Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations

v3.21.1
Asset Retirement Obligations
 3 Months Ended
Mar. 31, 2021
Asset Retirement Obligations [Abstract]  
Asset Retirement Obligations 12. ASSET RETIREMENT OBLIGATIONS

The following table summarizes the changes in the Company’s asset retirement obligations:

(in thousands)

As of March 31, 2021

As of December 31, 2020

Beginning balance

$

17,334

$

15,844

Accretion

298

893

Additions

14,564

359

Revisions

—

238

Ending balance

$

32,196

$

17,334

Accretion is recorded in the line item “Depreciation, depletion and amortization” on the Company’s condensed consolidated statements of operations.

The Company is required under the Etame Marin block PSC to conduct regular abandonment studies to update the estimated costs to abandon the offshore wells, platforms and facilities on the Etame Marin block. The current abandonment study was completed in November 2018. In 2020, the Company recorded $0.4 million in additions associated with the South East Etame 4H development well and $0.2 million in revisions associated with a U.S. property. In connection with the Sasol Acquisition, as discussed in Note 3, the Company added $14.6 million of asset retirement obligations as a result of it increasing its interest in the Etame Marin block.