Annual report pursuant to Section 13 and 15(d)

Asset Retirement Obligations

v3.3.1.900
Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2015
Asset Retirement Obligation [Abstract]  
Asset Retirement Obligations

6. ASSET RETIREMENT OBLIGATIONS

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

 

 

 

 

 

(in thousands)

 

 

2015

 

 

2014

 

 

2013

Balance at January 1

 

$

 14,846 

 

$

 11,464 

 

$

 10,368 

Accretion expense

 

 

 778 

 

 

 720 

 

 

 643 

Additions

 

 

 1,085 

 

 

 2,526 

 

 

 453 

Revisions

 

 

 (543)

 

 

 136 

 

 

 -

Balance at December 31

 

$

 16,166 

 

$

 14,846 

 

$

 11,464 

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.