Conocophillips · NYSE:COP

Conocophillips — Investor Presentation (2009)

53 slides from Conocophillips's investor presentation, Dec 22, 2009

  1. Slide 1: Exploration & Production

    ConocoPhillips Exploration & Production

  2. Slide 2: Presentation Outline

    Presentation Outline Exploitation program  Strategy Jim Gallogly  2009 capital and production outlook Executive Vice President  Operating excellence Exploration & Production  Legacy portfolio Major projects Ryan Lance  Near-term project startups President Exploration & Production  Mid-term maj

  3. Slide 3: Exploration & Production Strategy

    Exploration & Production Strategy  Operating excellence  Maximize value of existing assets through exploitation  Deliver major growth projects  Higher impact exploration  Apply advanced technology Focus on execution

  4. Slide 4: E&P Capital Program

    E&P Capital Program  Continue to fund our maintenance programs • We will not compromise our operating and environmental integrity  Continue to efficiently exploit core assets  Projects already in execution remain fully funded • Includes Qatargas 3, Bohai Phase II, Kashagan, FCCL*  High-grading r

  5. Slide 5: 2009 Capital Expenditures

    2009 Capital Expenditures $B 10 SHAH / APLNG BOHAI PHASE II 8 KASHAGAN FCCL REX 6 QATARGAS 3 OTHERS LOWER 48 4 ALASKA CANADA 2 NORTH SEA 0 Maintenance Exploitation Major projects Strategic projects Wildcat 2009 capital exploration

  6. Slide 6: 2009 Production

    2009 Production MMBOED  2009 production essentially flat with 2008 2.5 Major projects  Exploitation partially offsetting base decline Exploitation 2.0  Delivered 2008 project startups • YK, BritSats, Alvheim, Su Tu Vang, Foster Creek 1.5 • Ramp-up and full year production benefits in 2009 Total E

  7. Slide 7: 2009 Capital and Production

    2009 Capital and Production Capital Program1 Production Contribution2 Middle East Russia/Caspian Middle East Africa & other Russia/Caspian 17% Africa & other 26% North North America Asia Pacific America 44% 19% 52% Asia Pacific 13% North North Sea Sea 12% 17% Disciplined capital program yields stabl

  8. Slide 8: Reserves Base

    Reserves Base Proved Reserves* (YE 2008) Reserve Type (excluding LUKOIL) BBOE 12 Heavy 10 oil 12% LUKOIL LUKOIL 8 Unconventional Conventional Other oil gas 18% 43% Asia Pacific Gas 6 North Sea LNG 8% Canada Conventional 4 gas ~60% 19% OECD Oil Core 2 USA 0 Well balanced reserves portfolio Product Re

  9. Slide 9: Reserves Replacement

    Reserves Replacement Annual Reserves Replacement Reserves Replacement Averages2,3 350% 300% Peer average1 Peer average1 305% 265% 300% 250% 250% 230% 196% 200% 185% 206% 200% 159% 150% 150% 100% 100% 86% 50% 50% 0% 0% 2 3 2004 2005 2006 2007 2008 3-Year 5-Year 10-Year 1 2008 peer reserve replacement

  10. Slide 10: Captured Resource Inventory

    Captured Resource Inventory North Sea North America Russia/Caspian, Middle East & Africa Asia Pacific Exploration & BD >40 BBOE 10 BBOE* Reserves Additional net resources >50 BBOE * 2008 year-end SEC reserves of 10.0 BBOE excluding Syncrude

  11. Slide 11: Operations Excellence

    Operations Excellence Production Losses* Facility Efficiency* 18% decrease 2007 - 08 96% 94% 92% 90% 2006 2007 2008 2006 2007 2008  Reducing Upstream production losses  Focus on improving operating efficiency  Demonstrating consistent reliability Maximizing value through safe, reliable and effici

  12. Slide 12: Cost Management

    Cost Management  Capturing benefits from improving cost environment Production Costs* • Priority on drilling and major project capital $ / BOE • Focused efforts on strategic sourcing and supplier 7% decrease management 8 • Volume purchases and global integration 6  E&P headcount reductions 4 $8.37

  13. Slide 13: Legacy Assets

    Legacy Assets Core OECD Production  North America • Largest oil & gas producer: 1.1 MMBOED • Total proved reserves: 5.1 BBOE • Total acreage position: 29.6 MM net acres  North Sea • Top 5 oil & gas producer: 392 MBOED • Total proved reserves: 0.9 BBOE 2006 2007 2008 2009 L48 Alaska Canada North Se

  14. Slide 14: Lower 48 Exploitation

    Lower 48 Exploitation 2008 Onshore Production* Bakken GAS OIL Cedar Creek BP Green River Basin Wind River Basin Devon Uinta Piceance Basin XTO Basin Panhandle Chesapeake Anadarko Basin Black Warrior Occidental Basin San Juan Basin Permian Barnett E. Texas / Arkla Basin Haynesville  Total production

  15. Slide 15: San Juan Basin Leader

    San Juan Basin Leader  World’s largest CBM1 producing basin (~ 2 BCFED)  Largest producer in the basin (1.1 BCFED net) • Average working interest ~80% • ~400 MMSCFD net production from Fruitland coal • ~700 MMSCFED net production from the tight sands  Largest acreage position and reserve base • ~

  16. Slide 16: Lower 48 Resource Plays

    Lower 48 Resource Plays  San Juan coalbed methane and tight sands • Many of the largest resource plays in North America • Leveraging experience and knowledge to resource plays elsewhere  North Dakota Bakken play • Top 3 position with over 180,000 net acres established at low cost • One of the lead

  17. Slide 17: Canada Exploitation

    Canada Exploitation 2008 Natural Gas Production1 Bri tis hC o lu EnCana mb ia Muskwa Alber ta Canadian Natural Resources Saskatche wan Northern Plains Montney Elmworth Talisman Grand Prairie Athabasca Foothills oil sands Edson Kaybob ExxonMobil O’Chiese Central Plains  Natural gas production: 1.1 B

  18. Slide 18: Western Canada Gas

    Western Canada Gas  Leading Western Canada Gas position • Top 3 natural gas producer • Large, undeveloped resource base • Significant infrastructure ownership  Focused effort to improve margins • Prioritizing programs while maximizing future optionality • Leveraging size, scale and scope • Reducin

  19. Slide 19: Canada Heavy Oil

    Canada Heavy Oil  Leading position in the Athabasca oil sands • 1 million net acres / 15+ billion BOE net resource Saleski (WI 100%) • Focused on SAGD1 production Syncrude (WI 9.03%)  Legacy North American integrated business Fort McMurray  Optionality providing competitive advantage Thornbury Su

  20. Slide 20: Canada Heavy Oil Strategy

    Canada Heavy Oil Strategy  Focus on in-situ SAGD process to extract bitumen and reduce environmental footprint • Land use 10-20% of reservoir footprint versus 150+% for mining • Water intensity considerably lower than mining & upgrading • Low steam-oil-ratio (SOR) results in higher energy efficienc

  21. Slide 21: Alaska

    Alaska 2008 Total Production* Chukchi Sea Alpine Kuparuk Prudhoe Bay NPR-A Point Thomson TAPS BP ExxonMobil Cook Inlet  Total production: 277 MBOED  Proved reserves: 1.6 BBOE  Land position: 2.4 MM net acres Largest producer and reserves holder in Alaska * Source: Company reports and internal est

  22. Slide 22: Alaska

    Alaska  Prudhoe Bay • Largest producing oil field in the US • Over 1,000 wells with 10+ year opportunity inventory • One of the largest EOR* projects in the world  Kuparuk • Second largest onshore producing oil field in the US • Ongoing in-fill development / 4 satellite fields  Alpine, western No

  23. Slide 23: North Sea Legacy Position

    North Sea Legacy Position 2008 Offshore Production* Heidrun Troll/Oseberg StatoilHydro Statfjord ExxonMobil Clair Alvheim Grane Total Britannia Shell J-Block East Irish Sea Greater Ekofisk BP S. North Sea  Total production: 392 MBOED  Proved reserves: 0.9 BBOE Top 5 producer in the North Sea * Sou

  24. Slide 24: United Kingdom

    United Kingdom  Greater Britannia • Long-life asset with ~30-year production span • Progressing satellite developments – BritSats brought online in 2008 and exceeding expectations – Alder tie-back to Britannia, first oil 2014 – Adding significant value to existing infrastructure  Central North Sea

  25. Slide 25: Norway

    Norway  Greater Ekofisk Area • Largest remaining oil resource in Norway • Continued field optimization and development maximizing value • Eldfisk II – 2 new platforms with 40-50 new production wells – Major waterflood expansion • Ekofisk South – New 40-slot wellhead platform • Tommeliten Alpha – Ga

  26. Slide 26: Exploitation Summary

    Exploitation Summary  Large, legacy assets in core OECD areas • Leading North America integrated position • Legacy North Sea position  Strong long-term financial returns • Generates ~80% of E&P cash from operations  Size, scale and scope leveraged to reduce costs  Ongoing potential to increase r

  27. Slide 27: Ryan Lance

    Ryan Lance President, Exploration & Production – Europe, Asia, Africa and the Middle East

  28. Slide 28: 2008 – 2009 Startups

    2008 – 2009 Startups Qannik BritSats Alvheim Yuzhno Qannik BritSats Alvheim YuzhnoKhylchuyu Khylchuyu(YK) (YK) Statfjord LL Su SuTu TuVang Vang Kelvin Foster FosterCreek Creek1D/E 1D/E Christina ChristinaLake Lake1B 1B Freeport North Belut Suban 2 Surmont Surmont11 Bohai BohaiPhase PhaseIIII Kerisi

  29. Slide 29: Major Near-Term Growth Projects

    Major Near-Term Growth Projects Yuzhno YuzhnoKhylchuyu Khylchuyu(YK) (YK) Bohai BohaiPhase PhaseIIII  Working interest: 30%  Working interest: 49% • Joint venture with LUKOIL  70 MBOED net peak production  45 MBOED net peak production  Phase II scope  First oil achieved June 2008 • FPSO and 5

  30. Slide 30: 2010 – 2013 Startups

    2010 – 2013 Startups Alpine AlpineWest West Jasmine Jasmine Kashagan Kashagan Gumusut Gumusut Christina ChristinaLake LakeC/D C/D Golden Pass El Merk S. Sumatra Bawal, Block B NLNG NLNGT6 T6Supply Supply Qatargas Qatargas33 2010-13 startups 2008-09 startups Continued development of legacy projects

  31. Slide 31: Legacy Growth Projects

    Legacy Growth Projects Qatargas Qatargas33 Kashagan Kashagan Photo courtesy of Qatargas  Working interest: 30%  Working interest: 8.4%  One of the worlds largest LNG projects  Legacy oil development • 7.8 MTPA LNG project • 130 MBOED net peak production • ~80 MBOED net peak production • ~1 BBOE

  32. Slide 32: Legacy Growth Projects

    Legacy Growth Projects Malaysia Malaysia  Organic growth success  Three major anchor developments targeting 2012-14 first production • Gumusut deepwater oil field under development • Malikai deepwater oil field in front-end engineering • Kebabangan gas/condensate field in front-end engineering • ~

  33. Slide 33: 2014+ Startups

    2014+ Startups Lookout Prudhoe Bay WRD Greater Ekofisk (Ekofisk South, Eldfisk II) Fiord West Mackenzie Gas Tommeliten Alpha Denali pipeline Amauligak / Umiak Clair II Alder Kashagan Phase 2+ Kalamkas Aktote Kairan Bohai Bay Phase III North Gialo Foster Creek 1F/G Shah NC98 Sunrise Christina Lake E/

  34. Slide 34: Shah Gas Project

    Shah Gas Project  Working interest: 40% Persian Gulf  Large gas/condensate resource  Development plan • 1 BCFD gas processing plant • Natural gas and liquid pipelines • Sulfur exporting facilities at Ruwais  Production of condensate and NGL’s Shah Gas  Extensive experience in the Project develo

  35. Slide 35: Australia Pacific LNG JV

    Australia Pacific LNG JV  50/50 joint venture with Origin Energy Queensland CBM 3P Reserves • Largest CBM producers in Australia and US • Experienced leaders in all segments of CBM-to-LNG COP / Origin  High-quality, world class natural gas resource BG • Over 8 million gross acres • 5.3 TCF net 3P

  36. Slide 36: Future Growth Opportunities

    Future Growth Opportunities Denali Denali &&Mackenzie MackenzieGas GasPipelines Pipelines  Denali – The Alaska Gas Pipeline • ConocoPhillips and BP joint agreement • Net discovered resources of over 8 TCF • Development plan – Gas treatment plant on North Slope – ~2,000 mile large-diameter pipeline

  37. Slide 37: Capital Discipline & Project Execution

    Capital Discipline & Project Execution Photo courtesy of Samsung Heavy Industries  Structured and systematic approach to project analysis and execution  Focus on delivering legacy projects on time and budget  Long-term future opportunities to deliver and sustain growth Delivering growth through d

  38. Slide 38: Larry Archibald

    Larry Archibald Vice President, Exploration

  39. Slide 39: Higher Impact Exploration

    Higher Impact Exploration  Continuing to add high impact, material opportunities to portfolio • $1B invested in new North American leasehold in 2008 – Chukchi Sea – Gulf of Mexico – Onshore resource plays • Arafura Sea Block X • Caspian Sea N Block (signed heads of agreement) • Bangladesh deepwater

  40. Slide 40: 2009 Exploration Spend

    2009 Exploration Spend 2009 Drilling Capital Total Exploration Spend ILX 1 Appraisal 14% 11% Capital $ 1.4 B Onshore L48 & Cash expense $ 0.6 B Canada Wildcats 30% 45% Total $ 2.0 B Increased focus on drilling material wildcats in 2009 1 Infrastructure led exploration

  41. Slide 41: Exploration Portfolio

    Exploration Portfolio Alaska North Atlantic  Chukchi Sea  UK & Norway central graben: New HPHT Triassic and subsalt wildcats  Onshore NPRA  Mid-Norway Jurassic well  Eastern Canada: Laurentian basin wildcat North America onshore  Focus on resource plays Caspian Sea  Canada: Montney, Muskwa, W

  42. Slide 42: Unconventional Resource Plays

    Unconventional Resource Plays  Good acreage positions in many of best unconventional resource plays • In 2007/08 added >750,000 net acres in North American resource plays Muskwa • Optionality to sustain long-term organic Montney growth onshore Deep Basin • Reducing 2009 spend in the most price sens

  43. Slide 43: Gulf of Mexico

    Gulf of Mexico  Building material portfolio in Lower Tertiary play • 288,000 net acres added in last three lease sales Shenandoah  Shenandoah discovery • Largest interest owner (40%) • ~300 ft pay in high quality sands • Extending play to northwest Rickenbacker ConocoPhillips leases  2+ additiona

  44. Slide 44: Browse Basin Gas

    Browse Basin Gas Kontiki  Material position in proven Browse basin gas play • Multi-TCF potential Poseidon- Poseidon-1 • Prospects analogous to near-by discoveries Reported ~16 TCFE* discovered resources  Drilling program underway • Poseidon-1 spud Jan 26th 2009 • Operator with 51% interest • Opti

  45. Slide 45: North Sea

    North Sea Dalsnuten Snefrid & Haklang  Significant position in central graben High discoveries Pressure High Temperature (HPHT) play Heidrun • Industry leader in North Sea HPHT drilling • Building on J-Block successes  Three high-impact wildcats in 2009-10 Visund ILX Statfjord • Central Graben Cla

  46. Slide 46: E. Coast Canada Laurentian Basin

    E. Coast Canada Laurentian Basin  Large license in deepwater frontier play area between two proven petroleum systems • ~4 million acres • 30+ year legacy position  Numerous mapped structures with multi-TCF running room  First deepwater well planned spud Q4 2009 – 2Q 2010 ConocoPhillips licenses •

  47. Slide 47: Indonesia Arafura Sea

    Indonesia Arafura Sea  Large, unexplored basin offshore Indonesia & northern Australia Aru Island  Giant structures with frontier play risk Onshore  2 wells by Q1 2010 oil seeps Amborip VI PSC  Success case running room on Australian acreage Arafura Sea Australia Block PSC Blocks Indonesia Arafu

  48. Slide 48: Peru Marañon Basin – Iquitos Arch

    Peru Marañon Basin – Iquitos Arch  Large frontier acreage position on east flank of Marañon basin • 7 BBO discovered in basin • 8.8 MM net acres  Near term exploration program Peru focused on seismic acquisition • 2009 – acquire 1500km 2D seismic • 2010 – additional seismic; 2 wells  Proactive en

  49. Slide 49: Kazakhstan N Block

    Kazakhstan N Block Kashagan discovery  Two giant, moderate risk prospects in a proven world class petroleum system KAZAKHSTAN  Heads of agreement – signed Dec 2008 Aqtau • Joint Operating Company, WI 24.5%  Final documents targeting Q1 2009 N Block  Seismic program Q4 2009 TURKMENISTAN Baku Casp

  50. Slide 50: Alaska Chukchi Sea

    Alaska Chukchi Sea  New seismic data updates view of resource potential Popcorn #1  Drilling plans underway for Burger giant Devil’s Paw prospect Crackerjack #1 • Expect to drill in Q3 2011 Diamond #1 Devil’ Devil’s Paw Burger #1  Burger prospect may be drilled by industry in 2010-11 Klondike #1

  51. Slide 51: Bangladesh Deepwater (awaiting award)

    Bangladesh Deepwater (awaiting award)  Unexplored deepwater basin • No existing seismic data over deepwater Bangladesh blocks Bangladesh  Between emerging play trends • India: ~2 TCF discovered • Myanmar: ~4-7 TCF discovered India  High bidder on all blocks bid Myanmar • 8 blocks (6.7MM acres) in

  52. Slide 52: Higher Impact Exploration

    Higher Impact Exploration  Adding material opportunities to portfolio  Exploring in proven petroleum systems and frontier basins  2009 drilling program has strong focus on high impact prospects Global exploration program delivers organic growth

  53. Slide 53: E&P Keys to Success

    E&P Keys to Success  Operating excellence • Strong safety performance • Outstanding reliability  Executing exploitation programs  Completing near-term and long-term growth projects  Delivering exploration success  Managing costs in a low price environment • Realizing cost reductions • Improving

ConocoPhillips — Investor Presentation (2009) on 6ix