| Key Facts |
Employees: 2,164
Total Average Daily Production in 2007: 253 MBOE
- Oil: 42 MBD
- Gas: 1,106 MMCFD
- NGL: 27 MBD
Crude Processing Capacity: --
Major Office Locations: Calgary |
Exploration and Production Western Canada Natural Gas
ConocoPhillips is one of the top three natural gas producers in Canada. In 2007, production averaged 1.1 BCFD. Its operations are located primarily in Alberta and British Columbia, with some production in Saskatchewan. The company also owns approximately 90 natural gas processing plants in the region.
Deep Basin
ConocoPhillips is the largest operator and producer in the Deep basin, located west of Grande Prairie in northwestern Alberta and north¬eastern British Columbia. The company operates about 90 percent of its activity in the area. As of Dec. 31, 2007, the company held mineral rights in 2.2 million gross acres (1.6 million net acres). The basin provides productive potential from 14 prospec¬tive geological formations. The company has an active drilling program in the area, which consisted of approximately 94 wells in 2007. Production in 2007 averaged 307 MMCFD of natural gas, 10 MBD of NGL and 2 MBD of crude oil.
The company holds significant working interests in seven major natural gas processing facilities in this area. The primary processing facility is the ConocoPhillips-operated Elmworth plant near Grande Prairie. ConocoPhillips holds an 87 percent interest in the Elmworth facility.
North
The North area encompasses assets in Northern Alberta and British Columbia, the Canadian foothills and Kaybob in west-central Alberta. ConocoPhillips is one of the largest operators in the area. In 2007, it held 1.9 million net acres of land and produced 297 MMCFD of natural gas, 4 MBD of NGL and 2 MBD of crude oil.
In the Northern Alberta and British Columbia area, the main producing horizons consist of shallow natural gas in the Bluesky/Gething and Montney in the Ring Border area. In 2007, it produced 87 MMCFD of natural gas, 2 MBD of NGL and 1 MBD of crude oil.
Activity in Kaybob is split between downspacing and develop¬ment drilling in the Jurassic and Lower Cretaceous formations, as well as trend extension and concentric exploration in several Mannville zones. Significant recompletion potential exists in secondary targets in shallower zones. In 2007, the area produced 123 MMCFD of natural gas, 2 MBD of NGL and 1 MBD of crude oil, and 73 wells were drilled.
The Canadian foothills extend from the Central foothills area northwest of Calgary, Alberta, to northeast British Columbia in a 15- to 20-mile-wide band along a 250-mile expanse of the Rocky Mountains. Production is focused on two main components: deep sour gas production in the inner foothills and sweet gas production from the outer foothills. In 2007, net natural gas production averaged 87 MMCFD.
Canadian Prairies
Located in eastern and southern Alberta and Saskatchewan, the Canadian prairies are made up primarily of shallow and medium depth natural gas assets, including all of the Horseshoe Canyon coalbed methane assets. With virtually year-round access and less than 7,500-foot-depth targets, this area offers lower-cost, low-risk development opportunities. In 2007, ConocoPhillips’ net production was 265 MMCFD of natural gas, 3 MBD of NGL and 9 MBD of crude oil.
Central
ConocoPhillips’ assets in the central Alberta operating areas are char¬acterized by multihorizon reservoirs at medium depths ranging from 6,500 to 10,000 feet. An active capital program is under way, targeting moderate-risk development and extension opportunities. Average net production in 2007 was 237 MMCFD of natural gas, 10 MBD of NGL and 6 MBD of crude oil.
Oil Sands
 ConocoPhillips significantly increased its stake in Alberta’s oil sands with the completion of the FCCL Oil Sands Partnership agreement with EnCana in January 2007, encompassing the development of the Foster Creek and Christina Lake (FCCL) properties. In addition to the company’s interest in Syncrude, the Surmont joint venture, and unde¬veloped resources in the Saleski, Thornbury and Clyden areas, this new partnership significantly increased the company’s holdings in the region. ConocoPhillips is well-positioned to become a leading in situ producer in Alberta’s oil sands.
Syncrude
Operator: Syncrude Canada Ltd.
Co-venturers: Canadian Oil Sands Ltd. (36.7%), Imperial Oil
Resources (25.0%), Petro-Canada Oil & Gas (12.0%),
ConocoPhillips (9.0%), Others (17.3%)
Syncrude is a joint-venture oil sands project that has operated in northeastern Alberta since 1978. The project mines oil sands, extracting 8-degree API bitumen and upgrading it into a 32-degree API sweet, synthetic crude oil called Syncrude Sweet Blend. The primary plant and facilities are located at Mildred Lake, about 25 miles north of Fort McMurray, Alberta, and an auxiliary mining and extraction facility is approximately 20 miles from the Mildred Lake plant. All production is shipped to the Edmonton area via a dedi¬cated third-party pipeline, where custody is turned over to the seven owners for marketing to eastern Canada and most of the northern United States. The plant has a nameplate capacity of 353 MBD gross. ConocoPhillips’ net production in 2007 was 23 MBD.
Syncrude also has three undeveloped mining leases suitable as future replacement mines or capable of supporting future expansion.
Surmont
Operator: ConocoPhillips (50.0%) Co-venturer: Total (50.0%)
Surmont is a significant oil sands deposit within the Athabasca region of northern Alberta, approximately 35 miles south of Fort McMurray. Since the bitumen is too deep to mine, it is extracted using steam-assisted gravity drainage (SAGD). This involves the injection of steam deep into the oil sands, effectively liquefying the heavy bitumen, which then is recovered and pumped to the surface for further processing.
In 2003, the 110 MBD gross Surmont project received regula¬tory approval. Construction of the 27 MBD gross phase I facilities began in 2004, as did development drilling. Commercial production began in late 2007.
The 83 MBD gross phase II project construction is scheduled to commence in early 2010 with first production anticipated in 2013. Over the life of this 40-plus year project, ConocoPhillips expects to drill approximately 500 production and steam-injection well pairs. Future development phases also are envisioned.
FCCL Oil Sands Partnership
Operator: EnCana (50.0%)
Co-venturer: ConocoPhillips (50.0%)
The FCCL Oil Sands Partnership is a 50/50 business venture between ConocoPhillips and EnCana. It consists of the Foster Creek and Christina Lake (FCCL) projects, both located on the prolific eastern flank of the Athabasca oil sands trend in northeastern Alberta. These are both multiphase SAGD projects.
The partnership is progressing expansion plans at both projects, with the ultimate goal of increasing gross production to 400 MBD. At Foster Creek, expansion plans include the completion of two addi¬tional phases, 1D and 1E, that are expected to double the facility’s gross capacity to 120 MBD. Production from phase 1D is expected to begin ramping up in the fourth quarter of 2008, and production from phase 1E is expected in the first quarter of 2009. At Christina Lake, steaming of new phase 1B wells has begun, construction of phase 1C is under way and ConocoPhillips is working with EnCana to approve phase 1D. In aggregate these expansions are expected to bring the Christina Lake facility’s gross capacity to nearly 100 MBD. Additional expansions are anticipated in the years ahead at both Foster Creek and Christina Lake.
Thornbury, Clyden and Saleski
Operator: ConocoPhillips (100%)
ConocoPhillips holds other lands in the Athabasca oil sands region that contain substantial oil sands resources. These resources are being evaluated through delineation drilling, as well as 2-D and 3-D seismic surveys. The resources are expected to be developed through in situ technology, such as SAGD.
Canada Exploration and Business Development
ConocoPhillips holds exploration acreage in three areas of Canada: offshore eastern Canada, the foothills of western Alberta and the Canadian Arctic.
Atlantic Canada
In the southern Grand Banks offshore Newfoundland, ConocoPhillips operates four contiguous exploration licenses in the deepwater Laurentian basin, which total more than four million acres. In addition, ConocoPhillips holds a 35 percent interest in four natural gas discoveries offshore Labrador. Development of these fields depends on the continued development of industry infrastructure for offshore Labrador natural gas.
Canadian Arctic
ConocoPhillips Canada has been one of the principal players in the Mackenzie Delta and Beaufort Sea exploration trends since the late 1960s and is the operator of the Parsons Lake and Amauligak discov¬eries. The company holds 44 significant discovery licenses and two exploration licenses and operates 11 of these licenses in the area. At year-end 2007, the total leasehold for the region was 918,795 gross acres and 475,594 net acres.
Parsons Lake
Operator: ConocoPhillips (75.0%)
Co-venturer: ExxonMobil (25.0%)
Discovered in 1972, the Parsons Lake natural gas field is located in the Mackenzie Delta, 45 miles north of Inuvik and about 35 miles southwest of Tuktoyaktuk. Parsons Lake is one of the three anchor fields that would be produced into the proposed Mackenzie Gas project.
Umiak
Operator: MGM (60.0%)
Co-venturer: ConocoPhillips (40.0%)
In 2004, ConocoPhillips participated, with a 25 percent interest, in the Umiak N-16 exploration well drilled in the Mackenzie Delta. This well was tested in 2005, as was an appraisal well. In October 2006, ConocoPhillips acquired an additional 15 percent interest in the Umiak discovery. Plans to commercialize this dis¬covery will be linked to the progress of the Mackenzie Gas proj¬ect and its infrastructure development.
Amauligak
Operator: ConocoPhillips (50.9%)
Co-venturers: Chevron (32.3%), Imperial (7.3%), Others (9.5%)
Amauligak is the largest oil and gas field in the region. It lies approximately 31 miles offshore in shallow water. A range of pos¬sible development solutions is being evaluated.
Mackenzie Gas Project
ConocoPhillips is working with other companies on this project to transport onshore natural gas from the Mackenzie Delta in northern Canada to established natural gas markets in North America. The planned startup capacity for the pipeline would be 1.0 BCFD, which would be expandable with additional compression to 1.8 BCFD. A separate pipeline also is planned to transport natural gas liquids to existing pipeline infrastructure for delivery to the North American market. The Parsons Lake field is one of three primary fields that would anchor the pipeline development.
ConocoPhillips holds an average 18 percent interest in the proposed pipeline and gathering system. Joint Review Panel public hearings were completed in November 2007. The project will continue to progress toward regulatory authorizations but will defer detailed engineering work pending resolution with the federal government on the fiscal and commercial framework.
Find out more at …
ConocoPhillips Canada
Mackenzie Gas Project
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