ConocoPhillips has announced a 2015 capital budget of US$13.5 billion, a decrease of approximately 20% compared to 2014.
The reduction in capital relative to 2014 primarily reflects lower spending on major projects, several of which are nearing completion, as well as the deferral of spending on North American unconventional plays.
Despite the lower investment level, the company expects to achieve approximately 3% production growth in 2015 from continuing operations, excluding Libya. Key sources of growth include new production from 2015 major project startups at Eldfisk II, the Australia Pacific LNG (APLNG) Project and Surmont Phase 2.
Commenting on the budget, Ryan Lance, Chairman and CEO, said: "We are setting our 2015 capital budget at a level that we believe is prudent given the current environment. This plan demonstrates our focus on cash flow neutrality and a competitive dividend, while maintaining our financial strength. We are fortunate to have significant flexibility in our capital program. Spending on several major projects has peaked and we will get the benefit of production uplift from those projects over the next few years. In addition, we have significant identified inventory in the unconventionals, where we also retain a high degree of capital flexibility."
Approximately US$4.8 billion is focused on the company's sanctioned major projects. This represents a significant reduction compared to 2014, which included peak spending at the APLNG and Surmont Phase 2 projects. Funding in 2015 will focus on completion of APLNG and Surmont Phase 2, as well as multiple projects in Alaska, Europe and Malaysia.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/08122014/conocophillips-expects-aplng-production-growth-1924/