HOUSTON – ConocoPhillips (NYSE:COP) plans to reduce deepwater exploration spending with most of the cuts coming in Gulf of Mexico operations.
“We have achieved some notable success in our deepwater program, particularly in the Gulf of Mexico Lower Tertiary play and offshore Senegal,” said Ryan Lance, chairman and CEO. “We are committed to delivering the value we have created from these discoveries, while reducing the number of deepwater exploratory prospects we drill in the future.”
“Since the start of the oil and gas price downturn last year, we have moved decisively to position ConocoPhillips for lower, more volatile prices by exercising capital flexibility and reducing operating costs across our business,” Lance said.
The plan to terminate ConocoPhillips’ contract for the drillship Ensco DS-9 is part of this overall spending cut.
The discussion came during ConocoPhillips’ quarterly dividend announcement.