BP (BP)

Revenue recognition

        Revenues associated with the sale of oil, natural gas, LNG, petroleum and chemical products and all other items are recognized when the title passes to the customer. Supply buy/sell arrangements with common counterparties are reported net, as are physical exchanges. Oil, natural gas, NGL and power over-the-counter forward sales contracts where the Group acts as principal rather than agent are reported gross and included in turnover. The Group was deemed to be the principal in the over-the-counter forward sales transactions because: (i) the Group was the primary obligator in the arrangement; (ii) the Group had discretion to set the selling price with the customer; (iii) the Group had discretion to select the supplier; (iv) the Group took title to the commodity, albeit often for a short period of time; and (v) the Group was invoiced for the full amount of the transaction and had this liability to a third party, although master netting agreements mitigated the credit risk. Generally, revenues from the production of natural gas and oil properties in which the Group has an interest with other producers are recognized on the basis of the Group's working interest in those properties (the entitlement method). Differences between the production sold and the Group's share of production are not significant.

Revenue recognition

        Revenues associated with the sale of oil, natural gas, LNG, petroleum and chemical products and all other items are recognized when the title passes to the customer. Supply buy/sell arrangements with common counterparties are reported net, as are physical exchanges. Oil and natural gas forward sales contracts are included in turnover. Generally, revenues from the production of natural gas and oil properties in which the Group has an interest with other producers are recognized on the basis of the Group's working interest in those properties (the entitlement method). Differences between the production sold and the Group's share of production are not significant.