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Centrica PLC — Environmental & Social Information 2015
Dec 31, 2015
5292_rns_2015-12-31_97fd1bd4-ed84-4b3f-b98c-f0fd4dd9531d.pdf
Environmental & Social Information
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CENTRICA PLC
REPORT ON PAYMENTS TO GOVERNMENTS FOR THE YEAR ENDED 31 DECEMBER 2015
Centrica plc Millstream Maidenhead Road Windsor Berkshire SL4 5GD
Registered in England & Wales No 3033654
Introduction
This Report contains payments to Governments made by Centrica plc and its subsidiaries for the year ended 31 December 2015 as required under the UK's Report on Payments to Governments Regulations 2014 (as amended in December 2015). These UK Regulations enact domestic rules in line with Directive 2013/34/EU (the EU Accounting Directive (2013)) and apply to large UK incorporated companies like Centrica Plc that are involved in the exploration, prospection, discovery, development and extraction of oil, natural gas deposits or other materials. This Report is also intended to satisfy the requirements of the Disclosure and Transparency Rules of the Financial Conduct Authority in the United Kingdom.
Basis of preparation
Legislation
This Report is prepared in accordance with The Reports on Payments to Governments Regulations 2014 as enacted in the UK in December 2014 and as amended in December 2015.
Reporting entities
This Report contains payments to Governments made by Centrica plc and its subsidiaries involved in the "Activities" below.
Activities
Payments made by Centrica Plc or any of its subsidiaries to Governments arising from activities involving the exploration, prospection, discovery, development and extraction of oil and natural gas deposits or other materials (extractive activities) are disclosed in this Report.
Government
Government includes any national, regional or local authority of a country, and includes a department, agency or entity that is a subsidiary of a Government, which includes a national oil company.
Project
Payments are reported at project level except those which are not attributable to a specific project, are reported at entity level. 'Project' means the operational activities which are governed by a single contract, licence, lease, concession or similar legal agreement, and form the basis for payment liabilities with a Government. If agreements of the kind referred to in the definition of 'project' are substantially interconnected, those agreements are treated for the purposes of these regulations as a single project.
Payment
The information is reported under the following payment types. All payments are denoted as positive numbers and receipts/refunds are denoted in brackets.
Production entitlements
Subject to the terms of the contractual arrangements, payments are calculated on the basis of the Government's share of production (whether a Government department, agency or state-owned enterprise) under production sharing agreements. There were no reportable Production entitlement payments made to a Government during the year ended 31 December 2015.
Taxes
Tax payments made on the income, production or profits of companies, but excluding taxes levied on consumption (such as VAT, personal income taxes or sales taxes).
Royalties
These are payments for the rights to extract oil and gas resources, typically at set percentage of revenue less any deductions that may be taken. Any Royalty payments made in kind are also included.
Dividends
These are dividend payments other than dividends paid to a Government as an ordinary shareholder of an entity unless paid in lieu of production entitlements or royalties. There were no reportable Dividend payments made to a Government during the year ended 31 December 2015.
Bonuses
These are payments for Bonuses. These are usually paid upon signing an agreement or a contract, or when a commercial discovery is declared, or production has commenced or reached a milestone. There were no reportable Bonus payments made to a Government during the year ended 31 December 2015.
Fees
These are licence fees, rental fees, entry fees and other considerations for licences or concessions. Administrative fees, payments for permits and payments for services provided by a government have been excluded.
Infrastructure improvements
These are payments which relate to the construction of infrastructure (road, bridge or rail) not substantially dedicated for the use of extractive activities. There were no reportable Infrastructure Improvement payments made to a Government during the year ended 31 December 2015.
Operatorship
Where Centrica Plc or any of its subsidiaries make a payment directly to a Government arising from a project, regardless of whether Centrica Plc is the operator, the full amount paid is disclosed irrespective of whether costs are subsequently recovered through cost sharing arrangements.
Cash and in-kind payments
Payments are reported on a cash basis. In-kind payments are converted to an equivalent cash value based on the most appropriate and relevant valuation method for each payment, which can be at cost or market value or such value as stated in the contract. In-kind payments are reported in both volumes and the equivalent cash value.
Materiality Level
Payments, whether made as a single payment or as a series of related payments to a Government, have been excluded from the report if they are cumulatively below £86,000 for the reporting period.
Exchange Rate
Payments made in currencies other than British Pound are translated for this Report based on the foreign exchange rate as of the Centrica Plc year end 31 December 2015.
Summary Report by Country (GBP 000's)1
| Country | Production entitlements Taxes |
Royalties | Dividends | Bonuses | Fees | Infrastructure improvements |
TOTAL |
|---|---|---|---|---|---|---|---|
| United Kingdom | (10,949 ) | 4,786 | (6,163 ) | ||||
| Netherlands | (6,649 ) | 411 | (6,238 ) | ||||
| Norway | 128,185 | 5,526 | 133,711 | ||||
| Canada | 19,990 | 14,220 | 5,835 | 40, 045 | |||
| Trinidad & Tobago | 3,128 | 3,131 | 6,259 | ||||
| Total | 133,705 | 14,220 | 19,688 | 167,613 |
United Kingdom (GBP 000's)
| Governments | Production entitlements |
Taxes | Royalties | Dividends | Bonuses | Fees | Infrastructure improvements |
TOTAL |
|---|---|---|---|---|---|---|---|---|
| Crown Estate | 504 | 504 | ||||||
| Department of Energy & Climate Change |
4,281 | 4,281 | ||||||
| Her Majesty's Revenue and Customs |
(10,949 ) | (10,949 ) | ||||||
| Total | (10,949 ) | 4,786 | (6,163 ) |
| Projects | Production entitlements Taxes |
Royalties | Dividends | Bonuses | Fees | Infrastructure improvements |
TOTAL |
|---|---|---|---|---|---|---|---|
| Entity Level | (2,164 ) | 68 | (2,096 ) | ||||
| A Fields | (3,626 ) | 84 | (3,542 ) | ||||
| Alba | 1,140 | 1,140 | |||||
| Amethyst East | 245 | 245 | |||||
| Brae | (1,280 ) | (1,280 ) | |||||
| Chestnut | 79 | 79 | |||||
| Eris/Ceres | 410 | 410 | |||||
| Galleon | (93 ) | (93 ) | |||||
| Greater Markham Area | 1,067 | 1,067 | |||||
| Greater York | 62 | 62 | |||||
| Morecambe Hub | 12,680 | 1,129 | 13,809 | ||||
| Ravenspurn | 549 | 549 | |||||
| Rose | 288 | 288 | |||||
| Seven Seas | 364 | 364 | |||||
| Statfjord | (14,980 ) | 19 | (14,961 ) | ||||
| Trees | 54 | 54 | |||||
| Victor | (3,419 ) | (3,419 ) | |||||
| York | 438 | 438 | |||||
| Exploration Licences | 723 | 723 | |||||
| Total | (10,949 ) | 4,786 | (6,163 ) |
1 This Report is not corrected for rounding.
Payments/(Refunds)
Netherlands (GBP 000's) Payments/(Refunds)
| Governments | Production entitlements |
Taxes | Royalties | Dividends | Bonuses | Fees | Infrastructure improvements |
TOTAL |
|---|---|---|---|---|---|---|---|---|
| Apeldoorn Tax Authority | (6,649 ) | 411 | (6,238 ) | |||||
| Total | (6,649 ) | 411 | (6,238 ) |
| Projects | Production entitlements |
Taxes | Royalties | Dividends | Bonuses | Fees | Infrastructure improvements |
TOTAL |
|---|---|---|---|---|---|---|---|---|
| Entity Level | (6,649 ) | (6,649 ) | ||||||
| Greater Markham Area | 377 | 377 | ||||||
| F3/FA | 34 | 34 | ||||||
| Total | (6,649 ) | 411 | (6,238 ) |
Norway (GBP 000's)
| Governments | Production entitlements |
Taxes | Royalties | Dividends | Bonuses | Fees | Infrastructure improvements |
TOTAL |
|---|---|---|---|---|---|---|---|---|
| Oljedirektoratet | 5,526 | 5,526 | ||||||
| Skatteetaten | 128,185 | 128,185 | ||||||
| Total | 128,185 | 5,526 | 133,711 |
| Projects | Production entitlements |
Taxes | Royalties | Dividends | Bonuses | Fees | Infrastructure improvements |
TOTAL |
|---|---|---|---|---|---|---|---|---|
| Entity Level | 128,185 | 128,185 | ||||||
| Butch | 956 | 956 | ||||||
| Fogelberg | 315 | 315 | ||||||
| Frigg Gamma Delta | 699 | 699 | ||||||
| Ivory | 3,223 | 3,223 | ||||||
| Vale | 333 | 333 | ||||||
| Total | 128,185 | 5,526 | 133,711 |
Canada (GBP 000's) Payments/(Refunds)
| Production | Infrastructure | ||||||
|---|---|---|---|---|---|---|---|
| Governments | entitlements Taxes |
Royalties* | Dividends | Bonuses | Fees | improvements | TOTAL |
| Alberta Department of Energy | 9,122 | 9,122 | |||||
| Alberta Energy Regulator | 2,939 | 2,939 | |||||
| Alberta Petroleum Marketing Commission* |
2,110 | 2,110 | |||||
| British Columbia Ministry of Finance |
344 | 2,119 | 2,463 | ||||
| Canada Revenue Agency | 7,118 | 7,118 | |||||
| Department of Energy/Environment and Parks |
1,010 | 1,010 | |||||
| Government of Alberta | 839 | 839 | |||||
| Minister of Finance, Ministry of Energy and Mines |
857 | 857 | |||||
| The Receiver General for Canada |
869 | 869 | |||||
| Minister Of Finance Mineral Oil & Gas Revenue Branch |
190 | 190 | |||||
| Ministry of Finance Province of Alberta |
5,086 | 5,086 | |||||
| Municipal Government – Municipal District of Bighorn |
552 | 552 | |||||
| Municipal Government – Rocky View |
265 | 265 | |||||
| Municipal Government – Camrose |
236 | 236 | |||||
| Municipal Government – Yellowhead |
1,123 | 1,123 | |||||
| Municipal Government – | |||||||
| Clearwater Municipal Government – County Of Stettler |
1,326 316 |
1,326 316 |
|||||
| Municipal Government – | |||||||
| Wetaskiwin | 149 | 149 | |||||
| Municipal Government – Starland County Municipal Government – |
303 | 303 | |||||
| British Columbia Northern Rockies |
244 | 244 | |||||
| Municipal Government – Cypress County |
2,080 | 2,080 | |||||
| Municipal Government – Ponoka County |
276 | 276 | |||||
| Municipal Government – Saddle Hills |
241 | 241 | |||||
| Municipal Government – Barrhead |
109 | 109 | |||||
| Municipal Government – Tumbler Ridge |
222 | 222 | |||||
| Total | 19,990 | 14,220 | 5,835 | 40,045 |
* Royalties include Payments in kind of £2.1m for 80,956 boe at market price.
Canada (GBP 000's) Payments/(Refunds)
| Projects | Production entitlements Taxes |
Royalties* | Dividends | Bonuses | Infrastructure Fees improvements |
TOTAL |
|---|---|---|---|---|---|---|
| Entity Level | 12,204 | 12,204 | ||||
| Foothills Operating Area | 203 | 4,838 | 498 | 5,539 | ||
| Hanlan Robb Operating Area | 1,675 | 2,350 | 442 | 4,466 | ||
| North Operating Area* | 2,672 | 4,225 | 1,198 | 8,096 | ||
| South Operating Area Peace River Arch |
2,184 | 512 | 2,490 | 5,187 | ||
| Operating Area | 1,051 | 2,294 | 1,207 | 4,552 | ||
| Total | 19,990 | 14,220 | 5,835 | 40,045 |
* Royalties include Payments in kind of £2.1m for 80,956boe at market price.
Trinidad (GBP 000's)
| Governments | Production entitlements |
Taxes** | Royalties | Dividends | Bonuses | Fees | Infrastructure improvements |
TOTAL |
|---|---|---|---|---|---|---|---|---|
| Ministry of Energy and Energy Affairs Ministry of Finance and the |
3,131 | 3,131 | ||||||
| Economy** | 3,128 | 3,128 | ||||||
| Total | 3,128 | 3,131 | 6,259 |
| Projects | Production entitlements |
Taxes** | Royalties | Dividends | Bonuses | Fees | Infrastructure improvements |
TOTAL |
|---|---|---|---|---|---|---|---|---|
| Block 1a | 727 | 727 | ||||||
| Block 1b | 1,060 | 1,060 | ||||||
| Block 22 | 231 | 231 | ||||||
| NCMA-4 | 1,113 | 1,113 | ||||||
| NCMA-1** | 3,128 | 3,128 | ||||||
| Total | 3,128 | 3,131 | 6,259 |
**These are payments settled on behalf of Centrica by the Ministry of Energy and Energy Affairs to the Ministry of Finance under the terms of the Production Sharing Contract (PSC).