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Exploratory Well Costs
6 Months Ended
Jun. 30, 2017
Capitalized Exploratory Well Costs [Abstract]  
Exploratory Well Costs
5. Exploratory Well Costs

During the six months ended June 30, 2017, exploratory well costs were expensed for certain exploratory wells that did not encounter commercial quantities of hydrocarbons or that the Company determined were no longer making sufficient progress for continued capitalization of the exploratory well costs.
In the first quarter of 2017, the Company expensed exploratory well costs of $435 million related to the Shenandoah project in the Gulf of Mexico. The Shenandoah-6 appraisal well and subsequent sidetrack, which completed appraisal activities in April 2017, did not encounter the oil-water contact in the eastern portion of the field. Given the results of this well and the commodity-price environment, the Company suspended further appraisal activities.
During the second quarter of 2017, the Company expensed exploratory well costs of $241 million related to the Grand Fuerte area in Colombia due to insufficient progress on contractual and fiscal reforms needed for a deepwater gas development. All leases remain contractually in good standing.
During the second quarter of 2017, the Company also expensed exploratory well costs of $119 million in Côte d’Ivoire due to unsuccessful drilling activities in the south channel of the Paon prospect and in Block CI-527.
The Company’s suspended exploratory well costs were $888 million at June 30, 2017, and $1.2 billion at December 31, 2016. Projects with suspended exploratory well costs include wells that have sufficient reserves to justify completion as a producing well and sufficient progress is being made in assessing the reserves and the economic and operating viability of the project. 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, 2017, $392 million of suspended exploratory well costs previously capitalized for greater than one year at December 31, 2016, were charged to exploration expense.