Impairment and Other

12 Months Ended

Dec. 31, 2022

Asset Impairment Charges [Abstract]

Impairment and Other

12.  Impairment and Other

Oil and Gas Properties:

In September 2022, we recorded a pre-tax charge of $28 million ($28 million after income taxes) that resulted from updates to our estimated abandonment liabilities for non-producing properties in the Gulf of Mexico and $26 million ($26 million after income taxes) to fully impair the net book value of our interests in the Penn State Field in the Gulf of Mexico due to a mechanical issue on the field's remaining production well.

In June 2021, we recognized a charge of $147 million ($147 million after income taxes) in connection with estimated abandonment obligations for seven leases in the West Delta Field in the Gulf of Mexico, which we sold to a Fieldwood predecessor in 2004. See Note 8, Asset Retirement Obligations.

As a result of the significant decline in crude oil prices due to the global economic slowdown from COVID-19, we reviewed our oil and gas properties within the Exploration and Production operating segment for impairment in the first quarter of 2020. We recognized pre-tax impairment charges in the first quarter of 2020 to reduce the carrying value of our oil and gas properties and certain related ROU assets at the North Malay Basin in Malaysia by $755 million ($755 million after income taxes), the South Arne Field in Denmark by $670 million ($594 million after income taxes), and in the Gulf of Mexico, the Stampede Field by $410 million ($410 million after income taxes) and the Tubular Bells Field by $270 million ($270 million after income taxes) primarily as a result of a lower long-term crude oil price outlook. The impairment charges were based on estimates of fair value at March 31, 2020 determined by discounting internally developed future net cash flows, a Level 3 fair value measurement.

Other Assets:

In the first quarter of 2020, we recognized impairment charges totaling $21 million pre-tax ($20 million after income taxes) related to drilling rig ROU assets in the Bakken and surplus materials and supplies.