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 six months ended June 30, 2026 and 2025 are shown in the following table.


(Thousands of dollars)	June 30, 2026		June 30, 2025
Balance at beginning of year	$	1,012,867	$	1,008,884
Accretion	29,384		28,477
Liabilities incurred	12,256		5,428

Revisions of previous estimates	—		3,999
Liabilities settled	(8,265)		(6,359)



Changes due to translation of foreign currencies	(5,656)		9,784
Balance at end of period	1,040,586		1,050,213
Current portion of liability	(59,231)		(70,104)
Non-current portion of liability	$	981,355	$	980,109

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.