Accounting For Suspended Exploratory Well Costs (Tables)


	2011			2010			2009
	(millions of dollars)

Balance beginning at January 1	$	2,893		$	2,005		$	1,585
Additions pending the determination of proved reserves		310			1,103			624
Charged to expense		(213	)		(104	)		(51	)
Reclassifications to wells, facilities and equipment based on the determination of proved reserves		(149	)		(136	)		(200	)
Other		40			25			47
Ending balance	$	2,881		$	2,893		$	2,005
Ending balance attributed to equity companies included above	$	–		$	–		$	9


	2011		2010		2009
	(millions of dollars)

Capitalized for a period of one year or less	$	310	$	1,103	$	624
Capitalized for a period of between one and five years		1,922		1,294		924
Capitalized for a period of between five and ten years		409		278		220
Capitalized for a period of greater than ten years		240		218		237
Capitalized for a period greater than one year – subtotal	$	2,571	$	1,790	$	1,381
Total	$	2,881	$	2,893	$	2,005


	2011		2010		2009
Number of projects with first capitalized well drilled in the preceding 12 months		4		9		18
Number of projects that have exploratory well costs capitalized for a period of greater than 12 months		58		59		57
Total		62		68		75


Country/Project	Dec. 31, 2011		Years Wells Drilled	Comment
(millions of dollars)
Angola
– Perpetua-Zina-Acacia	$	15	2008 - 2009	Oil field near Pazflor development, awaiting capacity in existing/planned infrastructure.
Australia
– East Pilchard		10	2001	Gas field near Kipper/Tuna development, awaiting capacity in existing/planned infrastructure.
– SE Longtom		15	2010	Gas field near Tuna development, awaiting capacity in existing/planned infrastructure.
Indonesia
– Natuna		118	1981 - 1983	Development activity under way, while continuing discussions with the government on contract terms pursuant to executed Heads of Agreement.
Kazakhstan
– Kairan		53	2004 - 2007	Declarations involving field commerciality filed with Kazakhstan government in 2008; progressing commercialization and field development studies.
Malaysia
– Besar		18	1992 - 2010	Gas field off the east coast of Malaysia; progressing development plan.
– Other (2 projects)		8	1979 - 1995	Projects primarily awaiting capacity in existing or planned infrastructure.
Nigeria
– Bolia		15	2002 - 2006	Evaluating development plan, while continuing discussions with the government regarding regional hub strategy.
– Bosi		79	2002 - 2006	Development activity under way, while continuing discussions with the government regarding development plan.
– Pegi		32	2009	Awaiting capacity in existing/planned infrastructure
– Other (4 projects)		13	2002	Pursuing development of several additional offshore satellite discoveries which will tie back to existing/planned production facilities.
Norway
– Gamma		20	2008 - 2009	Evaluating development plan for tieback to existing production facilities.
– H-North		15	2007	Discovery near existing facilities in Fram area; progressing development plans.
– Lavrans		22	1995 - 1999	Development awaiting capacity in existing Kristin production facility; evaluating development concepts for phased ullage scenarios.
– Nyk High		19	2008	Evaluating field development alternatives.
– Other (6 projects)		26	1992 - 2010	Evaluating development plans, including potential for tieback to existing production facilities.
Papua New Guinea
– Juha		28	2007	Working on development plans to tie into planned LNG facilities.
United Kingdom
– Fram		55	2009	Progressing development and commercialization plans.
– Other (2 projects)		14	2001 - 2004	Projects primarily awaiting capacity in existing or planned infrastructure.
United States
– Julia Unit		78	2007 - 2008	Reached agreement with the Department of Interior and Department of Justice providing for suspension of production; progressing development plans with partners.
– Point Thomson		449	1977 - 2010	Continuing discussions with government and partners on development plan.
– Tip Top		31	2009	Evaluating development concept and requisite facility upgrades.
Total 2011 (32 projects)	$	1,133

- Definition

Tabular disclosure of the amount of exploratory well costs that have been capitalized after the completion of drilling and the number of projects for which those costs relate. Additionally, for exploratory well costs that have been capitalized for periods greater than one year at the most recent balance sheet date, this block of text may be used to disclose an aging of those amounts by year, or by using a range of years, and the number of projects to which those costs relate.

+ References+ Details