Property, Plant and Equipment

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

	December 31,
(In millions)	2013			2012
North America E&P	$	26,755		$	23,748
International E&P	12,428			13,214
Oil Sands Mining	10,436			10,127
Corporate	421			449
Total property, plant and equipment	50,040			47,538
Less accumulated depreciation, depletion and amortization	(21,895		)	(19,266		)
Net property, plant and equipment	$	28,145		$	28,272

During the third quarter of 2013, our Libya production operations were impacted by third-party labor strikes at the Es Sider oil terminal. We have had no oil liftings in Libya since July 2013. Uncertainty around production and sales levels from Libya have existed since the first quarter of 2011 when production operations were suspended until the fourth quarter of that year.  We and our partners in the Waha concessions continue to assess the condition of our assets in Libya and uncertainty around production and sales levels remains. As of December 31, 2013, our net property, plant and equipment investment in Libya is approximately $761 million and total proved reserves (unaudited) in Libya are 249 mmboe.

Deferred exploratory well costs were as follows:

	December 31,
(In millions)	2013			2012			2011
Amounts capitalized less than one year after completion of drilling	$	512		$	388		$	482
Amounts capitalized greater than one year after completion of drilling	281			229			222
Total deferred exploratory well costs	$	793		$	617		$	704
Number of projects with costs capitalized greater than one year after
completion of drilling	7			6			5
	December 31,
(In millions)	2013			2012			2011
Beginning balance	$	617		$	704		$	657
Additions	746			699			625
Dry well expense	(147		)	(111		)	(223		)
Transfers to development	(414		)	(629		)	(279		)
Dispositions	(9		)	(46		)	(76		)
Ending balance	$	793		$	617		$	704

Exploratory well costs capitalized greater than one year after completion of drilling as of December 31, 2013 are summarized by geographical area below:

(In millions)
Angola	$	153
Norway	70
E.G.	22
Canada	36
Total	$	281

Well costs that have been suspended for longer than one year are associated with seven projects. Management believes these projects with suspended exploratory drilling costs exhibit sufficient quantities of hydrocarbons to justify potential development.

Angola – Exploration on Angola Block 31 began in 2004, with costs accumulating through 2009. Exploration on Angola Block 32 began in 2011, with costs accumulating through 2013. In June and December 2013, we entered into agreements to sell our non-operated working interests in Angola Blocks 31 and 32 (see Note 6).

Norway – Three offshore Norway projects had costs incurred from 2009 through 2011. The development plan for Boyla was approved by the Norwegian government in October 2012. This will tie-back to the Alvheim FPSO and development drilling is planned in 2014, with first production expected in early 2015. Development options are being evaluated for the Caterpillar and Viper projects.

E.G. – The Corona well on Block D offshore E.G. was drilled in 2004, and we acquired an additional interest in the well in 2012. We plan to develop Block D through a unitization with the Alba field, which is currently being negotiated.

Canada – Exploration began on our Canadian in-situ assets at Birchwood in 2010 with costs accumulating through 2011. In 2012, we submitted a regulatory application for a proposed 12 mbbld SAGD demonstration project.  We expect to receive regulatory approval for this project by the end of 2014.  Upon receiving this approval, we will further evaluate our development plans.