ConocoPhillips, the third-largest U.S. oil company, said its plan to raise cash and reduce its debt load by selling assets reduced its 2010 oil and gas reserves by 2.2 billion barrels of oil equivalent. Among the assets being sold by Conoco are its stake in Russian oil giant Lukoil.
Texas-based Conoco (COP) said it expects 2010 year-end reserves to come in at 8.3 billion barrels down 10.33 billion barrels a year earlier. Excluding the company's asset sales, the company said it added 920 million barrels of oil equivalent to its reserves in 2010 when divestitures are excluded, largely from fields in Alaska and Qatar and oil sands projects in Canada, Reuters reported.
Production from Lukoil accounted for 110 million barrels of Conoco's 2010 production total. On Tuesday, Conoco said it would sell several Barnett Shale properties with 93 billion cubic feet of natural gas reserves to private equity Kohlberg Kravis Roberts. Financial details of the deal were not disclosed.
Conoco expects its 2010 reserve replacement ratio to be 138%, down from 141% in 2009. The company is scheduled to deliver its fourth-quarter earnings report on Wednesday before the open of U.S. markets.
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