Subsequent Event

9 Months Ended

Sep. 30, 2018

Subsequent Events [Abstract]

Subsequent Event

16.  Subsequent Events

In October, at Block 42, Offshore Suriname (Hess – 33%), the operator, Kosmos Energy Ltd, completed drilling operations on the Pontoenoe-1 exploration well.  High-quality reservoir was encountered, but commercial quantities of hydrocarbons were not discovered.  Third quarter results include $25 million in exploration expense for well costs incurred through September 30, 2018.  We estimate approximately $10 million of exploration expense will be recognized in the fourth quarter of 2018 for well costs incurred after September 30, 2018.

In early November, the operator, BP Canada, completed drilling of the Aspy exploration well, offshore Nova Scotia, Canada (Hess – 50%).  The well did not encounter commercial quantities of hydrocarbons and third quarter results include $94 million in exploration expense for well costs incurred through September 30, 2018.  We estimate approximately $30 million of exploration expense will be recognized in the fourth quarter of 2018 for well costs incurred after September 30, 2018.