CAPITALIZED EXPLORATORY WELL COSTS

3 Months Ended

Mar. 31, 2018

Extractive Industries [Abstract]

Capitalized Exploratory Well Costs

CAPITALIZED EXPLORATORY WELL COSTS

The Company’s capitalized exploratory well costs were $363 million and $350 million at March 31, 2018 and December 31, 2017, respectively. The increase is primarily attributable to additional drilling activities during the period, partially offset by successful transfers and dry hole write-offs. No suspended exploratory well costs previously capitalized for greater than one year at December 31, 2017 were charged to dry hole expense during the three months ended March 31, 2018. 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.