ConocoPhillips has 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 North America, the capital program is expected to total approximately $4.1 billion. Spending in North America is reduced, compared with prior years, with emphasis on the highest-graded production basins and opportunities.
Exploration will be focused on finding significant resources, advancing high-potential opportunities and appraisal of recent discoveries.
Spending on wildcat wells will be directed to the Deepwater Gulf of Mexico, Australia's Browse Basin, Kazakhstan's Block N, Canada's East Coast, offshore Indonesia and the North Sea. The company also plans to progress exploration drilling in the Eagle Ford shale position in the U.S. Lower 48, a coal seam gas play in China, and a shale gas play in Poland.
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