Supplementary oil and gas information (Tables)

12 Months Ended

Jun. 30, 2019

Subclassifications of assets, liabilities and equities [abstract]

Capitalised costs relating to oil and gas production activities

Capitalised costs relating to oil and gas production activities

The following table shows the aggregate capitalised costs relating to oil and gas exploration and production activities and related accumulated depreciation, depletion, amortisation and valuation provisions.


	Australia			United States⁽¹⁾			Other⁽²⁾			Total
	US$M			US$M			US$M			US$M
Capitalised cost
2019
Unproved properties		10			875			458			1,343
Proved properties		16,514			11,751			1,625			29,890

Total costs		16,524			12,626			2,083			31,233
Less: Accumulated depreciation, depletion, amortisation and valuation provisions		(10,867	)		(8,339	)		(1,302	)		(20,508	)

Net capitalised costs		5,657			4,287			781			10,725

2018
Unproved properties		10			4,528			202			4,740
Proved properties		16,258			43,885			2,424			62,567

Total costs		16,268			48,413			2,626			67,307
Less: Accumulated depreciation, depletion, amortisation and valuation provisions		(9,984	)		(33,437	)		(2,065	)		(45,486	)

Net capitalised costs		6,284			14,976			561			21,821

2017
Unproved properties		94			5,284			165			5,543
Proved properties		16,190			41,837			2,404			60,431

Total costs		16,284			47,121			2,569			65,974
Less: Accumulated depreciation, depletion, amortisation and valuation provisions		(9,085	)		(30,969	)		(1,984	)		(42,038	)

Net capitalised costs		7,199			16,152			585			23,936

⁽¹⁾	Net capitalised costs includes Onshore US assets of US$ nil (2018: US$10,672 million; 2017: US$11,803 million).

⁽²⁾	Other is primarily comprised of Algeria, Mexico, Trinidad and Tobago and the United Kingdom (divested 30 November 2018).

Costs incurred relating to oil and gas property acquisition, exploration and development activities

Costs incurred relating to oil and gas property acquisition, exploration and development activities

The following table shows costs incurred relating to oil and gas property acquisition, exploration and development activities (whether charged to expense or capitalised). Amounts shown include interest capitalised.


	Australia		United States⁽³⁾		Other⁽⁴⁾		Total
	US$M		US$M		US$M		US$M
2019
Acquisitions of proved property		–		–		–		–
Acquisitions of unproved property		–		5		–		5
Exploration ⁽¹⁾		44		190		492		726
Development		132		792		54		978

Total costs ⁽²⁾		176		987		546		1,709

2018
Acquisitions of proved property		–		–		–		–
Acquisitions of unproved property		–		9		–		9
Exploration ⁽¹⁾		25		418		291		734
Development		195		1,548		34		1,777

Total costs ⁽²⁾		220		1,975		325		2,520

2017
Acquisitions of proved property		–		–		–		–
Acquisitions of unproved property		–		12		62		74
Exploration ⁽¹⁾		32		471		235		738
Development		360		1,034		18		1,412

Total costs ⁽²⁾		392		1,517		315		2,224

⁽¹⁾	Represents gross exploration expenditure, including capitalised exploration expenditure, geological and geophysical expenditure and development evaluation costs charged to income as incurred.

⁽²⁾	Total costs include US$1,275 million (2018: US$1,970 million; 2017: US$1,744 million) capitalised during the year.

⁽³⁾	Total costs include Onshore US assets of US$331 million (2018: US$1,081 million; 2017: US$608 million).

⁽⁴⁾	Other is primarily comprised of Algeria, Canada, Mexico and Trinidad and Tobago.

Results of operations from oil and gas producing activities

Results of operations from oil and gas producing activities

The following information is similar to the disclosures in note 1 ‘Segment reporting’ in section 5.1, but differs in several respects as to the level of detail and geographic information. Amounts shown in the following table exclude financial income, financial expenses, and general corporate overheads. Further, the amounts shown below include Onshore US however the disclosures in note 1 ‘Segment reporting’ in Section 5.1 do not.

Income taxes were determined by applying the applicable statutory rates to pre-tax income with adjustments for permanent differences and tax credits.


	Australia			United States⁽⁷⁾			Other⁽⁸⁾			Total
	US$M			US$M			US$M			US$M
2019
Oil and gas revenue⁽¹⁾		3,404			2,675			610			6,689
Production costs		(752	)		(568	)		(118	)		(1,438	)
Exploration expenses		(44	)		(162	)		(229	)		(435	)
Depreciation, depletion, amortisation and valuation provision⁽²⁾		(917	)		(621	)		(103	)		(1,641	)
Production taxes⁽³⁾		(198	)		–			(25	)		(223	)

		1,493			1,324			135			2,952
Accretion expense⁽⁴⁾		(80	)		(34	)		(13	)		(127	)
Income taxes		(530	)		(193	)		(267	)		(990	)
Royalty-related taxes⁽⁵⁾		(164	)		–			–			(164	)

Results of oil and gas producing activities⁽⁶⁾		719			1,097			(145	)		1,671

2018
Oil and gas revenue⁽¹⁾		3,229			3,747			421			7,397
Production costs		(701	)		(1,312	)		(121	)		(2,134	)
Exploration expenses		(25	)		(270	)		(254	)		(549	)
Depreciation, depletion, amortisation and valuation provision⁽²⁾		(1,045	)		(2,842	)		(81	)		(3,968	)
Production taxes⁽³⁾		(171	)		–			(1	)		(172	)

		1,287			(677	)		(36	)		574
Accretion expense⁽⁴⁾		(81	)		(46	)		(14	)		(141	)
Income taxes		(418	)		(723	)		(124	)		(1,265	)
Royalty-related taxes⁽⁵⁾		(103	)		–			–			(103	)

Results of oil and gas producing activities⁽⁶⁾		685			(1,446	)		(174	)		(935	)

2017
Oil and gas revenue⁽¹⁾		2,876			3,479			356			6,711
Production costs		(533	)		(1,515	)		(200	)		(2,248	)
Exploration expenses		(32	)		(242	)		(206	)		(480	)
Depreciation, depletion, amortisation and valuation provision⁽²⁾		(814	)		(2,592	)		(91	)		(3,497	)
Production taxes⁽³⁾		(158	)		(4	)		–			(162	)

		1,339			(874	)		(141	)		324
Accretion expense⁽⁴⁾		(56	)		(32	)		(14	)		(102	)
Income taxes		(361	)		386			(142	)		(117	)
Royalty-related taxes⁽⁵⁾		(104	)		–			–			(104	)

Results of oil and gas producing activities⁽⁶⁾		818			(520	)		(297	)		1

⁽¹⁾	Includes sales to affiliated companies of US$75 million (2018: US$75 million; 2017: US$83 million).

⁽²⁾	Includes valuation provision of US$21 million (2018: US$596 million; 2017: US$102 million).

⁽³⁾	Includes royalties and excise duty.

⁽⁴⁾	Represents the unwinding of the discount on the closure and rehabilitation provision.

⁽⁵⁾	Includes petroleum resource rent tax and petroleum revenue tax where applicable.

⁽⁶⁾	Amounts shown exclude financial income, financial expenses and general corporate overheads and, accordingly, do not represent all of the operations attributable to the Petroleum segment presented in note 1 ‘Segment reporting’ in section 5.1.

⁽⁷⁾	Results of oil and gas producing activities includes Onshore US assets of US$431 million (2018: US$(465) million; 2017: US$(564) million).

⁽⁸⁾	Other is primarily comprised of Algeria, Canada, Mexico, Trinidad and Tobago and the United Kingdom (divested 30 November 2018).

Standardised measure of discounted future net cash flows relating to proved oil and gas reserves (standardised measure)

The following tables set out the standardised measure of discounted future net cash flows, and changes therein, related to the Group’s estimated proved reserves as presented in section 6.3.1 ‘Petroleum reserves’, and should be read in conjunction with that disclosure.

The analysis is prepared in compliance with FASB Oil and Gas Disclosure requirements, applying certain prescribed assumptions under Topic 932 including the use of, unweighted average first-day-of-the-month market prices for the previous 12-months,year-end cost factors, currently enacted tax rates and an annual discount factor of 10 per cent to year end quantities of net proved reserves.

Certain key assumptions prescribed under Topic 932 are arbitrary in nature and may not prove to be accurate. The reserve estimates on which the Standard measure is based are subject to revision as further technical information becomes available or economic conditions change.

Discounted future net cash flows like those shown below are not intended to represent estimates of fair value. An estimate of fair value would also take into account, among other things, the expected recovery of reserves in excess of proved reserves, anticipated future changes in commodity prices, exchange rates, development and production costs as well as alternative discount factors representing the time value of money and adjustments for risk inherent in producing oil and gas.


	Australia			United States⁽¹⁾			Other⁽²⁾			Total
	US$M			US$M			US$M			US$M
Standardised measure
2019
Future cash inflows		18,292			18,076			1,807			38,175
Future production costs		(4,710	)		(4,917	)		(459	)		(10,086	)
Future development costs		(3,860	)		(4,516	)		(226	)		(8,602	)
Future income taxes		(2,551	)		(1,657	)		(711	)		(4,919	)

Future net cash flows		7,171			6,986			411			14,568
Discount at 10 per cent per annum		(1,926	)		(3,396	)		(94	)		(5,416	)

Standardised measure		5,245			3,590			317			9,152

2018
Future cash inflows		17,398			28,012			2,124			47,534
Future production costs		(5,345	)		(11,182	)		(501	)		(17,028	)
Future development costs		(3,842	)		(6,554	)		(189	)		(10,585	)
Future income taxes		(1,919	)		(1,236	)		(901	)		(4,056	)

Future net cash flows		6,292			9,040			533			15,865
Discount at 10 per cent per annum		(1,713	)		(3,783	)		(129	)		(5,625	)

Standardised measure		4,579			5,257			404			10,240

2017
Future cash inflows		18,407			23,537			1,954			43,898
Future production costs		(6,663	)		(11,176	)		(534	)		(18,373	)
Future development costs		(3,714	)		(6,451	)		(208	)		(10,373	)
Future income taxes		(1,508	)		(18	)		(746	)		(2,272	)

Future net cash flows		6,522			5,892			466			12,880
Discount at 10 per cent per annum		(2,104	)		(2,426	)		(108	)		(4,638	)

Standardised measure		4,418			3,466			358			8,242

⁽¹⁾	Standardised measure includes Onshore US assets of US$ nil (2018: US$1,932 million; 2017: US$1,962 million).

⁽²⁾	Other is primarily comprised of Algeria and Trinidad and Tobago.

Changes in the Standardised measure

Changes in the Standardised measure are presented in the following table.


	2019			2018			2017
	US$M			US$M			US$M
Changes in the Standardised measure
Standardised measure at the beginning of the year		10,240			8,242			8,987
Revisions:
Prices, net of production costs		3,821			5,540			(96	)
Changes in future development costs		(228	)		(358	)		275
Revisions of reserves quantity estimates⁽¹⁾		1,268			(166	)		2,961
Accretion of discount		1,178			1,016			1,147
Changes in production timing and other		(618	)		946			(1,611	)

		15,661			15,220			11,663
Sales of oil and gas, net of production costs		(5,029	)		(5,091	)		(4,301	)
Acquisitions of reserves-in-place		–			–			–
Sales of reserves-in-place ⁽²⁾		(1,489	)		(26	)		(15	)
Previously estimated development costs incurred		545			1,068			718
Extensions, discoveries, and improved recoveries, net of future costs		(33	)		502			(401	)
Changes in future income taxes		(503	)		(1,433	)		578

Standardised measure at the end of the year⁽³⁾		9,152			10,240			8,242

⁽¹⁾	Changes in reserves quantities are shown in the Petroleum reserves tables in section 6.3.1.

⁽²⁾	Onshore US assets disposal.

⁽³⁾	Standardised measure at the end of the year includes Onshore US assets of US$ nil (2018: US$1,932 million; 2017: US$1,962 million).

Capitalised exploratory well costs

The following table provides the changes to capitalised exploratory well costs that were pending the determination of proved reserves for the three years ended 30 June 2019, 30 June 2018 and 30 June 2017.


	2019			2018			2017
	US$M			US$M			US$M
Movement in capitalised exploratory well costs
At the beginning of the year		794			668			770
Additions to capitalised exploratory well costs pending the determination of proved reserves		297			186			258
Capitalised exploratory well costs charged to expense		(9	)		(62	)		(69	)
Capitalised exploratory well costs reclassified to wells, equipment, and facilities based on the determination of proved reserves		(42	)		2			(155	)
Other		–			–			(136	)

At the end of the year		1,040			794			668

Ageing of capitalised exploratory well costs

The following table provides an ageing of capitalised exploratory well costs, based on the date the drilling was completed, and the number of projects for which exploratory well costs has been capitalised for a period greater than one year since the completion of drilling.

Exploration activity typically involves drilling multiple wells, over a number of years, to fully evaluate and appraise a project. The term “project” as used in this disclosure refers primarily to individual wells and associated exploratory activities.


	2019		2018		2017
	US$M		US$M		US$M
Ageing of capitalised exploratory well costs
Exploratory well costs capitalised for a period of one year or less		210		124		120
Exploratory well costs capitalised for a period greater than one year		830		670		548

At the end of the year		1,040		794		668


	2019		2018		2017
Number of projects that have been capitalised for a period greater than one year		13		17		14

Number of crude oil and natural gas wells drilled and completed

The number of crude oil and natural gas wells drilled and completed for each of the last three years was as follows:


	Net exploratory wells						Net development wells
	Productive		Dry		Total		Productive		Dry		Total		Total
Year ended 30 June 2019
Australia		–		–		–		1		–		1		1
United States ⁽¹⁾		1		–		1		33		–		33		34
Other ⁽²⁾		4		2		6		–		–		–		6

Total		5		2		7		34		–		34		41

Year ended 30 June 2018
Australia		–		–		–		1		–		1		1
United States ⁽¹⁾		1		1		2		84		1		85		87
Other ⁽²⁾		–		–		–		–		–		–		–

Total		1		1		2		85		1		86		88

Year ended 30 June 2017
Australia		–		–		–		–		–		–		–
United States ⁽¹⁾		–		–		–		80		–		80		80
Other ⁽²⁾		3		2		5		1		–		1		6

Total		3		2		5		81		–		81		86

⁽¹⁾	Includes Onshore US assets net productive development wells of 33 (2018: 84; 2017: 79) and net dry development wells of nil (2018: 1; 2017: nil). Onshore US assets had nil net exploratory wells in 2019, 2018 and 2017.

⁽²⁾	Other is primarily comprised of Algeria, Mexico and Trinidad and Tobago.

Number of productive crude oil and natural gas wells in which we held an interest

The following tables show the number of gross and net productive crude oil and natural gas wells and total gross and net developed and undeveloped oil and natural gas acreage as at 30 June 2019. A gross well or acre is one in which a working interest is owned, while a net well or acre exists when the sum of fractional working interests owned in gross wells or acres equals one. Productive wells are producing wells and wells mechanically capable of production. Developed acreage is comprised of leased acres that are within an area by or assignable to a productive well. Undeveloped acreage is comprised of leased acres on which wells have not been drilled or completed to a point that would permit the production of economic quantities of oil and gas, regardless of whether such acres contain proved reserves.

The number of productive crude oil and natural gas wells in which the Group held an interest at 30 June 2019 was as follows:


	Crude oil wells				Natural gas wells				Total
	Gross		Net		Gross		Net		Gross		Net
Australia		352		176		153		53		505		229
United States		60		25		–		–		60		25
Other⁽¹⁾		57		21		8		4		65		25

Total		469		222		161		57		630		279

⁽¹⁾	Other is primarily comprised of Algeria, Mexico and Trinidad and Tobago.

Developed and undeveloped acreage (including both leases and concessions) held

Developed and undeveloped acreage (including both leases and concessions) held at 30 June 2019 was as follows:


	Developed acreage				Undeveloped acreage
Thousands of acres	Gross		Net		Gross		Net
Australia		2,152		823		963		393
United States		105		39		828		776
Other ⁽¹⁾⁽²⁾		146		57		3,526		2,869

Total		2,403		919		5,317		4,038

⁽¹⁾	Developed acreage in Other primarily consists of Algeria and Trinidad and Tobago.

⁽²⁾	Undeveloped acreage in Other primarily consists of Canada, Mexico and Trinidad and Tobago.