ConocoPhillips, unable to find a buyer for its Kenai natural gas export facility in Alaska, plans to shutter operations until market conditions improve.
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ConocoPhillips on Thursday continued its turn away from natural gas and to more oil-weighted projects after snagging $305 million from an affiliate of Miller Thomson & Partners LLC for its legacy gas-rich Barnett Shale portfolio.
Houston-based ConocoPhillips, the largest operator in the natural gas-rich San Juan Basin, agreed Thursday to sell the portfolio for up to $3 billion to an affiliate of Hilcorp Energy Co.
Calgary-based Cenovus Energy Inc. is taking full control of some Western Canadian oilsands assets and adding three million net acres to its natural gas-rich Deep Basin portfolio in a transformative $13.3 billion (C$17.7 billion) transaction with ConocoPhillips.
ConocoPhillips reported a net loss of $3.6 billion in 2016, but the company continued its shift toward unconventional production by dispatching additional rigs to the Permian Basin, Bakken and Eagle Ford shales, and plans to have 11 rigs deployed in the Lower 48 in the next few weeks.
ConocoPhillips has put a “for sale” sign on its liquefied natural gas (LNG) export terminal in Kenai, AK. For 47 years, the plant was the only LNG export facility in North America; it is one of the longest-operating LNG plants in the world.
Houston-based ConocoPhillips is marketing up to $8 billion of assets, primarily natural gas-rich properties in North America, to make way for more global investments elsewhere, including in Texas and North Dakota, executives said Thursday.
With several major projects now complete, ConocoPhillips plans to shift its focus to unconventional production in the Lower 48, adding five rigs to form an eight-rig drilling program before the end of the year in an effort to get a jump start on production for 2017.
NatGas Price Volatility to Return in 2017, Lifted by Mexican Power Demand, Says ConocoPhillips Strategist
With an eye toward winter weather, natural gas price volatility is likely to return in 2017, given the prospect for potential capacity constraints and ever-larger exports to Mexico to support gas-fired generation, according to ConocoPhillips’ Jim Duncan, who directs commodity market research.
The state of Alaska, through the Alaska Gasline Development Corp. (AGDC), and ConocoPhillips Alaska Inc. have executed a memorandum of understanding (MOU) to form a joint venture company (JV) to market liquefied natural gas (LNG) from the Alaska LNG project and acquire North Slope gas, with an ultimate goal to bring global LNG buyers and North Slope wellhead sellers together.