Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Dough Terreson with ISI Group.
Doug Terreson – ISI Group
First I want to congratulate you Dave on a great career and I agree with Jeanette [ph] you provided exemplary leadership during the past decade which is obviously been an important period of change for the super major. So good luck to you. On cost the release mentioned a 13% decline in your recurring expenses, which is obviously a pretty significant number. And on this point, I wanted to say if you would provide some color on the rate of change that is, how its movement in the capture rate on recovering cost in relation to previous couple of quarters?
Dave O'Reilly
Pat, do you want to can handle that question.
Pat Yarrington
Sure, yes.
Dave O'Reilly
Because I think its good question and we are very proud of what we will accomplished and I think we are on good run.
Doug Terreson – ISI Group
Sure.
Pat Yarrington
Doug, I think that we have continued to gain momentum on our cost reduction effort as they quarters have progressed here. A lot of the activity that we did in the earlier part of the year obviously we’re sitting down meaning one-on-one with the suppliers and vendors and to large extent, many of those contract renegotiations began to trigger in the second quarter and will continue on in the third quarter. So, we have tremendous amount of momentum behind us and as well as going forward. So, I would look forward to further positive results on this dimension going forward.
Operator
Our next question comes from Robert Kessler with Simmons & Company.
Robert Kessler – Simmons & Company
Couple of things from me. Firstly the tax rate, I am wondering Pat, if might be able offer us a clean tax rate figure recognizes with some of that $400 million from Gorgon item is buried in there and lowering the tax rate, and then any guidance going forward on that. And then secondly, just wondering if he might be willing to comment last year status of your Northwood [ph] prospect in the Gulf?
Pat Yarrington
Well, I’ll take tax question here, Dave. Yes, third quarter to second quarter, we did see our reduction in our tax rate of nearly 10%. The Gorgon related items were significant piece of that as were foreign exchange losses, those were about equally large contributors to that. So obviously, going forward you are not going to have of the Gorgon related component. But frankly foreign exchange is very hard for us to in any way predict. So, it’s hard for us to give you advance version of quarter clean number might look like. Lot of variables moving in a lot of directions, with a lot of jurisdiction and a lot of component, so I don’t have guidance for you.
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