Reports related to this article:
Project(s): View 8 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
Released May 01, 2020 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--ConocoPhillips (NYSE:COP) (Houston, Texas) has yet to see the full effect of the COVID-19 pandemic and the recent oil-price plunge in its quarterly results, but the oil and gas giant isn't taking any chances: Following a steep first-quarter net loss, it announced on Thursday it will curtail 230,000 and 420,000 barrels of oil equivalent per day in May and June, respectively, citing weak prices. Industrial Info is tracking more than $21 billion in active projects from Conoco worldwide, including more than $6 billion worth that have been affected by COVID-19.
Conoco's net loss of $1.7 billion for the quarter, compared with $1.8 billion in profits in the same period last year, was attributed to lower realized prices, price-driven non-cash impairments, and a change in the equity market value for Canadian firm Cenovus Energy, in which ConocoPhillips has a stake. Cenovus announced earlier this week it had taken a massive net loss due to the oil price plunge, and has ramped down its oil sands production by 60,000 barrels per day (BBL/d).
Conoco followed other energy giants in announcing "original 2020 guidance items should not be relied upon and that further guidance has been temporarily suspended," according to a quarterly earnings-related press release. Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) announced Thursday that it would cut its dividend for the first time since World War II, after it posted a net loss of $24 million for the first quarter, compared with $6 billion in profits for the same period last year.
Among the highest-valued projects to be affected--from Conoco or any other company--is the estimated $4.5 billion Train IV at the Freeport LNG complex in Quintana, Texas, on the Gulf Coast. ConocoPhillips was preparing to make a final investment decision on the 5.1 million-metric-ton-per-year unit, which would source natural gas from the Eagle Ford Shale, but has delayed that pivotal move until June 2021, with construction unlikely to begin until the following month.
Click on the image at right for a map of the Freeport LNG complex.
The U.S. Federal Energy Regulatory Commission (FERC) approved construction of the fourth train in May 2019, while the first and second trains began commercial operations in December and January, respectively. The COVID-19 crisis has yet to have any substantial effect on the $4.5 billion third train, which is in its final commissioning stages. For more information, see Industrial Info's project reports on Train 3 and Train 4.
Conoco also is delaying an estimated $2 million in maintenance for natural gas units 3 and 4 at the Sweeny Cogeneration Plant in Old Ocean, Texas, from the second to the third quarter. Each unit generates 115 megawatts (MW) from a gas-fired combustion turbine and a dual-pressure, duct-fired heat-recovery steam generator. For more information, see Industrial Info's project report.
Outside the U.S., one of the largest production projects to be affected by COVID-19 measures is Conoco's Barossa natural gas field development in the Timor Sea, offshore northern Australia, which is designed to supply gas to Conoco's Darwin LNG production complex. Much of the Barossa project had been set to begin construction in August, following a final investment decision in April. But with the decision pushed back to July, four key components of the massive project have had their construction kickoffs postponed to November, at the earliest:
Click on the image at right for a map of the Barossa development.
The centerpiece of the project is a floating, processing, storage and offloading (FPSO) vessel designed to process 600 million standard cubic feet per day of raw gas and 8,000 BBL/d of condensate, as well as store 650,000 barrels of condensate, produced in the Barossa Field. But the FPSO is no longer expected to begin construction until June 2021, even after Conoco awarded engineering, procurement and construction (EPC) contracts to Aker Solutions (Fornebu, Norway) and National Oilwell Varco Denmark I/S (Brøndby, Denmark) in early March. For more information, see Industrial Info's project report.
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.
Conoco's net loss of $1.7 billion for the quarter, compared with $1.8 billion in profits in the same period last year, was attributed to lower realized prices, price-driven non-cash impairments, and a change in the equity market value for Canadian firm Cenovus Energy, in which ConocoPhillips has a stake. Cenovus announced earlier this week it had taken a massive net loss due to the oil price plunge, and has ramped down its oil sands production by 60,000 barrels per day (BBL/d).
Conoco followed other energy giants in announcing "original 2020 guidance items should not be relied upon and that further guidance has been temporarily suspended," according to a quarterly earnings-related press release. Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands) announced Thursday that it would cut its dividend for the first time since World War II, after it posted a net loss of $24 million for the first quarter, compared with $6 billion in profits for the same period last year.
Among the highest-valued projects to be affected--from Conoco or any other company--is the estimated $4.5 billion Train IV at the Freeport LNG complex in Quintana, Texas, on the Gulf Coast. ConocoPhillips was preparing to make a final investment decision on the 5.1 million-metric-ton-per-year unit, which would source natural gas from the Eagle Ford Shale, but has delayed that pivotal move until June 2021, with construction unlikely to begin until the following month.
Click on the image at right for a map of the Freeport LNG complex.The U.S. Federal Energy Regulatory Commission (FERC) approved construction of the fourth train in May 2019, while the first and second trains began commercial operations in December and January, respectively. The COVID-19 crisis has yet to have any substantial effect on the $4.5 billion third train, which is in its final commissioning stages. For more information, see Industrial Info's project reports on Train 3 and Train 4.
Conoco also is delaying an estimated $2 million in maintenance for natural gas units 3 and 4 at the Sweeny Cogeneration Plant in Old Ocean, Texas, from the second to the third quarter. Each unit generates 115 megawatts (MW) from a gas-fired combustion turbine and a dual-pressure, duct-fired heat-recovery steam generator. For more information, see Industrial Info's project report.
Outside the U.S., one of the largest production projects to be affected by COVID-19 measures is Conoco's Barossa natural gas field development in the Timor Sea, offshore northern Australia, which is designed to supply gas to Conoco's Darwin LNG production complex. Much of the Barossa project had been set to begin construction in August, following a final investment decision in April. But with the decision pushed back to July, four key components of the massive project have had their construction kickoffs postponed to November, at the earliest:
- a six-to-eight-well drilling development; see project report
- a two-well drilling development; see project report
- a subsea pipeline, running 260 kilometers and connecting the developments with Darwin LNG; see project report
- a subsea production system; see project report
Click on the image at right for a map of the Barossa development.The centerpiece of the project is a floating, processing, storage and offloading (FPSO) vessel designed to process 600 million standard cubic feet per day of raw gas and 8,000 BBL/d of condensate, as well as store 650,000 barrels of condensate, produced in the Barossa Field. But the FPSO is no longer expected to begin construction until June 2021, even after Conoco awarded engineering, procurement and construction (EPC) contracts to Aker Solutions (Fornebu, Norway) and National Oilwell Varco Denmark I/S (Brøndby, Denmark) in early March. For more information, see Industrial Info's project report.
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.
