ConocoPhillips’ senior management team has outlined the strategic objectives and operating plans for 2009, at its annual analyst meeting in New York, focusing on projects in Qatar and the UAE.
The message from the top was that the company will maximize the value of its asset portfolio by focussing on its E&P business.
“While we have adjusted to the near-term environment, we have not altered our long-term view. ConocoPhillips is a self-sustaining and competitive international, integrated energy company with a high-quality asset base, strong operating expertise and substantial financial capabilities,” said Jim Mulva, chairman and chief executive officer.
“Over the last decade, we have executed a number of key strategic transactions that increased our scale and operational capabilities, and have invested $73 billion in organic growth. These steps created a company with more than 50 billion equivalent barrels of resources and 3 million barrels per day of refining capacity that is well-positioned to provide growth as the economy improves,” he added.
In its Exploration and Production (E&P) segment, the company outlined plans to focus on delivering a number of major growth projects. These initiatives include the Qatargas 3 LNG venture, the Shah sour gas development in Abu Dhabi, the Bohai Bay Phase II oil projects, several Canadian oil sands projects, and the Kashagan oil field.
Mulva reaffirmed that ConocoPhillips will fund a capital program of $12.5 billion in 2009, which while lower than 2008, essentially equals the company’s four-year average level of investment. The program is structured to continue funding those projects in the company’s opportunity portfolio that offer the most significant growth and development potential.
ConocoPhillips holds 10 billion barrels of proved reserves at year-end 2008 as well as leading positions in both natural gas production and heavy-oil acreage in North America, a legacy asset position in the North Sea, and strong growth prospects in the Asia Pacific, Russia and Caspian, and Middle East regions. Major near- and long-term drilling and development projects are under way in all these regions.
Also outlined at the meeting were plans to leverage the company’s growing technology capabilities. ConocoPhillips expects to spend approximately $325 million on technology in 2009, primarily to improve the exploitation of existing reserves and enhance the search for new resources, and to progress technologies for heavy oil, gas hydrates, carbon capture and conversion, biofuels, and refining processes.
“We will continue advancing the major projects that will drive our future growth. Over the long term, we expect energy demand to resume growing in response to rising world population, an eventual global economic recovery, and a desire for improved living standards throughout the world,” concluded Mulva.
