Production
2007 4th quarter daily production from the E&P segment, including Canadian Syncrude and excluding the LUKOIL Investment segment, averaged 1.84 million barrels of oil equivalent (BOE) per day, an increase from 1.76 million BOE per day in the previous quarter, and a decrease from 2.05 million BOE per day in the fourth quarter of 2006. The production increase from the previous quarter was primarily due to increased volumes from the United Kingdom and Alaska, reflecting seasonality and less planned and unplanned downtime.
Crude oil production in 2006 averaged 972,000 barrels per day (BD), gas production averaged 4.97 billion cubic feet per day (BCFD), and natural gas liquids production averaged 136,000 BD. Benefiting 2006 production was the addition of volumes from the Burlington Resources assets, which substantially increased the company's presence in North America. Additionally, the company re-entered Libya's Waha concessions and increased production from the Bayu-Undan field in the Timor Sea.
2005 4Q E&P daily production, including Canadian Syncrude and excluding LUKOIL, averaged 1.59 million barrels of oil equivalent (BOE) per day, up from 1.52 million BOE per day in the prior quarter. Compared with the previous quarter, output from the United Kingdom and Alaska was approximately 66,000 BOE per day greater, primarily due to less maintenance and seasonality. Production in the fourth quarter of 2005 was relatively flat compared to the fourth quarter of 2004.
Reserves
ConocoPhillips reported 2007 net proved reserve additions of 1.338 billion barrels of oil equivalent (BOE), including equity affiliates. The company’s reserve replacement ratio was 159 percent, based on 842 million BOE of production. The amounts above exclude 16 million BOE of 2007 Venezuelan production and 1.089 billion BOE of reserves associated with the expropriation of the company’s Venezuelan oil projects. The reserve replacement ratio including the impact of the expropriation was 29 percent. ConocoPhillips’ total proved reserves at year-end 2007 were 10.6 billion BOE.
ConocoPhillips’ organic reserve replacement ratio, which excludes sales, acquisitions, and the Venezuela impacts noted above, was 122 percent. Sales of reserves during the year were related to producing assets sold as part of the company’s asset rationalization program. Acquisitions were mainly Canadian oil sands reserves associated with the upstream EnCana business venture.
Year-end proved reserves exclude 0.2 billion barrels associated with the company’s Canadian Syncrude operations. U.S. Securities and Exchange Commission (SEC) regulations define the company’s Syncrude operations as mining related; therefore, these operations are not reported as part of the company’s oil and gas proved reserves.
Total reserve additions, including revisions, improved recovery, purchases, and extensions and discoveries, were 1.433 billion BOE. Costs incurred are expected to be $16.292 billion. The company’s five-year average reserve replacement was 176 percent and its estimated five-year average finding and development cost per BOE was $10.11.
For 2006, the company's reserve replacement was more than 300 percent, reflecting the Burlington Resources acquisition and increased ownership in LUKOIL. Total reserves were 11.2 billion BOE at year-end. E&P capital program funding totaled $10.2 billion during 2006, with a capital program budget of $11.4 billion for 2007.
