Pursuant to the terms of the PSC for Block 9, the Government of Bangladesh was entitled to 61 percent of profit gas in the year and prior year, which equates to 34 percent of revenues while the Company is recovering historical capital costs. Overall, profit petroleum expense decreased due to decreased revenues from Block 9.
Production and operating expense increased due to the higher level of maintenance activity during the period.
Depletion expense increased on a unit-of-production basis as a result of the addition of a dew-point control unit.
Contingencies
The Company has contingencies related to various claims filed against it with respect to the Feni property in Bangladesh as at December 31, 2012. Refer to note 14 to the consolidated financial statements for the nine months ended December 31, 2012 for a complete discussion of these contingencies.
Indonesia, Kurdistan and Trinidad and Tobago
----------------------------------------------------------------------------(thousands of U.S. Exploration and Income tax dollars) evaluation expense Asset impairment recovery ----------------------------------------------------- Nine months ended December 31, ----------------------------------------------------- 2012 2011 2012 2011 2012 2011----------------------------------------------------------------------------Indonesia (82,208) (47,575) (16,281) - 19,387 -Trinidad (55,633) (59,641) (12,630) - - -Kurdistan (2,185) (2,206) (38,919) - - ---------------------------------------------------------------------------------------------------------------------------------------------------------(thousands of U.S. Depreciation dollars) and other Segment Profit ----------------------------------------------------- Nine months ended December 31, ----------------------------------------------------- 2012 2011 2012 2011----------------------------------------------------------------------------Indonesia 163 6,305 (78,939) (41,270)Trinidad (96) (61) (68,359) (59,702)Kurdistan - (18) (41,104) (2,224)----------------------------------------------------------------------------
Indonesia
Costs of $58 million related to unsuccessful wells, costs $13 million relating to seismic and other exploration projects totaling were incurred for various blocks, $3 million was spent on new ventures, $5 million was incurred to operate the branch office and $3 million for share based compensation expense. The prior year expense relates primarily to seismic exploration programs. In the current quarter the Company recognized an asset impairment of $16 million for the Lhokseumawe block. In January 2013, the Company gave notice to the operator to surrender its interest in Lhokseumawe block.
Trinidad and Tobago
Costs of $34 million related to unsuccessful wells in Block 2(ab) were expensed during the nine month period ended December 31, 2012 and the Company recognized an asset impairment of $13 million for Block 2(ab) in the current quarter. Exploration and evaluation costs expensed directly to income include $9 million of seismic costs, $8 million payments that are specified in various PSCs, and $3 million was incurred to operate the branch office.
