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Leases
12 Months Ended
Dec. 31, 2021
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 (2020 8 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
20212020
Undiscounted lease liability cash flows due:
Within 1 year1,949 2,262 
1 to 2 years1,631 1,672 
2 to 3 years1,207 1,340 
3 to 4 years1,005 1,025 
4 to 5 years682 878 
5 to 10 years2,089 2,192 
Over 10 years1,462 1,515 
10,025 10,884 
Impact of discounting(1,414)(1,622)
Lease liabilities at 31 December8,611 9,262 
Of which – current1,747 1,933 
– non-current
6,864 7,329 

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 2021 is $4,996 million (2020 $5,309 million). The majority of this future commitment relates to the floating LNG vessel to service the Greater Tortue Ahmeyim project from 2023.
$ million
20212020
Total cash outflow for amounts included in lease liabilitiesa
2,372 2,779 
Expense for variable payments not included in the lease liabilitya
37 41 
Short-term lease expensea
409 621 
Additions to right-of-use assets in the period1,807 1,714 
(Loss) gain on sale and leaseback transactions(1)187 
a The 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 11. An analysis of lease interest expense is provided in Note 6.