Profile: ConocoPhillips (COP.N)
12 Feb 2016
ConocoPhillips (ConocoPhillips), incorporated on November 16, 2001, is an independent exploration and production company. The Company explores for, produces, transports and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG) and natural gas liquids. The Company operates through six operating segments, which are primarily defined by geographic region: Alaska, Lower 48, Canada, Europe, Asia Pacific and Middle East, and Other International. At December 31, 2014, its continuing operations were producing in the United States, Norway, the United Kingdom, Canada, Australia, Timor-Leste, Indonesia, China, Malaysia, Qatar, Libya and Russia.
The Alaska segment primarily explores for, produces, transports and markets crude oil, natural gas liquids, natural gas and LNG. The Company has major ownership interests in two of North America’s oil fields located on Alaska’s North Slope: Prudhoe Bay and Kuparuk. It also has an operating interest in the Alpine Field, located on the Western North Slope. Additionally, the Company owns state and federal exploration leases, with approximately 0.9 million net undeveloped acres at December 31, 2014. Approximately 0.4 million of these acres are located in the National Petroleum Reserve—Alaska (NPRA) and 0.3 million are located in the Chukchi Sea. The Greater Prudhoe Area includes the Prudhoe Bay Field and five satellite fields, as well as the Greater Point McIntyre Area fields. Prudhoe Bay is the site of a large waterflood and enhanced oil recovery operation, as well as a gas plant , which processes natural gas for reinjection into the reservoir. Prudhoe Bay’s satellites are Aurora, Borealis, Polaris, Midnight Sun and Orion, while the Point McIntyre, Niakuk, Raven and Lisburne fields are part of the Greater Point McIntyre Area.
The Company operates the Greater Kuparuk Area, which consists of the Kuparuk Field and four satellite fields: Tarn, Tabasco, Meltwater and West Sak. Kuparuk is located 40 miles west of Prudhoe Bay. Field installations include three central production facilities , which separate oil, natural gas and water, as well as a separate seawater treatment plant. Development drilling at Kuparuk consists of rotary-drilled wells and horizontal multi-laterals from existing well bores utilizing coiled-tubing drilling. The Company has received regulatory approvals to advance oil development targeting the West Sak reservoir in the Kuparuk River Unit. On the Western North Slope, the Company operates the Colville River Unit, which includes the Alpine Field and three satellite fields: Nanuq, Fiord and Qannik. Alpine is located 34 miles west of Kuparuk.
The Company operates the North Cook Inlet Unit, the Beluga River Unit, and the Kenai LNG Facility in the Cook Inlet Area. It has a 100% interest in the North Cook Inlet Unit and the Kenai LNG Facility and owns 33.3% of the Beluga River Unit. The Kenai LNG Facility includes a 1.6 million-tons-per-year capacity plant, as well as docking and loading facilities for LNG tankers. The Company owns a 5% interest in the Point Thomson Unit, which is located approximately 60 miles east of Prudhoe Bay. The Company has a 29.1% ownership interest in Trans-Alaska Pipeline System (TAPS), and also has ownership interests in the Alpine, Kuparuk and Oliktok pipelines on the North Slope. The Company transports the petroleum liquids produced on the North Slope to south-central Alaska through an 800-mile pipeline that is part of TAPS. The Company’s wholly owned subsidiary, Polar Tankers, Inc., manages the marine transportation of its North Slope production, using five company-owned, double-hulled tankers, and charters third-party vessels as necessary. The tankers primarily deliver oil from Valdez, Alaska, to refineries on the west coast of the United States.
The Lower 48 segment consists of operations located in the United States Lower 48 states and exploration activities in the Gulf of Mexico. The Lower 48 business is organized within four regions covering the Gulf Coast, Mid-Continent, Rockies and San Juan. The Company holds 15 million net onshore and offshore acres in the Lower 48. The Lower 48 contributed 32% of the Company’s liquids production and 38% of its natural gas production. The Company holds 13 million net acres of onshore conventional and unconventional acreage in the Lower 48, the majority of , which is either held by production or owned by the Company. The Company’s unconventional holdings total approximately 2.7 million net acres in the following areas: 900,000 net acres in the San Juan Basin, located in northwestern New Mexico and southwestern Colorado; 619,000 net acres in the Bakken, located in North Dakota and Eastern Montana; 216,000 net acres in the Eagle Ford, located in South Texas; 186,000 net acres in the Permian, located in West Texas and southeastern New Mexico; 123,000 net acres in the Niobrara, located in northeastern Colorado; 65,000 net acres in the Barnett, located in north central Texas, and 578,000 net acres in other unconventional exploration plays.
The Company’s Canadian operations mainly consist of natural gas fields in western Canada and oil sands developments in the Athabasca Region of northeastern Alberta. Its operations in western Canada extend across Alberta, British Columbia and Saskatchewan. The Company operates or has ownership interests in approximately 80 natural gas processing plants in the region, and, as of December 31, 2014, it held leasehold rights in 5.7 million net acres in western Canada. The Company invests in opportunities in the following three core development areas: Deep Basin, where the Company holds leasehold rights in 1.4 million net acres, located in northwest Alberta and northeast British Columbia; Kaybob-Edson, where it holds leasehold rights in 0.9 million net acres in the Kaybob-Edson Area, located south of the Deep Basin in west-central Alberta, and Clearwater, which is located in west-central Alberta, south of Kaybob-Edson, where the Company holds 0.8 million net acres of leasehold rights. Assets located outside the three core development areas are focused on production optimization and consist of 2.6 million net acres of leasehold rights.
The Company’s Europe segment consists of operations principally located in the Norwegian and the United Kingdom sectors of the North Sea, as well as exploration activities in the Barents Sea, offshore Norway; Central North Sea and west of Shetland, offshore United Kingdom, and Baffin Bay and Greenland Sea, offshore Greenland. The Greater Ekofisk Area is located approximately 200 miles offshore Stavanger, Norway in the North Sea, and comprises four producing fields: Ekofisk, Eldfisk, Embla and Tor. Crude oil is exported to Teesside, England, and the natural gas is exported to Emden, Germany.
The Alvheim development is located in the northern part of the North Sea and consists of a floating production, storage and offloading (FPSO) vessel and subsea installations. Produced crude oil is exported via shuttle tankers, and natural gas is transported to the United Kingdom via a pipeline to the Beryl-Sage system. The Heidrun Field is located in the Norwegian Sea. Produced crude oil is transported to Mongstad in Norway and Tetney in the United Kingdom by double-hulled shuttle tankers. Part of the natural gas is injected into the reservoir for optimization of crude oil production, while the remainder is used as feedstock in a methanol plant in Norway, in , which the Company owns an 18.3% interest. It also has varying ownership interests in five other producing fields in the Norway sector of the North Sea and in the Norwegian Sea, as well as the Aasta Hansteen development.
The Company has various ownership interests in 19 producing gas fields in the Rotliegendes and Carboniferous areas of the Southern North Sea. Its interests in the East Irish Sea include the Millom, Dalton and Calder fields, which are operated by a third party. The Company owns a 24% interest in the Clair Field, located in the Atlantic Margin. Clair Ridge is the second phase of development for the Clair Field and comprises of a 36-slot drilling and production facility with a bridge-linked accommodation and utilities platform. The Company operates the Teesside oil and Theddlethorpe gas terminals in , which it has 29.3% and 50% ownership interests, respectively.
Asia Pacific and Middle East
The Asia Pacific and Middle East segment has exploration and production operations in China, Indonesia, Malaysia, Australia and Timor Leste; producing operations in Qatar, and exploration activities in Bangladesh, Brunei and Myanmar. The Company operates and owns a 56.9% interest in the associated Darwin LNG Facility, located at Wickham Point, Darwin. The Bayu-Undan gas condensate field is located in the Timor Sea Joint Petroleum Development Area between Timor-Leste and Australia. The Bayu-Undan natural gas recycle facility processes wet gas; separates, stores and offloads condensate, propane and butane, and re-injects dry gas back into the reservoir. In addition, a 500-kilometer natural gas pipeline connects the facility to the 3.5-million-tonnes-per-year capacity Darwin LNG Facility. Produced natural gas is piped to the Darwin LNG Plant, where it is converted into LNG before being transported to international markets. The Bayu-Undan Phase Three Development consists of two standalone, subsea horizontal wells tied back to the existing drilling, production and processing platform.
The Athena production license (WA-17-L) is located offshore Western Australia and contains part of the Perseus Field , which straddles the boundary with WA-1-L, an adjoining license area. Natural gas is produced from these licenses. The Company has a 30% interest in the Greater Sunrise gas and condensate field located in the Timor Sea. The Company operates two exploration permits in the Browse Basin, offshore northwest Australia, in , which it owns a 40% interest in permits WA-315-P and WA-398-P, of the Greater Poseidon Area. The Company operates two retention leases in the Bonaparte Basin, offshore northern Australia, where it owns a 37.5% interest in leases NT/RL5 and NT/RL6. The Company owns a 46% working interest in four exploration permits within the Canning Basin of Western Australia, which covers approximately 10 million gross acres. The Company operates five production sharing contracts (PSCs) in Indonesia: the offshore South Natuna Sea Block B and four onshore PSCs, the Corridor Block and South Jambi B, both located in South Sumatra, Warim in Papua and Palangkaraya in central Kalimantan. It also owns interests in five deepwater PSCs in Malaysia. Four are located off the eastern Malaysian state of Sabah: Block G, Block J, the Kebabangan Cluster (KBBC) and SB-311. The fifth PSC, deepwater Block 3E, is located off the Malaysian state of Sarawak.
The Company’s Other International segment includes exploration and producing operations in Libya and Russia, as well as exploration activities in Colombia, Poland, Angola, Senegal and Azerbaijan. The Waha Concession consists of multiple concessions and encompasses nearly 13 million gross acres in the Sirte Basin. The Company has a 50% operating interest in Block 36 and a 30% operating interest in Block 37, both of , which are located in Angola’s subsalt play trend. The two blocks total approximately 2.5 million gross acres. The Company has a 35% working interest in three exploration blocks offshore Senegal. The Company has a 2.5% interest in Baku-Tbilisi-Ceyhan (BTC), a pipeline , which transports crude oil from the Caspian Region through Azerbaijan, Georgia and Turkey for tanker loadings at the port of Ceyhan. The Company has a 70% non-operated working interest for deep rights in the Santa Isabel Block in the Middle Magdalena Basin, which covers approximately 71,000 net acres. The Company also holds a 30% non-operated working interests in three blocks in the Middle Magdalena Basin, which cover approximately 116,000 net acres.
600 N Dairy Ashford Rd
HOUSTON TX 77079-1100
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