The amounts exclude 16 million barrels of oil equivalent (boe) of 2007 Venezuelan production and 1.08 billion boe of reserves associated with the expropriation of the company’s Venezuelan oil projects. The reserve replacement ratio including the impact of the expropriation was 29%.
ConocoPhillips’s total proved reserves at year-end 2007 were 10.6 billion boe.
The company’s organic reserve replacement ratio, which excludes sales, acquisitions and the Venezuela impacts, was 122%.
Sales of reserves during the year were related to producing assets sold as part of the company’s asset rationalization program. Acquisitions were mainly Canadian oil sands reserves associated with the upstream EnCana business venture. Year-end proved reserves exclude 200 million barrels associated with the company’s Canadian Syncrude operations.
Total reserve additions, including revisions, improved recovery, purchases, and extensions and discoveries, were 1.43 billion boe. Costs incurred are expected to be $16.29 billion. The company’s five-year average reserve replacement was 176% and its estimated five-year average finding and development cost per boe was $10.11.
John Lowe, executive vice president of exploration and production, said: We remain committed to sustaining our production and proved reserve base over the long term, and we will strive to do so at a competitive finding and development cost.
