CAPITALIZED EXPLORATORY WELL COSTS

12 Months Ended

Dec. 31, 2022

Extractive Industries [Abstract]

CAPITALIZED EXPLORATORY WELL COSTS

CAPITALIZED EXPLORATORY WELL COSTS

The following summarizes the changes in capitalized exploratory well costs for the years ended December 31, 2022, 2021, and 2020. Additions pending the determination of proved reserves excludes amounts capitalized and subsequently charged to expense within the same year.

	For the Year Ended December 31,
	2022		2021		2020
	(In millions)
Capitalized well costs at beginning of year	$	321	$	197	$	141
Additions pending determination of proved reserves	287		174		226
Divestitures and other	—		—		(38)
Reclassifications to proved properties	(110)		(40)		(56)
Charged to exploration expense	(24)		(10)		(76)
Capitalized well costs at end of year	$	474	$	321	$	197

The following provides an aging of capitalized exploratory well costs and the number of projects for which exploratory well costs have been capitalized for a period greater than one year since the completion of drilling as of December 31:

	2022		2021		2020
	(In millions)
Exploratory well costs capitalized for a period of one year or less	$	215	$	198	$	184
Exploratory well costs capitalized for a period greater than one year	259		123		13
Capitalized well costs at end of year	$	474	$	321	$	197
Number of projects with exploratory well costs capitalized for a period greater than one year	21		13		5

Projects with suspended exploratory well costs capitalized for a period greater than one year since the completion of drilling are those identified by management as exhibiting sufficient quantities of hydrocarbons to justify potential development. Management is actively pursuing efforts to assess whether reserves can be attributed to these projects. Suspended exploratory well costs capitalized for a period greater than one year since the completion of drilling were $259 million at December 31, 2022, with $243 million related to Suriname. Analysis of well results is ongoing as is additional exploration and appraisal activity. The remaining projects pertain to onshore drilling activity in Egypt for which continued testing and evaluation is ongoing.

Dry hole expenses from suspended exploratory well costs previously capitalized for greater than one year at December 31, 2021 totaled $24 million. These expenses pertain to projects in the North Sea where development is no longer progressing.

The following table summarizes aging by geographic area of those exploratory well costs that, as of December 31, 2022, have been capitalized for a period greater than one year, categorized by the year in which drilling was completed:

	Total		2021		2020		2019 and Prior
	(In millions)
Suriname	$	243	$	153	$	90	$	—
Egypt	14		5		—		9
North Sea	2		2		—		—
	$	259	$	160	$	90	$	9