CAPITALIZED EXPLORATORY WELL COSTS

3 Months Ended

Mar. 31, 2020

Extractive Industries [Abstract]

CAPITALIZED EXPLORATORY WELL COSTS

CAPITALIZED EXPLORATORY WELL COSTS

The Company’s capitalized exploratory well costs were $127 million and $141 million at March 31, 2020 and December 31, 2019, respectively. The decrease is primarily attributable to the joint venture agreement with Total S.A. which reduced Apache’s ownership interest in Suriname to 50 percent, the successful transfer of well costs, and dry hole write-offs, partially offset by additional drilling activity. Dry hole expenses from suspended exploratory well costs previously capitalized for greater than one year at December 31, 2019 totaled $14 million during the three months ended March 31, 2020. 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 proved reserves can be attributed to these projects.