BP plc

euro adhoc: BP PLC

---------------------------------------------------------------------   Disclosure announcement transmitted by euro adhoc.   The issuer is responsible for the content of this announcement. ---------------------------------------------------------------------

June 29, 2004


BP's 2003 Form 20-F, filed with the US Securities and Exchange Commission (SEC) in Washington, D.C. late yesterday, shows total proved reserves reported under SEC requirements are 23 million barrels more than those presented in its 2003 Annual Report and Accounts to Shareholders issued in March.

BP's 2003 Form 20-F - which reconciles its financial accounts, published under UK Generally Accepted Accounting Practice (GAAP), with US Generally Accepted Accounting Principles - reports proved reserves of 18.361 billion barrels of oil equivalent, compared with 18.338 billion barrels in its 2003 Annual Report and Accounts.

BP said that it considers the 23 million barrel difference, which represents some 0.1 per cent of its total proved reserve base, including equity accounted entities, to be immaterial.

As a UK-registered company reporting under UK GAAP, BP determines its proved reserves under the UK Statement of Recommended Practice, Accounting for Oil and Gas Exploration, Development, Production and Decommissioning Activities (SORP).  In estimating reserves, it uses long-term planning prices to determine the commercial viability of upstream resources. For 2003 these prices were $16 a barrel for oil and $2.70 per thousand cubic feet for natural gas.

In contrast, SEC guidelines require the use of year-end market prices which, as of December 31, 2003, were $30.10 a barrel for Brent crude and $5.76 per thousand cubic feet for Henry Hub gas.

Using year-end prices and assuming they apply to the end-of-field life has the effect of increasing the volumes of oil and gas likely to be recovered economically from reservoirs, thus adding to proved reserves. On the other hand, using year-end prices has the effect of decreasing reserves in the case of production-sharing agreements (PSAs) where a higher oil price results in lower volume entitlement.

BP said that use of year-end pricing and some changes in the way it applies SEC interpretations of SEC regulations relating to field fuel gas and the use of technology in determining reserves, while giving rise to larger variations on a regional basis in its proved reserves, accounted for the upward difference of only 23 million barrels on an aggregate basis between its 20-F and UK SORP estimates.

The company believes that its long-term planning price assumptions provide the most appropriate basis for estimating oil and gas reserves and will continue to use this basis for its UK reporting.

The company said it had received comments from the SEC on its 20-F Filing for 2002 and that the SEC review process was still ongoing.

A table setting out BP's 2003 Form 20-F estimated reserves on a regional basis, with comparable estimates under UK SORP, are included with this release as Notes to Editors. Copies of the BP 2003 Form 20-F and the BP 2003 Annual Report and Accounts (ARA) are available at www.bp.com/20F and www.bp.com/ara2003 respectively.

Notes to editors:

· The figures below are total proved reserves for crude oil plus natural gas, for subsidiaries plus equity-accounted entities, in millions of barrels of oil equivalent (mmboe):

BP proved            Proved reserves          Difference/      Difference as
reserves in         reported in 2003         mmboe            % of total
2003 ARA/mmboe    Form 20-F/mmboe           proved reserves

UK            1,496         1,647                        151                0.8%
Rest of
Europe         564            625                         61                0.3%
USA          5,624         5,956                        332                1.8%
Rest of
Americas  4,330         4,225                      (105)              (0.6%)
Pacific    1,049         1,063                         14                 0.1%
Africa      1,635         1,310                      (325)              (1.8%)
Russia      1,794         1,805                         11                 0.1%
Other        1,846         1,730                      (116)              (0.6%)
Total      18,338        18,361                         23                 0.1%

- ENDS -

                                  This information is provided by RNS
                  The company news service from the London Stock Exchange

end of announcement            euro adhoc 29.06.2004

Further inquiry note: Jude Tomalin 020 7496 4062

Branche: Energy
ISIN:      GB0007980591
WKN:        850517
Börsen:  Hamburger Wertpapierbörse / official dealing
              Börse Düsseldorf / official dealing
              Frankfurter Wertpapierbörse / official dealing
              SWX Swiss Exchange / official dealing
              London Stock Exchange / official dealing
              Niedersächsische Börse zu Hannover / free trade
              Berliner Wertpapierbörse / free trade
              Bayerische Börse / free trade
              Baden-Württembergische Wertpapierbörse / free trade

Weitere Meldungen: BP plc

Das könnte Sie auch interessieren: