ConocoPhillips Follows Strong 2022 with LNG, Alaska Buildouts

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Researched by Industrial Info Resources (Sugar Land, Texas)--The four magic words for oil profits--"tight supplies, high demand"--made ConocoPhillips' (NYSE:COP) (Houston, Texas) 2022 profits its highest in more than a decade. The oil and gas giant now expects to produce between 1.76 million and 1.8 million barrels per day (BBL/d) of oil equivalent in 2023, with up to $2 billion of investment toward four projects expected to bolster sales and profits for years to come. Industrial Info is tracking more than $6.6 billion worth of projects worldwide from ConocoPhillips, more than half of which is attributed to projects in the U.S. and Canada.

Click on the image at right for a graph detailing ConocoPhillips' active projects worldwide, by project type.

ConocoPhillips expects its capital expenditures (capex) for full-year 2023 to be between $10.7 billion and $11.3 billion, including $9.1 billion to $9.3 billion for base capital. The company expects to spend between $1.6 billion and $2 billion across four major projects: the Port Arthur LNG project in Texas; the North Field East and North Field South expansions in Qatar; and the Willow project on the North Slope of Alaska. The first three projects represent a renewed focus on liquefied natural gas (LNG) that started last year, as Europe scrambled to replace energy lost amid Russia's invasion of Ukraine.

In November, ConocoPhillips signed a 20-year sale and purchase agreement with Sempra Energy (NYSE:SRE) (San Diego, California) to buy 5 million tons per annum of LNG from Phase I of Port Arthur LNG, which includes a train that will produce up to 7.73 million metric tons per year for export, from 1 billion cubic feet per day of natural gas. ConocoPhillips also agreed to manage the feed-gas supply requirements for Phase I and acquire 30% of its equity. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project Database can learn more from a detailed project report, and November 29, 2022, article - Sempra Finds Strategic Partner for Proposed Port Arthur LNG Facility.

Sempra expects to make a final investment decision (FID) for Phase I of Port Arthur LNG before the end of the first quarter. Subscribers can click here for a full list of project reports related to Port Arthur LNG.

In October, ConocoPhillips was announced as the third international partner in QatarEnergy's (Doha, Qatar) North Field South LNG project, following its participation in QatarEnergy's North Field East. The following month, QatarEnergy and ConocoPhillips agreed to supply Germany with up to 2 million tons per year of LNG. Subscribers can click here for a full list of project reports related to North Field East and North Field South.

ConocoPhillips believes its Willow project in Alaska could produce up to 614 million barrels of oil over the next three decades. The company's proposed central processing facility would handle up to 130,000 BBL/d of crude oil and a yet-unknown amount of natural gas coming from Alaska's North Slope. Subscribers can read a detailed project report for the central processing facility, and can click here for a full list of project reports related to Willow.

Earlier this week, the U.S. Bureau of Land Management (BLM) released a final Supplemental Environmental Impact Statement for the Willow project, including its recommendations for how it should be developed. ConocoPhillips executives are reviewing BLM's findings, which would trim the number of drill pads from five to three, although a fourth could be considered in the future. It also would reduce the amount of land available for development, but by a smaller margin than many industry analysts had expected. Although ConocoPhillips had resisted changes from the BLM in past statements, it appeared more comfortable with BLM's latest proposal.

ConocoPhillips achieved record production in the Lower 48 U.S. states in 2022, "while adding new, high-quality strategic projects to enhance our global portfolio for decades to come," said Ryan Lance, chief executive officer of ConocoPhillips, in a quarterly earnings-related press release. "Building on 60 years of global LNG expertise, we expanded our LNG business in Australia, Germany, Qatar and along the U.S. Gulf Coast."

The company's full-year 2022 earnings stood at $18.7 billion, compared with full-year 2021 earnings of $8.1 billion.

Subscribers can click here for a full list of reports for active projects worldwide from ConocoPhillips, and click here for a full list of reports specifically for projects in the U.S. and Canada.

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) platform 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).