Houston-based ConocoPhillips (COP) produced its first oil from the Eldfisk II project in the Norwegian North Sea.
ConocoPhillips announced new oil production despite planning a considerable reduction in its capital spending in 2015 with oil prices dropping to about $50 a barrel in the U.S.
Eldfisk II represents the second major project startup in Norway since late 2013 after Ekofisk South. These projects will enhance ultimate resource recovery and prolong the field life of this premier asset for several years to come.
The company's production volume is expected to receive a boost of about 60,000 barrels of oil equivalent per day by 2017 from Eldfisk II, along with Ekofisk South and other projects offshore Norway.
The Eldfisk II project comprises plans to drill 40 new production and water injection wells. Currently, one of four pre-drilled wells is operational and the other three are expected to be commissioned by Jan 2015 end. Production from the field will accelerate over the next three years when additional wells are brought onstream.
Located around 200 miles offshore Stavanger, the Greater Ekofisk Area includes four producing fields — Ekofisk, Eldfisk, Embla and Tor. Crude oil from Greater Ekofisk's producing fields is exported through pipeline to Teesside, England, while natural gas moves through pipeline to Emden, Germany.
ConocoPhillips operates the Greater Ekofisk Area with an ownership of 35.1%. The other co-venturers, Total SA (TOT), EniSpA (E), Statoil ASA (STO) and Petoro hold 39.9%, 12.4%, 7.6% and 5%, respectively.
ConocoPhillips is a major global exploration and production (E&P) company with operations and activities in 27 countries. With leading positions in both natural gas and heavy crude oil in North America, as well as a legacy position in the North Sea and growing exposure to lucrative international regions, ConocoPhillips expects to replace reserves and sustain production growth over the long term.
Currently, ConocoPhillips carries a Zacks Rank #5 (Strong Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment