Asset Retirement Obligations

12 Months Ended

Dec. 31, 2023

Asset Retirement Obligation Disclosure [Abstract]

Note G – Asset Retirement Obligations

The asset retirement obligations liabilities recognized by the Company are related to the estimated costs to dismantle and abandon its producing oil and natural gas properties and related equipment.

A reconciliation of the beginning and ending aggregate carrying amount of the ARO for the respective periods presented is shown in the following table.


(Thousands of dollars)	2023		2022
Balance at beginning of year	$	911,653	$	971,893
Accretion	46,059		46,243
Liabilities incurred	20,628		46,449

Revisions of previous estimates	29,056		(78,229)
Liabilities settled	(95,637)		(64,255)


Changes due to translation of foreign currencies	3,004		(10,448)
Balance at end of year	914,763		911,653
Current portion of liability ¹	(10,712)		(94,385)
Noncurrent portion of liability	$	904,051	$	817,268

1 Included in “Other accrued liabilities” on the Consolidated Balance Sheets.

The estimation of future ARO is based on a number of assumptions requiring professional judgment. The Company cannot predict the type of revisions to these assumptions that may be required in future periods due to the availability of additional information such as: prices for oil field services, technological changes, governmental requirements and other factors.