Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations

v3.22.1
Asset Retirement Obligations
 3 Months Ended
Mar. 31, 2022
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, 2022

As of December 31, 2021

Beginning balance

$

40,694

$

17,334

Accretion

473

1,627

Additions

—

14,564

Revisions

—

7,169

Ending balance

$

41,167

$

40,694

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

The Company is required under the Etame PSC for the Etame Marin block in Gabon to conduct abandonment studies to update the amounts being funded for the eventual abandonment of the offshore wells, platforms and facilities on the Etame Marin block. The current abandonment study was prepared in November 2021. At December 31, 2021, associated with the study, the Company recorded an upward revision of $7.2 million to the asset retirement obligation primarily as a result of increased costs expected with the abandonment of the Etame Marin block and a change in the expected timing of the abandonment costs associated with the termination of the FPSO charter. As a result of the expected timing of the abandonment of the FPSO, included in accrued liabilities in the condensed consolidated balance sheet is $6.8 million of costs associated with the retirement obligation as of March 31, 2022.