Conoco (U.K.) Ltd. plans to spend 400 million ($600 million)/year for the balance of the 1990s.
Conoco Inc. President Constantine Nicandros said cumulative British investment during the period will be more than 2.4 billion ($3.6 billion). This will be by far the highest level of Conoco investment outside the U.S.
Exploration and production projects will account for 1.7 billion of the total. Conoco has increased its interest in Britannia, U.K.'s largest undeveloped gas/condensate held, to 43% and owns interests in a number of other North Sea oil and gas development prospects.
The balance of the outlay will go to refining and marketing projects. During the next 3 years Conoco plans to invest more than 200 million ($300 million) at the 130,000 b/d South Killingholme refinery on the River Humber.
A Conoco official said short term spending will amount to $196 million on upgrading, including installation of a new vacuum unit and distillate desulfurization plant; $54 million on environmental projects; and $80 million on "stay in business" projects, including new laboratories and new coke drums.
Conoco recently helped finance construction of a third berth at nearby Immingham oil terminal to speed the South Killingholme refinery's import/export turnaround (OGJ, Aug. 15, p. 32).
Nicandros outlined U.K. spending plans at a ceremony marking the 25th anniversary of start up of the refinery. The plant has the lowest sulfur emissions of any refinery in the U.K., said plant director Terry Indreland.
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