Suspended Wells

12 Months Ended

Dec. 31, 2018

Note 8—Suspended Wells and Other Exploration Expenses

The following table reflects the net changes in suspended exploratory well costs during 2018, 2017 and 2016:

	Millions of Dollars
	2018		2017	2016

Beginning balance at January 1	$	853	1,063	1,260
Additions pending the determination of proved reserves		140	118	225
Reclassifications to proved properties		(37)	(66)	(27)
Sales of suspended wells		(93)	-	(247)
Charged to dry hole expense		(7)	(262)	(148)
Ending balance at December 31	$	856	853	1,063

The following table provides an aging of suspended well balances at December 31:

		Millions of Dollars
		2018		2017	2016

Exploratory well costs capitalized for a period of one year or less		$	145	67	132
Exploratory well costs capitalized for a period greater than one year			711	786	931
Ending balance		$	856	853	1,063
Number of projects with exploratory well costs capitalized for a
	period greater than one year		24	23	26

The following table provides a further aging of those exploratory well costs that have been capitalized for more
than one year since the completion of drilling as of December 31, 2018:

	Millions of Dollars
			Suspended Since
		Total	2015–2017	2012–2014	2004–2011


Greater Poseidon—Australia⁽²⁾		177	-	165	12
Barossa/Caldita—Australia⁽²⁾		136	59	-	77
Surmont—Canada⁽¹⁾		108	18	56	34
NPRA—Alaska⁽¹⁾		77	39	38	-
Middle Magdalena Basin—Colombia⁽¹⁾		65	65	-	-
Greater Clair—UK⁽²⁾		42	8	30	4
Bohai—China⁽²⁾		19	19	-	-
Kamunsu East—Malaysia⁽²⁾		19	-	19	-
NC 98—Libya⁽²⁾		15	-	11	4
Sunrise—Australia⁽²⁾		13	-	-	13
Other of $10 million or less each⁽¹⁾⁽²⁾		40	5	18	17
Total	$	711	213	337	161
(1)Additional appraisal wells planned.
(2)Appraisal drilling complete; costs being incurred to assess development.

In July 2016, we entered into an agreement to terminate our final Gulf of Mexico deepwater drillship contract. The drillship, used to drill our operated deepwater well inventory in the Gulf of Mexico through April 2016, was contracted on a shared, three-year term. Accordingly, we recorded before-tax rig cancellation charges and third-party costs of $146 million in our Lower 48 segment in 2016.

In February 2017, we reached a settlement agreement on our contract for the Athena drilling rig, initially secured for our four-well commitment program in Angola. As a result of the cancellation, we recognized a before-tax charge of $43 million net in the first quarter of 2017. These charges are included in the “Exploration expenses” line on our consolidated income statement and in our Other International segment in 2017.