Property, Plant and Equipment Disclosure
Asset Age Ratios (Summary)
Average Age
Estimated Total Useful Life
Estimated Age, Time Elapsed Since Purchase
Estimated Remaining Life

BP PLC, balance sheet: property, plant and equipment

US$ in millions

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Land and land improvements	3,415)	3,375)	3,196)	3,099)	3,560)
Buildings	3,061)	3,027)	2,713)	2,846)	2,835)
Oil and gas properties	200,514)	187,691)	170,063)	175,874)	160,184)
Plant, machinery and equipment	48,815)	48,912)	39,287)	35,709)	42,827)
Fixtures, fittings and office equipment	3,031)	3,176)	3,301)	3,095)	2,965)
Transportation	13,819)	13,314)	13,436)	12,753)	12,216)
Oil depots, storage tanks and service stations	9,046)	9,391)	9,059)	8,611)	9,652)
Property, plant and equipment, cost	281,701)	268,886)	241,055)	241,987)	234,239)
Accumulated depreciation	(151,009)	(135,196)	(120,607)	(122,773)	(124,076)
Property, plant and equipment, net book amount	130,692)	133,690)	120,448)	119,214)	110,163)

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

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Item	Description	The company
Property, plant and equipment, cost	Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	BP PLC property, plant and equipment, cost increased from 2012 to 2013 and from 2013 to 2014.
Property, plant and equipment, net book amount	Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.	BP PLC property, plant and equipment, net book amount increased from 2012 to 2013 but then slightly decreased from 2013 to 2014.

BP PLC, asset age ratios

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Average age ratio	54.26%	50.92%	50.71%	51.39%	53.79%
Estimated total useful life (years)	12	18	16	19	19
Estimated age, time elapsed since purchase (years)	7	9	8	10	10
Estimated remaining life (years)	6	9	8	9	9

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

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Asset age ratio	Description	The company
Average age ratio	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	BP PLC average age ratio of depreciable property, plant and equipment deteriorated from 2012 to 2013 and from 2013 to 2014.
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	BP PLC estimated total useful life of depreciable property, plant and equipment increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	BP PLC estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.
Estimated remaining life		BP PLC estimated remaining life of depreciable property, plant and equipment increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Selected Financial Data (US$ in millions)
Accumulated depreciation	151,009)	135,196)	120,607)	122,773)	124,076)
Property, plant and equipment, cost	281,701)	268,886)	241,055)	241,987)	234,239)
Land and land improvements	3,415)	3,375)	3,196)	3,099)	3,560)
Asset Age Ratio
Average age¹	54.26%	50.92%	50.71%	51.39%	53.79%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Average age = 100 × Accumulated depreciation ÷ (Property, plant and equipment, cost – Land and land improvements)
= 100 × 151,009 ÷ (281,701 – 3,415) = 54.26%

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Asset age ratio	Description	The company
Average age	As long as straight-line depreciation is used, this is an accurate estimate of asset age as a percentage of depreciable life. The relative age is a useful measure of whether the company fixed asset base is old or new. Newer assets are likely to be more efficient.	BP PLC average age ratio of depreciable property, plant and equipment deteriorated from 2012 to 2013 and from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Selected Financial Data (US$ in millions)
Property, plant and equipment, cost	281,701)	268,886)	241,055)	241,987)	234,239)
Land and land improvements	3,415)	3,375)	3,196)	3,099)	3,560)
Depreciation charge for the year and impairment losses	22,486)	14,378)	15,286)	12,334)	11,916)
Asset Age Ratio (Years)
Estimated total useful life¹	12	18	16	19	19

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Estimated total useful life = (Property, plant and equipment, cost – Land and land improvements) ÷ Depreciation charge for the year and impairment losses
= (281,701 – 3,415) ÷ 22,486 = 12

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Asset age ratio	Description	The company
Estimated total useful life	Over longer time periods, this ratio is a useful measure of company depreciation policy and can be used for comparisons with competitors.	BP PLC estimated total useful life of depreciable property, plant and equipment increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Selected Financial Data (US$ in millions)
Accumulated depreciation	151,009)	135,196)	120,607)	122,773)	124,076)
Depreciation charge for the year and impairment losses	22,486)	14,378)	15,286)	12,334)	11,916)
Asset Age Ratio (Years)
Time elapsed since purchase¹	7	9	8	10	10

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Time elapsed since purchase = Accumulated depreciation ÷ Depreciation charge for the year and impairment losses
= 151,009 ÷ 22,486 = 7

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Asset age ratio	Description	The company
Estimated time elapsed since purchase	The approximate age in years of a company fixed assets. Useful for comparison purposes.	BP PLC estimated time elapsed since purchase of depreciable property, plant and equipment deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Selected Financial Data (US$ in millions)
Property, plant and equipment, net book amount	130,692)	133,690)	120,448)	119,214)	110,163)
Land and land improvements	3,415)	3,375)	3,196)	3,099)	3,560)
Depreciation charge for the year and impairment losses	22,486)	14,378)	15,286)	12,334)	11,916)
Asset Age Ratio (Years)
Estimated remaining life¹	6	9	8	9	9

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Estimated remaining life = (Property, plant and equipment, net book amount – Land and land improvements) ÷ Depreciation charge for the year and impairment losses
= (130,692 – 3,415) ÷ 22,486 = 6

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Asset age ratio	Description	The company
Estimated remaining life		BP PLC estimated remaining life of depreciable property, plant and equipment increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.

BP PLC (NYSE:BP)

Analysis of Property, Plant and Equipment

Property, Plant and Equipment Disclosure

Asset Age Ratios (Summary)

Average Age

Estimated Total Useful Life

Estimated Age, Time Elapsed since Purchase

Estimated Remaining Life