CAPITALIZED EXPLORATORY WELL COSTS

12 Months Ended

Dec. 31, 2021

The following summarizes the changes in capitalized exploratory well costs for the years ended December 31, 2021, 2020, and 2019. 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,
	2021		2020		2019

	(In millions)
Capitalized well costs at beginning of year	$	197	$	141	$	159
Additions pending determination of proved reserves	62		226		286
Divestitures and other	(163)		(38)		(100)
Reclassifications to proved properties	(40)		(56)		(179)
Charged to exploration expense	(10)		(76)		(25)
Capitalized well costs at end of year	$	46	$	197	$	141

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:


	2021		2020		2019

	(In millions)
Exploratory well costs capitalized for a period of one year or less	$	13	$	184	$	108
Exploratory well costs capitalized for a period greater than one year	33		13		33
Capitalized well costs at end of year	$	46	$	197	$	141

Number of projects with exploratory well costs capitalized for a period greater than one year	9		5		2

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 $33 million at December 31, 2021, with $24 million related to exploration and appraisal well activity in the North Sea, where subsurface evaluation and project viability assessment is ongoing. The remaining projects pertain to onshore drilling activity in Egypt for which continued testing and evaluation is ongoing.

Suspended exploratory well costs capitalized for a period greater than one year since the completion of drilling at December 31, 2020 and 2019, relate to onshore projects in Egypt and the U. S. Drilling activity and testing has continued for several of these projects in Egypt throughout 2021, and are currently being evaluated for potential development. The costs related to the U.S. projects were charged to exploration expense based on management’s assessment and development efforts.

The following table summarizes aging by geographic area of those exploratory well costs that, as of December 31, 2021, have been capitalized for a period greater than one year, categorized by the year in which drilling was completed:


	Total		2020		2019		2018 and Prior

	(In millions)

Egypt	$	9	$	—	$	—	$	9
North Sea	24		24		—		—
	$	33	$	24	$	—	$	9