Asset Retirement Obligations

6 Months Ended

Jun. 30, 2024

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

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, 2024 and 2023 are shown in the following table.

(Thousands of dollars)	June 30, 2024		June 30, 2023
Balance at beginning of year	$	914,763	$	911,653
Accretion	25,827		22,521
Liabilities incurred	14,199		4,805
Revisions of previous estimates	1,995		(822)
Liabilities settled	(2,925)		(64,978)
Changes due to translation of foreign currencies	(4,541)		2,920
Balance at end of period	949,318		876,099
Current portion of liability 1	(25,622)		(32,771)
Noncurrent portion of liability	$	923,696	$	843,328

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.