Other International and Exploration

Transcription

1 Other International The Other International segment cover a balanced, global portfolio of high-quality conventional and unconventional exploration opportunities. ConocoPhillips has proved reserves of approximately 5 billion barrels of oil equivalent (BOE) and a large, diverse, low cost of supply resource base that provides the company with significant flexibility for future growth. In 2017, ConocoPhillips exploration strategy emphasized flexibility and discovering new barrels accretive to its existing low cost of supply portfolio. The company s 2017 exploration focus remained on select business units, Lower 48, Malaysia and Norway where existing infrastructure and experience can be leveraged. ConocoPhillips will also concentrate on international exploration opportunities that provide both scale and flexibility, with international new-venture activity ongoing in Latin America Resources 38 Billion barrels of oil equivalent 2017 Undeveloped Acreage 22 Million net acres ConocoPhillips Undeveloped Acreage at Dec. 31, 2017 Gross Net Region (Thousands of Acres) (Thousands of Acres) 1,345 1,014 Lower 48 10,632 8,509 Canada 3,251 1,772 Europe and North Africa 14,999 2,769 Asia Pacific and Middle East 18,013 7,894 Other International ConocoPhillips Total 48,800 22, Proved Reserves by region 2017 Proved Reserves 5.0 BBOE 2017 Resources 38 BBOE 25% Asia Pacific & Middle East 28% 23% Non OECD 23% Natural Gas 15% Europe & North Africa 5% Canada 27% Lower 48 77% OECD 9% LNG 68% Liquids Proved reserves and resources reflect total company performance. Natural gas resources targeted toward liquefied natural gas are depicted as LNG. OECD refers to member countries of the Organisation for Economic Co-operation and Development. See page 6 for Cautionary Statement pertaining to the use of this fact sheet. 1

2 Existing Business Units ConocoPhillips is the largest owner of state, federal and fee exploration leases in, with approximately 1 million net undeveloped acres at year-end Arctic Ocean NPR-A ANWR Greater Mooses Tooth Unit Willow Operator: ConocoPhillips (78.0%) Co-Ventures: Anadarko (22.0%) In 2016, ConocoPhillips drilled two exploration wells that encountered significant pay in the Greater Mooses Tooth Unit. The discovery, Willow, is located in the northeast portion of the NPR-A and appraisal of the discovery commenced in January 2017 with the acquisition of state-of-the-art 3D seismic. In 2018, the company will continue to appraise the Willow discovery with additional wells. Bear Tooth Unit Operator: ConocoPhillips (78.0%) Co-Ventures: Anadarko (22.0%) In 2013, ConocoPhillips drilled and tested a new oil discovery in the Bear Tooth Unit in the northeast NPR-A, which is currently being evaluated for further development potential. Willow Discovery National Petroleum Reserve- Lower 48 Bear Tooth Greater Mooses Tooth 0 50 Colville River Beaufort Kuparuk River State of Prudhoe Bay Pending Lease Issuance Artic National Wildlife Refuge NPR-A and State Lease Sales ConocoPhillips successfully acquired approximately 600,000 net acres in the 2016 NPR-A and State of North Slope Lease Sales. In the fourth quarter of 2017, ConocoPhillips submitted high bids on approximately 78,000 net acres in the 2017 NPR-A and State of North Slope Lease Sales. This acreage is pending lease issuance. Niobrara Permian Lower 48 Onshore ConocoPhillips total acreage position in Lower 48 unconventional plays is approximately 8.5 million net acres. The company s onshore exploration focus areas in the United States include the Niobrara in the Denver-Julesburg Basin, and the Wolfcamp and Bone Springs in the Delaware Basin, as well as several emerging plays. In 2017, ConocoPhillips drilled three operated unconventional wells in the Powder River Basin and continues to assess and appraise other unconventional opportunities. The three wells have been expensed as dry holes

3 Canada In Canada, ConocoPhillips focus is in the Montney play in British Columbia. In 2017, ConocoPhillips completed and brought two exploration and appraisal wells onstream in the Montney play and will continue assessment of the acreage position in 2018 with the drilling of additional unconventional wells. In 2017, the company continued to core up its acreage position, acquiring approximately 27,000 additional net acres. As of year-end, 2017, the company held approximately 108,000 net acres in the play. Canada BRITISH COLUMBIA Montney ALBERTA SASKATCHEWAN Malaysia ConocoPhillips involvement in Malaysia began in 2000 and consists of interests in six blocks in varying stages of exploration, development and production. Three of these blocks are located off the eastern Malaysian state of Sabah: Block G, Block J and the Kebabangan (KBB) Cluster. Three other blocks, Deepwater Block 3E, Block SK313 and Block WL4-00, are operated by ConocoPhillips and are located off the eastern Malaysian state of Sarawak Malaysia South China KBB Cluster PSC KMEUC KME Deepwater Block 3E Operator: ConocoPhillips (50.0%) Co-venturers: KUFPEC (35.0%), PETRONAS (15.0%) In 2013, ConocoPhillips was awarded operatorship of this 480,000-gross-acre exploration block offshore Sarawak. The company completed a seismic program in The Langsat-1 exploration well was drilled and expensed as a dry hole in SK313 3E Malikai SNP G J Gumusut G KBB Block SK313 Operator: ConocoPhillips (50.0%) Co-venturer: PETRONAS (50.0%) Block SK313 is a 1.4 million-gross-acre exploration block offshore Sarawak. In 2017, ConocoPhillips acquired interest in and operatorship of the block, participated in the Sadok-1 exploration well and completed a seismic survey of the block. WL4-00 Salam Oil Field Gas Field MALAYSIA BRUNEI Block WL4-00 Salam Operator: ConocoPhillips (50.0%) Co-venturer: PETRONAS (50.0%) In January 2017, ConocoPhillips was awarded operatorship of this 629,000-gross-acre exploration block offshore Sarawak. The block includes the Salam-1 oil discovery. A 3D seismic survey was completed in 2017, with drilling of an appraisal and exploration well planned in

4 Norway ConocoPhillips has maintained an active presence in Norway since the early 1960s and holds exploration licenses in the North, Norwegian and Barents with an exploration acreage position covering 586,000 net acres. In 2017, ConocoPhillips exploration program included a nonoperated well in the Heidrun area. Norway Heidrun Operator: Statoil (13.0%) Co-venturers: Petoro (57.8%), ConocoPhillips (24.0%), Eni (5.2%) The Heidrun Field, located in the Norwegian, began production in In 2017, the Carmen near-field exploration well was drilled. The Carmen Well was a discovery and is currently undergoing evaluation. ConocoPhillips holds a percent working interest in the Carmen Well. Acreage additions In 2017, the company was awarded four new exploration licenses: PL865, PL888, PL890 and PL891, and two acreage additions: PL053C and PL782SC. Two new licenses were captured through farm-in: PL775 and PL626. PL859 Aasta Hansteen PL Barents PL890 PL888 PL891 Heidrun Norwegian Trondheim NORWAY Visund Troll NORWAY Oseberg PL053C Bergen Oslo Alvheim PL782SC Grane PL626 PL775 PL865 North Stavanger SWEDEN Greater Ekofisk Area DENMARK 4

5 Other International Colombia Middle Magdalena Basin VMM-3 Operator: ConocoPhillips (80.0%) Co-venturer: CNE Oil & Gas S.A. (20.0%) In 2015, ConocoPhillips assumed operatorship of the VMM-3 Block, which extends over approximately 67,000 net acres. The block contains the Picoplata 1 Well, which was drilled in 2014 and In 2016 and 2017, ConocoPhillips conducted production testing operations at the Picoplata 1 Well and is continuing its evaluation of the block. VMM-2 Operator: ConocoPhillips (80.0%) Co-venturer: Canacol Energy Colombia S.A. (20.0%) In 2017, ConocoPhillips acquired interest and operatorship of the VMM-2 Block, which extends over approximately 58,000 net acres and is contiguous to the VMM-3 Block. ConocoPhillips is currently undergoing an environmental impact study of the block. Colombia Middle Magdalena Basin VMM2 VMM3 Picoplata-1 0 Chile Coiron Operator: Empresa Nacional Del Petroleo (51.0%) Co-venturer: ConocoPhillips (49.0%) In 2015, ConocoPhillips acquired a nonoperated five percent interest in the Coiron 10 Bogota COLOMBIA Block in the Magallanes Basin covering approximately 400,000 gross acres. In 2016, ConocoPhillips drilled two exploration wells on the Coiron Block and finalized an agreement to increase its nonoperated interest to 49 percent. In 2017, the two wells were expensed as dry holes. Other Exploration Australia Browse and Bonaparte Basins In 2006, ConocoPhillips acquired permit WA-315-P and permit WA-398-P. A threewell Phase I program on the permits successfully encountered hydrocarbons and was followed by a five-well Phase II drilling campaign in 2014, with all wells discovering hydrocarbons. In 2017, the TP 28 Western Australia State exploration permit was granted with ConocoPhillips holding 40 percent. The permit extends the WA-315P and WA-398-P permits through Also in Australia, the NT/RL6 and NT/RL5 permits are located offshore Northern Territory in the Timor approximately 160 miles north-northwest of Darwin. The Caldita-1 discovery well in NT/RL6 was drilled in 2005 and the Barossa-1 discovery well in NT/RL5 in A retention lease over the Barossa Discovery was awarded in 2012 and the Caldita Discovery in In 2012, ConocoPhillips farmed down its interest from 60 percent to 37.5 percent. A three-well appraisal program to further evaluate the fields potential was completed in The first two wells, Barossa-2 and Barossa-3, both encountered hydrocarbons, but the third, Barossa-4, was not commercially viable. The company completed a seismic acquisition program and seismic reprocessing in 2016 and in 2017 drilled the Barossa-5 and Barossa-6 wells, both of which encountered hydrocarbons. In 2017, the retention lease over the Barossa Discovery was renewed. Brunei Block CA-2 Operator: PETRONAS (45.0%) Co-venturers: Murphy (30.0%), Shell (12.5%), ConocoPhillips (6.25%), Mitsubishi (6.25%) ConocoPhillips holds a working interest in the deepwater block CA-2 production sharing contract (PSC), with an exploration period through December Exploration has been ongoing since September 2011, with natural gas discovered at the Kelidang NE-1 and Keratau-1 wells in 2013 and the Keratau SW-1 Well in Evaluation of the results is ongoing. China The company participated in one successful appraisal well in the Penglai Field in A full-field 3D seismic program at Penglai commenced in December 2017 and will continue in Indonesia Operator: ConocoPhillips (60.0%) Co-venturer: PETRONAS (40.0%) ConocoPhillips entered into the Kualakurun PSC located in Central Kalimantan in May 2015 with an exploration period of six years. During 2017, the company conducted a 740-kilometer 2D seismic program. 5

6 UNITED STATES ALASKA Pacific Ocean CANADA NORTH AMERICA UNITED STATES LOWER 48 Gulf of Mexico COLOMBIA Atlantic Ocean UNITED KINGDOM Norwegian NORWAY North EUROPE LIBYA AFRICA Barents MIDDLE EAST Indian Ocean MALAYSIA CHINA ASIA South China Natuna BRUNEI Pacific Ocean SOUTH AMERICA INDONESIA Java Timor AUSTRALIA CHILE Exploration Exploration and Production Segment Information President, Exploration, BD and Other International Richard Lunam Office Address Contact Information Media Relations: Corporate Information Chairman of the Board of Directors and Chief Executive Officer Ryan M. Lance ConocoPhillips Telephone: Investor Relations Telephone: Media Relations Telephone: Our Company Values S P I R I T 17 Operations and activities in 17 countries SAFETY PEOPLE INTEGRITY RESPONSIBILITY INNOVATION TEAMWORK (As of Dec. 31, 2017) CAUTIONARY STATEMENT This fact sheet contains forward-looking statements. We based the forward-looking statements on our current expectations, estimates and projections about ourselves and the industries in which we operate in general. We caution you that these statements are not guarantees of future performance as they involve assumptions that, while made in good faith, may prove to be incorrect, and involve risks and uncertainties we cannot predict. In addition, we based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecast in the forward-looking statements. Economic, business, competitive and other regulatory factors that may affect ConocoPhillips business are set forth in ConocoPhillips filings with the Securities and Exchange Commission (including in Item 1A of our Form 10-K), which may be accessed at the SEC s website at Definition of resources: ConocoPhillips uses the term resources in this document. The company estimates its total resources based on a system developed by the Society of Petroleum Engineers that classifies recoverable hydrocarbons into six categories based on their status at the time of reporting. Three (proved, probable and possible reserves) are deemed commercial and three others are deemed noncommercial or contingent. The company s resource estimate encompasses volumes associated with all six categories. The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We use the term resources in this fact sheet that the SEC s guidelines prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosure in our Form 10-K and other reports and filings with the SEC. Copyright 2018 ConocoPhillips Company. All Rights Reserved. 6