ConocoPhillips on Wednesday approved a 2010 capital program of $11.2 billion, representing a 10 percent decrease from estimated 2009 expenditures.
Approximately 86 percent of the capital program will be in support of the company's Exploration and Production (E&P) segment, while the Refining and Marketing (R&M) segment represents about 12 percent of the program. The 2010 program is consistent with the company's recently announced plan to improve returns through increased capital discipline, asset sales and continued growth in shareholder distributions.
"Our planned 2010 capital program will advance existing exploration and production projects, while preserving the potential to develop the company's large resource position in the future," said Jim Mulva, chairman and chief executive officer. "We intend to achieve our objectives of organically replacing reserves and increasing our upstream production from a reduced, more strategic asset base, consistent with our recently announced portfolio optimization plan.
"We look forward to discussing our 2010 capital, operating and financial plans in greater detail when we meet with the investment community next year."
Exploration and Production
The 2010 capital program for E&P is approximately $9.7 billion, including capitalized interest of $0.5 billion and $0.7 billion for the company's contributions to the FCCL business venture and loans to other affiliates. This program also includes about $1.4 billion for worldwide exploration.
In Europe, Asia, Africa and the Middle East, the E&P capital program is expected to total about $5.6 billion. Within the Asia Pacific region, funds will be used for further development of coalbed methane projects associated with the APLNG joint venture. Capital for the Middle East and Africa region is expected to be primarily directed toward completion of the Qatargas 3 project in Qatar, with remaining funds supporting onshore developments in Nigeria, Algeria and Libya.
Refining and Marketing
The 2010 capital program for R&M is approximately $1.3 billion, with about $0.9 billion for its U.S. downstream businesses and $0.4 billion for International R&M. These funds will be used for projects related to sustaining and improving the existing business with a focus on safety, regulatory compliance, and reliability. As previously announced, the refinery upgrade project in Wilhelmshaven has been delayed.
Emerging Businesses and Corporate
The 2010 capital program for Emerging Businesses and Corporate is approximately $0.2 billion. The majority of the Emerging Businesses funding is for completion of the second phase of an expansion project at the company's Immingham Combined Heat and Power plant in the United Kingdom, as well as for other Technology Research and Development spending.
In Corporate, capital expenditures are expected to be primarily for global information systems and services projects and corporate facilities.
ConocoPhillips is an international, integrated energy company with interests around the world.