CAPITALIZED EXPLORATORY WELL COSTS

12 Months Ended

Dec. 31, 2023

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, 2023, 2022, and 2021. 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,
	2023		2022		2021
	(In millions)
Capitalized well costs at beginning of year	$	50	$	46	$	197
Additions pending determination of proved reserves	150		138		62
Divestitures and other	—		—		(163)
Reclassifications to proved properties	(135)		(110)		(40)
Charged to exploration expense	(18)		(24)		(10)
Capitalized well costs at end of year	$	47	$	50	$	46

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:

	2023		2022		2021
	(In millions)
Exploratory well costs capitalized for a period of one year or less	$	38	$	34	$	13
Exploratory well costs capitalized for a period greater than one year	9		16		33
Capitalized well costs at end of year	$	47	$	50	$	46
Number of projects with exploratory well costs capitalized for a period greater than one year	8		10		9

Projects with 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. Exploratory well costs capitalized for a period greater than one year since completion of drilling were $9 million at December 31, 2023. 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, 2022 totaled $16 million. These expenses pertained to projects in the North Sea and Egypt.

The following table summarizes aging by geographic area of those exploratory well costs that, as of December 31, 2023, have been capitalized for a period greater than one year, categorized by the year in which drilling was completed:

	Total		2022		2021		2020 and Prior
	(In millions)
Egypt	$	9	$	—	$	—	$	9
	$	9	$	—	$	—	$	9