b'$6.2 million net loss in 2017, the result of a loss on our equity method investment in Kosmos BPSenegal Limited (KBSL) which more than offset the gain from KTIPI in 2017. KBSL ceased to beaccounted for under the equity method of accounting in November 2017.Other expenses, net. Other expenses, net decreased $11.8 million primarily related to the recoveryof $12.9 million of disputed charges related to the arbitration award against Tullow Ghana in 2018.Income tax expense (benefit). Income tax expense decreased by $1.8 million during the year endedDecember 31, 2018, as compared with the year ended December 31, 2017, primarily as a result ofhigher 2017 taxes due to changes in U.S. tax law, partially offset by higher 2018 pre-tax earnings inGhana and U.S. Gulf of Mexico. The Companys effective tax rates for the years ended December 31,2018 and 2017 were 85% and 25%, respectively. The effective tax rates for the periods presented wereimpacted by losses, primarily related to exploration expenses, incurred in jurisdictions in which we arenot subject to taxes and losses incurred in jurisdictions in which we have valuation allowances againstour deferred tax assets, and therefore we do not realize any tax benefit on such expenses or losses,partially offset by 2018 income from our equity method investment. The effective tax rate in Ghana isimpacted by higher oil revenue and lower oil derivative losses, partially offset by higher exploration andproduction expenses. The Ghanaian effective tax rate is impacted by the timing of non-deductibleexpenditures incurred associated with the damage to the turret bearing, due to the expected recoveryfrom insurance proceeds. Any such insurance recoveries would not be subject to income tax.Year Ended December 31, 2017 vs. 2016Years Ended December 31, Increase2017 2016 (Decrease)(In thousands)Revenues and other income:Oil and gas revenue . . . . . . . . . . . . . . . . . . . . $ 578,139 $ 310,377 $267,762Gain on sale of assets . . . . . . . . . . . . . . . . . . . Other income, net . . . . . . . . . . . . . . . . . . . . . 58,697 74,978 (16,281)Total revenues and other income . . . . . . . . . 636,836 385,355 251,481Costs and expenses:Oil and gas production . . . . . . . . . . . . . . . . . . 126,850 119,367 7,483Facilities insurance modifications, net. . . . . . . . (820) 14,961 (15,781)Exploration expenses . . . . . . . . . . . . . . . . . . . 216,050 202,280 13,770General and administrative . . . . . . . . . . . . . . . 68,302 87,623 (19,321)Depletion and depreciation . . . . . . . . . . . . . . . 255,203 140,404 114,799Interest and other financing costs, net . . . . . . . 77,595 44,147 33,448Derivatives, net . . . . . . . . . . . . . . . . . . . . . . . 59,968 48,021 11,947Loss on equity method investments, net . . . . . . 6,2526,252Other expenses, net . . . . . . . . . . . . . . . . . . . . 5,291 23,116 (17,825)Total costs and expenses . . . . . . . . . . . . . . . 814,691 679,919 134,772Loss before income taxes . . . . . . . . . . . . . . . . . . (177,855) (294,564) 116,709Income tax expense (benefit) . . . . . . . . . . . . . . 44,937 (10,784) 55,721Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(222,792) $(283,780) $ 60,988The results of operations for our equity method investments are presented in Loss on equitymethod investments, net. See Item 8. Financial Statements and Supplementary DataNote 7Equity Method Investments for additional information regarding our equity method investments.86'