Annual report pursuant to Section 13 and 15(d)

Asset Retirement Obligations

v3.6.0.2
Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2016
Asset Retirement Obligations [Abstract]  
Asset Retirement Obligations

7. ASSET RETIREMENT OBLIGATIONS

The following table summarizes the changes in our asset retirement obligations:





 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

(in thousands)

 

 

2016

 

 

2015

 

 

2014

Balance at January 1

 

$

 16,166 

 

$

 14,846 

 

$

 11,464 

Accretion

 

 

 903 

 

 

 778 

 

 

 720 

Additions

 

 

 -

 

 

 1,085 

 

 

 2,526 

Acquisitions and dispositions

 

 

 1,544 

 

 

 -

 

 

 -

Revisions

 

 

 (1)

 

 

 (543)

 

 

 136 

Balance at December 31

 

$

 18,612 

 

$

 16,166 

 

$

 14,846 

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

We are required under the Etame PSC to conduct regular abandonment studies to update the estimated costs to abandon the offshore wells, platforms and facilities on the Etame Marin block. In January 2016, we completed a new abandonment study. The final results of the abandonment study resulted in an increase in the costs necessary to fund future abandonment obligations. During 2014, we added asset retirement obligations related to two new platforms and two wells on the Etame Marin block, based upon baseline costs from the prior study.