XML 139 R19.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Asset Retirement Obligations (Notes)
 12 Months Ended
Dec. 31, 2019
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations Asset Retirement Obligations
Asset retirement obligations primarily consist of estimated costs to remove, dismantle and restore land at the end of oil and gas production operations. Changes in asset retirement obligations for the periods ended December 31 were as follows:
(In millions)
2019
 
2018
Beginning balance
$
1,145

 
$
1,483

Incurred liabilities, including acquisitions
34

 
21

Settled liabilities, including dispositions
(1,110
)
 
(117
)
Accretion expense (included in depreciation, depletion and amortization)
31

 
70

Revisions of estimates
46

 
(204
)
Held for sale(a)
108

 
(108
)
Ending balance(b)
$
254

 
$
1,145


(a) 
In the fourth quarter 2018, we entered into an agreement to sell our working interest in the Droshky field (Gulf of Mexico), including our $98 million asset retirement obligation; this transaction closed during the first quarter of 2019.
(b) 
$944 million of the 2018 ending balance relates to our asset retirement obligations in the U.K., the sale of which closed in 2019.
2019
•
Settled liabilities primarily relates to the sale of our U.K. business, which closed during the third quarter of 2019, and the sale of the Droshky field (Gulf of Mexico).
•
Held for sale reflects a transfer to settled liabilities during 2019. This transfer was primarily related to the Droshky field (Gulf of Mexico) which was considered held for sale at year-end 2018 and closed in the first quarter of 2019.
•
Ending balance includes $11 million classified as short-term at December 31, 2019.
2018
•
Settled liabilities include dispositions, primarily related to the sale of non-core, non-operated conventional properties in the Gulf of Mexico as well as retirements in the U.K.
•
Revisions of estimates were primarily due to the acceleration of U.K. abandonment activities to capture favorable market conditions and lower estimated abandonment costs.
•
Held for sale primarily related to the Droshky field, which was considered held for sale at year-end 2018.
•
Ending balance primarily relates to the U.K. and includes $64 million classified as short-term at December 31, 2018.