Asset Retirement Obligations

6 Months Ended

Jun. 30, 2023

Asset Retirement Obligation Disclosure [Abstract]

Note G – Asset Retirement Obligations

The asset retirement obligations liabilities (ARO) recognized by the Company 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 the six-month periods ended June 30, 2023 and 2022 is shown in the following table.


(Thousands of dollars)	June 30, 2023		June 30, 2022
Balance at beginning of year	$	911,653	971,893
Accretion	22,521		23,439
Liabilities incurred	4,805		9,007

Revisions of previous estimates	(822)		—
Liabilities settled	(64,978)		(26,144)


Changes due to translation of foreign currencies	2,920		(3,650)
Balance at end of year	876,099		974,545
Current portion of liability at June 30 ¹	(32,771)		(110,653)
Noncurrent portion of liability at June 30	$	843,328	863,892

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.