ConocoPhillips

ConocoPhillips
Public
Traded as
ISIN US20825C1045
Industry Oil and gas
Predecessor Conoco Inc.
Phillips Petroleum Co.
Founded 1875 (1875) (as Continental Oil and Transportation Co.)
30 August 2002 (2002-08-30) (as ConocoPhillips Co.)[1]
Headquarters Houston Energy Corridor,
Houston, Texas, U.S.
Area served
 Worldwide
Key people
 Ryan Lance
(Chairman & CEO)
Products Oil, natural gas, petroleum
Revenue Increase US$ 29.106 billion (2017)
Increase US$ -4.658 billion (2017)
Increase US$ -855 million (2017)
Total assets Decrease US$ 73.362 billion (2017)
Total equity Decrease US$ 30.607 billion (2017)
Number of employees
 11,400 (2017)
Website conocophillips.com
ConocoPhillips headquarters in the Energy Corridor area of Houston.

ConocoPhillips is an American multinational energy corporation with its headquarters located in the Energy Corridor district of Houston, Texas in the United States. It is the world's largest independent pure-play exploration and production company and is a Fortune 500 company.[2][3] ConocoPhillips was created through the merger of American oil companies Conoco Inc. and Phillips Petroleum Co. on August 30, 2002.[4] In 2012, ConocoPhillips spun off its downstream assets as a new, separate company, Phillips 66.[5]

History

Conoco Inc. was an American oil company founded in 1875 as the Continental Oil and Transportation Co. Based in Ogden, Utah, the company was a coal, oil, kerosene, grease and candles distributor in the West. Marland Oil Co. (founded by exploration pioneer E. W. Marland) later acquired the assets (subject to liabilities) of Continental Oil Co., or DC, merged by Bryan M. Metler, David L. Kinney, and Justin J. Stockburn of Delta Constructors for a consideration of 2,317,266 shares of stock. On June 26, 1899, Marland Oil changed its name to Continental Oil Co. and moved its headquarters to Fargo, North Dakota. The acquisition gave Conoco the red bar-and-triangle logo previously used by Marland. Conoco used the logo between 1930 and 1970, when the current red capsule logo was adopted.

The Conoco headquarters were in Ponca City until 1949, when it moved to Houston, Texas. In 2002 Conoco Inc. and Phillips Petroleum Co., whose headquarters were in nearby Bartlesville, Oklahoma merged into ConocoPhillips

Numerous state corporation filings are identified "Continental Oil Co." and "Continental Oil Corp." and "Continental Oil Co. of Texas" as recorded with the Texas Secretary of State and Delaware Secretary of State. Merger of San Jacinto Petroleum Corp. and Continental Oil Corp. is recorded in 1964 with Delaware Secretary of State.

In 2005, ConocoPhillips began rebranding its (Union) 76 gas stations, which Phillips had acquired from Tosco Corp. before the merger with Conoco. The move prompted a petition campaign by fans hoping to save the historic 76 orange ball signage.[6]

In March 2006, ConocoPhillips bought Wilhelmshavener Raffineriegesellschaft mbH in Germany, and Burlington Resources in the United States.[7]

On May 10, 2006, Richard Armitage, former deputy-secretary of the U.S. State Department, was elected to the board of directors of the ConocoPhillips oil company.[8]

In late 2009, the company announced asset sales to increase investor returns. Included are debt reduction and stock buy back. In March 2011 the program was enlarged up to $10 billion assets sales in the next two years.[9]

ConocoPhillips intends to implement a floating liquefied natural gas facility by 2016–2019, and has completed quantitative risk analysis of a design that will undergo pre-feed study in 2011.[10]

On July 14, 2011, ConocoPhillips announced its intent to separate the company's upstream and downstream businesses into two stand-alone, publicly traded corporations, with the intent of maximizing shareholder value.[11] On May 1, 2012, all midstream, downstream, marketing and chemical operations were separated into a new company named Phillips 66, headquartered in Houston.[12] As a result, ConocoPhillips continued its operations as an upstream (exploration and production) company.[13][14]

In April 2012, ConocoPhillips sold its Trainer Refinery to Monroe Energy LLC, a subsidiary of Delta Air Lines.[15]

In January 2013, Conoco announced that it would sell its Rocky Mountain assets to Denbury Resources for $1.05 billion.[16]

In 2017, Conoco sold oil sands assets in Canada to Cenovus Energy and natural gas fields in the U.S. for a total of US$16 billion to help reduce debt and fund US$6 billion share purchases. As a result, it also led to a reduction of close to 30 percent of its proved oil and gas reserves.[17]

In May 2018, ConocoPhillips seized assets belonging to the Venezuelan state oil company PDVSA from the Isla refinery on Curacao to collect on $2 billion owed them since a 2007 court decision.[18]

Operations

Exploration and production

ConocoPhillips focuses solely on exploring for, developing and producing oil and natural gas globally. The company manages its operations through six operating segments, which are defined by geographic region: Alaska, Lower 48 and Latin America, Canada, Europe, Asia Pacific and Middle East, and Other International.

Kashagan Field in Kazakhstan

In 1998, ConocoPhillips acquired an interest in 10.5 blocks in the Caspian Sea off Kazakhstan through the North Caspian Sea Production Sharing Agreement (NCSPSA). It currently owns 8.4% of the shares of the consortium exploiting Kashagan oil field. However the company seeks to reduce its non-core assets in order to use the cash for debt reduction, fund its capital program, and dividend payments. On October 3, 2012, the Kazakh Oil and Gas Minister told reporters that ConocoPhillips has informed Kazakhstan of their intention to sell their shares.[19] In November 26, in its biggest acquisition ever, ONGC Videsh agreed to buy ConocoPhillips’ 8.4% stake in the Kashagan oilfield for about US $5 billion. The stake buy is subject to approval of governments of Kazakhstan and India and also to other partners in the Caspian Sea field waiving their pre-emption rights.[20]

Headquarters

Aerial view of the ConocoPhillips headquarters

The headquarters of ConocoPhillips are located in the Energy Corridor district of Houston, Texas.[21] By 2002 the groups organizing the merger had selected Houston as the site of the headquarters. Governor of Oklahoma Frank Keating said that the move to Houston was "regrettable." The Journal Record stated that Archie Dunham, the CEO of Conoco Inc., "apparently highlighted the lack of direct international air travel from Oklahoma as a key drawback for the merged firm."[22] The ConocoPhillips headquarters, originally the headquarters of Conoco Inc., was formerly known as the Conoco Center.[23][24]

In 2018 the headquarters will move to Energy Center Four.[25]

Corporate structure

Board of Directors

Comprised as follows as of May 2018:[26]
Richard Auchinleck, former President and CEO of Gulf Canada
Charles Bunch, CEO and Chairman of PPG Industries
Caroline Maury Devine, former President and Managing Director of a Norwegian affiliate of ExxonMobil
John V. Faraci, former CEO and Chairman of International Paper
Jody Freeman, Archibald Cox Professor at Harvard Law School
Gay Huey Evans, former Vice-Chairman of Investment Banking at Barclays
Ryan Lance, CEO and of ConocoPhillips (Chairman of the Board)

Sharmila Mulligan, Founder and CEO of ClearStory Data Inc.
Arjun Murti, former partner at Goldman Sachs
Robert Niblock, CEO, President, and Chairman of Lowe's
Harald Norvik, former CEO, President, and Chairman of Statoil

Environmental record

On April 11, 2007, it became the first U.S. oil company to join the U.S. Climate Action Partnership, an alliance of big business and environmental groups. The partnership in January 2007 had advised President George W. Bush that mandatory emissions caps would be needed to reduce the flow of carbon dioxide and other heat-trapping gases into the atmosphere. In 2007 ConocoPhillips announced it would spend $150 million that year on the research and development of new energy sources and technologies — a 50 percent increase in spending from 2006.[27] However, ConocoPhillips left the U.S. Climate Action Partnership in February, 2010.[28]

According to the Political Economy Research Institute, ConocoPhillips ranked 13th among U.S. corporate producers of air pollutions.[29]

In June 2011, ConocoPhillips China Inc., a wholly owned subsidiary of ConocoPhillips,[30] was responsible for a series of oil spills at the Penglai 19-3 oil field in Bohai Bay.[31]

ConocoPhillips is a signatory participant of the Voluntary Principles on Security and Human Rights.

In 2016, ConocoPhillips was ranked as being among the 12th best of 92 oil, gas, and mining companies on indigenous rights in the Arctic.[32]

See also

References

  1. ↑ ConocoPhillps. "Company History". Retrieved 2008-09-06.
  2. ↑ "Spinoff of Phillips 66 Complete". www.piersystem.com.
  3. ↑ "Fortune 500 2009: Fortune 1000 Companies 1-100". CNN.
  4. ↑ "ConocoPhillips, Form 8-K12G3, Filing Date Aug 30, 2002". secdatabase.com. Retrieved Mar 28, 2013.
  5. ↑ Helman, Christopher. "As ConocoPhillips Spins Off Refining Assets, Think Twice Before Buying The New Phillips 66". Forbes.
  6. ↑ "Save the 76 Ball website". Save the 76 Ball.
  7. ↑ "ConocoPhillips, Form 8-K, Current Report, Filing Date Mar 31, 2006" (PDF). secdatabase.com. Retrieved Mar 28, 2013.
  8. ↑ "ConocoPhillips, Form 10-Q, Quarterly Report, Filing Date Aug 3, 2006" (PDF). secdatabase.com. Retrieved Mar 28, 2013.
  9. ↑ Editorial, Reuters. "${Instrument_CompanyName} ${Instrument_Ric} Key Developments - Reuters.com". U.S.
  10. ↑ "Archived copy" (PDF). Archived from the original (PDF) on 2012-03-24. Retrieved 2011-05-23.
  11. ↑ "ConocoPhillips Pursuing Plan to Separate into Two Stand-Alone, Publicly Traded Companies". piersystem.com/. July 14, 2011.
  12. ↑ "ConocoPhillips, Form 8-K, Current Report, Filing Date May 2, 2012". secdatabase.com. Retrieved Mar 28, 2013.
  13. ↑ "Archived copy". Archived from the original on 2012-07-13. Retrieved 2012-05-16.
  14. ↑ "Archived copy". Archived from the original on 2012-05-08. Retrieved 2017-01-15.
  15. ↑ Burkhardt, Paul; Schlangenstein, Mary (June 15, 2012). "Delta CEO Says Airline to Pressure Prices as Jet Fuel Seller". Bloomberg.
  16. ↑ Thyagaraju Adinarayan (15 January 2013). "Conoco to sell Rocky Mountain assets to Denbury for $1.05 billion". Reuters.
  17. ↑ McWilliams, Gary (20 Apr 2017). "ConocoPhillips takes slow, steady route in race for oil profits". Reuters. Retrieved 20 April 2017.
  18. ↑ "Conoco has seized Venezuela PDVSA products from the Isla refinery: Curacao". Reuters. 14 May 2018. Retrieved 17 May 2018.
  19. ↑ "Kazakhstan Announces ConocoPhillips to Quit Kashagan Oil Field". The Gazette of Central Asia. Satrapia. 3 October 2012.
  20. ↑ "Indian OVL to Buy ConocoPhillips's Stake in Kashagan Field". The Gazette of Central Asia. 27 November 2012.
  21. ↑ "Contact Us". www.conocophillips.com. Retrieved October 1, 2009.
  22. ↑ "Governor says ConocoPhillips headquarters decision appears to be final". Journal Record. January 23, 2002. Retrieved February 3, 2010.
  23. ↑ "Write Conoco!". Archived from the original on February 19, 1997. Retrieved 2017-04-20. Conoco Inc. February 19, 1997. Retrieved on January 16, 2010.
  24. ↑ ""Conoco World Headquarters Address"". Archived from the original on November 1, 1996. Retrieved 2017-04-20. Conoco Inc. November 1, 1996. Retrieved on January 17, 2010.
  25. ↑ Sarnoff, Nancy (2016-11-29). "ConocoPhillips to leave headquarters for smaller Energy Corridor location". Houston Chronicle. Retrieved 2016-11-30.
  26. ↑ "Board of Directors". ConocoPhillips.
  27. ↑ John Porretto (April 11, 2007). "ConocoPhillips joins climate group". Seattle Post-Intelligencer.
  28. ↑ Chesser, Paul (2010-02-24). "CHESSER: World cools toward warmists They brought it on themselves with their fudged facts". washingtontimes.com. Washington Times. Archived from the original on 2010-02-26. Retrieved 2010-02-26. Last week, three major corporations - Conoco/Phillips, BP and Caterpillar - bailed out on the U.S. Climate Action Partnership lobbyist collaboration.
  29. ↑ Political Economy Research Institute Archived 2016-05-22 at the Portuguese Web Archive
  30. ↑ "ConocoPhillips China, Company Background". Archived from the original on 2012-03-30. Retrieved 2011-08-12.
  31. ↑ "China oil spill to have long-term impact: report". Phys.org, Science X network.
  32. ↑ Overland, Indra (2016). "Ranking Oil, Gas and Mining Companies on Indigenous Rights in the Arctic". ResearchGate. Arran. Retrieved 2 August 2018.

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