The Corporation continues capitalization of exploratory well costs when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the Corporation is making sufficient progress assessing the reserves and the economic and operating viability of the project. The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.

The following two tables provide details of the changes in the balance of suspended exploratory well costs, including an aging summary of those costs.


Change in capitalized suspended exploratory well costs (millions of dollars)	2025	2024	2023

Balance beginning at January 1	3,600	3,559	3,512
Additions pending the determination of proved reserves	250	453	200
Charged to expense	(432)	(69)	(95)
Reclassifications to wells, facilities and equipment based on the determination of proved reserves	(141)	(292)	(142)
Divestments/Other	9	(51)	84
Ending balance at December 31	3,286	3,600	3,559
Ending balance attributed to equity companies included above	225	225	306


Period-end capitalized suspended exploratory well costs (millions of dollars)	2025	2024	2023

Capitalized for a period of one year or less	250	453	200
Capitalized for a period of between one and five years	933	583	1,030
Capitalized for a period of between five and ten years	1,144	1,544	1,411
Capitalized for a period of greater than ten years	959	1,020	918
Capitalized for a period greater than one year - subtotal	3,036	3,147	3,359
Total	3,286	3,600	3,559

Exploration activity often involves drilling multiple wells, over a number of years, to fully evaluate a project. The table below provides a breakdown of the number of projects with only exploratory well costs capitalized for a period of one year or less and those that have had exploratory well costs capitalized for a period greater than one year.


	2025	2024	2023

Number of projects that only have exploratory well costs capitalized for a period of one year or less	1	5	—
Number of projects that have exploratory well costs capitalized for a period greater than one year	25	24	31
Total	26	29	31

Of the 25 projects that have exploratory well costs capitalized for a period greater than one year as of December 31, 2025, 10 projects have drilling in the preceding year or exploratory activity planned in the next two years, while the remaining 15 projects are those with completed exploratory activity. These projects are currently being progressed toward development, including evaluation to tie into existing infrastructure, awaiting capacity, and aligning with the respective governments for development plans.