloped gas resources on AlaskasNorth Slope.On 16 November 2007,the Alaska State Legislature passed a ne

313、wpetroleum production tax law,which replaced the PetroleumProduction Tax legislation enacted in 2006.The new legislationincreases production taxes and is effective retrospectively from 1 July2007.The key terms of the new production tax law include a base oiltax rate of 25%on net profits,with progres

314、sive increases expected inthe oil tax rate as the net margin increases above$30/bbl.The newproduction tax law will be governed by regulations to be defined andpromulgated in 2008 by the Alaska State Department of Revenue.On 26 December 2007,the Alaska Superior Court issued a rulingreversing the 2006

315、 decision by the Department of Natural Resources(DNR)to terminate the Point Thomson Unit and remanded the matterto the DNR to provide the leaseholders their constitutional dueprocess rights,including the right to a hearing.Although the judgesdecision found that the DNRs rejection of the latest plan

316、ofdevelopment(POD)was supported by substantial evidence,the rulingreinstated the leaseholders interests in the Point Thomson leases andunit,and instructed the DNR to consider good and diligent oil andgas.production practices in shaping an appropriate remedy for therejected POD.The DNR is expected to

317、 call a hearing during the firstquarter of 2008.On 3 October 2007,the Endicott field achieved its 20th year ofproduction.Since start-up in 1987,Endicott has produced 500mmboe.During 2007,Endicott commenced a technology trial programme thatis expected to progress BPs LoSal2Enhanced Oil Recovery proce

318、ssfrom technology development to technology deployment.LoSal2is apatented technology that utililizes geochemically specific waters toattack the larger remaining residual oils present after conventionalwaterflooding.To gain partner approval for a full-field deployment,aninterwell programme has been s

319、tarted at Endicott.Results from thisprogramme are expected in the second half of 2008 and are expectedto lead to a full-field project commitment in 2009.The LoSal2technology has implications for many fields beyond BPs Alaskaportfolio and the work at Endicott and in Alaska will be extrapolated toBPs

320、global portfolio.On 3 January 2008,the US Minerals Management Service approvedBPs development and production plan for the Liberty field.During2007,$25 million was spent on pre-project planning for Liberty,including engineering,environmental studies and permit applications.Development plans for Liber

321、ty,which lies offshore to the east of theEndicott field,include ultra-extended reach wells to be drilled frompads at Endicott and processing Liberty oil production through existingEndicott facilities.United KingdomWe are the largest producer of oil,second largest producer of gas andthe largest overa

322、ll producer of hydrocarbons in the UK.In 2007,totalliquids production was 201mb/d,a 20%decrease on 2006,and gasproduction was 768mmcf/d,an 18%decrease on 2006.This decrease inproduction was driven by natural decline and the unplanned shutdown ofthe Central Area Transmission System(CATS)pipeline.Our

323、activities inthe North Sea are focused on safe operations,efficient delivery ofproduction and midstream operations,in-field drilling and selected newfield developments.Our development expenditure(excluding midstream)in the UK was$804 million in 2007,compared with$794 million in 2006and$790 million i

324、n 2005.Significant events in 2007 were:During the second quarter,we announced the decision not to proceedwith the decarbonized fuel DF1 project in Scotland.This project wasbeing led by BP,in partnership with Scottish and Southern Energy,and would have produced hydrogen as a decarbonized fuel for use

325、 inpower generation,with the carbon dioxide(CO2)gases being exportedto the Miller oil reservoir in the North Sea for increased oil recoveryand ultimate storage.Significant investment had been made in front-end engineering and design activity.Development of the project wasoriginally planned to begin

326、at the end of 2006 and required UKgovernment support.In May,the UK government announced that itwould not decide which carbon capture storage project to supportuntil 2008 at the earliest.The timing of this decision did not fit withthe DF1 project timeline,which was constrained by the maturity ofthe M

327、iller oil field,and therefore the decision was taken not toproceed.The Miller field,which began production in 1992,has nowceased production and decommissioning activity is in the planningstage.We sanctioned the Dimlington Onshore Compression and TerminalsIntegration project,a$250-million investment

328、in new gas compressionfacilities at the BP-operated Dimlington Terminal,which receives gasfrom fields in the southern North Sea.This new equipment isexpected to reduce pipeline pressure between the offshore fields andthe terminal,allowing the gas fields to increase production.BPexpects remaining rec

329、overable reserves in the West Sole andAmethyst fields to increase by around 30%as a result of this project.In October,we announced changes to the structure of the North Seaoperations that are intended to simplify the organization and improvethe efficiency of work processes in response to the challen

330、ges of theincreasingly mature North Sea,where declining production and rapidly-rising costs have created business conditions that are not sustainablein the long term.The new structure will mean fewer organizationalunits and reduced management layers.This will allow consolidation ofonshore non-techni

331、cal support activities,leading to economies of scaleand reduced complexity.Rest of EuropeDevelopment expenditure(excluding midstream)in the Rest of Europewas$443 million,compared with$214 million in 2006 and$188 millionin 2005.BP ANNUAL REPORT AND ACCOUNTS 200721Filename:U54368_doc3.3d Time:14:49:36

332、 Date:25/02/08Checksum:-1921506806NorwayIn 2007,our total production in Norway was 56mboe/d,a 15%decreaseon 2006.This decrease in production was driven by natural decline.Significant activities were:Progress on the Valhall(BP 28.1%and operator)redevelopmentproject continued during 2007.A new platfor

333、m is scheduled tobecome operational in 2010,with expected oil production capacity of150mb/d and gas handling capacity of 175mmcf/d.In June,we announced the sanction of the combined Skarv and Idundevelopment.This development is located in the Norwegian Seaapproximately 200 kilometres west of Sandnessjen.The fields will bedeveloped using a Floating Production Storage and Offloading vessel(FPSO),subs