Seismic survey costs and other related costs incurred on exploratory and development
wells are identifiable non-monetary assets from which future economic benefits will flow
and are accordingly recognized as an intangible asset. These costs are stated at cost less
accumulated amortization and impairment and are amortized over 10 years on a straight
line basis in the case of development wells. The accounting policy for exploratory well is
applied to intangible assets related to exploratory wells.