RIGHT-OF-USE ASSETS AND LEASES

12 Months Ended

Dec. 31, 2019

RIGHT-OF-USE ASSETS AND LEASES

RIGHT-OF-USE ASSETS AND LEASES

16. RIGHT-OF-USE ASSETS AND LEASES

The company has lease contracts which include storage tanks, pipelines, railway cars, vessels, buildings, land, and mobile equipment for the purpose of production, storage and transportation of crude oil and related products.

Right-of-use (ROU) assets within Property, Plant and Equipment:

($ millions)	December 31 2019
Property, plant and equipment, net – excluding ROU assets	69 745
ROU assets	2 895
	72 640

The following table presents the ROU assets by asset class:

($ millions)	Plant and Equipment
Cost
At January 1, 2019	3 326
Additions and adjustments	186
Foreign exchange	(7	)
At December 31, 2019	3 505
Accumulated provision
At January 1, 2019	(267	)
Depreciation	(343	)
At December 31, 2019	(610	)
Net ROU assets
At January 1, 2019 (note 5)	3 059
At December 31, 2019	2 895

Other lease-related items recognized in the Consolidated Statement of Comprehensive Income

($ millions)		For the year ended December 31, 2019
Operating, selling and general
	Short-term lease expense	236
	Variable lease expense	45

There were no leases with residual value guarantees. Total cash outflow for leases was $464 million for the year ended December 31, 2019.