CONOCO DIVESTS AMERICA
OGJ wrote, ConocoPhillips intends to divest $5-8 billion in assets primarily relating to North American natural gas as part of its effort to accelerate "the company's value proposition of a strong balance sheet, growing dividend, and disciplined growth."
The Houston independent has set its 2017 capital expenditures guidance at $5 billion, down 4% compared with its 2016 guidance of $5.2 billion and less than half of its 2015 capex and investments that totaled $10.1 billion. The firm recently cut its 2016 capex from $5.5 million.
Spending in 2017 will focus primarily on flexible unconventional development programs in the Lower 48, conventional projects in Europe, Asia Pacific and Alaska, and base asset maintenance.
About $600 million is included for exploration, which is primarily focused on unconventionals, appraisal of the Barossa discovery in the Timor Sea, and closeout of deepwater Gulf of Mexico and Nova Scotia drilling obligations.
Full-year 2017 production is expected at 1.54-1.57 million boe/d, which results in 0-2% growth compared with expected full-year 2016 production of 1.54 million boe/d when adjusted for expected dispositions for the year. Growth is expected to come primarily from ramp up at the Australia Pacific LNG (APLNG) project, Surmont 2 in Canada, and Kebabangan in Malaysia, as well as increased activity in Lower 48 unconventionals, partly offset by normal field decline. The company's production outlook excludes Libya.
"The acceleration actions we've announced today will allow us to achieve our value proposition priorities at Brent prices of about $50[/bbl]," said Ryan Lance, ConocoPhillips chairman and chief executive officer.
ConocoPhillips last month reported a third-quarter net loss of $1 billion, down slightly from a third-quarter 2015 net loss of $1.1 billion.
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BP and its partners in Azerbaijan's giant ACG oil production complex agreed Thursday to extend the production sharing contract by 25 years to 2049 and to increase the stake of state-owned SOCAR, reducing the size of their own shares.
The U.S. current-account deficit increased to $123.1 billion (preliminary) in the second quarter of 2017 from $113.5 billion (revised) in the first quarter of 2017, according to statistics released by the Bureau of Economic Analysis (BEA). The deficit increased to 2.6 percent of current-dollar gross domestic product (GDP) from 2.4 percent in the first quarter.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were trading up 41 cents, or 0.8 percent, at $50.30 by 0852 GMT, near the three-month high of $50.50 it reached last Thursday. Brent crude futures LCOc1, the benchmark for oil prices outside the United States, were at $55.91 a barrel, up 29 cents, and also not far from the near five-month high of $55.99 touched on Thursday.
“The principal risk regarding Russian and Chinese activities in Venezuela in the near term is that they will exploit the unfolding crisis, including the effect of US sanctions, to deepen their control over Venezuela’s resources, and their [financial] leverage over the country as an anti-US political and military partner,” observed R. Evan Ellis, a senior associate in the Center for Strategic and International Studies’ Americas Program.