Exploratory Well Costs

3 Months Ended

Mar. 31, 2018

Capitalized Exploratory Well Costs [Abstract]

Exploratory Well Costs

6. Suspended Exploratory Well Costs

The Company’s suspended exploratory well costs were $539 million at March 31, 2018, and $525 million at December 31, 2017. For exploratory wells, drilling costs are capitalized, or “suspended,” on the balance sheet when the well has found a sufficient quantity of reserves to justify its completion as a producing well and sufficient progress is being made in assessing the reserves and the economic and operating viability of the project. If additional information becomes available that raises substantial doubt as to the economic or operational viability of any of these projects, the associated costs will be expensed at that time. During the three months ended March 31, 2018,no charges were booked to exploration expense for suspended exploratory well costs previously capitalized for greater than one year at December 31, 2017.