Note 24 - Decommissioning and other provisions
|
|
|
|
|
|
|
$ million |
|
Decommissioning |
Onerous contracts |
Legal |
Environmental |
Redundancy |
Other |
Total |
At January 1, 2022 |
|
|
|
|
|
|
|
Current |
871 |
653 |
270 |
332 |
410 |
802 |
3,338 |
Non-current |
21,213 |
1,029 |
1,141 |
847 |
235 |
1,339 |
25,804 |
|
22,084 |
1,682 |
1,411 |
1,179 |
645 |
2,141 |
29,142 |
Additions |
618 |
620 |
314 |
178 |
226 |
832 |
2,788 |
Amounts charged against provisions |
(672) |
(661) |
(272) |
(211) |
(372) |
(333) |
(2,521) |
Accretion expense |
483 |
13 |
16 |
12 |
1 |
5 |
530 |
Disposals and liabilities classified as held for sale |
(1,228) |
(66) |
(21) |
(2) |
– |
(7) |
(1,324) |
Remeasurements and other movements |
(182) |
(139) |
(44) |
(78) |
(155) |
(354) |
(952) |
Currency translation differences |
(818) |
35 |
(3) |
(27) |
(21) |
(74) |
(908) |
|
(1,799) |
(198) |
(10) |
(128) |
(321) |
69 |
(2,387) |
At December 31, 2022 |
|
|
|
|
|
|
|
Current |
856 |
277 |
224 |
321 |
171 |
1,061 |
2,910 |
Non-current |
19,429 |
1,207 |
1,177 |
730 |
153 |
1,149 |
23,845 |
|
20,285 |
1,484 |
1,401 |
1,051 |
324 |
2,210 |
26,755 |
|
|
|
|
|
|
|
|
At January 1, 2021 |
|
|
|
|
|
|
|
Current |
900 |
532 |
521 |
273 |
673 |
723 |
3,622 |
Non-current |
22,081 |
1,207 |
1,229 |
952 |
265 |
1,382 |
27,116 |
|
22,981 |
1,739 |
1,750 |
1,225 |
938 |
2,105 |
30,738 |
Additions |
1,040 |
229 |
197 |
153 |
991 |
752 |
3,362 |
Amounts charged against provisions |
(662) |
(264) |
(340) |
(154) |
(733) |
(292) |
(2,445) |
Accretion expense |
405 |
14 |
11 |
9 |
1 |
10 |
450 |
Disposals and liabilities classified as held for sale |
(819) |
– |
(5) |
(17) |
(1) |
(27) |
(869) |
Remeasurements and other movements |
(609) |
(36) |
(196) |
(11) |
(512) |
(339) |
(1,703) |
Currency translation differences |
(252) |
– |
(6) |
(26) |
(39) |
(68) |
(391) |
|
(897) |
(57) |
(339) |
(46) |
(293) |
36 |
(1,596) |
At December 31, 2021 |
|
|
|
|
|
|
|
Current |
871 |
653 |
270 |
332 |
410 |
802 |
3,338 |
Non-current |
21,213 |
1,029 |
1,141 |
847 |
235 |
1,339 |
25,804 |
|
22,084 |
1,682 |
1,411 |
1,179 |
645 |
2,141 |
29,142 |
The amount and timing of settlement in respect of these provisions are uncertain and dependent on various factors that are not always within management’s control. Reviews of estimated future decommissioning and restoration costs and the discount rate applied are carried out regularly. The discount rate applied at December 31, 2022, was 3.25% (2021: 2%). An increase of 0.5% or a decrease of 0.5% in the discount rate could result in a decrease of $1.2 billion (2021: $1.5 billion) or an increase of $1.3 billion (2021: $1.7 billion) of decommissioning and restoration provisions, respectively. Such increase or decrease will be reflected in the carrying amount of the related asset. Where applicable that carrying amount is to be tested for impairment.
In 2022, there was a decrease of $3,309 million in the decommissioning and restoration provision as a result of the change in the discount rate, partly offset by an increase in the provision resulting from changes in cost estimates of $3,009 million, reported within remeasurements and other movements.
Other provisions at December 31, 2022, include amounts recognised in respect of employee benefits.
The decommissioning and restoration provision at December 31, 2022 is expected to be utilised within:
|
$ million |
|
Dec 31, 2022 |
Between 1 to 5 years |
4,219 |
Between 6 to 10 years |
3,882 |
11 years and later |
12,184 |
Total |
20,285 |
