Before Splitting, Conoco Reveals $25B In Spending And Buybacks

By Agustino Fontevecchia | Forbes – 10 mins ago...

ConocoPhillips announced a $15.5 billion expenditure program on Friday, along with a $10 billion boost to its stock repurchase program, as it provided updates on its plan to split into two separate companies, downstream-focused Phillips 66 and ConocoPhillips, a pure play E&P firm.

Putting its chips on exploration and production, the company headed by Jim Mulva will dedicate $14 billion of those expenditures on improving its upstream operations. In North America, where 60% of the funds will be used, Conoco will focus on its shale plays, particularly in what the company calls the U.S. Lower 48, which comprises the liquids-rich Eagle Ford and Bakken fields, among others.

Conoco is also looking to beef up its oil sands operations in Canada. In the Asia-Pacific region, the company will look to develop its coalbed methane-to-LBG project via its Australia Pacific joint venture. Some of the money will also be spent in Europe, developing fields in the North Sea.

Of the remaining capital, $1.2 billion will be dedicated to refining and marketing and $300 million for global information systems and corporate facilities.

“The 2012 capital program reflects our strategic emphasis on delivering value by investing in the most profitable opportunities,â€