Conocophillips

Rockies Express Pipeline LLC, a partnership of Kinder Morgan Energy Partners, Sempra Pipelines & Storage and ConocoPhillips, was given the FERC go-ahead Friday to begin construction on the second segment of Phase I of the Entrega Pipeline Project, which has been integrated into the mammoth 1,663-mile Rockies Express project and will comprise the western end of the system.

ConocoPhillips on Thursday said it expects to see higher sequential 2Q2006 oil and gas production over 1Q2006, mostly on the acquisition of Burlington Resources Inc. (see Daily GPI, April 3). Meanwhile, BP plc, already beset by safety problems at some of its refinery units and an alleged propane price-fixing scheme (see Daily GPI, June 29), expects its quarterly output to fall about 2.5% from a year ago.

The Maritime Administration informed Louisiana Gov. Kathleen Babineau Blanco last week that her reasons for vetoing McMoRan Exploration’s Main Pass Energy Hub liquefied natural gas (LNG) import terminal offshore Louisiana earlier this month may violate federal law.

The rumor that ConocoPhillips has its eye on Burlington Resources shows that the acceleration of merger and acquisition activity this year is likely to continue, according to analysts at Raymond James & Associates. High commodity prices and low reserve valuations in the equity markets continue to drive interest in purchasing domestic exploration and production assets and companies.

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.

BP, ExxonMobil and ConocoPhillips have delivered a fiscal contract proposal to the Alaska governor on development and market delivery of Alaska natural gas production, agreeing to the basic terms Alaska Gov. Frank Murkowski laid out two weeks ago for construction of the $20 billion pipeline project from the North Slope of Alaska to the Lower 48 states, a spokesman for the governor told NGI.

Alaska Gov. Frank Murkowski has told the North Slope producers — BP, ExxonMobil and ConocoPhillips — that he wants a response this week to his contract terms for an agreement on the proposed construction of a gas pipeline from the North Slope to the Lower 48 states.

Alaska Gov. Frank Murkowski told the Alaska Chamber of Commerce this week that he has delivered to the North Slope producers — BP, ExxonMobil and ConocoPhillips — contract terms for an agreement on the proposed construction of a gas pipeline from the North Slope to the Lower 48 states. He wants a producer response by next week.

Alaska Gov. Frank Murkowski met face to face Wednesday in Houston with the CEOs of the three big North Slope producers — BP, ExxonMobil and ConocoPhillips — to negotiate terms of a North Slope natural gas pipeline contract, which he wants in place by this fall.