LONDON - BP's proven oil and natural gas reserves fell 1.2 percent in 2010, the company said in its annual report, reflecting the impact of asset sales to help pay for the Gulf of Mexico oil spill.

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BP also said on Thursday its proven oil and gas reserves stood at 18.07 billion barrels of oil equivalent (boe) as of end-2010.

BP also said its reserves-replacement ratio was 106 percent in 2010, indicating the company more than replaced last year's production with new additions to its reserves.