ConocoPhillips cancels German refinery upgrade

By OGJ editors
HOUSTON, July 22 -- ConocoPhillips reported the cancelation of plans to upgrade its 260,000 b/d refinery at Wilhelmshaven, Germany.

In November 2009, ConocoPhillips confirmed plans to delay an upgrade at the facility. The company had planned to add a coker, hydrocracker, and hydrogen units to the refinery (OGJ, Dec. 21, 2009, p. 46).

“This move is consistent with our stated strategy of maintaining capital discipline and reducing our downstream portfolio over time,” said Willie Chiang, senior vice-president of refining, marketing, and transportation. Chiang added that the major will “explore other options” including “operating the facility as a terminal and pursuing the sale of the asset.”

Due to cancelation of the upgrade project, the company expects to recognize a noncash asset impairment of $1.1 billion aftertax in its second quarter financial results.