ConocoPhillips reported full-year earnings of $9.2 billion
in 2013, an increase from the $8.4 billion totaled in 2012,
which included $1.2 billion from downstream operations
before the separation of Phillips 66 on Apr. 30.
Adjusted full-year earnings for 2013 were $7.1 billion
compared with full-year 2012 adjusted earnings of $6.7 billion.
Fourth-quarter earnings reflected the upward trend, as
the company tallied $2.5 billion last year, up from $1.4 billion in fourth-quarter 2012.
The company closed asset sales for proceeds of about $7
billion in fourth-quarter 2013, including the sale of interest
in Kashagan to Kazakhstan state oil company KazMunayGas
for $5.4 billion and the Algeria business to Indonesian state
oil company Pertamina for $1.75 billion (OGJ Online, Oct
21, 2013; Nov. 27, 2013).
Adjusted fourth-quarter earnings in 2013, excluding discontinued operations as a result of a gain from the sale of the
Algeria business, were $1.7 billion, compared with fourth-quarter 2012 adjusted earnings of $1.8 billion.
ConocoPhillips expects 3-5% production growth this
year. The company’s 2014 full-year production outlook, excluding Libya, is unchanged at 1.55 million boe/d. First-quarter 2014 production from continuing operations, also
excluding Libya, is expected at 1.49-1.53 million boe/d.
North America, Latin America
Fourth-quarter production in 2013 in the Lower 48 and Latin America was 497,000 boe/d, an increase of 22,000 boe/d
compared with the same period in 2012. During the quarter,
production across several areas within the Lower 48 was impacted by weather-related downtime.
Growth continued from liquids-rich plays in the Eagle
Ford, Bakken, and Permian, all of which delivered 218,000
boe/d for the quarter, a 31% increase compared with fourth-quarter 2012. Eagle Ford and Bakken reached a peak daily rate of 141,000 boe/d and 43,000 boe/d, respectively, in
Fourth-quarter North American activity remained focused on drilling in the Niobrara and Permian basin in the
Lower 48, as well as the Montney, Duvernay, and Canol
plays in Canada.
Production for the quarter in Alaska was 205,000 boe/d, a
17,000 boe/d decrease compared with fourth-quarter 2012,
primarily reflecting normal field decline.
Following the passing of the More Alaska Production Act,
ConocoPhillips is increasing development activity with the
addition of a second rig brought on at Kuparuk in January.
During the fourth quarter, construction continued at the Alpine West CD5 Project with production expected to begin
in late 2015.
ConocoPhillips in April 2013 cancelled plans to drill in
the Chukchi Sea citing federal regulatory uncertainty (OGJ
Online, Apr. 11, 2013).
Quarterly production in Canada was 276,000 boe/d, a
decrease of 5,000 boe/d compared with the same period
in 2012. This decrease was primarily due to normal field
decline in western Canada conventional assets and a major
turnaround at Foster Creek completed in early October.
This was partly offset by a production increase from Chris-
tina Lake Phases D and E. Strong performance at Christina
Lake drove increased bitumen production of 119,000 boe/d,
up 12% compared with fourth-quarter 2012. Additional
growth is expected at FCCL as production from Christina
Lake Phase E ramps to full capacity and Foster Creek Phase
F starts production, expected in third-quarter 2014.
Production in the Lower 48 and Canada continues to shift
from natural gas to liquids. For the quarter, total liquids production in these two areas increased by 10% compared with
the same period in 2012, resulting in the liquids percentage
of production increasing to 52 from 48%.
In the deepwater Gulf of Mexico, ConocoPhillips drilled
an oil discovery at the Gila prospect, appraisal continues at
Tiber and Coronado, and exploration drilling is ongoing at
the Deep Nansen wildcat.
Europe, Asia, Middle East
Fourth-quarter production in 2013 in Europe was 197,000
boe/d, a decrease of 19,000 boe/d compared with the same
period in 2012. The decrease was primarily due to normal
field decline, partly offset by improved well performance in
Also during the quarter, production began from the Eko-fisk South platform in October and Jasmine field in November (OGJ Online, Oct. 28, 2013; Nov. 20, 2013). At Jasmine,
production continues to ramp up and is expected to reach
full rate late in first-quarter this year. Major project activities
continue at Britannia Long-Term Compression and Eldfisk
II in preparation for the start of production in third-quarter
2014 and early 2015, respectively.
Quarterly production in the Asia Pacific and Middle East
region was 292,000 boe/d, a decrease of 30,000 boe/d compared with fourth-quarter 2012, primarily due to field decline and the fourth-quarter 2013 Qatargas 3 turnaround.
This was partly offset by growth in China from new wells
In Malaysia, offshore installation is complete and commissioning activities continue on the floating production
system (FPS) at the Gumusut field, with oil production expected from the FPS in second-quarter 2014.
At Siakap North-Petai, oil production is expected to start
in first-quarter 2014. Construction continues at Kebabangan
ConocoPhillips reports higher 2013 earnings