Note 24 - Decommissioning and other provisions
|
|
|
|
|
|
|
$ million |
|---|---|---|---|---|---|---|---|
|
Decommissioning |
Legal |
Onerous contracts |
Environmental |
Redundancy |
Other |
Total |
At January 1, 2023 |
|
|
|
|
|
|
|
Current |
856 |
224 |
277 |
321 |
171 |
1,061 |
2,910 |
Non-current |
19,429 |
1,177 |
1,207 |
730 |
153 |
1,149 |
23,845 |
|
20,285 |
1,401 |
1,484 |
1,051 |
324 |
2,210 |
26,755 |
Additions |
617 |
853 |
26 |
208 |
424 |
806 |
2,934 |
Amounts charged against provisions |
(777) |
(195) |
(345) |
(233) |
(154) |
(203) |
(1,907) |
Accretion expense |
643 |
21 |
24 |
13 |
4 |
9 |
714 |
Disposals and liabilities classified as held for sale |
(60) |
(1) |
— |
(16) |
(1) |
(1) |
(79) |
Remeasurements and other movements |
(1,499) |
(24) |
(83) |
(74) |
(113) |
(321) |
(2,114) |
Currency translation differences |
244 |
1 |
(2) |
7 |
6 |
13 |
269 |
|
(832) |
655 |
(380) |
(95) |
166 |
303 |
(183) |
At December 31, 2023 |
|
|
|
|
|
|
|
Current |
1,296 |
508 |
224 |
318 |
367 |
1,328 |
4,041 |
Non-current |
18,157 |
1,548 |
880 |
638 |
123 |
1,185 |
22,531 |
|
19,453 |
2,056 |
1,104 |
956 |
490 |
2,513 |
26,572 |
|
|
|
|
|
|
|
|
At January 1, 2022 |
|
|
|
|
|
|
|
Current |
871 |
270 |
653 |
332 |
410 |
802 |
3,338 |
Non-current |
21,213 |
1,141 |
1,029 |
847 |
235 |
1,339 |
25,804 |
|
22,084 |
1,411 |
1,682 |
1,179 |
645 |
2,141 |
29,142 |
Additions |
618 |
314 |
620 |
178 |
226 |
832 |
2,788 |
Amounts charged against provisions |
(672) |
(272) |
(661) |
(211) |
(372) |
(333) |
(2,521) |
Accretion expense |
483 |
16 |
13 |
12 |
1 |
5 |
530 |
Disposals and liabilities classified as held for sale |
(1,228) |
(21) |
(66) |
(2) |
— |
(7) |
(1,324) |
Remeasurements and other movements |
(182) |
(44) |
(139) |
(78) |
(155) |
(354) |
(952) |
Currency translation differences |
(818) |
(3) |
35 |
(27) |
(21) |
(74) |
(908) |
|
(1,799) |
(10) |
(198) |
(128) |
(321) |
69 |
(2,387) |
At December 31, 2022 |
|
|
|
|
|
|
|
Current |
856 |
224 |
277 |
321 |
171 |
1,061 |
2,910 |
Non-current |
19,429 |
1,177 |
1,207 |
730 |
153 |
1,149 |
23,845 |
|
20,285 |
1,401 |
1,484 |
1,051 |
324 |
2,210 |
26,755 |
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, 2023, was 4.5% (2022: 3.25%). In 2023, there was a decrease of $2,916 million in total provisions due to the change in discount rate. Of this total, $2,777 million relates to a decrease in the decommissioning and restoration provision, partly offset by an increase resulting from changes in cost estimates of $1,340 million, reported within remeasurements and other movements. This net decrease is predominantly reflected in the carrying amount of the related asset.
An increase of 0.5% or a decrease of 0.5% in the discount rate could result in a decrease of $0.9 billion (2022: $1.2 billion) or an increase of $1 billion (2022: $1.3 billion) in decommissioning and restoration provisions, respectively. Where applicable, the carrying amount of the related asset is to be tested for impairment.
Other provisions at December 31, 2023, include amounts recognised in respect of employee benefits.
The decommissioning and restoration provision at December 31, 2023, is expected to be utilised within:
|
$ million |
|
Dec 31, 2023 |
|---|---|
Between 1 to 5 years |
4,766 |
Between 6 to 10 years |
5,102 |
11 years and later |
9,585 |
Total |
19,453 |
