Oil & Gas
Offshore Platform / Production Facility — Construction
Capitalizing construction costs for a fixed offshore production platform.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Assets Under Construction — Platform (PPE) | Asset (+) | 500,000,000.00 | - |
| Cash / Contractor Progress Billings | Asset/Liability (-) | - | 500,000,000.00 |
💡 Accountant's Note
Production platforms are the most capital-intensive assets in offshore E&P. Costs accumulate in Assets Under Construction and transfer to PPE when the facility is commissioned. The ARO for eventual decommissioning is recognized simultaneously.
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