CAPITALIZED EXPLORATORY WELL COSTS

12 Months Ended

Dec. 31, 2023

The following summarizes the changes in capitalized exploratory well costs for the years ended December 31, 2023, 2022, and 2021. Additions pending the determination of proved reserves excludes amounts capitalized and subsequently charged to expense within the same year.


	For the Year Ended December 31,
	2023		2022		2021

	(In millions)
Capitalized well costs at beginning of year	$	474	$	321	$	197
Additions pending determination of proved reserves	265		287		174

Reclassifications to proved properties	(135)		(110)		(40)
Charged to exploration expense	(18)		(24)		(10)
Capitalized well costs at end of year	$	586	$	474	$	321

The following provides an aging of capitalized exploratory well costs and the number of projects for which exploratory well costs have been capitalized for a period greater than one year since the completion of drilling as of December 31:


	2023		2022		2021

	(In millions)
Exploratory well costs capitalized for a period of one year or less	$	156	$	215	$	198
Exploratory well costs capitalized for a period greater than one year	430		259		123
Capitalized well costs at end of year	$	586	$	474	$	321

Number of projects with exploratory well costs capitalized for a period greater than one year	33		21		13

Projects with exploratory well costs capitalized for a period greater than one year since the completion of drilling are those identified by management as exhibiting sufficient quantities of hydrocarbons to justify potential development. Management is actively pursuing efforts to assess whether reserves can be attributed to these projects. Exploratory well costs capitalized for a period greater than one year since completion of drilling were $430 million at December 31, 2023, with $421 million related to Suriname exploration and appraisal. Detailed engineering and feasibility studies are underway in Block 58 offshore Suriname, and a final investment decision is expected near the end of 2024. In addition, ongoing analysis of well results and appraisal activity is continuing. The remaining projects pertain to onshore drilling activity in Egypt for which continued testing and evaluation is ongoing.

Dry hole expenses from suspended exploratory well costs previously capitalized for greater than one year at December 31, 2022 totaled $16 million. These expenses pertained to projects in the North Sea and Egypt.

The following table summarizes aging by geographic area of those exploratory well costs that, as of December 31, 2023, have been capitalized for a period greater than one year, categorized by the year in which drilling was completed:


	Total		2022		2021		2020 and Prior

	(In millions)
Suriname	$	421	$	178	$	153	$	90
Egypt	9		—		—		9

	$	430	$	178	$	153	$	99