Guarantees	3 Months Ended
Mar. 31, 2020
Guarantees [Abstract]
Guarantees	Note 11—Guarantees At March 31, 2020, we were liable for certain contingent obligations under various contractual arrangements as described below. We recognize a liability, at inception, for the fair value of our obligation as a guarantor for newly issued or modified guarantees. Unless the carrying amount of the liability is noted below, we have not recognized a liability because the fair value of the obligation is immaterial. In addition, unless otherwise stated, we are not currently performing with any significance under the guarantee and expect future performance to be either immaterial or have only a remote chance of occurrence. APLNG Guarantees At March 31, 2020, we had outstanding multiple guarantees in connection with our 37.5 percent ownership interest in APLNG. The following is a description of the guarantees with values calculated utilizing March 2020 exchange rates: ● During the third quarter of 2016, we issued a guarantee to facilitate the withdrawal of our pro-rata portion of the funds in a project finance reserve account. We estimate the remaining term of this guarantee is 11 years . Our maximum exposure under this guarantee is approximately $ 170 million and may become payable if an enforcement action is commenced by the project finance lenders against APLNG. At March 31, 2020, the carrying value of this guarantee was approximately $ 14 million. ● In conjunction with our original purchase of an ownership interest in APLNG from Origin Energy in October 2008, we agreed to reimburse Origin Energy for our share of the existing contingent liability arising under guarantees of an existing obligation of APLNG to deliver natural gas under several sales agreements with remaining terms of up to 22 years . Our maximum potential liability for future payments, or cost of volume delivery, under these guarantees is estimated to be $ 640 million ($ 1.2 billion in the event of intentional or reckless breach) and would become payable if APLNG fails to meet its obligations under these agreements and the obligations cannot otherwise be mitigated. Future payments are considered unlikely, as the payments, or cost of volume delivery, would only be triggered if APLNG does not have enough natural gas to meet these sales commitments and if the co-venturers do not make necessary equity contributions into APLNG. ● We have guaranteed the performance of APLNG with regard to certain other contracts executed in connection with the project’s continued development. The guarantees have remaining terms of up to 26 years or the life of the venture . Our maximum potential amount of future payments related to these guarantees is approximately $ 120 million and would become payable if APLNG does not perform. At March 31, 2020, the carrying value of these guarantees was approximately $ 6 million. Other Guarantees We have other guarantees with maximum future potential payment amounts totaling approximately $ 810 million, which consist primarily of guarantees of the residual value of leased office buildings, guarantees of the residual value of corporate aircrafts, and a guarantee for our portion of a joint venture’s project finance reserve accounts. These guarantees have remaining terms of up to five years and would become payable if, upon sale, certain asset values are lower than guaranteed amounts, business conditions decline at guaranteed entities, or as a result of nonperformance of contractual terms by guaranteed parties. At March 31, 2020, the carrying value of these guarantees was approximately $ 11 million. Indemnifications Over the years, we have entered into agreements to sell ownership interests in certain corporations, joint ventures and assets that gave rise to qualifying indemnifications. These agreements include indemnifications for taxes and environmental liabilities. The majority of these indemnifications are related to tax issues and the majority of these expire in 2021. Those related to environmental issues have terms that are generally indefinite and the maximum amounts of future payments are generally unlimited. The carrying amount recorded for these indemnification obligations at March 31, 2020, was approximately $ 70 million. We amortize the indemnification liability over the relevant time period the indemnity is in effect, if one exists, based on the facts and circumstances surrounding each type of indemnity. In cases where the indemnification term is indefinite, we will reverse the liability when we have information the liability is essentially relieved or amortize the liability over an appropriate time period as the fair value of our indemnification exposure declines. Although it is reasonably possible future payments may exceed amounts recorded, due to the nature of the indemnifications, it is not possible to make a reasonable estimate of the maximum potential amount of future payments. Included in the recorded carrying amount at March 31, 2020, was approximately $ 30 million of environmental accruals for known contamination that are included in the “Asset retirement obligations and accrued environmental costs” line on our consolidated balance sheet. For additional information about environmental liabilities, see Note 12—Contingencies and Commitments.

APLNG Guarantees

At March 31, 2020, we had outstanding multiple

guarantees in connection with our

37.5

percent ownership

interest in APLNG.

The following is a description of the guarantees

with values calculated utilizing March

2020 exchange rates:

●

During the third quarter of 2016, we issued a guarantee

to facilitate the withdrawal of our pro-rata

portion of the funds in a project finance reserve

account.

We estimate the remaining term of this

guarantee is

11 years

Our maximum exposure under this guarantee is

approximately $

170

million and

may become payable if an enforcement action is

commenced by the project finance lenders against

APLNG.

At March 31, 2020, the carrying value of this

guarantee was approximately $

million.

●

In conjunction with our original purchase of an ownership

interest in APLNG from Origin Energy in

October 2008, we agreed to reimburse Origin

Energy for our share of the existing contingent liability

arising under guarantees of an existing obligation

of APLNG to deliver natural gas under

several sales

agreements with remaining terms of up to

22 years

Our maximum potential liability for future

payments, or cost of volume delivery, under these guarantees is estimated

to be $

640

million ($

1.2

billion in the event of intentional or reckless breach)

and would become payable if APLNG fails

meet its obligations under these agreements and

the obligations cannot otherwise be mitigated.

Future

payments are considered unlikely, as the payments, or cost of volume delivery, would only be triggered

if APLNG does not have enough natural gas

to meet these sales commitments and if the

co-venturers do

not make necessary equity contributions into APLNG.

●

We have guaranteed the performance of APLNG with regard to certain other contracts

executed in

connection with the project’s continued development.

The guarantees have remaining terms of up to

years or the life of the venture

Our maximum potential amount of future payments

related to these

guarantees is approximately $

120

million and would become payable if APLNG

does not perform.

March 31, 2020, the carrying value of these guarantees

was approximately $

million.

Other Guarantees

We have other guarantees with maximum future potential payment amounts totaling

approximately

810

million, which consist primarily of

guarantees of the residual value of leased office buildings,

guarantees

of the residual value of corporate aircrafts,

and a guarantee for our portion of a joint venture’s project finance

reserve accounts.

These guarantees have remaining terms

of up to

five years

and would become payable if,

upon sale, certain asset values are lower than

guaranteed amounts, business conditions

decline at guaranteed

entities, or as a result of nonperformance of contractual

terms by guaranteed parties.

At March 31, 2020, the

carrying value of these guarantees was approximately

million.

Indemnifications

Over the years, we have entered into agreements to

sell ownership interests in certain corporations,

joint

ventures and assets that gave rise to qualifying

indemnifications.

These agreements include indemnifications

for taxes and environmental liabilities.

The majority of these indemnifications are related

to tax issues and the

majority of these expire in 2021.

Those related to environmental issues have terms

that are generally indefinite

and the maximum amounts

of future payments are generally unlimited.

The carrying amount recorded for

these indemnification obligations at March 31, 2020,

was approximately $

million.

We amortize the

indemnification liability over the relevant time

period the indemnity is in effect, if one exists, based on

the

facts and circumstances surrounding each type

of indemnity.

In cases where the indemnification term

indefinite, we will reverse the liability when

we have information the liability is essentially

relieved or

amortize the liability over an appropriate time

period as the fair value of our indemnification

exposure

declines.

Although it is reasonably possible future

payments may exceed amounts recorded, due to

the nature

of the indemnifications, it is not possible to make

a reasonable estimate of the maximum

potential amount of

future payments.

Included in the recorded carrying amount

at March 31, 2020, was approximately $

million

of environmental accruals for known contamination

that are included in the “Asset retirement

obligations and

accrued environmental costs” line on our consolidated

balance sheet.

For additional information about

environmental liabilities, see Note 12—Contingencies

and Commitments.