Capitalized Exploration Drilling: Suspended Well Costs Exploratory drilling costs are capitalized until the drilling of the well is complete. If hydrocarbon resources are found whose commercial development is possible, the costs continue to be capitalized as construction in progress, subject to further appraisal activity that may include the drilling of further wells. Management evaluates all such capitalized costs at least once a year from both a technical and economic perspective to confirm the continued intent to develop or otherwise extract value from the discovery. If this is no longer the case, the relevant costs are written off. If proven reserves of oil or natural gas are determined and development is sanctioned, however, the relevant expenses are transferred within property, plant and equipment to machinery and technical equipment. Impairments for unsuccessful exploration wells are recognized in exploration expenses. The following table indicates the changes in capitalized exploration drilling. The last row shows the year-end value for equity-accounted companies. (XLS:) Download Capitalized exploration drilling (Million €) Fully consolidated companies 2018 2017 As of January 1 303 411 Additions to exploration drilling of the year 46 32 Capitalized exploration drilling charged to expense (25) (34) Reclassification of successful exploration drilling (20) (75) Translation effect 7 (31) As of December 31 311 303 Equity-accounted companies as of December 31 123 164 The following table provides an overview of the capitalization period, amounts capitalized for exploration drilling, and the number of suspended exploration wells. (XLS:) Download Capitalized exploration drilling (Million €) Fully consolidated companies 2018 2017 Wells for which drilling is not complete 10 4 Wells capitalized less than one year 32 35 Wells capitalized more than one year 269 264 Total 311 303 Number of exploration wells in construction in progress 29 31 Number of exploration wells in construction in progress at equity-accounted companies as of December 31 20 23 back next