By the OGJ Online Staff
HOUSTON, Feb. 7 -- Conoco Inc. and its equity affiliates added more than 1.2 billion boe, including syncrude, to worldwide reserves in 2001, replacing 432% of its oil and gas production.
The company's yearend proved reserves increased to 3.58 billion boe, including syncrude, up 35% from yearend 2000. International proved reserves, which represent 83% of Conoco's worldwide reserves, were up 45% to 2.98 billion boe.
The reserve additions largely came from the company's acquisition of Gulf Canada Resources Ltd. Significant reserves were also added in the UK, the US, Viet Nam, and Indonesia.
Conoco replaced 113% of production, excluding the reserves bought with the Gulf Canada acquisition and other acquisitions and the reserves sold as part of a program designed to upgrade the company's portfolio and generate cash for debt repayment.
Archie Dunham, chairman and CEO, said, "Between 1997 and 2001, Conoco replaced an average of 246% of production, which is among the best in the industry. Conoco's 2001 production of 281 million boe, which includes 6 months production from the former Gulf Canada, reflects a 17% increase over 2000. Natural gas production was up 19%, reaching 123.5 million boe (741 bcf), reflecting an ongoing effort to increase the percentage of natural gas in our production portfolio. Natural gas production rose from 35% of total production in 1997 to 44% in 2001."
Conoco said it achieved a 37% exploration success rate on Conoco legacy assets. Seven out of 19 exploratory wells drilled during the year resulted in discoveries, one of which -- Sutu Vang in Viet Nam -- has more than 100 MMboe potential. Development was approved for Magnolia field in the deepwater Gulf of Mexico and Sutu Den field off Viet Nam.
The company plans to spend $500 million to drill more than 40 exploration or appraisal wells in 2002 in the deepwater Gulf of Mexico, Norway, the UK, Viet Nam, Malaysia, Indonesia, Nigeria, Venezuela, the Netherlands, and Canada.