ConocoPhillips
replaces 106 per cent of 2003 production
Posted: 23 February 2004
Production replacement of 133 per cent, excluding sales
and acquisitions
ConocoPhillips announced the net addition of 650 million barrels
of oil equivalent (BOE) to its proved reserve base during 2003.
The company replaced 106 per cent of its 2003 production or 133
per cent excluding sales and acquisitions, bringing ConocoPhillips’
total reserve base to 7.8 billion BOE, excluding 0.3 billion barrels
associated with the company’s Canadian Syncrude operation.
The U.S. Securities and Exchange Commission regulations define
the company’s Syncrude operation as mining related; therefore,
these operations are not reported as part of its conventional oil
and gas proved reserves base.
Including sales and acquisitions, the company achieved a production
replacement of 106 per cent, at a finding and development (F&D)
cost of $5.35 per BOE in 2003. F&D costs include approximately
$430 million of 2003 additions to properties, plants and equipment
associated with the repeal of the Norway Grant Act. ConocoPhillips’
five-year average production replacement for the period 1999 through
2003 was 414 percent at an average F&D cost of $4.29 per BOE.
ConocoPhillips’ reserves-to-production ratio is 12.6 years.
“ConocoPhillips had a very successful 2003, in terms of project
approvals,” said Bill Berry, executive vice president of Exploration
and Production for ConocoPhillips. “Our focused efforts to
progress our legacy projects toward development resulted in major
increases in proved reserves, primarily from projects in Australia,
Canada and Norway.
“Looking ahead, we anticipate our current pipeline of projects
to provide the company with substantial future reserves growth.
In 2004, we will continue to pursue government approval on our Kashagan
project in Kazakhstan, as well as the authorization of major projects
in the United Kingdom, China and Alaska.”
Pro Forma Operating Information
To provide meaningful, prior-period comparisons, the company is
providing the following pro forma operating information. This pro
forma information was prepared by combining the historical results
of Conoco and Phillips for all reporting periods presented prior
to the merger and those of ConocoPhillips since the merger.
ConocoPhillips’ pro forma five-year average production replacement
would be 210 percent of its production from 1999 through 2003 at
an average estimated F&D cost of $5.12* per BOE.
ConocoPhillips’ proved reserves are reviewed annually to ensure
that all reserve determinations are made in accordance with a disciplined
internal policy. This policy requires the financial commitment to
proceed with development of such reserves and any appropriate government
and partner approvals before reserves are booked.
ConocoPhillips is an integrated petroleum company with interests
around the world. Headquartered in Houston, the company had approximately
39,000 employees, $82.5 billion of assets, and $105 billion of revenues
as of Dec. 31, 2003.
For more information see www.conocophillips.com.
Posted by Richard Price,
Editor Pipeline Magazine
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