<a href=reuters.com>Reuters Thu April 3, 2003 09:52 AM ET (Recasts lead, adds details, stock price)

NEW YORK, April 3 (Reuters) - ConocoPhillips COP.N , the No. 3 U.S. oil company, on Thursday said it lowered its debt balance by about $1.5 billion in a first quarter marked by higher crude oil prices and improved natural gas prices.

The Houston-based company made the announcement as part of its first-quarter interim update which featured forecasts for an increase in exploration and production, but saw problems with their chemical operations and lease losses due to the sale of some gas stations.

Its exploration and production, or upstream, division is set for production of crude oil, natural gas and natural gas liquids to be higher than its previous estimate of 1.55 million barrels per day.

Operations in Venezuela, crippled by a strike, resumed full production in early March, reaching about 80,000 barrels per day, the company said.

Refining and marketing, or downstream, margins and sales volumes in the first quarter are expected to be similar to the fourth quarter.

However, it warned that 2003 net income will be hurt by additional lease loss provisions stemming from the planned sale of some gas stations. The provisions are expected to be about $25 million after-tax related to continuing operations and $25 million related to discontinuing operations in the first quarter.

The chemicals business continued to suffer from poor market conditions in the first quarter, ConocoPhillips said.

Corporate charges from continuing operations are forecast to be about $240 million and the debt balance at the end of the first quarter is expected to be about $18.3 billion.

Shares of ConocoPhillips were down 30 cents at $53.05 in Thursday morning on the New York Stock Exchange.

<a href=www.dailytelegraph.co.uk> Money

Britain's finest oil companies - BP and Shell - like to jockey for the limelight. Yesterday, the BP boss Lord Browne, hampered for so long by the millstone of production targets hanging on his neck, was vindicated - for the time being anyway - for his policy of focusing on exploration and production.

The war in Iraq, the strike in Venezuela and civil strife in Nigeria have all pushed the price of crude oil northward in the first quarter. Brent crude, at an average price of just less than $31.50, is trading more than $10 higher than a year ago.

That price will help BP double its first-quarter net profits from last year and help fund its $20 billion capital expenditure programme, outlined in the full-year results.

Suddenly, now the prices are steep, the idea of investing $6.75 billion for a 50pc stake in Russia's TNK Oil seems even more of a masterstroke. BP should be more than able to turn a healthy profit out of Russia's difficult terrain - if the prices stay high.

BP's advance into far-flung Angola and Azerbaijan to win the big reservoirs also seems a good strategy. Of course, the picture changes somewhat if and when the oil price loses its instability premium. External events make it difficult to predict how far prices will fall, but they will fall.

At that point, BP's operations look less rosy. Refining margins are looking fatter than last year but worries about its US refineries continue.

In addition, analysts are worried that BP has failed to capitalise on the soaring US gas price - despite its relatively high exposure in the market. Such worries saw the shares fall 9.25 to 406.25.

BP is trading off 14 times future earnings and yielding 3.5pc. Until Lord Browne's bold new strategy starts to pay some dividends on exploration and production, and with BP's wobbly performance elsewhere, it's best to hold for now.

<a href=news.ft.com>URL By Carola Hoyos in London Published: April 2 2003 12:04 | Last Updated: April 2 2003 12:04

BP on Wednesday outlined significantly improved refining margins for the first quarter of this year, foreshadowing a profitable quarter for the sector.

In another step away from using production volume as target measurement, the UK-based company, in its quarterly trading statement did not reveal its production levels, as it had done in past updates.

BP's global refining margin improved to $4.52 a barrel, up 64 per cent from the last quarter of 2002 and 176 per cent from a year ago.

Refining margins in the US have been stronger than those in north-west Europe and Singapore, a boost to BP in particular because of the company's relatively wide exposure there.

BP earned $6.77 for every barrel of oil it refined on the US West Coast and $6.14 on the Gulf Coast in the first quarter of this year, which ended on March 31. Refining margins in the Midwest were weaker at $4.14 a barrel, slightly disappointing for BP, whose refineries process 500,000-600,000 barrels a day in Indiana and Ohio, analysts said.

The improvements were largely due to the increase in world oil prices because of a combination of export interruptions in Venezuela, Nigeria and Iraq at a time of historically low commercial reserve stocks, especially in the US.

Jon Rigby, analyst at Commerzbank, said: "It's positive for BP, positive for the sector, but there are a couple of little points that take off some of the gloss."

The disappointments were the reduced margins in BP's chemical business. The company said it expected its chemical margins in the first quarter of this year to be "sharply lower" than the fourth quarter of last year, because of the rising cost of oil, gas and other feedstocks used.

Mr Rigby also pointed out that BP was not fully able to benefit from the increased gas prices in the US because of its exposure in local markets, where prices did not improve as much as the main Henry Hub marker price. BP expects only to realise $2/mcf improvement of the natural gas price, which at Henry Hub is expected to increase by 2.54/mcf. Nevertheless, that realisation would be more in line with marker prices than BP's results at the end of last year.

BP put the price of West Texas Intermediate, the US benchmark crude, at $34.00 a barrel, up $5.69 from the last quarter of 2002, while Brent, the European benchmark crude, was pegged at $31.47 a barrel, up $4.59. Natural gas benchmark prices in the US were $6.53 per mmbtu (million British thermal units), up from $3.99 at the end of last year, while UK prices were 21.28 p/therm, up from 19.09p.

In late morning trade the shares were down 1.1 per cent at 410-3/4p.

by: OilOnline Thursday, March 27, 2003

London, UK ... Oil majors from around the world are lining up to participate once again in the Eastern Hemisphere's premier oil and gas show, Offshore Europe 2003.

BP, Saudi Aramco, Shell UK Exploration & Production, TotalFinaElf Exploration UK and Petroleum de Venezuela, S.A. (PDVSA) are all confirmed as exhibitors at OE 2003 in Aberdeen, providing yet more evidence that the show remains at the top of the operators' list of 'must attend' events, with Europe standing at the centre of the global decision-making process. With the need for contractors and service companies to continually network with the major E&P operators in today's ultra-competitive environment, the ability to be able to do this under one roof at OE 2003 remains one of its key attractions.

This world-renowned oil and gas event will once again be held in Aberdeen's recently revamped Exhibition and Conference Centre. Running between September 2-5, more than 25,000 key upstream personnel from around the world are forecast to attend. More than 6,400 personnel from oil companies alone attended the 2001 show.

According to Nik Rudge, Sales & Marketing Director for show organisers The Offshore Europe Partnership, "We are delighted that once again Offshore Europe is enjoying such visible support from the operating community. It is testimony to the importance the international E&P community places on OE03 that not only have our 2001 majors returned with larger stand commitments but that a further global major in Saudi Aramco now recognises OE03 as one of the most important and vibrant forums to engage the industry."

Innovative Thinking Behind Industry's No.1 Event Offshore Europe 2003 is already underlining its reputation as the most innovative oil and gas event on the industry calendar, featuring not only an exhaustive exhibitor line-up but also a highly topical conference agenda from some of the most influential leaders in the petroleum industry.

However, in addition to this, the organisers have for the first time also created the Real Time Zone, a unique 'show within a show' that will focus purely on remote operations technology and expertise. This will give thousands of exhibition and conference goers an exclusive chance to immerse themselves in an online showcase for the next generation oil field (see www.offshore-europe.co.uk/real.htm for details).

OE 2003 - Addressing Key Issues Facing The Industry Remote operations are also a key driver behind the theme of this year's conference, 'Raising the Game: Leadership, Behaviour and Technology in Mature Basins.'

In addition, The Offshore Europe Partnership - a joint venture between Spearhead Exhibitions and the Society of Petroleum Engineers (SPE) - and Worldwideworker, an international oil and gas recruitment company, are also addressing one of the industry's greatest concerns - recruitment.

Debuting at OE 2003 will be the Oilcareerfair (see www.offshore-europe.co.uk/news_exhibition.htm). This recruitment initiative will provide an online forum (www.oilcareerfair.com) in conjunction with an on-site career fair.

www.canada.com Canadian Press Thursday, March 13, 2003

PORT-OF-SPAIN, Trinidad (CP) - Australian energy and mining giant BHP Billiton plans to spend $327 million US in developing its first oil and natural gas field in Trinidad, a project partly owned by Canada's Talisman Energy Inc.

BHP estimates the field off the northeast coast of Trinidad - not far from the prolific oilfields off the coast of Venezuela - contains 160 million barrels of oil and 1.75 trillion cubic feet of natural gas.

Talisman, the Calgary-based company that is one of Canada's most international oil producers, has a 25 per cent stake in the Trinidad project. French oil giant TotalFinalElf, owns 30 per cent.

The Trinidad oilfield is one of several new projects Talisman believes will help the company replace lost oil production from its controversial Sudanese joint venture, which Talisman sold for $1.1 billion in a deal that closed this week.

Talisman was unable to comment about the BHP announcement Thursday, but energy analyst Brian Prokop of Calgary-based Peters & Co. said the Trinidad play is "a field of size."

"And it will also identify Trinidad as a new area for Talisman," he said, noting the company is currently doing exploratory onshore work in the Caribbean island as well.

"Obviously they think there's some potential there, otherwise they wouldn't have purchased assets on the eastern side of the island."

Talisman is also expected to profit from the working relationships with TotalFinaElf, one of the world's largest energy companies.

Talisman is also expecting production from new projects offshore Malaysia and Vietnam as well as Algeria to regain its reputation as a developer of significant oil properties throughout the world.

On the Toronto stock market Thursday, Talisman shares (TSX:TLM) fell 53 cents to close at $58.87 Cdn.

When operating, the new field will boost Trinidad and Tobago's output of crude oil by nearly 70 per cent. Government officials have said such an investment will bring new wealth to the Caribbean country.

The first oil from what is being called the Angostura Oil and Gas field is scheduled to be pumped by the end of next year. The field has an estimated production life of 19 to 24 years, the company said in a statement.

"With our sanction of the Angostura project, Trinidad and Tobago will become a core development area for BHP Billiton," chief executive Philip Aiken said. He said once "production begins, Angostura will be one of the company's largest operated assets."

The company, based in Melbourne, Australia, is a diversified resources company with interests in oil, natural gas, aluminum, coal, iron ore, titanium minerals, nickel, diamonds and silver.

In Canada, BHP owns and operates the Ekati diamond mine in the Northwest Territories, Canada's first diamond mine, which began production in the late 1990s.

Trinidad and Tobago's economy, already based largely on oil and natural gas, currently produces 150,000 barrels of oil a day. BHP expects the Angostura field will produce 100,000 barrels a day.