Asset Retirement Obligations

12 Months Ended

Dec. 31, 2025

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)	2025		2024
Balance at beginning of year	$	1,008,884	$	914,763
Accretion	57,730		52,511
Liabilities incurred	20,744		25,619

Revisions of previous estimates	(12,094)		29,279
Liabilities settled	(70,829)		(1,898)


Changes due to translation of foreign currencies	8,432		(11,390)
Balance at end of period	1,012,867		1,008,884
Current portion of liability	(41,959)		(48,080)
Non-current portion of liability	$	970,908	$	960,804

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.