v3.25.2
Decommissioning and other provisions
12 Months Ended
Dec. 31, 2023
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]  
Decommissioning and Other Provisions Decommissioning and other provisions
$ million
Decommissioning
and restoration
LegalOnerous contractsEnvironmentalRedundancyOtherTotal
At January 1, 2023
Current8562242773211711,0612,910
Non-current19,4291,1771,2077301531,14923,845
20,2851,4011,4841,0513242,21026,755
Additions617853262084248062,934
Amounts charged against provisions(777)(195)(345)(233)(154)(203)(1,907)
Accretion expense64321241349714
Disposals and liabilities classified as held for sale(60)(1)(16)(1)(1)(79)
Remeasurements and other movements(1,499)(24)(83)(74)(113)(321)(2,114)
Currency translation differences2441(2)7613269
(832)655(380)(95)166303(183)
At December 31, 2023
Current1,2965082243183671,3284,041
Non-current18,1571,5488806381231,18522,531
19,4532,0561,1049564902,51326,572
At January 1, 2022
Current8712706533324108023,338
Non-current21,2131,1411,0298472351,33925,804
22,0841,4111,6821,1796452,14129,142
Additions6183146201782268322,788
Amounts charged against provisions(672)(272)(661)(211)(372)(333)(2,521)
Accretion expense48316131215530
Disposals and liabilities classified as held for sale(1,228)(21)(66)(2)(7)(1,324)
Remeasurements and other movements(182)(44)(139)(78)(155)(354)(952)
Currency translation differences(818)(3)35(27)(21)(74)(908)
(1,799)(10)(198)(128)(321)69(2,387)
At December 31, 2022
Current 8562242773211711,0612,910
Non-current19,4291,1771,2077301531,14923,845
20,2851,4011,4841,0513242,21026,755
The amount and timing of settlement in respect of these provisions are uncertain and dependent on various factors that are not always within management's control. Reviews of estimated future decommissioning and restoration costs and the discount rate applied are carried out regularly. The discount rate applied at December 31, 2023, was 4.5% (2022: 3.25%). In 2023, there was a decrease of $2,916 million in total provisions due to the change in discount rate. Of this total, $2,777 million relates to a decrease in the decommissioning and restoration provision, partly offset by an increase resulting from changes in cost estimates of $1,340 million, reported within remeasurements and other movements. This net decrease is predominantly reflected in the carrying amount of the related asset.
An increase of 0.5% or a decrease of 0.5% in the discount rate could result in a decrease of $0.9 billion (2022: $1.2 billion) or an increase of $1 billion (2022: $1.3 billion) in decommissioning and restoration provisions, respectively. Where applicable, the carrying amount of the related asset is to be tested for impairment.
Other provisions at December 31, 2023, include amounts recognised in respect of employee benefits.
24. Decommissioning and other provisions continued
The decommissioning and restoration provision at December 31, 2023, is expected to be utilised within:
$ million
Dec 31, 2023
Between 1 to 5 years4,766
Between 6 to 10 years5,102
11 years and later9,585
Total19,453