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Released February 12, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--ConocoPhillips' (NYSE:COP) (Houston, Texas) guidance for 2024 calls for $11 billion to $11.5 billion in capital expenditures (capex) as construction of its Willow oil-drilling project in Alaska moves into high gear and it continues funding for a liquefied natural gas (LNG) project in Texas in partnership with Sempra Energy (NYSE:SRE) (San Diego, California).
In comparison, ConocoPhillips' capex for 2023 totaled $11.2 billion, executives said last week during the company's fourth-quarter 2023 earnings conference call.
ConocoPhillips announced on December 22 it reached a final investment decision (FID) to develop the Willow oil drilling project on Alaska's North Slope. When completed, the project will be able to produce 200,000 barrels per day (BBL/d). For more information, see December 27, 2023, article - ConocoPhillips Reaches FID for Willow Oil Project in Alaska.
Andy O'Brien, senior vice president, global operations, said during the earnings conference call that "since taking the FID, we're really pleased with how quickly we've ramped up the activity. We're now into our second winter construction season on the North Slope, and we're mobilizing 1,200 workers right now who are going to be building gravel roads, gravel pads for the facilities, and beginning laying pipelines."
"We're also making some pretty significant progress with our modular facility fabrications," O'Brien continued. "So we do expect 2024 capital to be in the upper end of the previously communicated annual range of $1 billion to $1.5 billion per year, but our estimate for the capital to first production remains unchanged at $7 billion to $7.5 billion."
Drilling at the planned Willow Drill Site BT-1 is expected to be completed by December 2024. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a list of Willow-related project reports and click here for the related plant profiles.
ConocoPhillips also continues to inject funding into Phase 1 of Sempra Energy's Port Arthur LNG Project in Jefferson County, Texas. ConocoPhillips has 30% of the equity in Phase 1 of the project. ConocoPhillips will manage the feed-gas supply requirements for Phase 1 of the proposed liquefaction facility. The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks, and associated facilities capable of producing up to approximately 13.5 million tons per annum of LNG. Subscribers can click here for projects tied to the Sempra Port Arthur LNG development and click here for the related plant profile.
ConocoPhillips Chief Executive Officer Bill Bullock said that for Port Arthur, "we expect that our $400 million of equity contributions in 2024 will also be weighted toward the first half of the year."
Bullock said he did not expect President Joe Biden's pause on pending LNG projects to have an impact on the Port Arthur LNG Phase 1 project.
"We're really pleased that Port Arthur Phase 1; it's fully permitted," Bullock said. "It's got not only it's free trade agreement permit, but it's non-(free) trade agreement permit."
For more on the Biden administration's freeze on pending LNG export projects, see January 26, 2024, article - Biden Administration Pauses its Review of Permits for Proposed LNG Export Terminals.
ConocoPhillips reported fourth-quarter 2023 earnings of $3.0 billion, compared with fourth-quarter 2022 earnings of $3.2 billion. Full-year 2023 earnings were $11.0 billion, compared with full-year 2022 earnings of $18.7 billion.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
In comparison, ConocoPhillips' capex for 2023 totaled $11.2 billion, executives said last week during the company's fourth-quarter 2023 earnings conference call.
ConocoPhillips announced on December 22 it reached a final investment decision (FID) to develop the Willow oil drilling project on Alaska's North Slope. When completed, the project will be able to produce 200,000 barrels per day (BBL/d). For more information, see December 27, 2023, article - ConocoPhillips Reaches FID for Willow Oil Project in Alaska.
Andy O'Brien, senior vice president, global operations, said during the earnings conference call that "since taking the FID, we're really pleased with how quickly we've ramped up the activity. We're now into our second winter construction season on the North Slope, and we're mobilizing 1,200 workers right now who are going to be building gravel roads, gravel pads for the facilities, and beginning laying pipelines."
"We're also making some pretty significant progress with our modular facility fabrications," O'Brien continued. "So we do expect 2024 capital to be in the upper end of the previously communicated annual range of $1 billion to $1.5 billion per year, but our estimate for the capital to first production remains unchanged at $7 billion to $7.5 billion."
Drilling at the planned Willow Drill Site BT-1 is expected to be completed by December 2024. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a list of Willow-related project reports and click here for the related plant profiles.
ConocoPhillips also continues to inject funding into Phase 1 of Sempra Energy's Port Arthur LNG Project in Jefferson County, Texas. ConocoPhillips has 30% of the equity in Phase 1 of the project. ConocoPhillips will manage the feed-gas supply requirements for Phase 1 of the proposed liquefaction facility. The Port Arthur LNG Phase 1 project is permitted and expected to include two natural gas liquefaction trains and LNG storage tanks, and associated facilities capable of producing up to approximately 13.5 million tons per annum of LNG. Subscribers can click here for projects tied to the Sempra Port Arthur LNG development and click here for the related plant profile.
ConocoPhillips Chief Executive Officer Bill Bullock said that for Port Arthur, "we expect that our $400 million of equity contributions in 2024 will also be weighted toward the first half of the year."
Bullock said he did not expect President Joe Biden's pause on pending LNG projects to have an impact on the Port Arthur LNG Phase 1 project.
"We're really pleased that Port Arthur Phase 1; it's fully permitted," Bullock said. "It's got not only it's free trade agreement permit, but it's non-(free) trade agreement permit."
For more on the Biden administration's freeze on pending LNG export projects, see January 26, 2024, article - Biden Administration Pauses its Review of Permits for Proposed LNG Export Terminals.
ConocoPhillips reported fourth-quarter 2023 earnings of $3.0 billion, compared with fourth-quarter 2022 earnings of $3.2 billion. Full-year 2023 earnings were $11.0 billion, compared with full-year 2022 earnings of $18.7 billion.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).