Exploratory Well Costs

6 Months Ended

Jun. 30, 2018

Capitalized Exploratory Well Costs [Abstract]

Exploratory Well Costs

6. Suspended Exploratory Well Costs

The Company’s suspended exploratory well costs were $498 million at June 30, 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 six months ended June 30, 2018, there was no exploration expense recorded for suspended exploratory well costs previously capitalized for greater than one year at December 31, 2017.