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Decommissioning Obligations
12 Months Ended
Dec. 31, 2022
Decommissioning Obligations  
Decommissioning Obligations

Note 16. Decommissioning Obligations

    

2022

    

2021

Decommissioning obligations, beginning of year

$

15,096

$

14,072

Changes in estimates

 

1,339

 

838

Accretion

245

186

Payments

(47)

Reclassification to liabilities relating to assets held for sale

(16,633)

Decommissioning obligations, end of year

$

$

15,096

Decommissioning obligations represent the present value of estimated remediation and reclamation costs associated with hydrocarbon properties and property, plant and equipment. As at December 31, 2022 and 2021, management revised its estimates of the expected decommissioning obligations related to its hydrocarbon production and processing assets. The Group discounted the decommissioning obligations using an average discount rate of 1.9% (2021: 1.2%), which is the risk-free rate in Canada for blended government securities and inflation of 2.25% (2021: 1.95%). As at December 31, 2022, the Group reclassified the decommissioning obligations to liabilities relating to assets held for sale (see Note 4).