Capitalized Exploratory Well Costs and Undeveloped Leasehold Costs (Tables)

6 Months Ended

Jun. 30, 2016

Capitalized Exploratory Well Costs [Abstract]

Changes in Capitalized Exploratory Well Costs

Changes in capitalized exploratory well costs are as follows and exclude amounts that were capitalized and subsequently expensed in the same period:

(millions)	Six Months Ended June 30, 2016
Capitalized Exploratory Well Costs, Beginning of Period	$	1,353
Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves	68
Divestitures (1)	(143		)
Reclassified to Proved Oil and Gas Properties Based on Determination of Proved Reserves	(4		)
Capitalized Exploratory Well Costs Charged to Expense (2)	(82		)
Capitalized Exploratory Well Costs, End of Period	$	1,192

⁽¹⁾  Represents our farm-out of a 35% interest in Block 12 offshore Cyprus to a new partner.

⁽²⁾  Includes amounts related to contract termination offshore Falkland Islands, Dolphin 1 exploratory well offshore Israel, and Silvergate exploratory well deepwater Gulf of Mexico

Aging of Capitalized Well Costs

The following table provides an aging of capitalized exploratory well costs based on the date that drilling commenced, and the number of projects that have been capitalized for a period greater than one year: 

(millions)	June 30, 2016		December 31, 2015
Exploratory Well Costs Capitalized for a Period of One Year or Less	$	86	$	95
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling	1,106		1,258
Balance at End of Period	$	1,192	$	1,353
Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year Since Commencement of Drilling	13		14

Aging of Exploratory Well Costs

The following table includes exploratory well costs that have been capitalized for a period greater than one year since the commencement of drilling as of June 30, 2016:

(millions)	Total by Project		Progress
Country/Project:
Deepwater Gulf of Mexico
Troubadour	$	51	Evaluating development scenarios for this 2013 natural gas discovery including subsea tieback to existing infrastructure.
Katmai	95		Evaluating development scenarios for this 2014 crude oil discovery. In second quarter 2016, drilling operations at the Katmai 2 appraisal well, located in Green Canyon 39, were temporarily abandoned as a result of encountering high pressure in the untested fault block. Plans to complete appraisal of the discovery at a future date are being developed.
Offshore Equatorial Guinea (Blocks I and O)
Diega (Block I) and Carmen (Block O)	237		Evaluating regional development scenarios for this 2008 crude oil discovery. We drilled subsequent appraisal wells. During 2014, we conducted additional seismic activity over Blocks I and O and are interpreting and evaluating the acquired seismic data.
Carla (Block O)	182		Evaluating regional development scenarios for this 2011 crude oil discovery. We drilled subsequent appraisal wells. During 2014, we conducted additional seismic activity over Blocks I and O and are interpreting and evaluating the acquired seismic data.
Yolanda/Felicita	66		Evaluating regional development plans for these 2007/2008 condensate and natural gas discoveries. A natural gas development team is working with the governments of Equatorial Guinea and Cameroon to evaluate natural gas monetization options and finalize a data exchange agreement between the two countries.
Offshore Cameroon
YoYo	52		Evaluating regional development plans for this 2007 condensate and natural gas discovery. A natural gas development team is working with the governments of Cameroon and Equatorial Guinea to evaluate natural gas monetization options and finalize a data exchange agreement between the two countries. Our 50% working interest partner has given notice to us and the Cameroon government of their intention to exit this acreage position. Once the assignment process is finalized, we will hold 100% operating working interest. We are marketing this additional 50% working interest.
Offshore Israel
Leviathan	194		Our development plan was approved by the Government and we are engaged in natural gas marketing activities to meet both Israeli domestic and regional export demands.
Leviathan-1 Deep	83		The well did not reach the target interval. We are developing future drilling plans to test this deep oil concept, which is held by the Leviathan Development and Production Leases.
Dalit	31		Our development plan was approved by the Government of Israel to develop this 2009 natural gas discovery with a tie-in to existing infrastructure at Tamar.
Offshore Cyprus

Cyprus	87		During first quarter 2016, we received proceeds of $131 million from our 35% farm-down of interest with a partner in Block 12. In second quarter 2016, we submitted an updated development plan and continue to work with the Government of Cyprus to obtain approval of the development plan and the subsequent issuance of an Exploitation License. Receiving an Exploitation License will allow us and our partners to perform the necessary engineering and design studies and progress the project to final investment decision.
Other
Individual Projects Less than $20 million	28		Continuing to assess and evaluate wells.
Total	$	1,106