XML 132 R44.htm IDEA: XBRL DOCUMENT v3.21.2
Supplementary oil and gas information
 12 Months Ended
Jun. 30, 2021
Subclassifications of assets, liabilities and equities [abstract]  
Supplementary oil and gas information
3.7     Supplementary oil and gas information – unaudited
In accordance with the requirements of the Financial Accounting Standards Board (FASB) Accounting Standard Codification ‘Extractive
Activities-Oil
and Gas’ (Topic 932) and SEC requirements set out in Subpart 1200 of Regulation
S-K,
the Group is presenting certain disclosures about its oil and gas activities. These disclosures are presented below as supplementary oil and gas information, in addition to information disclosed in section 1.17.1 ‘Petroleum’ and section 4.6.1 ‘Petroleum reserves’.
The information set out in this section is referred to as unaudited as it is not included in the scope of the audit opinion of the independent auditor on the Financial Statements, refer to section 3.6 ‘Independent Auditors’ reports’.
Reserves and production
Proved oil and gas reserves and net crude oil and condensate, natural gas, LNG and NGL production information is included in section 4.5.2 ‘Production – Petroleum’ and section 4.6.1 ‘Petroleum reserves’.
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
    
Other
(1)
    
Total
  
    
US$M
    
US$M
    
US$M
    
US$M
  
Capitalised cost
                                 
2021
                                 
Unproved propertie
s
     
–
 
 
 
754
 
 
 
580
 
 
 
1,334
 
Proved properties
     
17,882
 
 
 
13,210
 
 
 
1,972
 
 
 
33,064
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total costs
     
17,882
 
 
 
13,964
 
 
 
2,552
 
 
 
34,398
 
Less: Accumulated depreciation, depletion, amortisation and valuation provisions
     
(12,720
) 
 
 
(8,329
) 
 
 
(1,483
) 
 
 
(22,532
) 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net capitalised cost
s
   
 
5,162
 
  
 
5,635
 
  
 
1,069
 
  
 
11,866
 
    
 
 
    
 
 
    
 
 
    
 
 
  
2020
                                 
Unproved properties
      10       808       576       1,394  
Proved properties
      17,079       12,538       1,743       31,360  
    
 
 
    
 
 
    
 
 
    
 
 
  
Total costs
      17,089       13,346       2,319       32,754  
Less: Accumulated depreciation, depletion, amortisation and valuation provisions
      (11,423 )      (8,726 )      (1,370 )      (21,519 ) 
    
 
 
    
 
 
    
 
 
    
 
 
  
Net capitalised costs
      5,666       4,620       949       11,235  
    
 
 
    
 
 
    
 
 
    
 
 
  
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  
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
 
Other is primarily comprised of Algeria, Mexico, and Trinidad and Tobago.
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
  
2021
                                    
Acquisitions of proved property
   
 
–
 
   
 
642
 
   
 
–
 
   
 
642
 
Acquisitions of unproved property
   
 
–
 
   
 
19
 
   
 
–
 
   
 
19
 
Exploration
(1)
   
 
23
 
   
 
166
 
   
 
310
 
   
 
499
 
Development
   
 
201
 
   
 
749
 
   
 
184
 
   
 
1,134
 
    
 
 
     
 
 
     
 
 
     
 
 
  
Total costs
(2)
   
 
224
 
   
 
1,576
 
   
 
494
 
   
 
2,294
 
    
 
 
     
 
 
     
 
 
     
 
 
  
2020
                                    
Acquisitions of proved property
      –        –        –        –  
Acquisitions of unproved property
      –        38        6        44  
Exploration
(1)
      38        278        370        686  
Development
      232        676        100        1,008  
    
 
 
     
 
 
     
 
 
     
 
 
  
Total costs
(2)
      270        992        476        1,738  
    
 
 
     
 
 
     
 
 
     
 
 
  
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  
    
 
 
     
 
 
     
 
 
     
 
 
  
 
(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$1,160 million (2020: US$1,178 million; 2019: US$1,275 million) capitalised during the year.
 
(3)
 
Total costs include Onshore US assets of US$ nil (2020: US$ nil; 2019: US$331 million).
 
(4)
 
Other is primarily comprised of Algeria, Canada, Mexico and Trinidad and Tobago.
Results of operations from oil and gas producing activities
The following information is similar to the disclosures in note 1 ‘Segment reporting’ in section 3.1, 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 3.1 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
  
2021
                                 
Oil and gas revenue
(1)
   
 
2,272
 
 
 
1,244
 
 
 
368
 
 
 
3,884
 
Production costs
   
 
(487
) 
 
 
(267
) 
 
 
(93
) 
 
 
(847
) 
Exploration expenses
   
 
(23
) 
 
 
(164
) 
 
 
(305
) 
 
 
(492
) 
Depreciation, depletion, amortisation and valuation provision
(2)
   
 
(1,210
) 
 
 
(489
) 
 
 
(113
) 
 
 
(1,812
) 
Production taxes
(3)
   
 
(125
) 
 
 
–
 
 
 
(11
) 
 
 
(136
) 
    
 
 
    
 
 
    
 
 
    
 
 
  
       427       324       (154 )      597  
Accretion expense
(4)
      (89 )      (22 )      (7 )      (118 ) 
Income taxes
      (46 )      (78 )      (115 )      (239 ) 
Royalty-related taxes
(5)
      11       –       –       11  
    
 
 
    
 
 
    
 
 
    
 
 
  
Results of oil and gas producing activities
(6)
   
 
303
 
  
 
224
 
  
 
(276
) 
  
 
251
 
    
 
 
    
 
 
    
 
 
    
 
 
  
2020
                                 
Oil and gas revenue
(1)
      2,535       1,101       350       3,986  
Production costs
      (575 )      (161 )      (80 )      (816 ) 
Exploration expenses
      (37 )      (271 )      (252 )      (560 ) 
Depreciation, depletion, amortisation and valuation provision
(2)
      (906 )      (476 )      (75 )      (1,457 ) 
Production taxes
(3)
      (177 )      (1 )      (13 )      (191 ) 
    
 
 
    
 
 
    
 
 
    
 
 
  
       840       192       (70 )      962  
Accretion expense
(4)
      (78 )      (24 )      (10 )      (112 ) 
Income taxes
      (275 )      (35 )      (157 )      (467 ) 
Royalty-related taxes
(5)
      (85 )      –       –       (85 ) 
    
 
 
    
 
 
    
 
 
    
 
 
  
Results of oil and gas producing activities
(6)
      402       133       (237 )      298  
    
 
 
    
 
 
    
 
 
    
 
 
  
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  
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
 
Includes sales to affiliated companies of US$51 million (2020: US$62 million; 2019: US$75 million).
 
(2)
 
Includes valuation provision of US$101 million (2020: US$12 million; 2019: US$21 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 3.1.
 
(7)
 
Results of oil and gas producing activities includes Onshore US assets of US$ nil (2020: US$ nil; 2019: US$431 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 4.6.1 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
    
Other
(1)
    
Total
  
    
US$M
    
US$M
    
US$M
    
US$M
  
Standardised measure
                                 
2021
                                 
Future cash inflows
   
 
8,948
 
  
 
13,437
 
  
 
1,561
 
  
 
23,946
 
Future production costs
   
 
(3,783
) 
  
 
(5,122
) 
  
 
(418
) 
  
 
(9,323
) 
Future development costs
   
 
(4,118
) 
  
 
(2,996
) 
  
 
(261
) 
  
 
(7,375
) 
Future income taxes
(2)
   
 
706
 
  
 
(944
) 
  
 
(438
) 
  
 
(676
) 
    
 
 
    
 
 
    
 
 
    
 
 
  
Future net cash flows
   
 
1,753
 
  
 
4,375
 
  
 
444
 
  
 
6,572
 
Discount at 10 per cent per annum
   
 
(160
) 
  
 
(1,468
) 
  
 
(93
) 
  
 
(1,721
) 
    
 
 
    
 
 
    
 
 
    
 
 
  
Standardised measure
   
 
1,593
 
  
 
2,907
 
  
 
351
 
  
 
4,851
 
    
 
 
    
 
 
    
 
 
    
 
 
  
2020
                                 
Future cash inflows
      11,526       12,997       1,660       26,183  
Future production costs
      (4,027 )      (4,943 )      (494 )      (9,464 ) 
Future development costs
      (4,124 )      (3,242 )      (433 )      (7,799 ) 
Future income taxes
(2)
      (187 )      (880 )      (473 )      (1,540 ) 
    
 
 
    
 
 
    
 
 
    
 
 
  
Future net cash flows
      3,188       3,932       260       7,380  
Discount at 10 per cent per annum
      (642 )      (1,586 )      (94 )      (2,322 ) 
    
 
 
    
 
 
    
 
 
    
 
 
  
Standardised measure
      2,546       2,346       166       5,058  
    
 
 
    
 
 
    
 
 
    
 
 
  
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)
      (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  
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
 
Other is primarily comprised of Algeria and Trinidad and Tobago.
 
(2)
 
Future income taxes include credits to be received as a result of oil and gas operations and the utilisation of future tax losses by the Group.
Changes in the Standardised measure are presented in the following table.
 
    
2021
     2020     2019  
    
US$M
     US$M     US$M  
Changes in the Standardised measure
                         
Standardised measure at the beginning of the year
   
 
5,058
 
     9,152       10,240  
Revisions:
                         
Prices, net of production costs
   
 
(175
) 
     (5,633 )      3,821  
Changes in future development costs
   
 
(238
) 
     330       (228 ) 
Revisions of reserves quantity estimates
(1)
   
 
(107
) 
     (229 )      1,268  
Accretion of discount
   
 
678
 
     1,313       1,178  
Changes in production timing and other
   
 
360
 
     (310 )      (618 ) 
    
 
5,576
 
     4,623       15,661  
    
 
 
    
 
 
    
 
 
  
Sales of oil and gas, net of production costs
   
 
(2,901
) 
     (2,980 )      (5,029 ) 
    
 
 
    
 
 
    
 
 
  
Acquisitions of
reserves-in-place
   
 
462
 
     –       –  
Sales of
reserves-in-place
(2)
   
 
44
 
     –       (1,489 ) 
Previously estimated development costs incurred
   
 
1,075
 
     1,005       545  
Extensions, discoveries, and improved recoveries, net of future costs
   
 
17
 
     145       (33 ) 
Changes in future income taxes
   
 
578
 
     2,265       (503 ) 
    
 
 
    
 
 
    
 
 
  
Standardised measure at the end of the year
   
 
4,851
 
     5,058       9,152  
    
 
 
    
 
 
    
 
 
  
 
(1)
 
Changes in reserves quantities are shown in the Petroleum reserves tables in section 4.6.1.
 
(2)
 
Onshore US assets disposal in 2019.
 
Accounting for suspended exploratory well costs
Refer to note 11 ‘Property, plant and equipment’ in section 3.1 for a discussion of the accounting policy applied to the cost of exploratory wells. Suspended wells are also reviewed in this context.
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 2021, 30 June 2020 and 30 June 2019.
 
    
2021
     2020     2019  
    
US$M
     US$M     US$M  
Movement in capitalised exploratory well costs
                         
At the beginning of the year
   
 
1,089
 
     1,040       794  
Additions to capitalised exploratory well costs pending the determination of proved reserves
   
 
7
 
     120       297  
Capitalised exploratory well costs charged to expense
   
 
(66
) 
     –       (9 ) 
Capitalised exploratory well costs reclassified to wells, equipment, and facilities based on the determination of proved reserves
   
 
–
 
     (6 )      (42 ) 
Sale of suspended wells
   
 
–
 
     (65 )      –  
    
 
 
    
 
 
    
 
 
  
At the end of the year
   
 
1,030
 
     1,089       1,040  
    
 
 
    
 
 
    
 
 
  
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.
 
    
2021
      2020      2019  
    
US$M
      US$M      US$M  
Ageing of capitalised exploratory well costs
                           
Exploratory well costs capitalised for a period of one year or less
   
 
7
 
      120        210  
Exploratory well costs capitalised for a period greater than one year
   
 
1,023
 
      969        830  
    
 
 
     
 
 
     
 
 
  
At the end of the year
   
 
1,030
 
      1,089        1,040  
    
 
 
     
 
 
     
 
 
  
       
    
2021
      2020      2019  
Number of projects that have been capitalised for a period greater than one year
   
 
15
 
      14        13  
    
 
 
     
 
 
     
 
 
  
Drilling and other exploratory and development activities
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 2021
                                                               
Australia
   
 
–
 
   
 
–
 
   
 
–
 
   
 
1
 
   
 
–
 
   
 
1
 
   
 
1
 
United States
 (1)
   
 
–
 
   
 
–
 
   
 
–
 
   
 
1
 
   
 
–
 
   
 
1
 
   
 
1
 
Other
 (2)
   
 
–
 
   
 
1
 
   
 
1
 
   
 
1
 
   
 
–
 
   
 
1
 
   
 
2
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
   
 
–
 
   
 
1
 
   
 
1
 
   
 
3
 
   
 
–
 
   
 
3
 
   
 
4
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Year ended 30 June 2020
                                                               
Australia
      –        –        –        –        –        –        –  
United States
 (1)
      –        –        –        –        1        1        1  
Other
 (2)
      1        1        2        1        –        1        3  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
      1        1        2        1        1        2        4  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
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  
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
(1)
 
Includes Onshore US assets net productive development wells of nil (2020: nil; 2019: 33). Includes Onshore US assets net exploratory wells of nil for 2021, 2020 and 2019.
 
(2)
 
Other is primarily comprised of Algeria, Mexico and Trinidad and Tobago.
The number of wells drilled refers to the number of wells completed at any time during the respective year, regardless of when drilling was initiated. Completion refers to the installation of permanent equipment for production of oil or gas, or, in the case of a dry well, to reporting to the appropriate authority that the well has been abandoned.
An exploratory well is a well drilled to find oil or gas in a new field or to find a new reservoir in a field previously found to be productive of oil or gas in another reservoir. A development well is a well drilled within the limits of a known oil or gas reservoir to the depth of a stratigraphic horizon known to be productive.
A productive well is an exploratory, development or extension well that is not a dry well. Productive wells include wells in which hydrocarbons were encountered and the drilling or completion of which, in the case of exploratory wells, has been suspended pending further drilling or evaluation. A dry well (hole) is an exploratory, development, or extension well that proves to be incapable of producing either oil or gas in sufficient quantities to justify completion as an oil or gas well.
Oil and gas properties, wells, operations, and acreage
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 2021. 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 2021 was as follows:
 
    
Crude oil wells
     
Natural gas wells
     
Total
  
    
Gross
     
Net
     
Gross
     
Net
     
Gross
     
Net
  
Australia
  
 
334
 
  
 
166
 
  
 
176
 
  
 
66
 
  
 
510
 
  
 
232
 
United States
  
 
55
 
  
 
27
 
  
 
–
 
  
 
–
 
  
 
55
 
  
 
27
 
Other
 (1)
  
 
61
 
  
 
23
 
  
 
8
 
  
 
4
 
  
 
69
 
  
 
27
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
Total
   
 
450
 
   
 
216
 
   
 
184
 
   
 
70
 
   
 
634
 
   
 
286
 
    
 
 
     
 
 
     
 
 
     
 
 
     
 
 
     
 
 
  
 
(1)
 
Other is primarily comprised of Algeria and Trinidad and Tobago.
Of the productive crude oil and natural gas wells, 131 (net: 60) operated wells had multiple completions.
Developed and undeveloped acreage (including both leases and concessions) held at 30 June 2021 was as follows:
 
    
Developed acreage
     
Undeveloped acreage
  
Thousands of acres
   
Gross
     
Net
     
Gross
     
Net
  
Australia
   
 
2,423
 
  
 
897
 
  
 
391
 
  
 
148
 
United States
   
 
92
 
  
 
41
 
  
 
403
 
  
 
339
 
Other
 (1)(2)
   
 
160
 
  
 
67
 
  
 
3,394
 
  
 
3,104
 
    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total
   
 
2,675
 
  
 
1,005
 
  
 
4,188
 
  
 
3,591
 
    
 
 
     
 
 
     
 
 
     
 
 
  
 
(1
)
 
Developed acreage in Other primarily consists of Algeria and Trinidad and Tobago.
 
(2)
 
Undeveloped acreage in Other primarily consists of Barbados, Canada, Mexico and Trinidad and Tobago.
Approximately 139 thousand gross acres (22 thousand net acres), 386 thousand gross acres (241 thousand net acres) and 121 thousand gross acres (103 thousand net acres) of undeveloped acreage will expire in the years ending 30 June 2022, 2023 and 2024 respectively, if the Group does not establish production or take any other action to extend the terms of the licences and concessions.