Capitalized Exploratory Well Costs and Undeveloped Leasehold Costs

6 Months Ended

Jun. 30, 2020

Capitalized Exploratory Well Costs and Undeveloped Leasehold Costs

Note 6. Capitalized Exploratory Well Costs and Undeveloped Leasehold Costs

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, 2020
Capitalized Exploratory Well Costs, Beginning of Period	$	280
Additions to Capitalized Exploratory Well Costs Pending Determination of Proved Reserves	15
Capitalized Exploratory Well Costs Charged to Expense ⁽¹⁾	(51		)
Capitalized Exploratory Well Costs, End of Period	$	244


⁽¹⁾	Relates to second quarter 2020 impairment of Felicita discovery, Block O, offshore Equatorial Guinea; see Note 2. Basis of Presentation and Note 4. Impairments.

The following table provides an aging of capitalized exploratory well costs based on the date that drilling commenced:



(millions, except number of projects)	June 30, 2020		December 31, 2019
Exploratory Well Costs Capitalized for a Period of One Year or Less	$	30	$	22
Exploratory Well Costs Capitalized for a Period Greater Than One Year Since Commencement of Drilling	214		258
Capitalized Exploratory Well Costs, End of Period	$	244	$	280
Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year Since Commencement of Drilling	4		5

Undeveloped Leasehold Costs Changes in undeveloped leasehold costs are as follows:



(millions)	Six Months Ended June 30, 2020
Undeveloped Leasehold Costs, Beginning of Period	$	2,152
Additions to Undeveloped Leasehold Costs	2
Impairment ⁽¹⁾	(1,488		)
Other	(2		)
Undeveloped Leasehold Costs, End of Period	$	664


⁽¹⁾	Includes first quarter 2020 impairments of undeveloped leasehold costs for unproved properties in the Delaware Basin and Eagle Ford Shale of $1.5 billion collectively and $3 million related to our decision not to pursue lease renewal of undeveloped acreage in Gabon. See Note 2. Basis of Presentation and Note 4. Impairments.

As of June 30, 2020, undeveloped leasehold costs included $530 million, $80 million, and $54 million attributable to the Delaware Basin, other US onshore properties and international properties, respectively. Certain of these costs pertain to acquired leases or licenses that are subject to expiration over the next several years unless production is established on the acreage, while other costs pertain to acreage that is being held by production.