Leases

12 Months Ended

Dec. 31, 2024

Disclosure of leases [Abstract]

Leases

Leases

The group leases a number of assets as part of its activities. This primarily includes drilling rigs in the oil production & operations and gas & low carbon

energy segments and retail service stations, oil depots and storage tanks in the customer & products segment as well as office accommodation and

vessel charters across the group. The weighted-average remaining lease term for the total lease portfolio is around 8 years (2023 7 years). Some leases

have payments that vary with market interest or inflation rates. Certain leases contain residual value guarantees, which may be triggered in certain

circumstances such as if market values have significantly declined at the conclusion of the lease.

The table below shows the timing of the undiscounted cash outflows for the lease liabilities included on the balance sheet.

		$ million
	2024	2023
Undiscounted lease liability cash flows due:
Within 1 year	3,237	3,038
1 to 2 years	2,418	2,177
2 to 3 years	1,798	1,386
3 to 4 years	1,394	1,139
4 to 5 years	1,099	947
5 to 10 years	3,039	3,045
Over 10 years	1,283	1,348
	14,268	13,080
Impact of discounting	(2,268)	(1,959)
Lease liabilities at 31 December	12,000	11,121
Of which – current	2,660	2,650
– non-current	9,340	8,471

The group may enter into lease arrangements a number of years before taking control of the underlying asset due to construction lead times or to secure

future operational requirements. The total undiscounted amount for future commitments for leases not yet commenced as at 31 December 2024 is $5,311

million (2023 $5,507 million). The majority of this future commitment relates to the floating LNG vessel to service the Greater Tortue Ahmeyim project

from 2025.

		$ million
	2024	2023
Total cash outflow for amounts included in lease liabilities	3,283	2,904
Expense for variable payments not included in the lease liabilitya	45	27
Short-term lease expensea	499	657
Additions to right-of-use assets in the period	3,781	5,015

aThe cash outflows for amounts not included in lease liabilities approximate the income statement expenses disclosed above.

An analysis of right-of-use assets and depreciation is provided in Note 12. An analysis of lease interest expense is provided in Note 7.