Sticking with a plan to grow its upstream business, ConocoPhillips has begun 2003 with a new direction in its Exploration and Production (E&P) unit, announcing the retirement of a legacy Conoco Inc. executive whose skills were directed toward downstream products, and the promotion of a legacy Phillips Petroleum Co. executive, whose strong suit is the upstream.

The board of directors announced that Rob McKee, scheduled to retire in March after 35 years with Conoco and ConocoPhillips, was moved to “special projects” under CEO Jim Mulva as of Jan. 1. McKee took over exploration duties in 1992 for Conoco, and had held senior positions in refining and marketing as well as corporate strategy and business development.

Meanwhile, W.B. “Bill” Berry, president of the combined company’s Asia Pacific division, took over E&P duties effective Jan. 1. Berry began working for Phillips Petroleum in 1976, and has held several domestic and international upstream management positions. Berry was named senior vice president of E&P Eurasia-Middle East in 2001, and he also had served as director of corporate strategic planning for Phillips.

“Rob has helped us create what has the potential to become a great exploration and production organization, and we wish him every success in his future endeavors,” said Mulva. “He will continue to help us with a successful transition during the first quarter of the new year.”

A ConocoPhillips spokesman said that Mulva had wanted to “start the year right,” instead of waiting until March for the promotion to take effect. According to a recent study by John S. Herold Inc., Conoco was one of the top five spenders in the upstream market in 2001, with most of its capital directed on development activities (see NGI, Dec. 16).

In late November, Mulva laid out the company’s three-point plan to improve its capital return, and announced that almost 75% of its 2003 budget would be directed toward improving the upstream business (see NGI, Nov. 25). Eventually, the company wants its upstream business to comprise 65% of its total asset base, compared with a current 57% level. To accomplish its goals, Mulva said the company wants to grow production and reserves by building on its legacy projects.

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