Asset Retirement Obligations

12 Months Ended

Dec. 31, 2023

Asset Retirement Obligation Disclosure [Abstract]

8. Asset Retirement Obligations

The following table describes the changes in our asset retirement obligations for the years ended December 31:


	2023		2022

	(In millions)
Balance at January 1	$	1,241	$	1,190
Liabilities incurred	135		126
Liabilities settled or disposed of (a)	(240)		(213)
Accretion expense	61		48
Revisions of estimated liabilities	148		92
Foreign currency remeasurement	1		(2)
Balance at December 31	$	1,346	$	1,241

Total Asset Retirement Obligations at December 31:
Current portion of asset retirement obligations	$	160	$	207
Long-term asset retirement obligations	1,186		1,034
Total at December 31	$	1,346	$	1,241

(a)Payments to settle asset retirement obligations are presented in Changes in other operating assets and liabilities on the Statement of Consolidated Cash Flows.

The liabilities incurred in 2023 primarily relate to operations in Guyana while liabilities incurred in 2022 primarily relate to operations in Guyana and Malaysia. Liabilities settled or disposed of in 2023 and 2022 primarily result from abandonment activity completed in the Gulf of Mexico and the Bakken.

Revisions of estimated liabilities in 2023 include $82 million that resulted from revisions to estimated costs to abandon certain wells, pipelines and production facilities in the West Delta Field in the Gulf of Mexico. See Note 12, Impairment and Other. Other revisions of estimated liabilities in 2023 primarily reflect changes in service and equipment rates. Revisions of estimated liabilities in 2022 primarily reflect changes in service and equipment rates.

Sinking fund deposits that are legally restricted for purposes of settling asset retirement obligations, which are reported in non-current Other assets in the Consolidated Balance Sheet, were $294 million at December 31, 2023 (2022: $261 million).