Asset Retirement Obligations

12 Months Ended

Dec. 31, 2024

Asset Retirement Obligation Disclosure [Abstract]

Note G – Asset Retirement Obligations

The ARO liabilities 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 respective periods presented is shown in the following table.


(Thousands of dollars)	2024		2023
Balance at beginning of year	$	914,763	$	911,653
Accretion	52,511		46,059
Liabilities incurred	25,619		20,628

Revisions of previous estimates	29,279		29,056
Liabilities settled	(1,898)		(95,637)


Changes due to translation of foreign currencies	(11,390)		3,004
Balance at end of period	1,008,884		914,763
Current portion of liability	(48,080)		(10,712)
Non-current portion of liability	$	960,804	$	904,051

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.