The asset retirement obligations liabilities (ARO) recognized by the Company are related to the estimated costs to dismantle and abandon its producing oil and natural gas properties and related equipment.

A reconciliation of the beginning and ending aggregate carrying amount of the ARO for the three-month periods ended March 31, 2026 and 2025 are shown in the following table.


(Thousands of dollars)	March 31, 2026		March 31, 2025
Balance at beginning of year	$	1,012,867	$	1,008,884
Accretion	14,514		14,045
Liabilities incurred	10,064		4,996

Revisions of previous estimates	—		3,999
Liabilities settled	(8,941)		(157)



Changes due to translation of foreign currencies	(2,371)		394
Balance at end of period	1,026,133		1,032,161
Current portion of liability	(53,630)		(77,452)
Non-current portion of liability	$	972,503	$	954,709

The estimation of future ARO is based on a number of assumptions requiring professional judgment. The Company cannot predict the type of revisions to these assumptions that may be required in future periods due to the availability of additional information such as: prices for oil field services, technological changes, governmental requirements and other factors.