Asset Retirement Obligations

3 Months Ended

Mar. 31, 2025

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 three-month periods ended March 31, 2025 and 2024 are shown in the following table.


(Thousands of dollars)	March 31, 2025		March 31, 2024
Balance at beginning of year	$	1,008,884	$	914,763
Accretion	14,045		12,774
Liabilities incurred	4,996		8,960

Revisions of previous estimates	3,999		1,995
Liabilities settled	(157)		(737)



Changes due to translation of foreign currencies	394		(3,143)
Balance at end of period	1,032,161		934,612
Current portion of liability	(77,452)		(17,797)
Non-current portion of liability	$	954,709	$	916,815

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.