Exploratory Well and Project Costs

9 Months Ended

Sep. 30, 2022

The Company capitalizes exploratory well and project costs until a determination is made that the well or project has either found proved reserves, is impaired or is sold. The Company's capitalized exploratory well and project costs are included in proved properties in the consolidated balance sheets. If the exploratory well or project is determined to be impaired, the impaired costs are recorded in exploration and abandonments in the consolidated statements of operations.

The changes in capitalized exploratory well and project costs are as follows:


	Nine Months Ended September 30, 2022

	(in millions)
Beginning capitalized exploratory well and project costs	$	632
Additions to exploratory well and project costs pending the determination of proved reserves	2,457

Reclassifications due to determination of proved reserves	(2,380)


Ending capitalized exploratory well and project costs	$	709

Aging of capitalized exploratory costs and the number of projects for which exploratory well costs have been capitalized for a period greater than one year, based on the date drilling was completed, are as follows:


	As of September 30, 2022		As of December 31, 2021

	(in millions, except well counts)
Capitalized exploratory well costs that have been suspended:
One year or less	$	709	$	621
More than one year	—		11
	$	709	$	632
Number of projects with exploratory well costs that have been suspended for a period greater than one year (a)	—		3

______________________

(a)The three exploratory wells that were suspended for a period greater than one year as of December 31, 2021 were completed during the first quarter of 2022.