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ConocoPhillips Earmarks 63% of '06 Budget for E&P

ConocoPhillips on Friday boosted its capital budget by $3.6 billion for 2006 to $10.5 billion, with 63% allocated for exploration and production (E&P). Most of the E&P budget is focused on international projects; however, about $900 million is earmarked for developments in the Lower 48 and Latin America, while $800 million will be spent in Alaska and another $800 million in Canada.

"Our 2006 capital budget underscores our commitment to maintain cost and capital discipline, while aggressively reinvesting in our business to grow our capability to deliver energy to the world," said CEO Jim Mulva. "We have a pipeline of large projects and favorable investment opportunities on the horizon that will allow us to strengthen our position worldwide and provide long-term value for our shareholders."

In the Lower 48, Conoco will focus on ongoing development programs in the Lobo and San Juan fields. Alaska funds will be directed toward development of the Alpine satellites and the West Sak heavy-oil field, along with continued development of the existing Prudhoe Bay and Kuparak areas. The company has allocated its Canadian E&P money toward Western Canada, specifically Syncrude expansion and Surmont heavy-oil development; and continued work on the Mackenzie Delta natural gas pipeline.

Conoco intends to spend $200 million in its global gas business for the ongoing development of liquefied natural gas facilities in the United States. And about $200 million is designated for emerging businesses and corporate for 2006, with most of the spending is earmarked for global information systems and services.

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