ConocoPhillips has announced a 2015 capital budget of $13.5bn, a decrease of around 20% compared to 2014.
The energy giant said the reduction in capital relative to 2014 primarily reflects lower spending on major projects, several of which are nearing completion, as well as the deferral of spending on North American unconventional projects.
Despite the lower investment level, the company expects to achieve approximately 3% production growth in 2015 from continuing operations, excluding Libya.
Key sources of growth include recent major project startups in Canada, Europe and Malaysia, development drilling programs in the Eagle Ford and Bakken, and new production from 2015 major project startups at Eldfisk II, the Australia Pacific LNG (APLNG) Project and Surmont Phase 2.
“We are setting our 2015 capital budget at a level that we believe is prudent given the current environment,” said Ryan Lance, chairman and chief executive officer.
“Spending on several major projects has peaked and we will get the benefit of production uplift from those projects over the next few years.
“In addition, we have significant identified inventory in the unconventionals, where we also retain a high degree of capital flexibility.”
