Impairments

6 Months Ended

Jun. 30, 2013

Note 9—Impairments

During the three- and six-month periods of 2013 and 2012, we recognized before-tax impairment charges within the following segments:

	Millions of Dollars
	Three Months Ended			Six Months Ended
	June 30			June 30
		2013	2012	2013	2012

Canada	$	-	-	-	213
Europe		28	78	28	79
Asia Pacific and Middle East		-	4	2	4
	$	28	82	30	296

In the second quarters of 2013 and 2012, we recorded impairments in our Europe segment of $28 million and $78 million, respectively, primarily due to increases in the asset retirement obligation for the Don Field in the United Kingdom, which has ceased production. Additionally, the six-month period of 2012 included a $213 million property impairment in our Canada segment for the carrying value of capitalized project development costs associated with our Mackenzie Gas Project. Advancement of the project was suspended indefinitely in the first quarter of 2012 due to a continued decline in market conditions and the lack of acceptable commercial terms. We also recorded a $481 million impairment for the undeveloped leasehold costs associated with the project, which was included in the “Exploration expenses” line on our consolidated income statement.