Guarantees	9 Months Ended
Sep. 30, 2020
Guarantees [Abstract]
Guarantees	Note 11—Guarantees At September 30, 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 September 30, 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 September 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 10 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 September 30, 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 1 to 22 years . Our maximum potential liability for future payments, or cost of volume delivery, under these guarantees is estimated to be $ 720 million ($ 1.3 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 16 to 25 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 September 30, 2020, the carrying value of these guarantees was approximately $ 7 million. Other Guarantees We have other guarantees with maximum future potential payment amounts totaling approximately $ 750 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 1 to 5 years and would become payable if certain asset values are lower than guaranteed amounts at the end of the lease or contract term, business conditions decline at guaranteed entities, or as a result of nonperformance of contractual terms by guaranteed parties. At September 30, 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 legal entities, 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 September 30, 2020, was approximately $ 50 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. For additional information about environmental liabilities, see Note 12—Contingencies and Commitments.

Note 11—Guarantees

At September 30, 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 September 30, 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

September 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

10 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 September 30, 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

1 to 22 years

Our maximum potential liability for future

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

to be $

720

million

1.3

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

16 to

25 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.

September 30, 2020, the carrying value of these

guarantees was approximately $

million.

Other Guarantees

We have other guarantees with maximum future potential payment amounts totaling

approximately

750

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

1 to 5 years

and would become payable if certain

asset values are lower than guaranteed amounts at

the end of the lease or contract term, business conditions

decline at guaranteed entities, or as a result of nonperformance

of contractual terms by guaranteed parties.

At September 30, 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 legal

entities, 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 September 30,

2020, was approximately $

million.

We amortize the