Business Context and Reporting Period
This Form 6-K filing by BP p.l.c. (dated June 8, 2026) discloses the company's consolidated Report on Payments to Governments for the financial year ended December 31, 2025. The report is prepared in accordance with the UK Reports on Payments to Governments Regulations 2014 and covers payments made in connection with BP's extractive activities (exploration, development, and extraction of minerals, oil, and natural gas). The filing does not contain general financial statements, revenue, or profit data for the broader business.
Key Financial Metrics: Payments to Governments
The report details cash and in-kind payments made to governments across 18 jurisdictions. All figures are in US dollars (millions).
| Payment Type | Total Amount ($ million) |
|---|---|
| Production Entitlements | 12,587.5 |
| Taxes | 7,870.8 |
| Royalties | 1,190.6 |
| Bonuses | 494.4 |
| Fees | 67.4 |
| Infrastructure Improvements | 6.2 |
| Total Payments | 22,217.1 |
Top Jurisdictions by Total Payments:
- Azerbaijan: $9,998.1 million (Driven by $9,117.9M in production entitlements)
- United Arab Emirates: $4,196.2 million (Driven by $4,189.8M in taxes)
- Oman: $2,883.6 million (Driven by $2,198.2M in production entitlements)
- Indonesia: $1,424.5 million
- United States: $1,406.1 million
Material Changes and Unusual Items
The filing text does not provide comparative data for the prior period (2024) to calculate year-over-year material changes. However, the following items are noted within the 2025 data:
- In-Kind Payments: A significant portion of payments, particularly in Azerbaijan, Oman, and Indonesia, were made in kind (crude oil, condensates, and natural gas) rather than cash. For example, in Azerbaijan, $9,117.9 million of production entitlements included substantial in-kind transfers valued at netback prices.
- Tax Refunds: Negative tax amounts were reported in the United Kingdom (Decommissioning and Non-Operated projects) and the United States (Colorado and New Mexico). These represent net refunds resulting from the carry-back of tax losses from prior years.
- Dividends: No reportable dividend payments to governments were made in 2025.
Guidance, Outlook, and Risks
Management Commentary: BP states its position supports transparency in the flow of revenue from oil and gas activities to governments to help stakeholders hold public authorities accountable. The report clarifies that payments related to trading, refining, renewables, and non-extractive activities are excluded.
Risks and Contingencies: The filing does not explicitly list forward-looking risks or contingencies. It notes that payments are reported on a cash basis and that valuation of in-kind payments relies on market prices or specific agreement terms (e.g., netback value), which introduces valuation dependency on commodity prices.
Investor Verification Checklist
- Commodity Price Sensitivity: Verify the valuation methods used for in-kind payments (e.g., netback value in Azerbaijan) as these significantly impact the reported total ($12.6B in entitlements).
- Tax Refund Sustainability: Investigate the source of tax refunds in the UK and US to understand if they are one-time adjustments or indicative of ongoing loss carry-backs.
- Project-Specific Exposure: Review the breakdown of payments by project (e.g., Shah Deniz in Azerbaijan, ADCO in UAE) to assess concentration risk in specific jurisdictions.
- Exclusions: Confirm that non-extractive activities (renewables, trading) are indeed excluded from this report and review separate filings for those segments.