ConocoPhillips (COP) held its third quarter earnings call on November 6. Operational highlights in the prepared remarks and later in the Q&A session included an update on the Willow project in Alaska as well as Lower 48 capital expenditure.
The Willow project, a push towards developing acreage in the Alaskan North Slope, is estimated to produce ~180 Mb/d at its peak, and achieve first oil in 2029. The Willow project was noted as nearing 50% completion as cost guidance increased by half a billion dollars up to $9 billion due to a number of macro and localized factors. At FID in 2023, the project was 50% contracted secured and is now 90% contracted with first oil still expected in 2029.
The executive team also commented on their lower 48 production outlook, emphasizing they will continue to have what they call a ‘level-loaded steady-state’ program of about 24 rigs and eight frac crews. The team also mentioned they see global oil demand growing ~1 MMb/d per year for the foreseeable future.
