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HOUSTON -- The board of directors of ConocoPhillips has approved a 2004 capital budget of approximately $6.9 billion. This total includes approximately $0.5 billion in capitalized interest and $0.4 billion in minority interest. Excluding these items, 2004 cash capital expenditures is approximately $6 billion.
"Maintaining a 2004 cash capital budget essentially equal to 2003 is part of our disciplined approach toward improving returns on capital employed," said Jim Mulva, president and CEO. "This capital program will enable us to maintain safe and reliable operations, develop our existing legacy projects, and provide growth opportunities for the future."
The company will allocate approximately 78 percent of its 2004 capital budget to Exploration and Production (approximately $4.5 billion); Refining and Marketing will receive about 19 percent of the budget (approximately $1.3 billion); the remaining budget will be allocated to Emerging Businesses and Corporate (approximately $0.1 billion).
Of that Refining and Marketing budget, ConocoPhillips plans to spend about $0.9 billion in U.S. refining, primarily to fund clean-fuels projects in order to comply with new Environmental Protection Agency standards for refined products. Worldwide, clean-fuels spending for ConocoPhillips' R&M business will be approximately $0.6 billion, or 55 percent of the total refining budget.
International marketing will spend about $0.1 billion, with the remaining budget primarily funding projects in the company's U.S. marketing and transportation businesses.