b'operator of the Jubilee and TEN fields recognized during the year ended December 31, 2017. TheLOPI claim was finalized in June 2017 and therefore no proceeds were received in 2018. Additionally,we recognized $31.0 million of oil and gas production costs during 2018 related to the U.S. Gulf ofMexico as a result of the DGE acquisition.Facilities insurance modifications, net. During the year ended December 31, 2018, we incurred$50.2 million of facilities insurance modification costs associated with the long-term solution to theJubilee turret bearing issue. These costs were offset by $43.2 million of hull and machinery insuranceproceeds received during the year ended December 31, 2018, resulting in a net charge of $7.0 million.The difference between the amount of costs incurred and the insurance proceeds recovered areprimarily related to timing. During the year ended December 31, 2017, we incurred $19.7 million offacilities insurance modifications costs associated with the long-term solution to the Jubilee turretbearing issue, which was offset by $20.5 million of hull and machinery insurance proceeds receivedduring the year ended December 31, 2017, resulting in a net credit of $0.8 million.Exploration expenses. Exploration expenses increased by $85.4 million during the year endedDecember 31, 2018, as compared to the year ended December 31, 2017. The change is primarily aresult of $57.1 million of unsuccessful well costs related to Suriname drilling and $57.7 million ofunsuccessful well costs for the Wawa-1 and Akasa-1 exploration wells in Ghana, which were previouslycapitalized as suspended well costs and approximately $60.0 million related to seismic acquisition costsin the U.S. Gulf of Mexico incurred in 2018. These increases were offset by $90.2 million of rig relatedcosts incurred in 2017 but not 2018.General and administrative. General and administrative costs increased by $31.6 million during theyear ended December 31, 2018, as compared to the year ended December 31, 2017. The increase isdriven by costs related to acquisition activity, including the DGE acquisition, and the loss of our abilityto charge out certain costs associated with the transfer of operatorship of the Greater Tortue Ahmeyimdevelopment project and WCTP Block to BP and Tullow, respectively. No U.S. Gulf of Mexicoacquisition related general and administrative costs were included in the 2017 period.Depletion and depreciation. Depletion and depreciation increased $74.6 million during the yearended December 31, 2018, as compared with the year ended December 31, 2017. The increase isprimarily a result the DGE acquisition which added $59.8 million of depletion and depreciation for theU.S. Gulf of Mexico. The remaining increase is related to a higher depletion rate for the TEN fields as2018 had seven Jubilee and four TEN liftings compared to eight Jubilee and three TEN liftings in2017. Additionally, the Jubilee Field depletion increased as a result of costs associated with theMahogany and Teak discovery areas moving into the Jubilee Fields depletable cost basis in the fourthquarter of 2017. No U.S. Gulf of Mexico acquisition related depletion and depreciation costs areincluded in the 2017 period.Interest and other financing costs, net. Interest and other financing costs, net increased by$23.6 million primarily a result of a $17.9 million increase in interest related to a higher averageinterest rate on an increased outstanding debt balance, the result of the DGE acquisition. In addition,we expensed $4.3 million of existing unamortized debt issuance costs and deferred interest inconnection with amending the Facility in first quarter 2018 and capitalized interest decreased$2.0 million versus 2017.Derivatives, net. During the years ended December 31, 2018 and 2017, we recorded a gain andloss of $31.4 million and $60.0 million, respectively, on our outstanding hedge positions. The gain andloss recorded were a result of changes in the forward curve of oil prices during the respective periods.(Gain) loss on equity method investments, net. (Gain) loss on equity method investments, netresulted in a $72.9 million gain on our equity method investment in KTIPI in 2018, compared to a85'