Suspended Wells

12 Months Ended

Dec. 31, 2019

Suspended Wells [Abstract]

Suspended Wells

Note 8—Suspended Wells and Other Exploration Expenses

The following table reflects the net changes in suspended exploratory well costs during 2019, 2018 and 2017:

Millions of Dollars

2019

2018

2017

Beginning balance at January 1

$

856

853

1,063

Additions pending the determination of proved reserves

239

140

118

Reclassifications to proved properties

(11)

(37)

(66)

Sales of suspended wells

(54)

(93)

-

Charged to dry hole expense

(10)

(7)

(262)

Ending balance at December 31 

$

1,020

*

856

853

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

Millions of Dollars

2019

2018

2017

Exploratory well costs capitalized for a period of one year or less

$

206

145

67

Exploratory well costs capitalized for a period greater than one year

814

711

786

Ending balance

$

1,020

*

856

853

Number of projects with exploratory well costs capitalized for a

period greater than one year

23

24

23

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, 2019:

Millions of Dollars

Suspended Since

Total

2016–2018

2013–2015

2004–2012

Greater Poseidon—Australia

(2)(3)

177

-

157

20

NPRA—Alaska

(1)

149

111

38

-

Barossa/Caldita—Australia

(2)(3)

136

59

-

77

Surmont—Canada

(1)

118

6

55

57

Middle Magdalena Basin—Colombia

(1)

68

-

68

-

Narwhal Trend—Alaska

(1)

52

52

-

-

Kamunsu East—Malaysia

(2)

19

-

19

-

NC 98—Libya

(2)

15

-

11

4

WL4-00—Malaysia

(2)

17

17

-

-

Other of $10 million or less each

(1)(2)

63

20

26

17

Total

$

814

265

374

175

(1)Additional appraisal wells planned.

(2)Appraisal drilling complete; costs being incurred to assess development.

(3)Assets held for sale as of December 31, 2019.

Other Exploration Expenses

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.

In 2019, we recorded before-tax dry hole expenses of $

111

 million due to our decision to discontinue

exploration activities in the Central Louisiana Austin Chalk trend. These charges are included in our Lower 48

segment and in the “Exploration expenses” line on our consolidated income statement. See Note 9—

Impairments for additional information on our decision to discontinue these exploration activities.