Asset Retirement Obligations

12 Months Ended

Dec. 31, 2024

Asset Retirement Obligations

Asset Retirement Obligations

Note 15 — Asset Retirement Obligations

Our AROs relate to mature offshore oil and gas properties that we acquired with the intention to perform decommissioning work at the end of their life cycles. In August 2022, we acquired from MP Gulf of Mexico, LLC (“MP GOM”), a joint venture controlled by Murphy Exploration & Production Company – USA, all of MP GOM’s 62.5% interest in the Thunder Hawk Field oil and gas properties, in exchange for the assumption of MP GOM’s abandonment obligations (initially estimated at $23.6 million). Our AROs also include P&A costs associated with our Droshky oil and gas properties (Note 4). The following table describes the changes in our AROs (in thousands):

	2024		2023		2022
AROs at January 1,	$	61,356	$	51,956	$	29,658
Liability incurred during the period		—		—		23,601
Revisions in estimates		(4,010)		3,257		(3,285)
Accretion expense		5,601		6,143		1,982
AROs at December 31,	$	62,947	$	61,356	$	51,956