Asset Retirement Obligations

12 Months Ended

Dec. 31, 2022

Asset Retirement Obligation Disclosure [Abstract]

Note H – Asset Retirement Obligations

The asset retirement obligations liabilities (ARO) recognized by the Company at December 31, 2022 and 2021 are related to the estimated costs to dismantle and abandon its producing oil and natural gas properties and related equipment.

A reconciliation of the beginning and ending aggregate carrying amount of the ARO for 2022 and 2021 is shown in the following table.


(Thousands of dollars)	2022		2021
Balance at beginning of year	$	971,893	$	849,956
Accretion	46,243		46,613
Liabilities incurred	46,449		54,439

Revisions of previous estimates	(78,229)		48,737
Liabilities settled	(64,255)		(27,824)

Liabilities associated with assets held for sale	—		263
Changes due to translation of foreign currencies	(10,448)		(291)
Balance at end of year	911,653		971,893
Current portion of liability at end of year ¹	(94,385)		(132,117)
Noncurrent portion of liability at end of year	$	817,268	$	839,776

1 Included in “Other accrued liabilities” on the Consolidated Balance Sheets.

The estimation of future ARO is based on a number of assumptions requiring professional judgment. The Company cannot predict the type of revisions to these assumptions that may be required in future periods due to the availability of additional information such as: prices for oil field services, technological changes, governmental requirements and other factors.