Suspended Exploratory Well Costs

6 Months Ended

Jun. 30, 2015

Capitalized Exploratory Well Costs [Abstract]

Suspended Exploratory Well Costs

5. Suspended Exploratory Well Costs

The Company’s suspended exploratory well costs were $1.7 billion at June 30, 2015, and $1.5 billion at December 31, 2014. The increase in suspended exploratory well costs during 2015 is primarily related to the capitalization of costs associated with exploration drilling in the Gulf of Mexico and Mozambique. Projects with suspended exploratory well costs are those identified by management as exhibiting sufficient quantities of hydrocarbons to justify potential development and where management is actively pursuing efforts to assess whether reserves can be attributed to these projects. If additional information becomes available that raises substantial doubt as to the economic or operational viability of any of these projects, the associated costs will be expensed at that time. During the six months ended June 30, 2015, no exploratory well costs previously capitalized as suspended exploratory well costs for greater than one year at December 31, 2014, were charged to dry hole expense.