v3.26.1
Leases
 12 Months Ended
Dec. 31, 2025
Disclosure of leases [Abstract]  
Leases Leases
LEASE ASSETS
Product transportation and storage
Field equipment and power
Offshore vessels and equipment
Office leases and other
Total
At December 31, 2023$840 $482 $71 $65 $1,458 
Additions5 118 40 68 231 
Depreciation(96)(135)(51)(20)(302)
Foreign exchange adjustments and other
3 3 4 (3)7 
At December 31, 2024752 468 64 110 1,394 
Additions (1)
1,554 413 45 43 2,055 
Depreciation(100)(208)(30)(24)(362)
Derecognitions(3)

(29)

(29)

— (61)
Foreign exchange adjustments and other
(4)(10)(7)(4)(25)
At December 31, 2025$2,199 $634 $43 $125 $3,001 
(1)During 2025, in connection with the AOSP asset swap (note 6), the Company became the sole contracted shipper on the Corridor pipeline and recognized $1,510 million of lease assets, with an associated reduction in the Company's product transportation, purchases, and processing commitments (note 19).
LEASE ASSETS, BY SEGMENT
As at December 31, 2025 and 2024, the Company had the following lease assets by segment:
 
20252024
Exploration and Production
 
North America
$370 $257 
North Sea
32 25 
Offshore Africa
35 93 
Oil Sands Mining and Upgrading
2,457 932 
Head Office
107 87 
 
$3,001 $1,394 
LEASE LIABILITIES
The Company measures its lease liabilities at the discounted value of its lease payments during the lease term. Lease liabilities as at December 31, 2025 and 2024 were as follows:
 20252024
Lease liabilities $3,106 $1,464 
Less: current portion373 255 
 $2,733 $1,209 
In addition to the lease assets disclosed above, on an ongoing basis the Company enters into short-term leases related to its Exploration and Production and Oil Sands Mining and Upgrading activities.
Other amounts included in net earnings and cash flows during 2025 and 2024 are provided below:

20252024
Expenses relating to short-term leases (1)
$306 $337 
Interest expense on lease liabilities$74 $69 
Variable lease payments not included in the measurement of lease liabilities$24 $59 
Total cash outflows for leases (2)
$1,458 $1,333 
(1)During 2025, the Company capitalized $693 million (2024 – $543 million) of short-term leases as additions to property, plant and equipment.
(2)Comprised of cash outflows relating to lease liabilities, short-term leases, and variable lease payments.