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Asset Retirement Obligations
12 Months Ended
Dec. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

Note 15 — Asset Retirement Obligations

Our AROs relate to mature offshore oil and gas properties that we acquired with the intention to perform decommissioning work at the end of their life cycles. In August 2022, we made an asset acquisition from MP Gulf of Mexico, LLC (“MP GOM”), a joint venture controlled by Murphy Exploration & Production Company – USA, for all of MP GOM’s 62.5% interest in the Thunder Hawk Field, in exchange for the assumption of MP GOM’s abandonment obligations (initially estimated at $23.6 million). Our AROs also include P&A costs associated with our Droshky oil and gas properties (Note 4). The following table describes the changes in our AROs (in thousands):

    

2022

    

2021

    

2020

AROs at January 1,

$

29,658

$

30,913

$

28,258

Liability incurred during the period

23,601

Revisions in estimates

 

(3,285)

 

(2,631)

 

Accretion expense

 

1,982

 

1,376

 

2,655

AROs at December 31, 

$

51,956

$

29,658

$

30,913