Capitalized Exploratory Well Costs

3 Months Ended

Mar. 31, 2017

Extractive Industries [Abstract]

Capitalized Exploratory Well Costs

CAPITALIZED EXPLORATORY WELL COSTS

The Company’s capitalized exploratory well costs were $261 million and $264 million at March 31, 2017 and December 31, 2016, respectively. The decrease is primarily attributable to successful transfers and dry hole write-offs, partially offset by additional drilling activities in the quarter. No suspended exploratory well costs previously capitalized for greater than one year at December 31, 2016 were charged to dry hole expense during the three months ended March 31, 2017. 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.