Hess 2008 Annual Report Download - page 73

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The capitalized well costs in excess of one year relate to 10 projects. Approximately 80% of the costs relates to
the Pony and Tubular Bells projects in the deepwater Gulf of Mexico where development options are being
evaluated at December 31, 2008. The remainder of the costs relate to projects where further drilling is planned or
development planning activities are ongoing.
6. Asset Retirement Obligations
The following table describes changes to the Corporation’s asset retirement obligations:
2008 2007
(Millions of dollars)
Asset retirement obligations at January 1 .............................. $1,055 $ 882
Liabilities incurred ............................................ 35 62
Liabilities settled or disposed of .................................. (56) (51)
Accretion expense ............................................. 67 50
Revisions ................................................... 309 84
Foreign currency translation ..................................... (196) 28
Asset retirement obligations at December 31 ........................... 1,214 1,055
Less: current obligations .......................................... 50 39
Long-term obligations at December 31 ............................... $1,164 $1,016
Revisions are primarily attributable to higher service and equipment costs in the oil and gas industry.
7. Long-Term Debt
Long-term debt at December 31 consists of the following:
2008 2007
(Millions of dollars)
Revolving credit facility, weighted average rate 2.2% ..................... $ 350 $ 220
Asset-backed credit facility, weighted average rate 2.8% ................... 500 250
Short-term credit facilities.......................................... —350
Fixed rate debentures:
7.4% due 2009 ................................................ 104 103
6.7% due 2011 ................................................ 662 662
7.9% due 2029 ................................................ 694 694
7.3% due 2031 ................................................ 745 745
7.1% due 2033 ................................................ 598 598
Total fixed rate debentures ....................................... 2,803 2,802
Fixed rate notes, payable principally to insurance companies, weighted average
rate 9.1%, due through 2014 ...................................... 108 126
Project lease financing, weighted average rate 5.1%, due through 2014 . . . ..... 132 140
Pollution control revenue bonds, weighted average rate 5.9%, due through 2034 . . 53 53
Other loans, weighted average rate 7.5%, due through 2019 ................. 939
3,955 3,980
Less: amount included in current maturities ............................. 143 62
Total ...................................................... $3,812 $3,918
The aggregate long-term debt maturing during the next five years is as follows (in millions): 2009 — $143
(included in current liabilities); 2010 — $31; 2011 — $702; 2012 — $874 and 2013 — $33.
57
HESS CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)