Asset Retirement Obligations

3 Months Ended

Mar. 31, 2024

Asset Retirement Obligation Disclosure [Abstract]

Note G – Asset Retirement Obligations

The asset retirement obligations liabilities (ARO) 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 three-month periods ended March 31, 2024 and 2023 is shown in the following table.


(Thousands of dollars)	March 31, 2024		March 31, 2023
Balance at beginning of year	$	914,763	$	911,653
Accretion	12,774		11,157
Liabilities incurred	8,960		3,605

Revisions of previous estimates	1,995		(822)
Liabilities settled	(737)		(4,855)



Changes due to translation of foreign currencies	(3,143)		394
Balance at end of period	934,612		921,132
Current portion of liability 1	(17,797)		(90,774)
Noncurrent portion of liability	$	916,815	$	830,358

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.