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Released November 21, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Leading energy company ConocoPhillips (NYSE:COP) (Houston, Texas) this week announced its capital expenditure (capex) plans through 2029 as well as its outlook for oil prices and plans for its assets. The company plans to sell a 25% stake in its Alaska assets, while more than doubling its U.S. shale production from 2020 through 2029. Industrial Info is tracking more than $28 billion worth of active ConocoPhillips projects.
Compared with other energy companies, ConocoPhillips has performed well in recent years as oil and gas prices have declined. According to Reuters, the company's share price has dropped about 8% this year, compared with a key industry index, the SPDR S&P Oil & Gas Exploration & Production ETF, which has declined about 22%. The company's plans are intended to attract investors, with disciplined capex of about or a little less than $7 billion per year through 2029, share buybacks of $30 billion, and $20 billion spent on dividends.
The company's growth capital will include strong investments in U.S. shale oil production, where it will spend about $4 billion a year, running about 20 drilling rigs across four fields. The company expects 2020 production to be more than 400,000 barrels per day (BBL/d) and plans to boost this to about 900,000 BBL/d by the end of 2029. In the third quarter, ConocoPhillips said its production from the Bakken Shale, Permian Basin and Eagle Ford Shale jumped 21% year over year. The three basins represent about 30% of the company's total production.
Outside of U.S. shale, ConocoPhillips has a strong presence in Alaska, where it is underway with several projects for exploration and production. However, the company will sell a 25% stake in these projects, as it does not make a practice of financing 100% of large projects. Among the company's projects in the state is the Greater Mooses Tooth 2 addition at its production site in Alaska's Alpine field. The $1.5 billion project entails constructing new well pads with up to 48 wells that will use existing pipelines and facilities to produce 35,000 to 40,000 BBL/d. Construction began earlier this year, and the project is expected to wrap up in first-quarter 2021. For more information, see Industrial Info's project report.
Also in Alaska, ConocoPhillips is in the planning stage to launch its Bear Tooth drilling and production program in the Willow Field in the north of the state. The project requires drilling at several sites, and constructing an operations center and pipelines. Click here for a list of related projects.
In addition to Alaska programs, most of ConocoPhillips' exploration will be focused outside of the U.S., including Canada, Australia, Norway and Malaysia. In Norway's North Sea, the company plans next year to kick off a redevelopment and production drilling project at the Tor 2 Field. The project includes completing eight production wells at water depths of approximately 70 meters. The wells will send oil through a pipeline tied into the existing Ekofisk Complex. The project is expected to be completed by the end of 2020. For more information, see Industrial Info's project reports on the field redevelopment and subsea umbilical installation.
In Australia, ConocoPhillips is soon to begin construction of a floating production, storage and offloading (FPSO) vessel to handle natural gas and condensate production from the Barossa Field in the Timor Sea. The vessel will have a processing capacity of 600 million cubic feet per day of gas and 8,000 BBL/d of condensate, as well as 650,000 barrels of condensate storage. The $1.22 billion project is expected to kick off by the end of this year and be completed in early 2023. MODEC Management Services Pty Limited (West Perth, Australia) is providing engineering, procurement and construction services. For more information, see Industrial Info's project report.
ConocoPhillips plans to grow production about 3% a year over the coming decade. The company's outlook for oil prices forecasts little significant change, as it expects U.S. oil to average between $40 and $70 a barrel through the 2050s.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Compared with other energy companies, ConocoPhillips has performed well in recent years as oil and gas prices have declined. According to Reuters, the company's share price has dropped about 8% this year, compared with a key industry index, the SPDR S&P Oil & Gas Exploration & Production ETF, which has declined about 22%. The company's plans are intended to attract investors, with disciplined capex of about or a little less than $7 billion per year through 2029, share buybacks of $30 billion, and $20 billion spent on dividends.
The company's growth capital will include strong investments in U.S. shale oil production, where it will spend about $4 billion a year, running about 20 drilling rigs across four fields. The company expects 2020 production to be more than 400,000 barrels per day (BBL/d) and plans to boost this to about 900,000 BBL/d by the end of 2029. In the third quarter, ConocoPhillips said its production from the Bakken Shale, Permian Basin and Eagle Ford Shale jumped 21% year over year. The three basins represent about 30% of the company's total production.
Outside of U.S. shale, ConocoPhillips has a strong presence in Alaska, where it is underway with several projects for exploration and production. However, the company will sell a 25% stake in these projects, as it does not make a practice of financing 100% of large projects. Among the company's projects in the state is the Greater Mooses Tooth 2 addition at its production site in Alaska's Alpine field. The $1.5 billion project entails constructing new well pads with up to 48 wells that will use existing pipelines and facilities to produce 35,000 to 40,000 BBL/d. Construction began earlier this year, and the project is expected to wrap up in first-quarter 2021. For more information, see Industrial Info's project report.
Also in Alaska, ConocoPhillips is in the planning stage to launch its Bear Tooth drilling and production program in the Willow Field in the north of the state. The project requires drilling at several sites, and constructing an operations center and pipelines. Click here for a list of related projects.
In addition to Alaska programs, most of ConocoPhillips' exploration will be focused outside of the U.S., including Canada, Australia, Norway and Malaysia. In Norway's North Sea, the company plans next year to kick off a redevelopment and production drilling project at the Tor 2 Field. The project includes completing eight production wells at water depths of approximately 70 meters. The wells will send oil through a pipeline tied into the existing Ekofisk Complex. The project is expected to be completed by the end of 2020. For more information, see Industrial Info's project reports on the field redevelopment and subsea umbilical installation.
In Australia, ConocoPhillips is soon to begin construction of a floating production, storage and offloading (FPSO) vessel to handle natural gas and condensate production from the Barossa Field in the Timor Sea. The vessel will have a processing capacity of 600 million cubic feet per day of gas and 8,000 BBL/d of condensate, as well as 650,000 barrels of condensate storage. The $1.22 billion project is expected to kick off by the end of this year and be completed in early 2023. MODEC Management Services Pty Limited (West Perth, Australia) is providing engineering, procurement and construction services. For more information, see Industrial Info's project report.
ConocoPhillips plans to grow production about 3% a year over the coming decade. The company's outlook for oil prices forecasts little significant change, as it expects U.S. oil to average between $40 and $70 a barrel through the 2050s.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
