BP » Topics » Finance leases

This excerpt taken from the BP 20-F filed Mar 4, 2008.
Finance leases
The group uses finance leases to acquire property, plant and equipment. These leases have terms of renewal but no purchase options and escalation clauses. Renewals are at the option of the lessee. Future minimum lease payments under finance leases are set out below.

          $ million  







      2007   2006  







Future minimum lease payments payable within          
1 year
  268   82  
2 to 5 years
  393   376  
Thereafter
  630   873  







      1,291   1,331  
Less finance charges   399   516  







Net obligations   892   815  







Of which – payable within 1 year   245   60  
  – payable within 2 to 5 years   217   164  
  – payable thereafter   430   591  








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35 Finance debt continued

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