ConocoPhillips, which is readying a spinoff of its refinery operations to reemerge as the largest pure-play explorer in North America, is planning to spend $15.5 billion for its capital program in 2012 and repurchase up to $10 billion more of its common stock.

About 90%, or $14 billion, of the 2012 capital program would support exploration and production (E&P) with 60% directed to North America projects. Next year’s budget includes $2.2 billion for worldwide exploration.

The increase in U.S. and Canadian spending compared with prior years reflects “improved market conditions, with additional emphasis on liquids-rich resource plays and high-return investments,” said CEO Jim Mulva.

“The 2012 capital program reflects our strategic emphasis on delivering value by investing in the most profitable opportunities. We expect competitive returns from our increased investments in sanctioned unconventional resource projects, such as our growing oilsands business in Canada, liquids-rich shale plays in the U.S. Lower 48” and a liquefied natural gas venture in Australia.

“As our production profile adjusts over time to reflect our increased levels of investment in liquids plays and lower levels in North American conventional natural gas, we expect to continue increasing margins in the upstream business.”

ConocoPhillips’ North American projects are varied. In the Lower 48 states capital funding is to be directed on the Eagle Ford Shale, as well as other liquids-rich plays in the Permian Basin and Bakken and Barnett shales. The program also funds ongoing development in the San Juan Basin as well as the company’s contribution to the Marine Well Containment Co. in the offshore.

Spending in Canada is slated to be focused on existing steam-assisted gravity drainage oilsands projects and selective programs in Western Canada conventional basins, primarily on high-graded resource plays and to maintain a position for future development.

Meanwhile, spending in Alaska is expected to be lower than in 2011, with most of the capital directed to existing Prudhoe Bay and Kuparuk fields, as well as fields on the western North Slope.

The company also plans to keep its focus on “accessing, testing and appraising material opportunities in both conventional and nonconventional oil and gas plays.” Among the North American projects slated for more appraisal are the Tiber and Shenandoah discoveries in the Gulf of Mexico, as well as delineation of the company’s position in the Eagle Ford, and pilot programs in Canada’s Horn River Basin.

The oil major began a share repurchase program in 2010 that by the end of this year will have totaled about 15%, or $15 billion of the outstanding shares purchased. The board on Friday approved another share repurchase program for up to another $10 billion of common stock.

The Houston-based company said it also remains committed to its plan begun in 2010 to sell $15-20 billion of assets through 2012. Through September the program has “yielded proceeds of $8 billion,” it said. Recently announced agreements to sell the company’s interests in two U.S. pipeline companies, along with other sales already closed in 4Q2011, are expected to increase the total to about $10.5 billion.

©Copyright 2011Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.