ConocoPhillips announced Tuesday a delay in the planned upgrade of its 260,000 barrel-per-day Wilhelmshaven refinery in Germany. This action is consistent with the recent announcement that the company's capital budget for 2010 will be reduced from current levels to improve financial flexibility and better balance expenditures and resources.

"This is the right project for Wilhelmshaven but not now," said Willie Chiang, senior vice president, Refining, Marketing & Transportation. "We will re-evaluate this investment opportunity as market conditions warrant."

The project is intended to upgrade the Wilhelmshaven facility into a premier European refinery by significantly improving diesel output from the refinery while equipping it to process less expensive crude. Certain procurement and permitting activities currently in progress will be completed to allow a smooth restart of the project at the appropriate time.

ConocoPhillips is an international, integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 30,100 employees, $152 billion of assets, and $142 billion of annualized revenues as of September 30, 2009.