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Pensions and other post-retirement benefits (Tables)
 12 Months Ended
Dec. 31, 2025
Employee Benefits [Abstract]  
Disclosure of defined benefit plans The assumptions are reviewed
by management at the end of each year and are used to evaluate the accrued benefit obligation at 31 December and pension expense for the
following year.
%
Financial assumptions used to determine benefit obligation
UK
US
Eurozone
2025
2024
2023
2025
2024
2023
2025
2024
2023
Discount rate for plan liabilities
5.6
5.5
4.8
5.4
5.6
5.0
4.2
3.5
3.6
Rate of increase for pensions in payment
2.7
2.9
2.8
—
—
—
1.8
1.8
2.1
Rate of increase in deferred pensions
2.7
2.9
2.8
—
—
—
0.6
0.6
0.7
Inflation for plan liabilities
2.9
3.1
3.0
2.0
2.0
2.0
2.0
2.0
2.4
%
Financial assumptions used to determine benefit expense
UK
US
Eurozone
2025
2024
2023
2025
2024
2023
2025
2024
2023
Discount rate for plan service costa
N/A
N/A
N/A
5.7
5.0
5.2
3.7
3.7
4.3
Discount rate for plan other finance expense
5.5
4.8
5.0
5.6
5.0
5.2
3.5
3.6
4.2
Inflation for plan service costa
N/A
N/A
N/A
2.0
2.0
2.0
2.0
2.4
2.1
aUK discount rate and inflation rate assumptions are not relevant in determining the benefit expense for the closed UK plan. Rates for the remaining small worldwide plan administered/reported
through the UK are 5.6% (2024 5.0% and 2023 5.0%) and 2.1% (2024 1.9% and 2023 1.9%) respectively.
bp’s most substantial
pension liabilities are in the UK, the US and the Eurozone where our mortality assumptions are as follows:
Years
Mortality assumptions
UK
US
Eurozone
2025
2024
2023
2025
2024
2023
2025
2024
2023
Life expectancy at age 60 for a male currently
aged 60
27.1
27.0
27.4
25.2
25.1
25.0
26.4
26.2
26.1
Life expectancy at age 60 for a male currently
aged 40
28.9
28.9
29.2
26.9
26.8
26.7
28.9
28.6
28.6
Life expectancy at age 60 for a female
currently aged 60
28.9
29.0
29.2
28.2
28.1
28.1
29.5
29.5
29.3
Life expectancy at age 60 for a female
currently aged 40
30.4
30.5
30.6
29.7
29.6
29.6
31.7
31.7
31.6
Disclosure of fair value of plan assets The current asset allocation policy for the major plans at 31 December 2025 was as follows:
UK
US
Asset category
%
%
Total equity (including private equity)
8
19
Bonds/cash (including LDI)
85
81
Property/real estate
7
—
The fair values of the various categories of assets held by the defined benefit plans at 31 December are presented in the table below, including the
effects of derivative financial instruments. Movements in the fair value of plan assets during the year are shown in detail in the table on page 208.
$ million
UKa
USb
Eurozone
Other
Total
Fair value of pension plan assets
At 31 December 2025
Listed equities – developed markets
725
137
84
181
1,127
– emerging markets
29
17
10
70
126
Private equityc
1,871
910
—
—
2,781
Government issued nominal bondsd
3,761
1,369
901
214
6,245
Government issued index-linked bondsd
10,805
—
85
8
10,898
Corporate bondsd
5,383
2,790
70
236
8,479
Propertye
2,487
—
6
13
2,506
Cash
574
83
912
106
1,675
Otherf
3,232
46
(58)
11
3,231
Debt (repurchase agreements) used to fund liability driven investments
(4,278)
—
—
—
(4,278)
24,589
5,352
2,010
839
32,790
At 31 December 2024
Listed equities – developed markets
963
113
341
230
1,647
– emerging markets
32
13
55
75
175
Private equityc
1,916
950
—
2
2,868
Government issued nominal bondsd
5,027
1,317
690
223
7,257
Government issued index-linked bondsd
11,105
—
78
7
11,190
Corporate bondsd
6,088
2,763
605
261
9,717
Propertye
2,344
—
84
19
2,447
Cash
416
67
100
78
661
Otherf
1,039
36
54
14
1,143
Debt (repurchase agreements) used to fund liability driven investments
(5,664)
—
—
—
(5,664)
23,266
5,259
2,007
909
31,441
At 31 December 2023
Listed equities – developed markets
862
97
333
232
1,524
– emerging markets
28
12
51
66
157
Private equityc
2,022
1,014
—
2
3,038
Government issued nominal bondsd
6,285
1,457
746
285
8,773
Government issued index-linked bondsd
13,177
—
88
—
13,265
Corporate bondsd
6,144
2,802
605
166
9,717
Propertye
2,437
—
92
17
2,546
Cash
453
59
82
85
679
Otherf
1,123
33
55
391
1,602
Debt (repurchase agreements) used to fund liability driven investments
(6,485)
—
—
—
(6,485)
26,046
5,474
2,052
1,244
34,816
aBonds held by the UK pension plans are denominated in sterling or hedged back to sterling to minimize foreign currency exposure. Property held by the UK pension plans is in the United
Kingdom.
bBonds held by the US pension plans are denominated in US dollars or hedged back to USD to minimize foreign currency exposure.
cPrivate equity is valued at fair value based on the most recent transaction price or third-party net asset, revenue or earnings based valuations that generally result in the use of significant
unobservable inputs.
dBonds held by pension plans are predominantly valued using observable market data based inputs other than quoted market prices in active markets.
eProperties are valued based on an analysis of recent market transactions supported by market knowledge derived from third-party professional valuers that generally result in the use of
significant unobservable inputs.
fOther includes qualifying insurance policies in the UK amounting to $2,159 million representing the asset associated with the buy in outlined on page 206. The fair value of these insurance policies
is equal to the value of the defined benefit obligations to which these policies relate. Other included insurance policies arising from annuity buy-in in Canada amounting to $374 million in 2023.
Completion of a buy-out in 2024 reduced these amounts to $nil.
Disclosure of net defined benefit liability (asset)
$ million
2025
UK
US
Eurozone
Other
Total
Analysis of the amount charged to profit or loss
Current service costa
47
157
56
25
285
Past service costb
—
—
(39)
—
(39)
Settlementb
—
—
11
—
11
Operating charge (credit) relating to defined benefit plans
47
157
28
25
257
Payments to defined contribution plans
180
179
7
35
401
Total operating charge (credit)
227
336
35
60
658
Interest income on plan assetsa
(1,322)
(286)
(78)
(38)
(1,724)
Interest on plan liabilities
976
300
190
48
1,514
Other finance (income) expense
(346)
14
112
10
(210)
Analysis of the amount recognized in other comprehensive income
Actual asset return less interest income on plan assets
(613)
120
(225)
(1)
(719)
Change in financial assumptions underlying the present value of the plan liabilities
453
(242)
436
8
655
Change in demographic assumptions underlying the present value of the plan liabilities
(26)
—
—
(1)
(27)
Experience gains and losses arising on the plan liabilities
15
(40)
(102)
(3)
(130)
Remeasurements recognized in other comprehensive income
(171)
(162)
109
3
(221)
Movements in benefit obligation during the year
Benefit obligation at 1 January
17,324
5,524
5,002
1,007
28,857
Exchange adjustments
1,301
—
646
50
1,997
Operating charge relating to defined benefit plans
47
157
28
25
257
Interest cost
976
300
190
48
1,514
Contributions by plan participants
8
—
2
5
15
Benefit payments (funded plans)c
(1,160)
(313)
(95)
(64)
(1,632)
Benefit payments (unfunded plans)c
(10)
(145)
(246)
(11)
(412)
Reclassified as assets held for sale
(24)
—
(161)
(77)
(262)
Disposals
—
—
(1)
—
(1)
Remeasurements
(442)
282
(334)
(4)
(498)
Benefit obligation at 31 Decembera d e
18,020
5,805
5,031
979
29,835
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January
23,266
5,259
2,007
909
31,441
Exchange adjustments
1,757
—
257
43
2,057
Interest income on plan assetsa e
1,322
286
78
38
1,724
Contributions by plan participants
8
—
2
5
15
Contributions by and refunds to employers (funded plans)
9
—
16
(28)
(3)
Benefit payments (funded plans)c
(1,160)
(313)
(95)
(64)
(1,632)
Reclassified as assets held for sale
—
—
(30)
(63)
(93)
Remeasurementsf
(613)
120
(225)
(1)
(719)
Fair value of plan assets at 31 Decemberg
24,589
5,352
2,010
839
32,790
Surplus (deficit) at 31 December
6,569
(453)
(3,021)
(140)
2,955
Represented by
Asset recognized
6,697
921
93
60
7,771
Liability recognized
(128)
(1,374)
(3,114)
(200)
(4,816)
6,569
(453)
(3,021)
(140)
2,955
The surplus (deficit) may be analysed between funded and unfunded plans as follows
Funded
6,696
921
84
29
7,730
Unfunded
(127)
(1,374)
(3,105)
(169)
(4,775)
6,569
(453)
(3,021)
(140)
2,955
The defined benefit obligation may be analysed between funded and unfunded plans as
follows
Funded
(17,893)
(4,431)
(1,926)
(810)
(25,060)
Unfunded
(127)
(1,374)
(3,105)
(169)
(4,775)
(18,020)
(5,805)
(5,031)
(979)
(29,835)
aThe costs of managing plan investments are offset against the investment return, the costs of administering pension plan benefits are generally included in current service cost and the costs of
administering other post-employment benefit plans are included in the benefit obligation. Following the closure of the primary UK pension plan, current service cost in the UK consists of
$36 million of costs of administering that plan and $11 million of current service cost from the remaining small worldwide plans administered and reported through the UK.
bPast service costs predominantly reflect curtailment impacts from the closure of plans in the Netherlands and Germany to future accrual. Settlements represent losses associated with
restructuring activity in Germany.
cThe benefit payments amount shown above comprises $1,975 million benefits and $12 million settlements, plus $57 million of plan expenses incurred in the administration of the benefit.
dThe benefit obligation for the US is made up of $4,602 million for pension liabilities and $1,203 million for other post-employment benefit liabilities (which are unfunded and are primarily retiree
medical liabilities). The benefit obligation for the Eurozone includes $2,976 million for pension liabilities in Germany which is largely unfunded.
24. Pensions and other post-employment benefits – continued
eIncludes $346 million (2024 $155 million) representing assets ceilings in plans in the Netherlands (see page 205), Switzerland and the UK. Movements in the asset ceiling during 2025 were interest
cost of $8 million and remeasurements of $183 million.
fThe actual return on plan assets is made up of the sum of the interest income on plan assets and the remeasurement of plan assets as disclosed above.
gThe fair value of plan assets includes borrowings related to the LDI programme as described on page 207.
$ million
2024
UK
US
Eurozone
Other
Total
Analysis of the amount charged to profit or loss
Current service costa
48
160
62
23
293
Past service costb
—
—
(1)
—
(1)
Settlementb
(1)
—
—
—
(1)
Operating charge (credit) relating to defined benefit plans
47
160
61
23
291
Payments to defined contribution plans
161
192
8
35
396
Total operating charge (credit)
208
352
69
58
687
Interest income on plan assetsa
(1,218)
(267)
(70)
(49)
(1,604)
Interest on plan liabilities
909
283
184
60
1,436
Other finance (income) expense
(309)
16
114
11
(168)
Analysis of the amount recognized in other comprehensive income
Actual asset return less interest income on plan assets
(2,388)
(239)
65
83
(2,479)
Change in financial assumptions underlying the present value of the plan liabilities
1,496
403
103
(48)
1,954
Change in demographic assumptions underlying the present value of the plan liabilities
194
(8)
1
2
189
Experience gains and losses arising on the plan liabilities
15
(34)
2
(7)
(24)
Remeasurements recognized in other comprehensive income
(683)
122
171
30
(360)
Movements in benefit obligation during the year
Benefit obligation at 1 January
19,579
5,837
5,537
1,371
32,324
Exchange adjustments
(352)
—
(355)
(66)
(773)
Operating charge relating to defined benefit plans
47
160
61
23
291
Interest cost
909
283
184
60
1,436
Contributions by plan participants
7
—
2
7
16
Benefit payments (funded plans)c
(1,153)
(243)
(89)
(427)
(1,912)
Benefit payments (unfunded plans)c
(8)
(152)
(232)
(12)
(404)
Disposals
—
—
—
(2)
(2)
Remeasurements
(1,705)
(361)
(106)
53
(2,119)
Benefit obligation at 31 Decembera d
17,324
5,524
5,002
1,007
28,857
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January
26,046
5,474
2,052
1,244
34,816
Exchange adjustments
(473)
—
(139)
(61)
(673)
Interest income on plan assetsa e
1,218
267
70
49
1,604
Contributions by plan participants
7
—
2
7
16
Contributions by employers (funded plans)
9
—
46
14
69
Benefit payments (funded plans)c
(1,153)
(243)
(89)
(427)
(1,912)
Remeasurementse
(2,388)
(239)
65
83
(2,479)
Fair value of plan assets at 31 Decemberf
23,266
5,259
2,007
909
31,441
Surplus (deficit) at 31 December
5,942
(265)
(2,995)
(98)
2,584
Represented by
Asset recognized
6,083
1,009
273
92
7,457
Liability recognized
(141)
(1,274)
(3,268)
(190)
(4,873)
5,942
(265)
(2,995)
(98)
2,584
The surplus (deficit) may be analysed between funded and unfunded plans as follows
Funded
6,083
1,009
261
48
7,401
Unfunded
(141)
(1,274)
(3,256)
(146)
(4,817)
5,942
(265)
(2,995)
(98)
2,584
The defined benefit obligation may be analysed between funded and unfunded plans as
follows
Funded
(17,183)
(4,250)
(1,746)
(861)
(24,040)
Unfunded
(141)
(1,274)
(3,256)
(146)
(4,817)
(17,324)
(5,524)
(5,002)
(1,007)
(28,857)
aThe costs of managing plan investments are offset against the investment return, the costs of administering pension plan benefits are generally included in current service cost and the costs of
administering other post-employment benefit plans are included in the benefit obligation. Following the closure of the primary UK pension plan, current service cost in the UK consists of $38
million of costs of administering that plan and $10 million of current service cost from the remaining small worldwide plans administered and reported through the UK.
bPast service costs predominantly reflect minor plan changes in France. Settlements represent changes in small worldwide plans administered and reported throughout the UK.
cThe benefit payments amount shown above comprises $1,907 million benefits and $352 million settlements relating to the buy-out in Canada, plus $57 million of plan expenses incurred in the
administration of the benefit.
24. Pensions and other post-employment benefits – continued
dThe benefit obligation for the US is made up of $4,428 million for pension liabilities and $1,096 million for other post-employment benefit liabilities (which are unfunded and are primarily retiree
medical liabilities). The benefit obligation for the Eurozone includes $3,086 million for pension liabilities in Germany which is largely unfunded.
eThe actual return on plan assets is made up of the sum of the interest income on plan assets and the remeasurement of plan assets as disclosed above.
fThe fair value of plan assets includes borrowings related to the LDI programme as described on page 207.
$ million
2023
UK
US
Eurozone
Other
Total
Analysis of the amount charged to profit or loss
Current service costa
44
156
47
21
268
Past service costb
4
—
5
(2)
7
Settlementb
—
—
—
3
3
Operating charge (credit) relating to defined benefit plans
48
156
52
22
278
Payments to defined contribution plans
132
158
7
36
333
Total operating charge (credit)
180
314
59
58
611
Interest income on plan assetsa
(1,259)
(274)
(78)
(56)
(1,667)
Interest on plan liabilities
869
297
194
66
1,426
Other finance (income) expense
(390)
23
116
10
(241)
Analysis of the amount recognized in other comprehensive income
Actual asset return less interest income on plan assets
(677)
45
82
28
(522)
Change in financial assumptions underlying the present value of the plan liabilities
(649)
28
(508)
(24)
(1,153)
Change in demographic assumptions underlying the present value of the plan liabilities
(230)
(5)
8
—
(227)
Experience gains and losses arising on the plan liabilities
(320)
45
(84)
(1)
(360)
Remeasurements recognized in other comprehensive income
(1,876)
113
(502)
3
(2,262)
aThe costs of managing plan investments are offset against the investment return, the costs of administering pension plan benefits are generally included in current service cost and the costs of
administering other post-employment benefit plans are included in the benefit obligation. Following the closure of the primary UK pension plan, current service cost in the UK consists of $34
million of costs of administering that plan and $10 million of current service cost from the remaining small worldwide plans administered and reported through the UK.
bPast service costs predominantly represent largely offsetting income and costs due to the removal of some benefits for members in Turkish plans and their replacement with new arrangements
administered and reported through the UK. There was also a $5 million past service cost in France relating to statutory retirement age changes. Settlements represent charges for special
termination benefits arising as a result of early retirements.
Disclosure of sensitivity analysis for actuarial assumptions A one-percentage point change, in
isolation, in certain assumptions as at 31 December 2025 for the group’s pensions and other post-employment benefit expense would have had the
effects shown in the tables below. The effects shown for the expense in 2026 comprise the total of current service cost and net finance income or
expense.
$ million
One percentage point
UK
US
Eurozone
Increase
Decrease
Increase
Decrease
Increase
Decrease
Discount ratea
Effect on expense in 2026
(186)
168
(44)
46
(2)
(5)
Effect on obligation at 31 December 2025
(1,803)
2,185
(465)
614
(497)
604
Inflation rateb
Effect on expense in 2026
90
(82)
8
(6)
22
(20)
Effect on obligation at 31 December 2025
1,613
(1,464)
39
(33)
480
(414)
aThe amounts presented reflect that the discount rate is used to determine the asset interest income as well as the interest cost on the obligation.
bThe amounts presented reflect the total impact of an inflation rate change on the assumptions for rate of increase in salaries, pensions in payment and deferred pensions.
Disclosure of additional information about defined benefit plans [text block]
$ million
One year increase
UK
US
Eurozone
Longevity
Effect on expense in 2026
33
4
9
Effect on obligation at 31 December 2025
593
60
189
Disclosure of information about maturity profile of defined benefit obligation The expected benefit payments, which reflect expected future service, as appropriate, but exclude plan expenses, and the weighted average
duration of the defined benefit obligations at 31 December 2025 are as follows:
$ million
Estimated future benefit payments
UK
US
Eurozone
Other
Total
2026
1,190
467
324
61
2,042
2027
1,212
463
325
55
2,055
2028
1,219
458
320
56
2,053
2029
1,233
467
319
55
2,074
2030
1,234
473
312
54
2,073
2031 - 2035
6,214
2,383
1,431
285
10,313
Years
Weighted average duration
11.1
9.2
12.5
12.6