b'Oil and gas revenue. Oil and gas revenue increased by $267.8 million as a result of eleven cargossold during the year ended December 31, 2017 as compared to seven cargos during the year endedDecember 31, 2016, and as a result of a higher realized price per barrel in 2017. We lifted and sold10,761 MBbl at an average realized price per barrel of $53.73 in 2017 and 6,756 MBbl at an averagerealized price per barrel of $45.94 in 2016.Other income. Other income, net decreased by $16.3 million as we recognized $58.7 million ofLOPI proceeds, net during the year ended December 31, 2017 related to the turret bearing issue onthe Jubilee FPSO compared to $74.8 million of LOPI proceeds in the previous year. The LOPI claimwas finalized in June 2017.Oil and gas production. Oil and gas production costs increased by $7.5 million during the yearended December 31, 2017 as compared to the year ended December 31, 2016 as a result of lowerLOPI claim insurance proceeds recognized during the year ended December 31, 2017 partially offset byaccrual adjustments from the Jubilee and TEN fields operator. The LOPI claim was finalized in June2017.Facilities insurance modifications, net. During the year ended December 31, 2017, we incurred$19.7 million of facilities insurance modification costs associated with the long-term solution to theturret bearing issue. These costs were offset by $20.5 million of hull and machinery insurance proceedsreceived during the year ended December 31, 2017 resulting in a credit of $0.8 million. During the yearended December 31, 2016, we incurred $15.0 million of facilities insurance modifications costsassociated with the long-term solution to the turret bearing issue with no insurance recoveries.Exploration expenses. Exploration expenses increased by $13.8 million during the year endedDecember 31, 2017, as compared to the year ended December 31, 2016. The increase is primarily aresult of higher geological and geophysical costs plus unsuccessful well costs of $43.2 million partiallyoffset by $14.5 million of lower seismic costs and $19.0 million of lower rig related costs incurredduring the year ended December 31, 2017 as compared with the year ended December 31, 2016.General and administrative. General and administrative costs decreased by $19.3 million duringthe year ended December 31, 2017, as compared to the year ended December 31, 2016. The decrease isprimarily a result of carried costs associated with the BP transaction and accrual adjustments from theJubilee and TEN fields operator.Depletion and depreciation. Depletion and depreciation increased $114.8 million during the yearended December 31, 2017, as compared with the year ended December 31, 2016, primarily as a resultof depletion recognized related to the sale of eleven cargos of oil during 2017, as compared to sevencargos during the prior year.Interest and other financing costs, net. Interest and other financing costs, net increased by$33.4 million primarily a result of TEN fields coming online in August 2016, which resulted in a$29.5 million decrease in capitalized interest during 2017.Derivatives, net. During the years ended December 31, 2017 and 2016, we recorded losses of$60.0 million and $48.0 million, respectively, on our outstanding hedge positions. The losses recordedwere a result of increases in the forward curve of oil prices during the respective periods.Loss on equity method investments, net. Loss on equity method investments, net increased by$6.3 million during the year ended December 31, 2017 primarily a result of $11.5 million lossrecognized on our equity method investment in KBSL offset by a $5.2 million gain recognized on ourequity method investment in KTIPI.87'