The Environment and Sustainable Development Issue

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CONOCOPHILLIPS

Fourth Quarter 2015

“Out here in Bogota, Colombia, I felt it was very important for our local contractors and employees to welcome the Life Saving Rules, or as we call them, the Reglas de Salvamento. It is wonderful to build a proper culture not only in the eld, but also in the oce where I work every day and can help others.”

Victor Polo Legal Counsel, Colombia

In all of our operations, from remote eld locations to our largest oces, ConocoPhillips employees and contractors have embraced the Life Saving Rules and are embedding them in our safety culture. It's the way we work, around the world.

15-1518 SHARING INSIGHTS

From the desk of Don Wallette Executive Vice President, Commercial, Business Development & Corporate Planning Matt Fox Executive Vice President, Exploration & Production

DESPITE RECENT DRAMATIC CHANGES to the energy landscape, ConocoPhillips’ commitment to sustainability remains unchanged and provides a solid foundation for our actions. Regardless of the price of oil, we are responsible to stakeholders for our safety, economic and environmental performance. Across the globe, ConocoPhillips employees work hard every day to operate sustainably. Our strong environmental and social performance is guided by strategic frameworks, guidelines and action plans. Environmental stewardship, charitable contributions and community involvement provide tangible examples of the company’s overall approach, integration and follow-through. In this issue of spirit Magazine, we highlight these activities, starting with water management and conservation efforts on Page 8, and including efforts to reduce our footprint by reusing and recycling materials on Page 40. These articles demonstrate how we constantly work to improve the company’s environmental performance. Our Environmental Strategy Framework helps us do that by offering a flexible way to make a cost-effective difference. In the Rockies Don Wallette, left, and business unit, recovering and selling methane gas while reducing methane emissions is a priority; Matt Fox in the arid Permian Basin, recycling produced water to conserve freshwater is important. More often than not, reducing our environmental footprint has the added benefit of reducing capital and operating costs. But our business is about more than the bottom line. The oil and natural gas we produce is vital to society. By operating sustainably, we can maintain our competitiveness and foster long-term business success. These efforts are not without challenges. As you will see starting on Page 28, we address these challenges through collaboration and innovation. Interacting with those who impact or may be impacted by our operations is another cornerstone of our business. ConocoPhillips’ community involvement activities across the globe are highlighted in the article starting on Page 20. Our continued work studying and conserving Louisiana’s coastal wetlands (see Page 34) contributes business value while reinforcing our commitments to biodiversity, water and stakeholder engagement. All of our sustainability efforts have one basic tenet: they support society and our business activities. While safety will always remain the top priority at ConocoPhillips, our long-term vision is to ingrain the same passionate focus on environmental performance into our culture. ■

EDITOR’S NOTE: spirit Magazine itself continues to be an example of ConocoPhillips’ sustainable performance. As more and more of our readers turn to the ZMag and Apple app digital versions, we have reduced the number of copies produced to a fraction of our original print run. Whatever way you prefer to read the magazine, please remember that we always welcome your comments and suggestions.

spirit Magazine 1 spirit Magazine Contents

At the Buck central tank battery, produced water is deoiled. The oily stream is then transferred to these heater treaters for recovery.

1 SHARING INSIGHTS 52 FACES OF CONOCOPHILLIPS Matt Fox, EVP, Exploration & Production Harley Grant: Harley and Boots, Don Wallette, EVP, Commercial, Business the greatest generation. Marcus Development & Corporate Planning Humphreys: A passion for open water. Chris Young: Brand & Creative Services 4 THE BIG PICTURE director escapes the Rock. Conoco Phillips partners with nonprofit conservation groups to protect an array 58 IN THE NEWS of migratory birds. A compilation of news from around the ConocoPhillips world FOURTH QUARTER 2015

Supporting communities, 20 fostering relationships Conserving a Conoco Phillips respects the 8 values, cultures and resources scarce resource of all communities where it Water recycling and operates. reuse projects reflect the company’s commitment Stepping up to the challenges to reducing freshwater 28 of sustainability use. JAN HESTER The company overcomes environmental and operational challenges through innovation and personal commitment.

Louisiana’s coastal wetlands 34 In an endangered region that is vital to the nation’s economy, Conoco Phillips works with partners to reverse marsh erosion and preserve native species. MAXINE MADISON

Footprint 40 Upholding high environmental standards supports economic growth, social well-being and a healthy future environment. COURTNEY TIMM

ON THE COVER The long-billed 2015 SPIRIT Awards curlew, up to 25 inches long with a 46 wingspan of up to 35 inches, is North Recipients in the categories of Business America’s largest shorebird. The bird’s Excellence and Wellness demonstrate long, curved bill is ideally adapted for capturing shrimp and crabs living in innovation and creativity. JAN HESTER tidal mudflats, such as this marsh on the Texas Gulf Coast. PHOTO BY TIM ROMANO/ SMITHSONIAN Tracking migratory birds

Conoco Phillips works with the Smithsonian Institution to collect connectivity data for bird species that follow a migratory flyway through the company’s areas of operation. The Migratory Connectivity Project tracks species that breed in Alaska, then migrate south into Texas and across the Gulf of Mexico to winter as far south as Colombia.

The antenna of a miniature solar- powered satellite transmitter is visible on this female black-bel- lied plover. She was tagged on the North Slope of Alaska in June and is now spending the winter in Peru, while her mate is over- wintering along the Gulf Coast of Mexico. The aluminum band, on her upper right leg, and the uniquely positioned plastic color bands help to identify her from afar. PHOTO: RYAN ASKREN/USGS

4 ConocoPhillips THE BIG PICTURE

ABOVE: David Newstead of Coastal Bend Bay and Estuaries’ coastal bird program herds marbled godwits into a capture zone near Corpus Christi, Texas. Photo: Tim Romano/Smithsonian

LEFT: A long-billed curlew, North America’s largest shorebird, flies over a channel at Mustang Island State Park on Texas’ Gulf Coast. To help identify connectivity between Texas wintering areas and their breeding locations, eight curlews were tracked to the prairies of Alberta and Saskatchewan in Canada, as well as the U.S. states of Nebraska, North Dakota and South Dakota. Photo by Tim Romano/ Smithsonian

spirit Magazine 5 THE BIG PICTURE

RIGHT: Broad-winged hawks are small raptors that spend most of their time deep in the forest. During migration, they form flocks of thousands to soar along moun- tain ridges and coastlines. Three broad-winged hawks were caught this summer at their nests near Slave Lake, Alberta and equipped with small tags to track their migration. This female is now in Venezuela! PHOTO: JESSE WATSON/SMITHSONIAN

BELOW: Arctic lupine frame a tundra pond by the Colville River Delta of Alaska’s North Slope. These freshwater ponds, formed by freezing and thawing of tundra over hundreds of years, provide important breeding habitat for shorebirds and loons. PHOTO: RYAN ASKREN/USGS

6 ConocoPhillips A pacific loon runs over the water to take off from its nesting pond near ConocoPhillips Alpine Camp on Alaska’s North Slope. Loons’ legs are positioned far back on their bodies and act like propellers. This helps them to be very efficient swimmers and divers, but poor walkers on land. In order to generate enough speed to become airborne, they must flap their wings vigorously and paddle their feet over a long runway of open water. PHOTO: RYAN ASKREN/USGS

LEFT: As the sun sets Pacific loons PHOTO: on a day of field work RYAN ASKREN/USGS on South Padre Island, Owen Fitzsimmons of Coastal Bend Bays and Estuaries packs up a large net used to capture shorebirds for tagging. PHOTO: TIM ROMANO/ SMITHSONIAN

spirit Magazine 7 WATER

Conserving a scarce resource: A global focus on water management

BY JAN HESTER, PHOTOGRAPHY BY GUS MORGAN

Water Management Operations Lead Lauren Sloan overlooks the Waddell Ranch site in the Permian Basin. THE COVER STORY

WITH LOW COMMODITY PRICES AND A SHARP FOCUS ON REDUCING THE COST OF PRODUCING OIL AND NATURAL GAS, SMART AND EFFICIENT WATER HANDLING WILL BE A DIFFERENTIATOR FOR CONOCOPHILLIPS. REDUCING THE USE OF FRESHWATER AND REUSING THE WATER PRODUCED DURING OPERATIONS MINIMIZES ENVIRONMENTAL IMPACT AND REDUCES WATER SOURCING AND TRANSPORTATION COSTS.

spirit Magazine 9 WATER

WATER AROUND THE GLOBE Water use has grown at more than twice the rate of population increase in the last century.

70 percent of Water treatment equipment freshwater withdrawn at Waddell Ranch globally is used for irrigation. The oil and gas industry uses less water overall HYDROGEN SULFIDE GAS Most population than agriculture or power generation, but the In the Permian Basin, conventional assets have growth will occur in amount needed to produce hydrocarbons can an ample supply of produced water available for developing countries, raise concerns in areas with hydraulic fracturing reuse. But in areas such as Waddell Ranch, the and horizontal drilling, which require significantly water can contain H S gas, a flammable, naturally regions already 2 experiencing water more water than traditional vertical wells. occurring gas that smells like rotten eggs. Expo- ConocoPhillips is committed to wise steward- sure to H S can cause health problems and is very stress. 2 ship of water resources and to protecting the dangerous at high concentrations, so stringent water quality in areas where it operates, including safety precautions are necessary. Hydrogen sulfide Water scarcity already the Permian Basin area of West Texas and south- must be removed to below-detectable limits affects more than eastern New Mexico. before the water can undergo further treatment 40 percent of the A team from the Mid Continent business unit to remove impurities. people on Earth. (MCBU), with technical support from the Water “Water treatment equipment operates much Solutions group and other experts in Technology more efficiently without the sulfur, shortening the In 2030, 47 percent & Projects (T&P), is working to recycle and reuse cycle time,” said MCBU Completions Superinten- of the world’s produced water in the arid Permian Basin. dent Curt Sievert. population will live in Previous efforts included straight chemical areas of high water Unconventionally oxidation and filtration, a method that is techni- stress. cally viable but can become cost prohibitive due conventional to chemical costs, especially for produced water (Source: United Nations) At ConocoPhillips’ Waddell Ranch site, located containing high levels of H2S. In pursuit of a deep in the oil patch about an hour from Midland, more efficient, less costly method, the MCBU Texas, MCBU Water Management Operations team identified degassing as a chemical-free treat- Lead Lauren Sloan watches over her latest under- ment alternative to remove sulfides in the water taking like a proud but nervous parent. Sloan and and partnered with T&P to evaluate how well it her team recently completed two conventional would work. horizontal wells using 100 percent recycled pro- “A pilot project in late 2014 proved that the duced water — a first for the company. In order to technique was effective, but finding a vendor with meet this goal, the team first had to address two the right set of capabilities was very challenging,”

major issues: removing hydrogen sulfide (H2S) said Sloan. “After a focused search, we identi- from produced water before it is treated and iden- fied Canadian sour emissions control company tifying an appropriate storage solution.. AMGAS as a potential provider.”

10 ConocoPhillips WATER

by Water Solutions researchers as an An interview with Water Solutions alternative solution for produced water volume reduction and has been suc- Manager Samer Adham cessfully demonstrated at the bench- scale with produced/process water Samer Adham is provide specialized chemical services to through partial funding from the Qatar manager of the the business units so they can man- National Research Fund. Further evalua- Water Solutions age their specific corrosion, hydrates tion of the process is planned. group, including and scale issues. As new formulations the Global Water become available, we will develop What role does water technology Sustainability Cen- analytical methods to evaluate chemi- play in ConocoPhillips’ ter team in Doha, cal performance. sustainability efforts? Qatar. As part of We have incorporated several new the Water Issues Working Group and the The ConocoPhillips Global Water technologies that minimize the com- Lower 48 Water Leadership Team, he Sustainability Center in Doha has pany’s water footprint while maximiz- and his team work closely with experts earned a reputation for innova- ing the return on investments made in across the company. tion since it opened in 2010. water treatment. The produced water Please describe what is going on reuse program in the Mid Continent Tell us about the long-term there today. business unit and development of a goals of ConocoPhillips’ water We remain focused on supporting our water technology toolbox are key priori- technology program. business units as well as our partners in ties listed in the ConocoPhillips Water Our goal, in support of Conoco Qatar. Qatargas has developed a com- Action Plan for 2015/2016. Phillips business units worldwide, is to prehensive Wastewater Management apply fit-for-purpose water solutions Strategy that includes two advanced How will research impact the that reduce freshwater consumption wastewater recycle and reduction plants future of water conservation in and lower operating costs related to treat various process wastewater the oil and gas industry? to water management. This goal is streams from their facilities. As a joint Engineering research will support included in the company’s Water Action venture partner of Qatargas, Conoco accurate design data and cost/benefit Plan. We focus on all stages of the Phillips has provided engineering and estimates, ultimately aiding in the adop- life cycle, including sourcing, storage, analytical support related to the two tion of water treatment technologies transportation and produced water recycling, discharge and disposal. “Our goal, in support of ConocoPhillips business units What do you hope to accomplish over the next few years? worldwide, is to apply fit-for-purpose water solutions On the engineering side, we are that reduce freshwater consumption and lower focused on identifying and evaluating both commercial and emerging tech- operating costs related to water management.” nologies that offer solutions using non- freshwater sources. The business drivers for this include environmental (local plants currently under construction. that address condition-specific issues. water stress), social (fewer water trucks These treatment plants employ state- The oil and gas industry will continue to on community roadways) and eco- of-the-art membrane bioreactor and conserve water resources and minimize nomic (cost savings). We are compiling reverse osmosis systems. Water Solu- the use of freshwater where it is a lim- a Water Solutions toolbox that captures tions has extensive expertise in both ited resource. The Water Solutions teams the experience and expertise of water technologies. in Houston and Doha are proud to work professionals throughout the company. A novel, low-energy adaptation of the together in support of the programs On the analytical side, we continue to forward osmosis process was developed and projects highlighted in this article.

spirit Magazine 11 WATER

RIGHT: Produced water from Water Solutions Staff Process Engineer Ramesh the well site is degassified to remove hydrogen sulfide Sharma visited the AMGAS facility in Calgary to before it is transported to further vet the company’s H2S removal technol- Waddell Ranch for treatment ogy and its project execution capabilities. The and storage. team successfully conducted a 6,500-barrel field trial on a vertical well in the summer of 2015,

removing H2S down to zero parts per million. The system is being evaluated for potential use in Western Canada. Further treatment and reuse enabled the team to gather the data necessary to optimize the process and successfully test the system on a horizontal well. The MCBU team recently reused approximately 100,000 barrels of treated produced water on two horizontal well fracks by degassing to

remove H2S, filtering to remove particulates and killing the bacteria using ozone oxidation. BELOW: Produced water in the Waddell Ranch storage needed at the well sites. In 2014, a multidisci- tanks is recirculated and STORAGE plinary team from Lower 48 and T&P identified disinfected to remove bacteria before it can be The second challenge at Waddell Ranch was several storage options, including above-ground used in well completions. storing the treated produced water until it was storage tanks (AST). The MCBU Water Manage- ment team followed up by performing a risk assessment on ASTs, working closely with the tank manufacturer and contractor to identify risks and mitigation strategies. “With ASTs, the potential risk is a failure that could result in a water spill,” said Sloan. “We worked with the tank manufacturer to install a double liner around the storage area with five sen- sors for leak detection.” Sievert points out that recycling produced water in this arid region makes good sense and supports ConocoPhillips’ commitment to preserve and conserve fresh water. “Treating and recycling produced water for use in fracking and other high water-volume operations simplifies the operation and improves the economics of our project,” said Sievert. “It gives us a reliable source of usable water, and it’s a big convenience advantage not having to haul in water by truck. It also reduces road traffic, vehicle emissions and wear and tear on lease roads.” From Sievert’s vantage point, the future for water reuse in the area looks bright. “I think there’s an opportunity for significant cost savings as the technology improves and we gain more experience. And produced water reuse leaves more freshwater available for other uses.”

12 ConocoPhillips WATER

MID CONTINENT BUSINESS UNIT: WADDELL RANCH RECYCLING AND REUSE PROCESS

1 Produced water from the well site is Achievements transferred to the H2S removal unit. • Recycled and reused 100,000 barrels of produced water.

2 Once the water is free of H2S, it is • Eliminated more than 800 truckloads of water transferred to two 25,000-barrel above- from local roads. ground storage tanks. • Implemented a new treatment technology

capable of removing high levels of H2S. 3 The water is recirculated through an ozone • Utilized a new oxidation technology for oxidation treatment process for bacterial bacterial disinfection. disinfection. • Lower 48 Projects & Engineering collaborated with the Lower 48 Water Leadership Team 4 Once it reaches acceptable levels, the and Water Solutions to establish guidelines for water is ready to be used in completions. above-ground storage.

One of the two 25,000-barrel above-ground storage tanks at Waddell Ranch

spirit Magazine 13 WATER

An industry first: Cyclonic cyclonic deoiler, similar to the cyclonic systems used in offshore production, to see how BUCK CTB deoiling in Permian it stacked up against the old gun-barrel system DEOILING unconventionals widely used in onshore operations. The deoiler PROCESS uses a new liner design that allows processing Produced water contains dispersed oil and must of dispersed oil at a level that was not possible 1 As a well is be treated before it is recycled or reinjected into before. fracked, the a disposal well. “With our high volume wells, we were get- product is “If you don’t deoil, your chemical use is too ting too much oil carryover into the produced separated into gas, high, and you lose the extra oil,” said Ramesh water that we put into the injection well,” said oil and water. Sharma, staff process engineer and project Permian Shale Operations Supervisor Ray manager. “Injecting produced water without Carrasco. “Because the water carried oil into 2 The produced adequate oil removal can damage the formation the injection well, we had to rework a well water, which and result in downtime.” twice. That meant three to four days’ down- contains dispersed The Buck central tank battery (CTB) gathers time for each rework and having to truck away oil, is stored in and stores produced water from approximately 5,000 barrels of water a day. We needed a better tanks. 10 unconventional wells in the Permian Basin solution.” about two hours from Midland, Texas. A recent The low-tech gun-barrel tanks store produced 3 Produced water is pilot project at Buck tested a new, compact water until the dispersed oil floats to the top to processed through be skimmed off. Unfortunately, this method, the cyclonic BELOW: Staff Process Engineer Ramesh Sharma and Mid which relies on density, gravity and time, is not deoiler, which uses Continent business unit Water Management Project Lead very efficient. centrifugal force to Kristie McLin in front of produced water tanks divide it into two streams: oil and water.

4 The clean water can be reused or reinjected for disposal.

5 The oil is transmitted to the heater treater for recovery.

14 ConocoPhillips WATER

The compact cyclonic deoiler uses centrifugal force to remove dispersed oil from produced water.

Senior Facilities Engineer Greg Deslaurier Lower 48: On the front lines explains the challenge. “Our main goal was to find a way to treat our produced water to avoid of water conservation injecting solids and oil into a disposal well. The The Lower 48 Water Leadership Team was gun-barrel tank system is slow, and it recovers a formed to foster collaboration and coor- relatively low percentage of oil. It also requires dination among all asset teams manag- large tanks and long wait times, which means a ing water, with a focus on evaluating and bigger footprint.” recommending opportunities to reduce

At the same time, a Water Solutions team onshore freshwater use. Steve Jester was evaluating options for inline separation in In the Delaware Basin of the Permian, a offshore design, including a compact cyclonic majority of the water used for drilling and completions in 2014 deoiler developed by FMC Technologies. was from non-freshwater sources. Although it had never been used onshore, the “The Eagle Ford is a bit different. We have ample and technology seemed like a possible fit for Buck. inexpensive supplies of freshwater, and using produced water Sharma and Deslaurier discussed how they requires adding more trucks to the roads. To supplant fresh- could deal with the challenge. water use, we’re targeting brackish groundwater from deeper “Maintaining production was critical,” said sources not being used by local landowners,” said Steve Jester, Deslaurier. “We needed a trial solution that senior advisor, Environmental. “In 2014, more than a quarter didn’t interrupt production, so we made the of all water used for well stimulations in Eagle Ford was from decision to take a side stream of produced water non-fresh sources.” that would give us a representative sample.” Going forward, Lower 48 teams will increase their non- MCBU Water Management Project Lead freshwater use and implement more technology for handling Kristie McLin facilitates implementation with produced water, including more centralized water treatment.

spirit Magazine 15 WATER

the business units, working to ensure that a pilot The team designed an eight-week pilot at Buck project is a value-adding exercise. “We work CTB to qualify the new technology for use in together to ensure the project is something that unconventional operations. The new cyclonic can enhance our operations.” deoiler performed well. Deslaurier was enthusiastic about the project “The results were very good,” said Carrasco. from the beginning. “We had an opportunity to be “We actually recovered about seven barrels a day BELOW: Comparing water quality, left to right: inlet oily a part of something that challenged conventional of oil, and the water was much cleaner for us to produced water, oil rich over- thinking and could impact how we treat water as reinject into the zone.” flow stream and underflow an asset and as a company.” Based on findings from that pilot and follow-up clean produced water commercial review by the Permian team, MCBU management made the decision to install the new technology at Buck. “This process has the potential to save millions in trucking costs over the life of a well,” said McLin. “It lengthens the life of our owned and operated disposal wells, so we don’t have to pay to have water trucked.” The team is getting closer to full-scale commercial application and plans to install the system at two CTBs. Additional applications of this new technology are being evaluated for future water gathering facilities in unconventional plays, as well as for water flood enhanced oil recovery facility retrofit and design optimization in Permian conventional assets. “It’s a potential game changer,” said Sharma. “The performance is superior to the gun-barrel system, with a lower installed cost and smaller footprint for larger volume applications. It’s also compact and easy to scale up. Because it is fully automated, it doesn’t require intervention.”

Working on water As a global energy company committed to Willie Staudt, director, Water & Biodiversity, sustainable development, ConocoPhillips rec- leads the group. “We bring together people ognizes that freshwater is an essential natural in the company who work on water issues to resource for communities, businesses and share tools and best practices, look at water risks ecosystems. Water priorities are governed by an around the globe and develop action plans to integrated approach, including a water issues address those risks.” working group with representatives from each To learn more, visit the Water Sustainability Willie Staudt business unit. Position at conocophillips.com.

16 ConocoPhillips WATER

Optimized recycling and reuse at Red Hills At Red Hills, located in the Permian’s Delaware Basin, a team from MCBU and T&P has further optimized its recycling process. In late 2011, they recycled and treated approximately 60,000 barrels of produced water for use in their conventional operations. In 2013, the MCBU Water Manage- ment team partnered with the Water Solutions group to launch a two-well water reuse field pilot at the University Andrews site. The group successfully developed a treatment process that RIGHT: On-site testing to optimize chemical matched the recycled dosage; BELOW: Solids water to the reservoir for from the produced water are compressed into cake the greatest compatibility and removed by a licensed with the frack fluid. disposal company.

THE PROCESS

1 Adding hydrogen peroxide to produced water oxidizes the dissolved iron and converts it into an insoluble solid.

2 Chemical treatment makes iron particles stick to each other, become larger and settle easier.

3 A specially designed high-rate clarifier causes solids to settle quicker, allowing higher throughput.

Based on that success, in 2014, the MCBU team 4 The final polishing step, filtration, removes the used 100 percent recycled produced water for remaining solids. the entire 13-well completions program at Clyde Cowden. It was a success, reducing freshwater usage by 65,000 barrels. SOLIDS DEWATERING Having cut their teeth on conventional vertical wells, the team branched out into unconven- 1 The solids removed in the clarifier process go to tionals, reusing 250,000 barrels of non-fresh or a thickener and then to a filter press that uses recycled produced water at Red Hills. The Clyde pressure to squeeze the water out and compress Cowden and Red Hills projects represent the first the sludge into cake. successful large scale produced water reuse in the company’s Lower 48 operations. 2 The recovered water goes back into the recycling Now the team has optimized the process at Red process, reducing the amount for disposal. Hills so that it’s faster, more compact and more efficient. The newly designed system employs 3 The dewatered sludge is trucked to a permitted a high-rate clarifier from Aquatech that was disposal facility.

spirit Magazine 17 WATER

ABOVE: Produced water developed for use in the Marcellus shale. storage tanks at Red Hills “We can process large volumes and RIGHT: Before (left) and after treatment to remove solids remove all the solids in one location,” from produced water said Sharma. “The clarifier is highly efficient with a very compact design, perfect for the remote site. It’s on wheels, so it’s easy to relocate.” McLin noted that the newly optimized process is faster and more effective and will not require the construction of more storage space. She explained that this high level of efficiency is a positive side effect of falling oil prices. “After the 2014 pilot project, there “The project was a success,” Sharma said. “We was a request for proposal for the next phase,” significantly lowered our chemical consumption said McLin. “As things were slowing down in the and qualified a high-rate clarifier for use with industry, we identified several items we wanted varying water quality. That gives us greater flex- to test with other vendors. As a result, we were ibility going forward.” able to significantly reduce costs, become more The treatment process at Red Hills is running streamlined and more effectively manage the part-time and will be ramped up to full-time start- waste stream.” ing in late 2016 to source water for the China Draw At the Red Hills site, the produced water is site, where water currently has to be transported more challenging than the rest of Delaware Basin, from a well 30 miles away. “This will provide so reducing chemical costs and improving solids significant savings over current processes in China management are important for overall project Draw,” said McLin. “Transporting water is costly, economics. and we’ll reduce truck traffic in the process.” ■

18 ConocoPhillips WATER

daily basis to maintain good results and Greater Ekofisk operations: to further optimize the CTour treatment Successfully treating produced water process. BY KJELL UNDALL MORE RESEARCH Norway’s Ekofisk Field in the North Sea under 20 mg/liter. Since the installation Further reducing discharge concentra- has been producing oil since 1971, while of the new CTour treatment system at tions will require additional research and the second largest field in the area, the Ekofisk complex in 2008, the OIW development. “We have a dedicated Eldfisk, came on-stream in 1979. Today, concentration has decreased steadily. team of process engineers, offshore staff the fields in the Greater Ekofisk Area pro- The best year to date was 2014, with an and environmental experts who work duce almost 200,000 barrels of oil and average OIW discharge concentration closely with the Water Issues Working natural gas per day, and approximately of only 7 mg/liter. Based on this success, Group and maintain a continuous focus 250,000 barrels of produced water a CTour module has also been installed on produced water. The focus is on are discharged daily. Produced water at the new Eldfisk 2/7 S platform, which advancing technology, optimizing water volumes associated with oil and gas began operation in early 2015. treatment and reducing water produc- production have increased significantly tion and usage, in order to reduce the over the years, due to aging fields and OPTIMIZED WATER TREATMENT operational costs and environmental injection of seawater into the reservoir to “The continuous reduction we’ve seen impact associated with produced water,” increase production. After being treated, is the result of long-term work, start- said Eimund Garpestad, director, Envi- the water is discharged into the sea. ing with the development of the CTour ronment & Sustainable Development. technology in early 2000 and NO HARMFUL DISCHARGE continuing with proactive mainte- Norwegian environmental regulations nance and optimized operation of for water discharge state that the oil-in- the water treatment facilities,” says water (OIW) concentration shall be as David Hendi- low as reasonably practicable, but not cott, manager, exceed 30 mg per liter. A 1998 govern- Greater Ekofisk ment white paper stated a goal of zero Area. Dedi- harmful discharge from all fields on the cated staff Norwegian continental shelf by 2005, onshore and with a focus on dispersed oil, polyaro- offshore work matic hydrocarbons, alkylphenols and together on a hazardous chemicals. ABOVE LEFT: David Conoco Phillips Norway’s options to Hendicott, manager, meet this goal were to reinject pro- Greater Ekofisk Area duced water back into the reservoir or ABOVE: (From left) to improve the treatment of produced Eimund Garpestad, director, Environment water before discharging it. The com- & Sustainable pany opted to use the CTour technol- Development, with water experts Per Ola ogy, which removes dispersed oil and Holm, staff process water soluble organics from produced engineer, and Monica Aasberg, staff envi- water. Reinjection was not viable for this ronmental engineer field due to the risk of contaminating LEFT: CTour the reservoir with bacteria, which could equipment ultimately result in hydrogen sulfide production that would sour the reservoir. In 2006, the OIW concentration in discharged water from Ekofisk was just

spirit Magazine 19 COMMUNITY

Supporting communities, fostering relationships

COMPILED BY JENNIFER LEAHY

ENGAGING WITH PEOPLE WHO IMPACT OR MAY BE IMPACTED BY CONOCOPHILLIPS’ BUSI- NESS IS A CORNERSTONE OF THE WAY THE COMPANY DOES BUSINESS. WHETHER OPERATING IN URBAN ENVIRONMENTS WITH DIVERSE POPULATIONS OR IN RURAL AREAS THAT ARE HOME TO INDIGENOUS PEOPLE, THE COMPANY STRIVES TO UNDERSTAND THE RELEVANT ISSUES, DEVELOP LONG-TERM MANAGEMENT STRATEGIES AND ENGAGE WITH STAKEHOLDERS THROUGHOUT THE LIFE OF THE PROJECT.

Dana Sigalos, director, “We recognize and respect tradi- Stakeholder Engagement & tional values and cultures of com- Social Responsibility munities where we operate. Creating authentic relationships promotes a healthy and safe environment,” said Dana Sigalos, director, Stakeholder Engagement & Social Responsibil- ity. “We believe that engaging with stakeholders is unique and individual, so we do everything possible to meet the needs of the community, while remaining relevant and adding value for the company.” Kayleen Ewin, vice president, Sustainable Development, Communications & External SUPPORTING THE LOCAL Affairs, ConocoPhillips Australia West ECONOMY IN TIMOR-LESTE Bayu-Undan The Bayu-Undan oil and gas field plays a vital role in Australia West Operations. In 2002, Timor-Leste became an inde- “Developing local skills and using local suppli- pendent nation with a developing economy and a ers and manufacturing is important,” said Kayleen population of about 1 million people. To date, the Ewin, vice president, Sustainable Development, Bayu-Undan project has contributed more than Communications & External Affairs. Conoco $18 billion to the Timor-Leste Petroleum Devel- Phillips Australia West. “As ConocoPhillips and opment Fund, allowing the Timorese government Timor-Leste have grown and developed together, to improve national infrastructure and living the country’s expectations and capacity to par- standards. However, more than 30 percent of the ticipate in the project have developed as well. population live below the poverty line and only ConocoPhillips and the Timor-Leste government 50 percent possess basic literacy skills. are working together to ensure a sustainable

20 ConocoPhillips COMMUNITY

future through employment and training, procure- NEW COUNTRY ENTRY, COLOMBIA ABOVE: Participants in the Timor-Leste Graduate ment and community investment.” The decision to begin operating in a new country is Internship Program

In the past decade, the company has invested not one made lightly at ConocoPhillips . It involves BELOW LEFT: Representatives more than $6 million on social initiatives in the looking at all facets of the opportunity, from the of the Montanita Alta, Colombia community action region. subsurface to future facilities, as well as financial, board: Jose Luis Rodriguez, left, and Albeiro Rodriguez, PROMOTING ECOTOURISM IN INDONESIA president Increased economic independence, especially through marine ecotourism, is one focus of ConocoPhillips Indonesia’s (COPI) corporate social responsibility program. COPI partnered with Yayasan Terangi (Indonesia Coral Reef Founda- tion), a nonprofit organization with experience in coral reef conservation and monitoring the ocean’s biodiversity. The program supports community-based ecotourism and the development of the Anambas Island marine park. It provides training for local employees to support the growing tourism industry. environmental, safety, security and social aspects. The effort began with an assessment of tourism Prior to starting a new venture, the company potential in the Anambas Islands District as well as assesses the business risks and sustainability chal- community interest in working in the marine tour lenges and opportunities and compiles a new-coun- business. Fifteen youths from eight villages partici- try-entry risk report. pated in two training stages. The first included basic “This preliminary due-diligence assessment training, snorkeling and open-water diving. During identifies significant risks, including social and envi- the second stage, the participants received informa- ronmental concerns, and defines how they will be tion and learned the skills necessary to engage in managed,” said Lauri Branch, senior environmental marine ecotourism. consultant and Environmental & Regulatory lead

spirit Magazine 21 COMMUNITY

on the Colombia project. In Colombia, that process started in 2012 when ConocoPhillips identified several Timor-Leste opportunities to pursue. In 2013 the company became a non-operated partner in several onshore blocks and Social Initiatives recently applied for operatorship in the VMM3 block. “We started introducing ourselves to the com- GRADUATE INTERNSHIP PROGRAM (GIP) munities in June of 2015, and the results were very The Timor-Leste Graduate Internship Pro- positive,” said Jose Salazar, Social lead. This first gram (GIP) employs a two-phased approach introduction occurred prior to initiating the formal to developing recent university graduates. regulatory approval process, which also includes com- Developed in collaboration with the Timor- Lauri Branch, senior environmental consul- munity outreach. Leste government, the program promotes tant, Environmental The regulatory approval process at the national skills acquisition and employment in the Assurance level in Colombia requires a detailed environmental national industry or abroad. Phase one impact assessment (EIA) and formal phases of com- provided an opportunity for 12 participants munity outreach. ConocoPhillips completed the first to attend a six-month course delivered by phase of community outreach in August; the stake- Charles Darwin University that focused on holder engagement team held numerous face-to-face English language skills, oil and gas termi- meetings with municipalities and regional environ- nology, technical training, safety training, mental authorities and hosted public meetings in 13 computer skills, office skills, communication communities. and cultural awareness. Phase two began in May 2015 and is providing five participants RIGHT: Members of the selected from the first phase a 12-month Montanita Alta community participate in a fixed term placement within ConocoPhillips. workshop. These participants are mentored by functional experts and provided real on-the-job experience as well as English language development. Placements include Engi- neering, Exploration, Projects and Health, Safety & Environment. Interns also received exposure to Commercial, Supply Chain, Human Resources, Finance and Sustainable Development. “We learn the local names of native plants and animals that are important to the communities, THE FULBRIGHT-SERN collecting and using that information to inform field SCHOLARSHIP PROGRAM data collection for the EIA,” Salazar noted. Later, the The Fulbright-SERN Scholarship Program has company “socializes” the results of the field data and recruited 20 Timorese students to pursue seeks input from communities. The company then post-graduate studies in oil and gas or communicates the results of the impact analysis and natural resource-related disciplines in the seeks comments from the communities on those U.S. The scholarships include educational results prior to submitting the EIA. fees, English language tuition, airfare, living “Open communication throughout development expenses and other associated costs. As of of the EIA is important to the community and to June 2015, eight students are progressing us,” said Branch. “This lays the foundation for future well, and seven have successfully gradu- operations. We want to be a great neighbor and a ated and returned to Timor-Leste to seek responsible corporate citizen; we are committed to employment. Due to the success of this contributing to the well-being of these communities. program, up to five Timorese students will Providing jobs is one way we’ll do that.” be recruited in 2016.

22 ConocoPhillips COMMUNITY

IADE INNOVATIVE BUSINESS PLAN COMPETITION Conoco Phillips has financially supported the Institute for Business Development Support (IADE) as a sponsor of its annual Innovative Business Plan Competition (IBPC). The competition attracts young entrepreneurs from 13 districts to present innovative business plans. After initial screening, participants learn entrepreneurial skills, such as generating business ideas and market survey- ing. They then develop a business plan and are mentored by professionals throughout the competition process. Up to 15 finalists are selected to compete for the final round and three are chosen as winners of the competition. In 2015 Conoco Phillips’ support enabled increased participation from applicants in rural areas.

ABOVE: Recent winners of the IADE business plan competition

LEFT: Inauguration of two villages into Alola’s maternal and child health program, supported by ConocoPhillips

ALOLA FOUNDATION Exclusive breastfeeding until six months of age is known to have many health benefits, including reduced respiratory tract infections, one of the common causes of infant mortality in Timor- district are now the highest in the nation, with Leste. Since 2007, ConocoPhillips has worked with 86 percent of babies exclusively breastfed for the the Alola Foundation to support the Maternal first six months of life. Liquica has also recorded and Child Health (MCH) program in the Liquiça the lowest number of child deaths from respira- District of Timor-Leste. Breastfeeding rates in the tory tract infection.

spirit Magazine 23 COMMUNITY

REWARDING INNOVATION IN CHINA Social Lead Jose Salazar meets with Jose Sarmiento, president of Barranca dé Lebrija. China’s struggles with air pollution generate head- lines worldwide. Beijing and many parts of northern China are frequently cloaked in smog, especially during the winter season when the region relies on coal burning to heat hundreds of millions of homes. Ruixue Xia, born and raised in northern China’s Henan Province, has seen rapid economic growth go hand-in-hand with a deteriorating environment. In 2008, when there were concerns over the air pollution’s effect on athletes’ health ahead of the Olympics in Beijing, Xia decided to explore the science behind smog. Now a Ph.D. candidate at Peking University First Hospital, Xia is committed to exploring the effects of PM2.5, miniscule particles of air-borne pollution, on human health. At the end of 2013, ConocoPhillips China initi- ated the China Environmental Stewardship Awards to enable promising graduate students to study, research and train in the fields of environmental protection, risk management and sustainable development. Xia was one of the first five winners in 2014; the award has enabled her to continue her research, which is expected to last four years. She and her

“The results of our study will hopefully provide a reference for more effective environmental protection

policies and laws.” — RUIXUE XIA

team are recruiting volunteers to study the effects of smog on the human body. On a deeper level, they hope to discover biomarkers for air pollution-related respiratory disease. “We’ve been working closely with the government, filing reports on a regular basis,” said Xia. “The results of our study will hopefully provide a reference for more effective environmental protection policies and laws.” The China Environmental Stewardship Awards have committed funding of $600,000 from Conoco Phillips China for the first three years. Four to six multi-year awards are offered every year, and each Ruixue Xia winner receives up to $25,000 in funding. Another award went to Rehemanjiang Wupuer,

24 ConocoPhillips COMMUNITY

a Ph.D. candidate from Xinjiang in western China. from Tibet, is studying the interaction between Studying at the Xinjiang Institute of Ecology and market-based policy interventions and community Geography, Chinese Academy of Sciences, Wupuer customary institutions, the role of pastoral com- focuses on uranium bioremediation in soil and munities and their culture in the conservation of groundwater. Xinjiang is a center of coal exploration grassland ecosystem and the impact of rangeland and uranium mining, and the region has faced com- management policies. Lyubing Zhang, a Ph.D. plex environmental problems. Uranium, in particu- candidate from Xinjiang, is doing research on how lar, can pose a threat to ecosystems due to deposits invasive non-native species impact vulnerable left in the soil and groundwater during the mining habitats. Bingcheng Zhu, a Ph.D. candidate from process. Wupuer and his colleagues are exploring Heilongjiang in north China, is studying energy ways to use the metabolic capabilities of microbes to and environmental law. With funding from the break down the uranium. The bioremediation pro- China Environmental Stewardship Awards, she has cess could hold the key to securing a safer future for embarked on a study of the laws and regulations Xinjiang’s vital soil and groundwater deposits. Win- governing the sustainable development of the oil ning the China Environmental Stewardship Awards and gas industry. provides a vital boost to his studies, and the funds he “These awards make a real difference, and we won will support his ongoing efforts. are proud to be part of it,” said Mark Nelson, vice The other three winners exhibit a similar sense of president, Commercial, Government Affairs, Com- personal mission. Gongbuzeren, a Ph.D. candidate munications & Corporate Social Responsibility.

XPRIZE: Incentivizing innovation

Finding solutions to the challenges associated transformational approaches to converting CO2 with oil and gas production requires imagination emissions into valuable products. The winning and innovation. Recognizing that human activity team will convert the most CO2 emissions into the contributes to GHG emissions in the atmosphere highest value products. (which can lead to climate change), ConocoPhillips Teams will have to Canada recently announced support for the $20 make the business case million NRG COSIA Carbon XPRIZE. The contest for their approach as challenges participants to reduce GHG emissions well as minimize their by capturing CO2 emissions and turning them into use of energy, water, valuable, useable products. land and other inputs. “Fossil fuels will continue to be an important The NRG COSIA Car- part of the energy mix for the foreseeable future. bon XPRIZE launched Addressing climate change-related issues from fossil at the end of September and runs for four and a fuels is a high priority,” said Al Hirshberg, executive half years. Following a nine-month team recruit- vice president, Technology & Projects. “The NRG ment phase, the second phase culminates with the COSIA Carbon XPRIZE is another example of how award of two $2.5-million milestone purses. At the the industry is committed to finding innovative end of the final phase, two $7.5-million grand prize solutions to these challenges. This prize will help purses will be awarded to the winner in each track. accelerate technological breakthroughs, which will “This prize should inspire innovation across the potentially see CO2 converted into anything from globe,” said Perry Berkenpas, senior vice president, building materials to bicycles.” Oil Sands. “Those within our industry are already The contest had two categories: one focused making meaningful advances in reducing our on testing technologies at a coal power plant and footprint. The NRG COSIA Carbon XPRIZE has the the other at a natural gas facility. The challenge is potential to be a true game-changer by bringing for innovators from around the globe to develop other innovators to the table.”

spirit Magazine 25 COMMUNITY

“The future of China’s environment depends on performance and overall well-being.“The school talented and passionate young people. The first principals have reported to us that since the pro- year’s winners are a real inspiration and we’re gram began, attendance rates have increased and looking forward to helping more groups of tal- morale has improved,” Campbell said. ented students.” BLESSING SURMONT PROJECTS BUILDING SUSTAINABLE COMMUNITIES Recognizing and respecting the rights of indigenous IN CANADA communities to live as distinct peoples is a key prin- ConocoPhillips Canada is involved in a unique, ciple for ConocoPhillips. More than 2,000 Aborigi- award-winning partnership that focuses on the nal and First Nations stakeholders live within a social dimensions of sustainable development. 35-mile radius of the Surmont projects in northeast- Chantale Campbell, team lead, Oil The Sustainable Communities Initiative (SCI) is a ern Alberta, Canada. The company recognizes and Sands Stakeholder collaborative effort among oil sands companies, respects their unique and long-standing cultures. Engagement communities in northern Alberta, regional gov- “We recognize Surmont is situated on tra- ernment, a local school division and community ditional territories, and we know the impact it police. SCI fosters supportive environments and has on traditional use,” said Dominic Macklon, opportunities for youth to engage in community president, ConocoPhillips U.K. (formerly senior life so that they can move forward in life with vice president, Oil Sands). “We want to ensure the confidence. “From the start, this project was “We recognize Surmont is situated on traditional territories, and based on the concept we know the impact it has on traditional use.” — DOMINIC MACKLON that you do things with a community, not to it. And the path has not been linear; we’ve project provides significant economic benefit in the Dominic Macklon, president, ConocoPhillips U.K. gone in different directions when needed,” said near term and is ultimately returned to its tradi- Chantale Campbell, team lead, Oil Sands Stake- tional use to support the community’s long-term holder Engagement. Several programs exist under well-being.” the umbrella of SCI, each tailoring outreach to the Two ceremonial ground blessings and breaking specific needs of each community. Students, com- of bread were recently held in the forest surround- munity leaders, the school and industry partners ing the Surmont 2 facility. collaborate to determine what programs will best ConocoPhillips staff joined elders and dignitar- serve the youth in that community. ies from Fort McMurray First Nation (FMFN) and SCI recently won the Alberta School Boards Asso- Chipewyan Prairie Dene First Nation (CPDFN) in ciation Friends of Education Award for one of its ceremonies that blessed the earth and the return programs focused on building community capacity of the Surmont site back to its original use at the to bring about positive change through experiential end of the project’s life. education in the Northland School Division. “This was a great opportunity to show our Ken Lueers, president, ConocoPhillips Canada Known as the Experiential Learning Initiative respect for the long-held tradition of ground bless- (ELI), this program develops activities that give ing and breaking bread together,” said Conoco youth the ability to “walk in two worlds,” with one Phillips Canada President Ken Lueers. “It also shoe firmly planted in western culture and one demonstrates our willingness to work together moccasin in Aboriginal culture and values. ELI in unity for mutual benefit and environmental recognizes the importance of integrating Aborigi- protection.” nal culture, language, values and traditions into Contributors: Kristen Ashcroft, Catherine Biss, Lauri the educational experience. The program develops Branch, Chantale Campbell, Chris Campbell, Chelsie strategies that improve community engagement, Pryde, Jose Salazar, Kiky Shahab, Dana Sigalos, Kath- youth participation and engagement in learning erine Springall and Olivia Yan ■

26 ConocoPhillips COMMUNITY

Fort McMurray First Nation elders Deanna Pointe (left) and Eileen Desjarlais (below), participate in recent ceremonial ground blessings and breaking of bread held in the forest surrounding Surmont 2.

BELOW: (From left) Chipewyan Prairie Dene First Nation Elder Ron Janvier with members of the ConocoPhillips Canada team: Chris Campbell, specialist, Stakeholder Engagement; Ken Lueers, President; and Peter Koning, manager, Environmental Stewardship

spirit Magazine 27 SD CHALLENGES

Stepping up to the challenges of sustainability BY JENNIFER LEAHY, SUZANNE SCHULTE AND KJELL UNDALL

FINDING AND DELIVERING THE ENERGY NEEDED TO POWER MODERN CIVILIZATION IS A CHALLENGE. EACH DAY CONOCOPHILLIPS TEAMS FACE SITUATIONS THAT REQUIRE TECHNOLOGICAL INNOVATION AND DEDICATION TO DETERMINE HOW TO BEST ADDRESS ENVIRONMENTAL AND OPERATIONAL RISKS AND OPPORTUNITIES. THE COMPANY’S COMMITMENT TO OPERATIONAL EXCELLENCE PUSHES TEAMS TO THINK OUTSIDE THE BOX AND FIND SOLUTIONS THAT WOULD BEST SUIT THE GOALS OF THE PROJECT ECONOMICS, THE ENVIRONMENT AND THE COMMUNITIES ACROSS THE GLOBE. Malcolm Fawcett, director, Climate Change “Overcoming operational challenges is key RIGHT: Sabrina Watkins, manager, Sustainable to delivering on our social, environmental and Development economic performance. Greenhouse gases (GHG) and water stewardship are two of the most important issues to our stakeholders and remain especially relevant in a low-price environment where efficiencies really matter,” said Sabrina Watkins, manager, Sustainable Development. as the company seeks new, cost-effective technolo- REDUCING EMISSIONS IN THE SAN JUAN BASIN gies. ConocoPhillips has reduced CO2 emissions Safeguarding air quality is one of the company’s by more than 6 million tons equivalent since 2009, core onshore operating principles. Business plans keeping absolute emissions nearly flat. Much of include managing GHG emissions and integrat- this was achieved in the San Juan Basin. The chal- ing climate change activities and goals. Reducing lenge is continuing that progress while working emissions is, and will continue to be, a challenge to identify and address other areas where the

28 ConocoPhillips Pump jacks in the San Juan Basin

company can make an impact. “Our business unit climate change action plans represent the priorities of each operating area,” said Climate Change Director Malcolm Fawcett. “We develop projects that improve energy efficiency, reduce costs and sustainably lower emissions.” A variety of actions were implemented to reduce emissions, including using infrared

“Overcoming operational challenges is key to delivering on our social, environmental and economic

performance.” — SABRINA WATKINS

cameras to detect minute natural gas releases, emissions account for approximately 0.2 percent ABOVE: In San Juan, solar energy powers telemetry reducing methane venting during well comple- of the 3 billion tons emitted by entities in the area and well controls, enabling tions and installing automated flare-monitoring that report their emissions to the Environmental personnel to access data, alarms. In its San Juan operations, ConocoPhillips Protection Agency. spot problem trends and control wells remotely. holds 1.3 million net acres of oil and gas leases “Methane is the main component of natural with more than 10,000 producing wells. The gas,” Fawcett said. “Compared to carbon diox-

company’s carbon dioxide equivalent (CO2e) ide, methane has more warming potential, but

spirit Magazine 29 SD CHALLENGES

leaves the atmosphere much sooner. Natural gas leakage is a perfect example of a sustainable development challenge: it increases greenhouse gas emissions, causes people concern and costs the company lost revenue. We don’t want any of those things to happen.” Reducing emissions is a continuous process, so the company continues to create and implement new programs that drive reductions. For the 2014 reporting year, ConocoPhillips reduced CO e emissions in the San Juan Basin Kent Anderson, project 2 manager, Australia Pacific LNG by 48 percent relative to 2013. Primary sources of reductions have been pneumatic devices and ABOVE RIGHT: San Juan liquids unloading, traditionally the two larg- Optimization Supervisor Ryan Sustakowski holds a est sources of methane emissions. For the 2014 plunger lift. ConocoPhillips reporting year, the company also reported a 66 is replacing all high-bleed pneumatic devices with percent reduction in liquids unloading CO2e lower-bleed devices across emissions and 59 percent reduction for pneu- its existing operations. matic devices CO2e emissions. The business unit continues to optimize plunger lift operations on wells that require liquids unloading. While regulations restrict the use of high-bleed devices on new installations, the company is voluntarily replacing SUSTAINABLE SOLUTIONS IN AUSTRALIA all high-bleed pneumatic devices with lower-bleed ConocoPhillips Australia works to find solutions devices across its existing operations. that benefit communities, the environment and “Keeping track of our emission reduction efforts the company, both now and into the future. In is important,” Fawcett said. “We get a great deal eastern Australia, the Queensland area recently of interest in our performance from a broad range experienced historic industrial growth, with the of stakeholders, including investors, regulators development of several major coal seam liquefied and communities. Being able to offer concrete natural gas (LNG) projects in a new industrial examples helps build credibility and trust.” area on Curtis Island, Gladstone.

People participate in boating and other aquatic leisure activities in Gladstone Harbor.

30 ConocoPhillips SD CHALLENGES

As part of the environmental approval process, The most significant advantage of the water ABOVE: Curtis Island LNG plant project planners investigated the feasibility of pipeline has been the opportunity to use the common use infrastructure for water and waste- public water supply instead of seawater for water services and decided to do things a little hydrotesting the two LNG storage tanks. Other differently. Instead of building a desalination plant projects in the area used seawater for tank hydro- for seawater, the typical response to operating in testing, requiring the inside of the large tanks to this type of situation, ConocoPhillips opted to be cleaned with freshwater afterward to mitigate fund and support the construction of pipelines the risk of saltwater corrosion. This significant to connect infrastructure on Curtis Island with undertaking is not required in tanks tested with mainland utilities. This effort significantly reduced freshwater. harbor traffic associated with water supply to the “The pipeline was a win for industry and for LNG projects and eliminated the release of an the community,” said Kent Anderson, project average of 5 million barrels per year of brine and treated effluent to Gladstone Harbor. Additionally, the company “The pipeline was a win for industry and for reduced carbon emissions and mini- mized the operational footprint by the community.” — KENT ANDERSON eliminating the need for a desalination plant and wastewater treatment facility. The pipeline solution is saving millions across manager, Australia Pacific LNG. “Gladstone the life cycle of the project and reducing the capi- Harbor is within the Great Barrier Reef World tal expenditure by an estimated $72 million. Heritage Area and is a popular recreation area for Other benefits to the company include sup- local residents. People use it for boating and other ply certainty, a significant reduction in chemical activities, so a solution that preserved its natural consumption and reduced maintenance from the beauty was good for all of us.” removal of capital equipment. This project was featured in an operations

spirit Magazine 31 SD CHALLENGES

training video and is considered a creative sustain- Reducing emissions and discharges often results ability success story for the company. It is also in cost savings. The team is testing the idea of influencing business practices in the area. Other running one compressor instead of two when operators on Curtis Island have begun to use the pressure is low in the gas pipeline from Ekofisk to water pipeline; one operator has been able to idle Emden, Germany. This saves maintenance, fuel

its desalination plant, reducing effluent brine and and CO2 costs. GHG emissions. The Gladstone water pipeline is a component of the Conoco “This initiative alone could save as much as 25,000 Kjell Rune Skjeggestad, Phillips joint venture partner- manager, Health, Safety & ship with Origin and Sinopec — KJELL RUNE SKJEGGESTAD tons of CO2 emissions annually.” Environment in the Australia Pacific LNG project. The project involves the development of coal seam gas resources in central “This initiative alone could save as much as

southwest Queensland, a 323-mile transmission 25,000 tons of CO2 emissions annually, lowering pipeline and a multi-train LNG facility on Curtis ConocoPhillips Norway’s yearly carbon tax pay- Island near Gladstone. ConocoPhillips is respon- ments by $1.5 million and fuel costs by around sible for construction and operation of the Curtis $2 million,” said Health, Safety & Environment Island facility. Manager Kjell Rune Skjeggestad. “Our organization has a continuous focus on identifying emis- REDUCING EMISSIONS IN NORWAY sion and discharge reduction opportunities.” In Norway, the ConocoPhillips team works to find The Norway business unit also has a strong Eimund Garpestad, director, cost effective projects that contribute to reducing focus on operating energy systems optimally Environment & Sustainable Development GHG emissions from the Greater Ekofisk Area. and as efficiently as possible. The national

The Norway energy management team (back row, from left) Kjetil Birkedal, Atle Andreassen and Odd Egil Ims; (front row, from left) Linn Ringdal, Anne Kristine Norland and Kim Than.

32 ConocoPhillips SD CHALLENGES

environment agency requires that operating com- Norway’s emission panies have systems in place for energy management, resulting in the establishment of an energy reduction initiatives management team. “We are now working locally with management A flare gas recovery system installed on the plans for climate, biodiversity and water. These new Eldfisk 2/7 S platform in March 2015 is are important areas and support our long-term being adjusted to operate at full capacity. objectives,” said Environment & Sustainable The new system recovers gas for reuse and Development Director Eimund Garpestad. The will significantly reduce flaring from the team will continue to look for opportunities that Eldfisk Complex. make sound business sense. “The environmental work in Norway is focused The waste heat recovery unit (WHRU) at on reducing oil in produced water below regula- Eldfisk 2/7 E was upgraded during 2013 tory allowable limits, avoiding spills and identify- and 2014. The new WHRU will produce ing new ways to further reduce emissions and approximately 9.5 megawatts (MW) of green discharges in a cost-efficient way,” Skjeggestad energy, approximately 2 MW more than said. “To support biodiversity, environmen- the original unit. The upgrade increases tal monitoring of marine life surrounding the the availability of green energy to meet the offshore facilities is also ongoing. In addition, the global issues working groups and discussion growing power demand on the Eldfisk Com- forums for water, climate change, biodiversity plex after completion of the Eldfisk II project. and stakeholder engagement contribute to the Since completion of the WHRU upgrade, exchange of experiences and new ideas between the power demand increase is covered the business units.” ■ by green energy rather than a fuel-driven power generator. This provides future fuel consumption savings and reduces annual

CO2 emissions by approximately 12,000 tons. Produced water treatment systems on Ekofisk 2/4 M and Ekofisk 2/4 J have replaced treating all produced water in the Ekofisk 2/4 J CTour treatment plant. This eliminates the need for two pumps, resulting in cost savings of $2 million annually

and a reduction of about 7,500 tons of CO2 per year.

A more energy-efficient operation philosophy has been implemented for the gas export pipeline compressors on Ekofisk 2/4 J. This will allow the company to run only one pipeline compressor instead of two when the pressure of the Gassco pipe-

line is within a given limit. In 2015, CO2 emissions have been reduced by approximately 13,000 tons, representing a cost saving of

The new waste heat recovery unit $2.3 million. was installed at the North Sea Eldfisk Complex in the fall of 2013.

spirit Magazine 33 Louisiana’s coastal wetlands: Restoration through collaboration BY MAXINE MADISON

WITH 636,000 ACRES ALONG THE GULF COAST OF LOUISIANA, CONOCOPHILLIPS IS THE LARGEST PRIVATE WETLANDS OWNER IN THE U.S. THE COMPANY’S COASTAL WETLANDS GROUP IN HOUMA, LOUISIANA, WORKS HAND-IN-HAND WITH PRIVATE AND PUBLIC GROUPS AND CONTRACTORS TO HELP PRESERVE THIS SENSITIVE ENVIRONMENT.

34 ConocoPhillips COASTAL WETLANDS

Louisiana has one of the fastest rates of wetland loss in the world. Starting in the early 1900s, the Mississippi River was leveed for flood protection, isolating the wetlands from the river’s nourishing waters and sediments. As a result, the U.S. Geological Survey estimates that today, on average, Louisiana experiences wetland loss equivalent to one football field every hour.

As these wetlands and waterways disappear, so does the protection of a region critical to the nation’s economy. The Greater Lafourche Port Commission estimates that a three-week closure of Port Fourchon – a vital supply hub for oil and gas operations in the Gulf of Mexico – caused by a hurricane would result in national losses of $11.2 billion in sales, $3.1 billion in household earnings and negatively impact nearly 65,000 jobs. Also, pipelines at risk in the surrounding wetlands provide a critical con- nection to the nation’s refineries. “The loss of coastal wetlands is not a local problem,” said Coastal Wetlands Director Phil Precht. “It’s an American crisis that requires the cooperation of public and private entities. ConocoPhillips is proud to be on the ABOVE: Terraces are a cost- efficient coastal restoration front lines of this effort through our support of several technique that provides important programs.” areas for emergent plant growth and reduces wave energy, thereby slowing USING TERRACES TO SLOW COASTAL EROSION marsh erosion. ConocoPhillips works with Ducks Unlimited on a broad LEFT: Shadow of crop duster plane flying over the coastal range of projects, including fresh water introduction wetlands and terracing. Five terracing projects on ConocoPhillips property are completed or in progress, and have created 1,140 acres of marsh. These projects are a collaborative effort led by ConocoPhillips and Ducks Unlimited, and most projects have additional partners, including the North American Wetlands Conservation Council, Loui- siana’s Coastal Protection and Restoration Authority,

spirit Magazine 35 COASTAL WETLANDS

Lafourche Parish Government, Terrebonne Parish Consolidated Government, Terrebonne Levee and Conservation District, Restore or Retreat and Bayou Grace, the United Houma Nation and the Bara- taria Terrebonne National Estuary Program and Foundation.

“Marsh terraces are an effective and affordable large-scale technique across open water areas of coastal marsh

systems.” — ORDIS “BUDDY” SMITH

“Collaborating with different agencies and non- profits helps spread the costs among all parties,”

Louisiana wetlands Precht said. “Funding provided by ConocoPhillips

ABOVE: Volunteers planting has generated up to a 5:1 match.” cordgrass on ConocoPhillips Marsh terraces are a common restoration strat- property egy designed to protect existing marsh lands and improve growing conditions for aquatic vegetation. “Our team has been looking for cost-effective ways to address coastal erosion,” Precht said. “We believe that terracing, with its land building capacity and ability to slowly accrete sediment over time is an important method.” Existing sediments are excavated to form a terrace at least 1.5 feet above the water line. They are often placed in areas where tides increase and decrease to ensure the flow of sediments and other nutrients. Over time, sediment levels increase between the terraces, increasing the ground elevation and promoting marsh growth. “Marsh terraces are an effective and affordable large-scale technique across open water areas of coastal marsh systems,” said Coastal Wetlands Supervisor Ordis “Buddy” Smith, who oversees many of the projects on ConocoPhillips property. Precht believes projects such as these extend beyond the boundaries of the company’s property. “The benefits from this project are widespread,” he explained. “The health of the marsh is increased, enhancing the quality of commercial and recre- ational fishing and benefiting local residents and businesses through the protection that terraces provide to their homes and business investments.

36 ConocoPhillips COASTAL WETLANDS

Less wave action in areas adjacent to roads and by a crop duster. And it’s cost effective – current communities helps protect previously threatened restoration techniques range from $20,000 to infrastructure.” $150,000 per acre, while this method costs only about $3,000 per acre. TAKING FLIGHT TO SAVE THE COAST Mangroves that were seeded in late 2013 are The Coastal Wetlands team is also exploring new now a few feet high. The research focused on Ter- ways to collaborate for cost savings in efforts to rebonne and Lafourche parishes – home of Port protect the wetlands. Three years ago, Conoco Fourchon – but the technique shows potential to Phillips and Tierra Resources implemented a pilot expand to other areas of coastal Louisiana and Ordis “Buddy” Smith, project focused on planting mangroves to prevent around the world. supervisor, Coastal wetland loss. “We have proven that wetland restoration can Wetlands Mangroves were selected due to their ability to be cost-efficient and scalable,” said Dr. Sarah thrive in saltwater environments while protect- Mack, president and CEO of Tierra Resources. ing fish habitat. The plant’s complex root system “The future of this region and its ability to protect helps stabilize soils and reduce erosion. Mangrove itself and the national economy will require new trees also slow public-private paradigms and a national commit- hurricane surge ment to environmental stewardship.” and reduce storm- Funding for projects such as these can be related flooding. augmented by carbon financing. Earlier this Native to Louisi- year, the American Carbon Registry certified ana, the mangroves Tierra Resources’ expansion of a wetland carbon Phil Precht, director, Coastal Wetlands also sequester or quantification methodology that provides a store relatively high path to market for verified emissions reductions, amounts of carbon. issued as carbon credits, to help finance wetland Goals for the restoration techniques that prevent wetland loss pilot include study- and associated greenhouse gas emissions. Going

Aerial seeding of mangroves using a crop duster plane

ABOVE LEFT: A propagule planted from a crop duster that has taken root in the marsh

LEFT: A handful of mangrove propagules

ing the viability of planting mangroves for restoration purposes, applying best practices to quantify carbon sequestration and researching the carbon impacts of preventing wetland loss. The project utilized the innovative method of air seeding mangroves by crop duster airplane, which was deter- mined to be the most viable planting technique. This project is unique in that it was the first successful test of aerial planting of black mangroves

spirit Magazine 37 COASTAL WETLANDS

forward, wetland restoration projects will be able and research to help support projects to restore to account for more carbon benefits, which could America’s wetlands, which provide critical protec- lead to additional long-term funding of projects. tion to the nation’s seafood, maritime trade and “Louisiana’s wetlands protect a large portion of oil and gas industries.” our nation’s seafood industry, oil and gas infrastructure and key ports, but they are disappearing COLLABORATING WITH THE COMMUNITY in front of our eyes,” Mack said. “Our carbon Restoring the marsh is also a priority for many finance methodology, paired with techniques like local residents and business owners who live and mangrove air seeding, provides the opportunity to work along Louisiana’s coast. Most recently, the expedite wetland restoration at a scale and a cost ConocoPhillips Coastal Wetlands team partnered that hasn’t been done before. This innovation is with Coalition to Restore Coastal Louisiana vital to the protection of our region’s communi- (CRCL) to promote environmental stewardship ties, culture and the national economy.” through a community marsh planting project After the mangrove planting success with near Port Fourchon. ConocoPhillips , Entergy announced it will join Port Fourchon was dredged in 2014 to ensure forces with Tierra Resources in 2016 to further that large vessels are able to access the port safely. demonstrate the scalability and affordability of The dredge material was used to fill in a pipeline

“This innovation is vital to the protection of our region’s communities, culture

and the national economy.” — SARAH MACK

canal on ConocoPhillips property that was no longer active. The result was approximately 12 acres of reclaimed company property. Over three days, 80 volunteers from CRCL and ConocoPhillips worked together to plant more than 17,000 marsh plants on that property. “This planting project provides volunteers a

mangrove air seeding. In the next ten years, Tierra plans to stand by its commitment to preserve wetlands by scaling its proven air seeding restoration technique to more than 30,000 acres of coastal Louisiana. ConocoPhillips Environmental Assurance Global Chief Jennifer Barringer explained the local and global implications of this work. “This restoration technique shows potential to be expanded to other areas of Louisiana and the world. Tierra Resources, in collaboration with Entergy Corporation, ConocoPhillips and other companies, has developed the science

38 ConocoPhillips COASTAL WETLANDS

hands-on opportunity to give back to the community and make a difference by restoring the marsh,” Precht said. Several plots of marsh grasses and mangroves were planted by a group of University of Louisi- ana at Lafayette coastal science students working with CRCL. The student scientists and CRCL will study the plants over time to track their progress. “ConocoPhillips partners with a number of universities that are studying coastal Louisi- ana by providing them access to land suitable for research projects,” said Precht. “Work- ing together, we are providing volunteers and researchers the opportunity to experience the coast in a unique way by giving back to the community and being part of the solution.” were encouraged to ask questions, which led to a ABOVE: ConocoPhillips Land Lease Lead Frank Earlier this year, the ConocoPhillips Coastal very lively discussion.” Ellender and BTNEP Habitat Wetlands team collaborated with the South Campers rotated through three hands-on Restoration Coordinator Matt activities that were based on projects and equip- Benoit explain the impor- Louisiana Wetlands Discovery Center (SLWDC) tance of wetland plants. in Terrebonne Parish to host a day-long sum- ment used by the Coastal Wetlands team during TOP: ConocoPhillips Coastal mer camp for local middle school students. The their work day. Students learned about a variety Wetlands team members, SLWDC gives students the opportunity to learn of wetland plants and their importance in main- BTNEP, DU and the Wetlands Discovery Center campers about ecology and coastal restoration. taining a healthy marsh. Employees explained and chaperones Forty students, camp counselors and chaperones proper planting techniques and the importance visited the ConocoPhillips Coastal Wetlands office of understanding water and soil conditions so to learn about oil and gas exploration and the that plants can thrive. The campers also learned coastal wetlands. Employees talked to the students how to use a global positioning system through about the company’s commitment to safety and Geocaching, an outdoor scavenger hunt game the environment. Attendees also learned about the played throughout the world. formation of petroleum and natural gas, followed “The Wetlands Discovery Center has a respon- the process through exploration and production sibility to educate students about our land and and discussed products made from crude oil. water and the resources they provide,” said “Students were surprised to learn that most SLWDC Executive Director Jonathan Foret. “It’s sports equipment, games, medical supplies and been a privilege to partner with the Conoco household items are a derivative of crude oil,” Phillips Coastal Wetlands team to fulfill that said Land Lease Lead Frank Ellender. “Students responsibility.” ■

spirit Magazine 39 FOOTPRINT

Improving environmental performance

BY COURTNEY TIMM

CONOCO PHILLIPS UPHOLDS HIGH ENVIRONMENTAL STANDARDS TO ENSURE THAT TODAY’S ACTIONS PROVIDE THE ENERGY NEEDED TO DRIVE ECONOMIC GROWTH AND SOCIAL WELL-BEING, AS WELL AS SECURE A STABLE AND HEALTHY FUTURE ENVIRONMENT.

Jennifer Barringer, global Matt Fox, executive vice president, Explora- chief, Environmental tion & Production, explained why the company’s Assurance environmental performance is still important in today’s market conditions. “We’re responsible to stakeholders, regardless of the the current price of oil, for all aspects of our environmental performance,” Fox said. “It secures our license to operate. The trust it creates in our stakeholders enables us to get the permits that we need to proceed because they know we will honor our commitments. Reducing our foot- “The ESF combines the fit-for-purpose print often reduces our capital and operating costs approach to our operations with the importance as well. So it’s not just the right thing to do. It’s of understanding the environment in which we Michael Hatfield, vice president, Health, Safety good business for us.” operate,” said Michael Hatfield, vice president, & Environment Improving the company’s environmental Health, Safety & Environment (HSE). “Each busi- performance requires a mix of impactful projects ness can assess and implement what is meaningful ABOVE RIGHT: Sean Hiebert, team lead, from around the globe. The company’s Executive for their particular operation, while recognizing Operations Energy Leadership Team has endorsed the Environmental the global context provided by the framework. Efficiency Strategy Framework (ESF), which allows business Once a business determines what it needs to do, units to contribute to environmental performance accurate measurement and monitoring of envi- improvements in ways that make sense for their ronmental performance must then be ensured.” operations. Jennifer Barringer, global chief, Environmental

40 ConocoPhillips FOOTPRINT

Assurance said, “We’re seeing operations improve Western Canada Energy E ciency Innovation data quality, reducing some emissions, and a greater In partnership with the Climate Change and Emissions Management Corporation focus on process safety is resulting in fewer spills.

Individual business unit efforts add up to deliver Cumulative GHG Reductions GHG Reductions improved environmental performance across the Feature Number of Projects per Install 2010-2014 Equivalent Impact Projects (2010 - 2014) (tonnes CO2e/year) (tonnes CO2e) (cars taken off the road) company.”

Waste Heat 790 8,690 169 ENERGY EFFICIENCY IN WESTERN CANADA Recovery 4 ConocoPhillips Canada (CPC) is always looking for ways to push technological boundaries. The business Engine Air Fuel 57 700 176,400 3,439 unit’s work with the Climate Change and Emissions Ratio Control Management Corporation (CCEMC) is a prime Vent Gas example of how innovation and collaboration can 326 13,630 266 Capture 20 advance environmental improvements. In 2007, Alberta introduced climate change Low Bleed legislation which required large emitters to reduce Instrument 414 50 27,550 537 greenhouse gas (GHG) emissions. As part of this Conversions legislation, operators have the option to make facility Solar Power improvements to reduce emissions, purchase carbon Well Site 74 124 30,876 602 Conversions offsets or credits, or pay into a CCEMC fund. The government of Alberta administers the collection of Dehydrator 550 13,200 257 all compliance funding and pools those funds to sup- Optimization 10 port projects that help Alberta reduce GHG emissions and adapt to climate change. Over the last five years, Waste Heat 2,135 2,135 42 the CCEMC has funded more than 100 projects that to Power 1 contribute to the province’s GHG reduction targets. In 2011, CPC successfully secured a $7 million CCEMC grant, which ConocoPhillips matched. That $14 million has allowed the company to significantly 2010 - 2014 Totals for All Projects expand its energy efficiency and emissions reduction projects. Since 2010, a total of 580 CCEMC-related Number of Projects Cumulative GHG Equivalent projects have been implemented across Western (2010 - 2014) Reductions Impact Canada operations, collectively reducing GHG emissions by about 270,000 metric tons of carbon dioxide equivalent (CO2e). That’s the equivalent of taking more than 56,300 cars off the road for one year. “The majority of these energy efficiency and emission reduction projects provide benefits including fuel savings, offset credit generation and other benefits,” said Sean Hiebert, team lead, Operations Energy Efficiency. “These projects prove that you can be green while making green!” To date, the Western Canada business unit has implemented more than 1,500 projects since it = 1 = 1,000 = 500 started reporting GHG-reduction initiatives and projects in 2008, leading to a combined reduction of 580 56,300 more than 440,000 tonnes CO e per year — equiva- 272,481 2 Installations Tonnes CO2e Cars o the road lent to the emissions from Surmont 1. for one year

spirit Magazine 41 FOOTPRINT

EAGLE FORD RECYCLES CUTTINGS, SAVES CASH A long-term When Eagle Ford drilling engineers and environmental scientists observed the large volumes of oil-based cuttings, miles logged driving the waste to a disposal site investment and long-term liability associated with the waste, they quickly turned a problem into a sustainable solution. on Alaska’s The group began a pilot program in June 2014 to recycle cuttings produced during drilling activities. North Slope “From a drilling standpoint, it’s a win/win,” said Senior Environmental BY AMY BURNETT Scientist Pete Spicer Senior Environmental Scientist Pete Spicer. “We eliminate waste and alleviate the long-term liability On the North Slope of Alaska, the oil and associated with waste management — all while saving natural gas industry successfully coexists with money.” Native villages on a vast expanse of arctic Cuttings are now taken from the rig to a nearby tundra. In this unique and diverse ecosystem, reclamation company instead of a disposal site, reduc- commitment to the envi- ing the distance traveled by trucks by up to 60 percent. ronment and a focus on A thermal desorption process removes oil and water, reducing its operational creating reclaimed base oil and dry ash. The reclaimed footprint have been key oil is reused by the rig as fuel and the dry ash is sold to the industry’s success. for other uses. Simply put, the drilling waste is turned ConocoPhillips has Drilling Engineer into useable supported environmen- Casey Shoemaker products. tal studies on the North

“Everything Slope since the late 1960s. Terry Lauck that comes out From habitat, hydrology of the process and air quality, to birds, caribou and polar is reused. We bears, the company has invested thousands are reducing of hours and millions of dollars in scientific our overall studies and programs that promote under- environmental standing and protection of Alaska’s natural resources. The company also conducts archeological and cultural resource surveys footprint,” said Drilling Engineer to ensure development Casey Shoemaker. activities don’t disturb The process is now used on all sites that are culturally rigs in Eagle Ford. Spicer esti- significant to Alaskan mates it will allow for reuse of Natives. more than one million gallons “We face unique of reclaimed base oil in 2015. challenges, and we earn And reusing the reclaimed oil, our license to operate mixed with diesel, saves $6,000 to Mike Lydon through actions we take $10,000 per well. each and every day,” said “We did a lot of stakeholder Terry Lauck, director, Permits, Science & Regu- engagement with the crews so that they would better latory Advocacy. “We often share information understand the benefits of what we were doing, and we collect through our studies with industry why we are doing things that way from now on,” Spicer partners, regulatory agencies and other inter- said. “This multi-function collaboration reduces our ested stakeholders, helping drive responsible footprint in a cost-effective and sustainable manner.” development across the North Slope.”

42 ConocoPhillips FOOTPRINT

When development began at Prud- Mike Lyden. “We’re constantly looking hoe Bay in 1969, available technologies, for ways to improve, and we continue development standards and abundant to move west because we’ve proven recoverable resources resulted in a we can do it with relatively large surface footprint. Lessons respect for the sensi- were learned and applied when Kuparuk tive ecological area.” was developed to the west of Prudhoe Alpine, located Bay beginning in the early 1980s. By on the boundary the time ConocoPhillips developed the of the National Colville River unit (Alpine), beginning in Petroleum Reserve- the late 1990s, wells were being set on Alaska, demonstrates

10- to 20-foot centers, reducing pad size Steve Thatcher progress and serves to as little as 10 acres. as a model for small “We’ve proven that we can make a footprint development in a remote smaller footprint work,” said Alpine Oper- environment. Alpine was the first North ations & Maintenance Superintendent Slope field developed exclusively with ConocoPhillips has supported environmental horizontal well technology studies on the North Slope since the late 1960s. to access greater than 50 square miles of subsurface as well as challenges. A commitment to from a single drilling pad. It protect the environment, combined with is also the first land-based large doses of innovation and teamwork, North Slope oil and gas allow the company’s legacy assets on field developed without a Alaska’s North Slope to evolve and thrive. permanent road connect- “It’s a privilege to operate in this part ing it to other North Slope of the world. We need to adhere to a infrastructure. This focus very high standard — and we do,” said on reducing the company’s Steve Thatcher, manager, North Slope footprint serves up rewards Operations.

spirit Magazine 43 FOOTPRINT

QATAR REDUCES FLARING WITH JETTY minimize flaring for all six LNG berths, with a BOIL ‑OFF GAS RECOVERY PROJECT vapor recovery system that compresses gas for In keeping with an increased national focus on fuel to the fullest extent practicable. The proj- flare minimization and the company’s commit- ect has reduced flaring during LNG loading by ment to improving its environmental performance, ConocoPhillips’ “JBOG is an important component of Qatargas’ joint venture with Qatargas has made significant progress in reduc- strategy to reduce its emissions and for conserving ing flaring from its LNG trains. Key to that success is the jetty boil-off the environment.” — SHEIHK KHALID BIN KHALIFA AL-THANI gas (JBOG) recovery project implemented at Ras Laffan Industrial City. more than 90 percent and recovers approximately “JBOG is an important component of Qatargas’ 700,000 tonnes per year of flared gas. It will result strategy to reduce its emissions and for conserv- in a reduction of 1.6 million tonnes of carbon ing the environment,” said Sheihk Khalid Bin dioxide per year — equivalent to annual GHG Khalifa Al-Thani, chief executive officer, Qatargas. emissions from 175,000 cars — and achieve sav- JBOG Project Manager Michael Koo The JBOG recovery system is designed to ings of 29 billion standard cubic feet (BSCF) per year in flaring reduction. ConocoPhillips supported the JBOG recovery project through engineering, procurement, construction planning, HSE and quality assurance expertise. The Supply Chain Excellence group provided market intelligence to Qatargas, resulting in savings of $40 million in material cost. The final project was completed safely. “ConocoPhillips was also responsible for developing the risk assessment study and project budget development, in collaboration with our partners and Qatar government authorities,” said JBOG Project Manager Michael Koo.

LNG vessels at Ras Laffan Industrial City port

44 ConocoPhillips FOOTPRINT

ENVIRONMENTAL BASELINE SURVEY push core devices that could be attached to the CONDUCTED IN GULF OF MEXICO remotely operated vehicle already in use at the Oil and gas exploration wells come with many site. This cost-effective design allowed the team unknowns, but one of these wasn’t acceptable to to acquire high-quality data without introducing the Deepwater Gulf of Mexico team drilling the new vessels and adding pollution to the area. Harrier well earlier this year. Located 38 miles off While the Harrier MC118-1 well did not yield Louisiana’s coast and only 1,300 feet from a Uni- the results the explorers hoped for, the method versity of Mississippi gas hydrates research study for assessing the environmental impact was site, the environmentally sensitive area inspired a successful. new approach to environmental baseline studies. “The post-drill surveys show us that our opera- While this type of study is not required by regulations did not impact the levels of metals or hydro- tors, it honors the company’s commitment to carbons in the area,” Samuel said. “We’re pleased Senior Geophysicist environmental stewardship and is cost-effective. with these results. The collaboration between Bruce Samuel “We will always operate in line with our Exploration, Global Wells, Environmental Assur- environmental commitment, but it’s crucial to ance and our contractors has left us with a model match the study’s level of detail with the available that we can leverage in the future.” ■ data and associated costs,” said Senior Geophysi- cist Bruce Samuel. “It became clear that the

“We will always operate in line with Remote Operated our environmental commitment, but Vehicle (ROV)

it’s crucial to match the study’s level Push Core ROV Cage of detail with the available data and

associated costs.” — BRUCE SAMUEL Toolbox

right approach was a localized baseline study that would allow us to scale up to a full-size regional study if this well resulted in a discov-

ery requiring future drilling.” ABOVE: A custom- The survey established the conditions of ized sediment push core rack sediment on the seafloor immediately before attached to the ConocoPhillips began drilling in the area. remotely operated “Because of its close proximity to the 2010 Cored vehicle facilitated Sediments Push sediment collec- Macondo spill location, we wanted to know Core tion during the surveys. what, if any, hydrocarbons were already on the Seabed seafloor. With our proximity to the research LEFT: A push core study area, we needed to determine whether rack is deployed into the seafloor drilling our well would cause any negative during the post- environmental impacts,” Samuel said. drill survey. Sediment samples were collected at four sta- tions within 500 feet of the wellsite. The team worked closely with Oceaneering to design

spirit Magazine 45 2015 SPIRIT AWARDS

2015 SPIRIT Awards: Business Excellence and Wellness demonstrate the value of teamwork

BY JAN HESTER

THIS FINAL INSTALLMENT OF THE 2015 SPIRIT AWARDS HIGHLIGHTS RECIPIENTS IN BUSINESS EXCELLENCE AND WELLNESS. BOTH CATEGORIES RECOGNIZE TEAMS WHO HAVE WORKED COLLABORATIVELY AND CREATIVELY TO ACHIEVE SUCCESS. RECIPIENTS OF THE BUSINESS EXCELLENCE AWARDS EXEMPLIFY INNOVATION, IDENTIFYING OPPORTUNITIES TO IMPROVE PROCESSES AND PROCEDURES AND EXECUTING CREATIVE SOLUTIONS. THE WELLNESS AWARD REPRESENTS TEAMS WHOSE COMMITMENT TO

HEALTH AND WELL-BEING BENEFITS THE PEOPLE OF CONOCOPHILLIPS.

Business Excellence

20K JOINT DEVELOPMENT FRAME AGREEMENT (20K)/350 degrees Fahrenheit subsea produc- To access the technologies required to develop tion system joint development agreement (JDA) deepwater assets in basins with high pressures with Anadarko, BP, FMC and Shell. Conoco and high temperatures (HPHT), the team Phillips’ engagement helped create a unique evaluated, negotiated and executed a 20,000 psi producer/supplier agreement that drives industry

46 ConocoPhillips 2015 SPIRIT AWARDS

standardization via a single set of specifications. “The JDA enables ConocoPhillips to influence the design and qualification of HPHT 20K subsea systems, develop internal capabilities and ensure technology access for future developments,” said Team Lead Tegan Marroquin. The JDA was also leveraged into frame agreements providing ConocoPhillips top tier pricing and preferred customer status globally.

20K Joint Development Frame Agreement Team Tegan Marroquin, team lead Christopher Gabriel Chance Hardie Chris Kocurek Karla Bower Tony Ray Terri Flinner Shamim Sulema Tegan Marroquin

of borrowing and benefits earnings,” said Team Business Excellence Lead Heather Crowder. “The result is a significant, long-term contribution to the company’s financial FMV METHOD OF INTEREST APPORTIONMENT results.” Because this approach involved a review By electing the fair market value (FMV) method of the entire portfolio of assets, it required assis- for apportioning corporate interest expense tance from all business units. The global collabo- between foreign and U.S. taxable income, the ration employed exemplifies business excellence ConocoPhillips Tax department generated across the organization. $110 million in tax benefits for 2013 and 2014. Heather Crowder Expected future tax benefits are approximately $50 million annually. “Using the FMV method Bartlesville team members, from left: reduces cash taxes, incrementally lowers the cost Chad Jenkins, Ben Carlson, Elmo Gore, Kim Ashlock and Marissa Staples

FMV Method of Interest Apportionment Team Heather Crowder, team lead Astri Alden Thomas McKnight Kim Ashlock Sarah McLeod Kurtis Bond Juan Molina Ben Carlson Stuart Nunn Alan Carruth Dane Paddon Tony Chaya Josh Pratt William Corbridge Trish Riccio Elmo Gore Christopher Robertson Michael Griffin Paul Rusch Lars Helgeland Bruce Sager Adrian Jefferson Marissa Staples Chad Jenkins Joanne Taylor Randolph Johnson Boriana Vitanov Ida Kamaruddin J.W. Wesevich Doris Lee Petra Windgaetter Edwin Loftis Colin Wolfe

spirit Magazine 47 2015 SPIRIT AWARDS

Business Excellence

IOF (INTEGRATED OPERATIONS OF THE FUTURE) The iOF team’s vision is to create a new onshore integrated operations model, from exploration to abandonment, through applied best practices, Dustin Ernst improved processes and cutting-edge technology. Currently in its fourth year, the program has already RIGHT: (Left to right) Kevin Grohman, Amador had significant accomplishments: successful startup embedded production impact in upcoming years. Garza, Calvin Evans and of the Eagle Ford iOF center in Houston; devel- The Eagle Ford model is currently being deployed Jesus Lozano opment of ConocoPhillips’ first integrated data across other Lower 48 assets. environment in Teradata; and creation of a highly effective telecommunication infrastructure for the iOF (Integrated Operations of the Future) Team Dustin Ernst, team lead Paul Kissell Peter Barten Greg Lemons Joe Becnel Jesus Lozano Randy Black Jimmy Martinez Jeffrey Boehm Abby Meade Jesus Contreras John Montgomery Joe Corrales Craig Moody Greg Dupont Casper Naegle Jr. Calvin Evans Babu Natarajan Joshua Fuchs Derek Newton Ricky Garcia Brandon Richardson Amador Garza Haissam Sammak ABOVE: (Left to right) Eagle Ford asset. “The iOF center and several new Joe Corrales, Derek Gustavo Gomez Sanger Anne Sheffler Newton, Gisle Karlsen, processes have played a key role in Eagle Ford’s Kevin Grohman Rey Sosa Dustin Ernst, Babu success and have simply become the way we work,” Natarajan, John Bart Hannaman D. Tolman Montgomery, Ricky said Team Lead Dustin Ernst. Production benefits Eric Hollar Jason Townsend Garcia, Eric Hollar and alone through 2013 were estimated at $130 mil- Aaron Janssen Javier Vasquez Haissam Sammak lion and are expected to provide a 3 to 8 percent Gisle Karlsen

Business Excellence Jay Sexton

KBB DEVELOPMENT With project sanction in 2011, the Kebabangan (KBB) gas development went into production on November 11, 2014. The team successfully completed ConocoPhillips’ first major project in Malaysia on schedule despite a challenging joint operating company structure and several obstacles that threatened to cause delay, all while keeping total project costs at 11 percent below involvement, technical expertise, ongoing risk approved AFE. “The team overcame these chal- management, communication and teamwork,” lenges through effective planning, early operations said Team Lead Jay Sexton. Gas production from

48 ConocoPhillips 2015 SPIRIT AWARDS

KBB is planned to peak at 750 million standard KBB Development Team cubic feet per day, with net ConocoPhillips produc- Jay Sexton, team lead tion of 27,000 barrels of oil equivalent per day. Tom Brockway Joe Lam Michael Challis Seng Ling Jeff Cooke Marcus Marianayagam Carl Curtis Iain MacMillan Pat Dinan John Marlow Greg Doliszny John Parker Rick Ford Mike Reid Daniel Gaw Wan Wan Ahmad Irma Hamid Richard Scott Marvin Harris Bharat Shah Steve Haycock Kevin Strachan Chris Haffner Boon Sze Tan G. Leon Holloway Garry Trout Carl Hunter Scott Weaver Raj Kumanan Gary Wu

Business Excellence

NIGERIAN DISPOSITION TEAM The team accomplished a complete, clean exit from Nigeria for ConocoPhillips through the sale of the upstream business to Nigerian company Oando, as well as a full exit from the Brass LNG project through the transfer of interest to the other shareholders. From a global marketing effort starting in 2010, to execution of transaction agreements in 2012, to final closing in 2014, the ConocoPhillips team exhibited exceptional business acumen, creativity and perseverance. They worked with the buyers to help them finance the transaction and secure the necessary approvals from the Nigerian government. The team then overcame the buyer’s last minute shortage of funds by structuring bridge financing under terms very favorable to ConocoPhillips . The sale generated an after-tax gain of approximately $1.1 billion for the company.

Nigerian Disposition Team Greg Ewbank, team lead Brian Postma Alan Carruth Garrett Rychlik Marcus Fonseka Raphael Vermeir Kevin Ford Nigel Walker From left: Greg Ewbank, Kerr Johnston, Randolph Johnson John Wallace Wale Tinubu (buyer), Mick Jarvis and Nigel Walker

spirit Magazine 49 2015 SPIRIT AWARDS

was no longer a profitable or necessary link for Business Excellence the company’s equity gas. A multi-disciplinary team was established to determine market alter- TEMAX MONETIZATION natives to mitigate ConocoPhillips’ commitment In 2008, ConocoPhillips signed a 10-year contract and exposure. After two years of negotiations, in with Texas Eastern Pipeline to deliver 395,000 January 2014, the team received ELT approval to MMBtu/day from the Rockies to the northeast release (or sell) 100 percent of the contract vol- U.S. With growth of Marcellus Shale, this flow Tori Kuykendall ume to three Marcellus producers. The TEMAX Monetization team successfully improved the expected TEMAX margin from minus-$350 million to $45 million, a $395 million increase.

TEMAX Monetization Team Tori Kuykendall, team lead Jackie Graham Kimberly Anaipakos Ross Hodges Jeffrey Brant Karen Holub Bruce Connell Mike Luchetti Mark Cowan John Ochsner Cyndy Dobbins

Stress Awareness and Energy in Action. Singapore’s Wellness program featured 27 entertaining and innovative events, with participation by senior managers and SINGAPORE WELLNESS COMMITTEE high employee engagement. ConocoPhillips Singapore’s wellness committee developed a successful program incorporating Singapore Wellness Committee the three core elements of the company’s global Sharon Wong Ho, team lead Yvonne Ong Dr. Grant Logan 2014 Good for You! campaign: Nutrition in Action,

50 ConocoPhillips 2015 SPIRIT AWARDS

Events ranged from health- and wellness- Dr. Grant Logan, Yvonne focused presentations and onsite biometric Ong and Sharon Wong Ho screenings to monthly 5K healthy heart walks and bowling evenings. Thanks to subsidies from ConocoPhillips and the government of Singa- pore, 100 percent of employees were able to purchase discounted Fitbits. Good plan execution along with tremendous engagement culminated in ConocoPhillips Singapore winning the Wellness World Cup. Importantly, it also led to improvements in the organization’s collective biometrics and nurtured a growing culture of health, evidenced by 84 percent participation in “Know Your Numbers” and the continued interest by many in using Fitbits fitness. Overall employee body mass index and or smart phone applications to track exercise and cholesterol levels have also improved.

nutrition, exercise, productivity and healthy Wellness work-life balance. The team saw their resources leveraged across multiple groups, including Well- RUNNER-UP ness Services, employee networks, the Employee IC-05 STRESSBUSTERS Assistance Program team and the Good for You! The Bartlesville Information Center’s fifth campaign. floor StressBusters team was created to provide information on holistic stress management to IC-05 Stressbusters Team the group in Information Technology with the Chad Clayton, team lead Chad Clayton highest stress level. Throughout 2014, the team April Bennett Cassie Kmiec combined current research with creative delivery Charles Elliott Billy Sigman Stephanie Held Daniel Smith solutions to educate more than 250 employees Kris Hooks Abby Werth on stress management, including rest/relaxation,

spirit Magazine 51 52 ConocoPhillips FACES OF CONOCOPHILLIPS

Harley Grant Harley and Boots: The greatest generation TEXT AND PHOTOGRAPHY BY PATRICK CURREY

CONOCO RETIREE HARLEY GRANT HAS industry. In 1968, his career path took a turn EARLY ROOTS IN THE COMPANY. “My father southeast. A new test engineer was about went to work for Continental Oil Company in to hit the murky swamps of the Louisiana 1932, digging mud pits for the early wells in For- bayous. “Boots and I set out for Cajun country san, Texas. It was a pretty wild town in those days. with two cars, two boys and one Siamese cat. We lived in a company house with no electricity; Two days later we were in Lafayette, Louisiana.” gas from the wells provided us with fuel. An evaporative window cooler kept our milk, butter and eggs cool in the heat. The last Saturday in August was the Conoco barbe- cue at Big Spring Park — the biggest day of the summer for us boys.” Harley was the star quarterback for the Forsan Buffaloes, winners of the bi-district final after delivering a crushing defeat to Van Horn 68–18. Grant scored five touchdowns in the rout. ABOVE: Harley wears his “I started to work for Conoco in May 1944 Forsan Buffaloes football right after graduation. My first day on the job uniform circa 1944 the district foreman took me to the Gilbreath LEFT: Harley’s dad, Alfred Lee Grant, at work for the #2 and put me in the derrick. I told him I’d Continental Oil Company never been in a derrick before, and he replied, Boots recalled her delight in discovering circa 1932 ‘This is where you learn.’” That day a distinguished Lafayette’s deep history and hearing the French OPPOSITE PAGE: Harley and Boots will celebrate their 45-year career with Conoco was launched. Creole dialect still being spoken. For Harley, 69th wedding anniversary “Miss Boots Jones and I were dating and had working Bayou Blue deep in the swamps was a on March 1, 2016. become engaged.” But the engagement was put world away from the omnipresent sand, scorch- on hold when Harley joined the U.S. Navy in Janu- ing summer heat, cactus and mesquite of West ary 1945. He recalls the good times and camara- Texas. “You didn’t want to get caught there after derie of that unique “band of brothers.” To lessen dark. There are a whole lot of night creatures and the sting of homesickness, Harley often used his plenty of big snakes just waiting.” weekend pass to listen to the legendary Bob Wills Times and technology have changed since and his Texas Playboys. Harley’s father excavated a mud pit with a team By July of 1946, he was back at work in the oil of mules in the hard dirt of West Texas. Harley and patch. On March 1, 1947, he married Boots. “Dur- his father have 82 combined years of company ing my career, we moved eight times. Little did service. From the beginning, many lent him the she know that when she married me, like my own hand of trust and taught him the ropes. As he mother, she was marrying Conoco.” moved up in the company, he extended that By 1957, Harley was promoted to head roust- same hand of support to help others. Cherished about. “We did preventative maintenance and friends and family have come and gone, but his whatever it took to keep an old field going.” love of “the prettiest lady at Forsan High School” Harley continued to grow along with the young has remained steadfast and unwavering. ■

spirit Magazine 53 FACES OF CONOCOPHILLIPS

Marcus Humphreys A passion for open water BY LUCINDA CALLIE

ON A COLD, CLEAR MORNING IN FEBRUARY 10. They supported him in his yearlong training, 2015, Conoco Phillips Australia West Industrial as did many of his ConocoPhillips colleagues. The Relations Specialist Marcus Humphreys woke up Good For You! campaign’s Energy in Action chal- at 4 a.m. and began preparing to swim nearly 20 lenge also helped motivate him on his journey. kilometers (about 13 miles) in a choppy, icy cold He ran twice a week with the ConocoPhillips ocean. For Marcus, this day was the culmination Cardio Club in Perth (part of the challenge) and of a full year’s worth of training to participate in swam four to five mornings a week. He supple- one of the largest open-water swimming events mented his cardio training with yoga and gym in the world. workouts when possible. Held each February, the Rottnest Channel On the day of the event, Marcus was under- Swim, one of Western Australia’s iconic events, is standably anxious. His two-person support team an open water swim from Cottesloe Beach near met him on the beach for a 5:45 a.m. start. To the city of Perth to the tiny island of Rottnest, prevent hypothermia, Marcus covered his body 19.7 kilometers off the coast. with sheep fat; and he gobbled down numerous Marcus never imagined he could swim that far, protein bars for energy. The conditions that day especially in a cold sea with the threat of sharks, were some of the worst ever. The wind overnight had churned up a two- to three-meter swell, very

ABOVE: Australia West difficult and tiring for a long ocean swim. Also, it Industrial Relations is a race rule that each solo swimmer must have a Specialist Marcus Humphreys support boat with a paddler in case the swim-

RIGHT: Each solo swimmer mer is in danger and needs to be pulled from the in the Rottnest Channel water. HR Resourcing Contractor Rachel Madge, Swim has a support boat with a paddler. Marcus’s paddler, had to balance on a small paddle ski in terrible conditions. OPPOSITE PAGE: Slathered with sheep fat for warmth, Although nobody was injured, some swimmers Marcus gets ready to start and support team members had to be rescued his nearly 20-kilometer swim. when one boat took on water and overturned. There was also a shark sighting near the 10-kilometer marker of the swim. Marcus, who is 6’6” and a natural swimmer, put on a stellar performance, coming in 47th out of the severe hypothermia, seasickness, exhaustion 267 solo swimmers with a time of 5 hours, 55 min- and even cardiopulmonary distress. Clearly, the utes. The winning time was 4 hours, 27 minutes. Rottnest event is not for the faint of heart. Cur- Marcus will participate in the event again in rents around the channel are incredibly strong, 2016 and 2017, keen to improve upon his time posing a challenge in the frigid water. Participants year on year. “I originally planned to do the swim compete in either the solo or team category. For only once,” said Marcus. “But the exhilarating 2015, a total of 2,400 swimmers participated, with experience made me change my mind.” a record 267 in the solo competition. Given his natural ability, strong support system Marcus was challenged to undertake the swim and newfound passion for the open water, he by his wife and four children, all under the age of might even win. ■

54 ConocoPhillips Marcus Humphreys A passion for open water BY LUCINDA CALLIE

spirit Magazine 55 56 ConocoPhillips FACES OF CONOCOPHILLIPS

Chris Young Brand & Creative Services director escapes the Rock BY GUS MORGAN, PHOTOGRAPHY BY MARY YOUNG

BRAND & CREATIVE SERVICES DIRECTOR more on my past experiences and focus on BELOW: Participants in the 35th annual Alcatraz “Escape CHRIS YOUNG pulled off the ultimate escape this training smart. I listen to my body and focus on from the Rock” duathlon summer by competing in the 35th annual Alcatraz my technique to maximize each training session await the start of the event off the east end of Alcatraz “Escape from the Rock” duathlon in San Francisco, and prevent injury. Island in San Francisco Bay. California. “I’ve always been infatuated with the Alcatraz OPPOSITE PAGE: Chris Young Chris successfully completed the 1.5-mile story and the Clint Eastwood movie, but I never successfully completed the open-water swim and 7-mile run amid a scenic imagined I would be jumping off a boat at the duathlon, which involved a 1.5-mile swim across San backdrop. “San Francisco Bay is spectacular. I took very spot.” Francisco Bay followed by a the time to enjoy the moment and appreciate Fitness goals and competitions keep Chris 7-mile run to the Golden Gate Bridge and back. the views of Alcatraz and the Golden Gate Bridge. focused and motivated. He stays in shape by It was an amazing experience and a lot of fun.” running, swimming and cycling. Young started The swimming portion of the event started at training for the “Escape from the Rock” duathlon the east end of Alcatraz Island and ended at San two months ahead of time. His diet consisted of Francisco’s Aquatic Park. Participants wore wet- lean meats, proteins, salads and coffee. suits to ward off the cold water, which hovered “I was in good shape for the run,” he said, “but around 56 degrees that day. increased my training distance for the swim. I “It was crazy how cold the water was com- was very fortunate to have access to the Conoco pared to Texas,” said Chris, who finished his swim Phillips pool, where I would swim in the early in 56:42. “My biggest fear was not sharks, sea lions mornings and during lunch.” or tides, but jumping off the ferry into the cold Chris’s wife, Mary, traveled with him to San water. I hate cold water.” Francisco, a symbolic place for the couple. To stay mentally focused during the swim, “This was the best part of the trip,” Young said. Chris concentrated on his stroke and breathing “Mary and I honeymooned in San Francisco years instead of how far he had to go. Once he made it ago, and so we went back to celebrate our wed- to shore, he had to run to the Golden Gate Bridge ding anniversary. We ate at some great restau- then return to Aquatic Park, a 7-mile journey. rants, and I surprised her with a new wedding “It was one of my most memorable competi- ring. Hers was stolen a couple of years ago in a tions,” he said. “It was very hard, but I prepared home robbery. She was totally surprised! I was the best I could. As I get older, I have to rely surprised I was able to keep it a secret.” ■

spirit Magazine 57 IN THE NEWS

Doing Business Better: How ConocoPhillips Town halls foster understanding, dialogue will prosper in the new oil and gas reality To clarify the company’s strategy and en- Conoco Phillips is redesigning the way it Conoco Phillips’ business has a compo- courage constructive dialogue, Conoco does business. By adopting fit-for-pur- nent of risk associated with it,” Lance said. Phillips’ top leaders recently embarked pose standards, the company is eliminat- “We are adjusting our approach based on a series of town-hall style meetings. ing the “one size fits all” on the level of safety, environmental, pro- Throughout October, November and philosophy inherited duction and financial risk associated with early December, thou- from its past as an each asset or project.” sands of employees integrated oil and gas The company began implementation attended events in company. of its new philosophies in September. Houston, Bartlesville, “Even at the time of Appointed representatives from each Calgary, Anchorage, the spinoff in 2012, we region, business unit, function and staff, Aberdeen, Stavanger, knew that some of our known as implementation leads, are Doha and Singapore. Ryan Lance processes were cum- identifying local fit-for-purpose ap- “When you talk about Matt Fox bersome, duplicative and inefficient. But plications. Philosophy owners provide strategy, what resonates with so much work before us, this was a the leads with guidance on achieving with people is differ- project we chose to defer,” said Chairman consistency and alignment with the phi- ent,” said Exploration & & CEO Ryan Lance during a Global Town losophy’s intent. Fine tuning and revising Production Executive Hall on Oct. 20. “The recent reduction in associated processes, standards and pro- Vice President Matt Fox. commodity prices caused us to repriori- cedures will be ongoing through 2016. “Some people are more tize this work. It’s not just a cost-savings “None of this means that we will comfortable with a effort, although cost savings will result tolerate injuries to workers or incidents very high level strategy. from increased efficiency, simplified resulting in environmental damage. Our Some want to see a Al Hirshberg processes, eliminated redundancy and standard is still zero tolerance for safety or more granular strategy. the fit-for-purpose approach.” environmental incidents and compliance But everybody needs to understand how they fit into that strategy.” Fit-for-purpose is a key tenet of the company’s new Fox and other leaders emphasized that ConocoPhillips has designed a path philosophies. It means that standards, processes, policies and forward that will work in a more volatile price environment. procedures must be appropriate for the task at hand. Technology & Projects Executive Vice President Al Hirshberg said, “There is a The fit-for-purpose approach applies with all laws and regulations,” Lance said. wide range of views on where oil and gas the appropriate standards and proce- “We firmly believe that a fit-for-purpose, prices will be over the coming years. While dures to each asset and project, eliminat- risk-based approach, implemented we can’t predict what will happen, we can ing unnecessary and unhelpful ones, and by those in the best position to fully continue to exercise the great flexibility focusing everyone on the actual risks understand the risks and effectively man- we have in our strategic plan as condi- involved in each situation. age them, will lead to a safer and more tions dictate, and we’ll work hard in 2016 “Like every facet of life, every aspect of efficient organization.”■ on this new way of doing business.” ■

Lance elected to head viable U.S. oil and natural gas industry. era of American energy security.” “As a long-time member of the API “Ryan Lance’s experience, knowledge API board board of directors, I’m honored to lead and vision for our nation’s energy future Conoco Phillips Chairman and CEO Ryan an organization that has become such an will advance API’s goal of ensuring that Lance was recently elected chairman of effective voice for the oil and natural gas our nation takes full advantage of its the American Petroleum Institute’s (API) industry,” said Lance. “API’s role has never enormous energy potential,” said API board of directors, effective January 1, been more vital in light of the tough times President and CEO Jack Gerard. “API’s new 2016. With more than 600 corporate we are experiencing. We need to maintain board leadership team knows firsthand members, from the largest major oil com- the momentum of the energy renaissance how America’s oil and natural gas industry pany to the smallest of independents, and the contributions our industry makes creates jobs, generates revenue for the API has a significant role in advocating to the American economy, retaining and government, and makes our nation more for public policies that support a strong, creating quality jobs, and driving a new energy secure.” ■

58 ConocoPhillips IN THE NEWS

PROCESS SAFETY SYMPOSIUM Conoco Phillips is a proud supporter of the Qatar Process Safety Symposium, a two-day annual conference designed to enrich attendees with topics such as best practices, safety success stories, incident case studies, new legislative initiatives and advances in process safety research. The symposium provides networking opportunities by bringing together experts to exchange knowledge on industrial safety. Co-hosted with Texas A&M University Qatar, the symposium has become a key event that supports students from the ConocoPhillips Qatar President Gary Sykes leads the Qatar Mary Kay O’Connor Process Safety business unit team into their new office building. Center extension, who are performing process safety research. The conference gives them an opportunity to share their Spotlight on Qatar work with the industry. The symposium is having an impact on students’ career paths. To date, Conoco Phillips Qatar bustles with activity 13 graduate students have been performing process safety research, with BY SARAH MROUEH senior health, safety and environment seven of them finding jobs in the field. The Qatar business unit has been busy (HSE) consultant with ConocoPhillips. Ten undergraduate students have been with collaborative activities involving “Sharing these types of experiences with involved in process safety research. safety, knowledge sharing and philan- Qatargas will not only help reduce injury thropy. Here’s a look at some highlights. among their workforce but also improve the value of the joint venture to Conoco SAFETY TRAINING Phillips through effective stewardship of Conoco Phillips continues to share its our knowledge and resources.” safety expertise and knowledge with In 2014, Xu, along with Dave Wulf, Qatargas at Ras Laffan Industrial City. In Conoco Phillips HSE site manager, and 2015, ConocoPhillips employees conduct- Joe Hobbs, a ConocoPhillips secondee serving as Qatargas safety and risk manager, taught Qatargas workers how to keep their hands, arms and legs from ConocoPhillips President Gary Sykes (left) and being injured. Randy Stadler, Qatargas chief Safety, Environment & Quality officer

At a glance Conoco Phillips Qatar has more than 30 percent of its employees filling roles as secondees. The Qatar business unit supports these secondees by: • Hosting a quarterly gathering with the business unit’s leadership team, providing secondees a More than 3,000 Qatargas workers participated in platform for communication and camaraderie. training that simulates real-life experience with • Holding frequent informal gatherings — such as meals, card games and golf outings — to provide workplace hazards. opportunities for the business unit to keep in touch with these employees. ed safety classes titled “Hidden Pressures” • Holding town hall and staff meetings that accommodate secondees’ work schedules. at the Qatargas LNG facilities on the haz- • Ensuring secondees’ mail from the home office gets delivered to them at their work location. ards of an unintentional energy release. • Ensuring secondees have access to senior management. “Workers who understand the hazards • Passing along corporate communications to secondees at their host email addresses. in the workplace tend to complete their tasks more safely and contribute to • Ensuring visas and accommodations are handled well. better productivity,” said Shawn Xu, a • Accounting for secondees and their families in the event of an emergency.

spirit Magazine 59 IN THE NEWS

ConocoPhillips Qatar • Works to enhance the value of ConocoPhillips’ partnerships in Qatar • Shareholder, supporter and partner of Qatargas • Provides Qatargas with secondees who transfer technical and managerial knowledge, best practices and lessons learned • Holds a 30 percent interest in Qatargas 3, an integrated LNG project in Ras Laffan ABOVE: Hosted jointly by ConocoPhillips, Qatar Industrial City, Qatar Petroleum and Total, the Petroleum Envrironmental Research Forum provides a forum for engineers and scientists to discuss collaborative research Qatar Petroleum opportunities; RIGHT: Qatargas leaders and Qatari government officials at the launch ceremony for • Founded in 1974 the jetty boil-off gas (JBOG) project at Ras Laffan; BELOW: Petroleum Environmental Research Forum • State-owned petroleum participants toured the ConocoPhillips Global Water company Sustainability Center, located at the Qatar Science & Technology Park in Doha. • Operates all oil and gas activities in Qatar POLAND a due diligence team to assist Qatargas man- • ConocoPhillips’ majority Conoco Phillips Qatar recently supported the agement at the construction site. In addition, partner in the Qatargas 3 Qatargas management team with due dili- the ConocoPhillips team, which included joint venture gence work at an LNG regasification terminal several Qatargas employees, provided key under construction in Poland. observations and learnings to the Polskie Qatargas Qatargas recently signed a new long-term LNG project management team. customer, a subsidiary of the Polish national When Poland’s new LNG terminal starts • Founded in 1984 oil company, to purchase LNG and then accepting shipments in 2016, ConocoPhillips • Largest LNG producer in the regasify it at a terminal in Poland. Although Qatar will have played an important role in world the LNG project was progressing, it ap- making the project a success. • Operates seven LNG trains peared the terminal would not be finished in time to accept LNG cargoes from Qatargas KNOWLEDGE SHARING • Operator of ConocoPhillips’ as outlined in the sales agreement. Thus, Conoco Phillips Qatar is strengthening its rela- Qatargas 3 joint venture Qatargas reached out to ConocoPhillips tionships with Qatargas and Qatar Petroleum Qatar, which quickly responded by sending by supplying information and solutions to

60 ConocoPhillips IN THE NEWS

help them with corrosion management, equipment reliability and enhanced oil Qatar secondees energize partnerships recovery. Over the last few years, ConocoPhillips Secondees play a vital role in helping organization, overseeing agreements Qatar has called upon the expertise of Conoco Phillips Qatar achieve its mis- between Qatargas and other entities its corrosion specialists as Qatargas deals sion and vision. As a premium service and stakeholders, with particular focus with challenges associated with hydro- provider to its joint ventures operators on the Qatargas 3/4 venture. gen sulfide in gas from the North Field and strategic partners, ConocoPhillips SECONDEES AT QATAR PETROLEUM and with microbial corrosion down hole. has 16 secondees working at Qatargas Through a long-standing technical Additionally, experts from Conoco or Qatar Petroleum. services agreement, Phillips Global Water Sustainability Center SECONDEES AT QATARGAS ConocoPhillips has in Doha have provided Qatargas with Project Manager Michael Koo, Project provided high-caliber wastewater solutions, helping them Services Manager James Venable and individuals to Qatar optimize their water recycling efforts. Safety/Risk Manager Joe Hobbs have Petroleum for many Conoco Phillips Qatar also has been able served as secondees years. Working on at Qatargas for many Qatar Petroleum’s years. And Fraser Ross legacy Dukhan Field John Snow from Scotland has been in the west of the country, Dan Warner in Doha for more than from Texas fills the role nine years in his role as of operations manager, a reservoir engineer- overseeing ongo- Michael Koo ing manager. Grace ing well operations, Bian from the Canada business unit while John Snow from has been serving as data management Utah manages the to help Qatargas with improvements to geophysics work as- David Twaite its gas turbines in the LNG liquefaction sociated with the field. process and by sharing safety research. Rex Owen from the U.K. oversees the To assist Qatar Petroleum, Conoco reservoir engineering Phillips Qatar has been sharing its experi- aspects of the Dukhan ence in the use of carbon dioxide for Field, and Phil Rorison enhanced oil recovery. This knowledge has joined the Dukhan has helped Qatar Petroleum as it works team from the U.K. to redevelop a legacy oil field with a James Venable business unit to head captive carbon dioxide supply. In addi- supervisor of all subsurface data for geophysical studies. tion, ConocoPhillips Qatar has shared its Qatargas. In addition, John Ruddy from On the projects Ricardo Silva knowledge on well and facility designs, the U.K. fills the role of side, Qatar Petroleum is undertaking a crude oil tank management and safety production allocation massive redevelopment of Bul Hanine, investigations. manager, oversee- another legacy offshore INCIDENT ASSISTANCE AGREEMENT ing the distribution oil and gas field. To WITH QATARGAS of production to the support the project, Conoco Phillips recently signed an inci- individual ventures and ConocoPhillips has dent assistance agreement with Qatar- shareholders within placed David Twaite Grace Bian gas to enhance the Qatargas Response Qatargas. from the U.K. on the Management System. As part of the Chris Hiatt recently joined the front-end engineer- Ed Small agreement, ConocoPhillips will provide Qatargas shipping organization, ing and design team technical expertise to effectively respond continuing a legacy of ConocoPhillips as one of the project to emergency incidents. secondees’ presence in managers and Ricardo the Qatargas market- Silva from Venezuela as QATAR KATRINA FUND ing and shipping a safety engineer. And Conoco Phillips recently donated organization. And recently Ed Small and $100,000 to the Qatar Katrina Fund es- Andre Hartono from Bobby Jerkins, both tablished in 2005. The fund has provided the Indonesia busi- from Houston, joined housing, healthcare and educational ness unit is extending Qatar Petroleum’s proj- Bobby Jerkins Chris Hiatt assistance to those impacted by the hur- the company’s legacy ect services division to help optimize ricane in the Gulf Coast area of the U.S. ■ presence in Qatargas’ commercial cost-control processes and planning. ■

spirit Magazine 61 IN THE NEWS

A communications command center concerned citizens, elected officials, In case of a crisis, was quickly put in place, with participa- news reporters and other stakeholders, tion from SR&C team members in Hous- including mock anti-industry group ton and in remote Lower 48 locations. members who seized the opportunity Lower 48 is ready Additional support was provided by to post false rumors and opinions on staff members from Investor Relations & simulated social media feeds. to respond Communications. “Communicating during an incident BY RENEE GRIFFIN The practice environment was is crucial,” said Lower 48 Senior External controlled, but the dynamics of the Relations Advisor Romelia Hinojosa. “We Through the use of protocols and pro- simulation were intense. The SR&C may respond effectively to an incident, cedures, the ConocoPhillips Lower 48 team coordinated mock communica- but if we cannot communicate effec- organization strives to maintain business tions with local law enforcement and tively and assure the public that we are operations while guarding the safety of emergency responders. They also faced doing everything we can to resolve the people, the environment, the company’s a flood of realistic phone and email incident, our trust and reputation can assets and its reputation. But if a crisis inquiries from role players posing as be damaged.” ■ ever threatens, the Lower 48 Stakeholder Relations & Communications (SR&C) team will play a key role in the company’s response. To prepare for an incident response, the SR&C team recently engaged in crisis communication management training. The first part of the training involved learning how to respond to inquiries from various stakeholders using PIER, a web-based communication platform whose acronym indicates its purpose: Public Information for Emergency Re- sponse. During a crisis, the team will use PIER to build and disseminate information. The platform also can be used to analyze public inquiries, which the team can then use to prepare communications

that address questions and concerns from the local community. Clockwise from top: During the crisis response training exercise, Lower 48 Stakeholder Relations & Communications team members (from left) Harmony Jurkash, Stu Mussler and Glynis Strause This training was put to use in a huddle as North America Communications Advisor Andrea Urbanek looks on; Lower 48 Stakeholder subsequent drill that challenged the Relations & Communications Manager Andrew Roberts serves as public information officer and SR&C team’s real-time response capabili- liaison to the Executive Leadership Team; and IR&C Administrative Assistant Candy Leigh records ties with a mock scenario involving an information as the incident unfolds. incident at a Lower 48 field site.

62 ConocoPhillips IN THE NEWS

response contractors and regulatory Port Angeles drill: An invaluable investment in agencies. But according to Fred LeJeune, crisis management and emergency preparedness director of emergency response for Polar Tankers, it’s well worth the effort. BY BILL STEPHENS timeliness, environmental protection and, “The State of Washington evaluates Imagine it’s midnight and you’re on a yes, optics, the company and regulators our performance, and from what I heard Polar Tankers ship safely anchored in the agreed in a signed incident action plan during the exercise, the U.S. Coast Guard, pristine harbor of Port Angeles, Washing- to conduct carefully managed burn- Washington Department of Ecology and ton. Suddenly a third-party crane barge ing. The approved strikes the tanker, emptying 3 million plan also included Polar Tankers drill in Port Angeles, Washington gallons of Alaska North Slope crude from robust attention to air one breached tank. Your world, and the monitoring. company’s, has just changed dramatically. The simulated burn Fortunately this was only a drill, but happened during one taken very seriously by about 200 the third shift of the employees, third-party response special- 24-hour exercise. The ists, and federal, state and local regula- first eight hours of re- tors. Polar Tankers personnel participate active response hap- in exercises like this every year at various pened in September locales rotating among Alaska, Washing- and were managed ton and California. out of Bellingham, Every drill is unique, and this one tested Washington, and a bold concept: intentionally setting the Houston, Texas. The spilled cargo ablaze with a technique proactive phase, hours 9–24, was held in Clallam County officials were very com- called in-situ burning, which was suc- mid-October in Port Angeles. plimentary of our performance,” he said. cessfully applied during the Deepwater Drills like this involve a sizeable com- “Given that, plus the invaluable training Horizon response and may be gaining mitment in planning, preparation and opportunity, the relationships we build acceptance as a viable measure. Carefully resources by Polar Tankers, Crisis Man- with agencies and response contractors, but quickly weighing many competing agement & Emergency Response, the and the lessons we learn and apply, the factors such as safety, effectiveness, Global Incident Management Assist Team, returns on our investment are priceless.” ■

situation status display (ESSD) to help Now maintained by a key response The big picture manage crisis response. The ESSD is contractor, this product is being em- designed to be the best place in the braced by industry, regulators and com- If a picture is worth a thousand words, incident command post to learn quickly munities. The widespread acceptance a wall of big touchscreens loaded with about the nature and status of the inci- of this user-friendly technology dem- countless layers of interactive photos, dent and response operations. onstrates strong commitment to the maps and data must be worth millions. Polar Tankers first showcased the full company’s SPIRIT Values, most notably: That’s why Polar Tankers invested capability of ESSD’s production model INTEGRITY three years in developing the electronic in mid-October at an emergency drill in Port Angeles, The ESSD helps builds trust with stake- Washington. This in- holders through transparent informa- novative tool features tion sharing during a crisis. a dozen crate-ready INNOVATION monitors and screens The ESSD displays information rapidly that can be set up to meet the ever-changing needs of in minutes. Besides responders and stakeholders. being extremely functional, the ESSD TEAMWORK also addresses regula- The ESSD promotes better performance tor expectations that by the response community through Polar Tankers Marine Superintendent Monty a company share se- collaboration with industry co-venturers Morgan briefs drill participants using the electronic situation status display (ESSD). cure data to illustrate and contractors, while also enhancing the response. relationships with stakeholders. ■

spirit Magazine 63 IN THE NEWS

and trades involved. “We thank them for their commit- New projects reach first oil in Alaska ment to working safely and for their On Oct. 12, ConocoPhillips Alaska (COPA) investment decision to when we actu- contributions in beating the schedule announced production had begun ally got first oil,” said COPA President Joe and cost targets,” Marushack said. from Kuparuk Drill Site 2S (DS2S). The Marushack. “It is an example of the type The DS2S project includes 14 develop- project was completed under budget of project that ConocoPhillips Alaska ment wells, a gravel road and drilling pad and ahead of schedule and is expected executes very well.” capable of handling 24 wells, power lines, to add about 8,000 barrels of oil per day, The $475 million project created pipelines and other surface facilities. gross, at peak production. about 250 jobs during construction, DS2S is located in the southwestern sec- Approved for funding in October 2014, with numerous contractor companies tion of the Kuparuk field. production was originally expected in December 2015. This is the first new drill “It is an example of the type of project that ConocoPhillips site at Kuparuk in more than 12 years. “It was twelve months from Alaska executes very well.” — JOE MARUSHACK

Drill Site 2S is one of the key projects COPA announced after passage of tax reform in the state. On Oct. 27, just two weeks after first oil was announced at the site, COPA announced that its CD5 drill site began producing oil. CD5, part of the Alpine Field, is the first commercial oil development on Alaska Native lands within the boundaries of the National Petroleum Reserve-Alaska. Four wells are complete at CD5, with development plans calling for 11 more wells by early 2017. Peak gross production is anticipated at 16,000 barrels of oil per day. Ceremonial transfer of DS2S oversite from the Capital Projects organization to Operations. (From left) Watch for more information about the Patrick Wolfe, manager, North Slope Integrated Operations & Projects; Nick Olds, vice president, North Slope Operations & Development; Scott Pessetto, manager, Capital Projects, Alaska; Ty Maxey, manager, challenges, successes and innovations Greater Kuparuk Area Operations; and Joe Marushack, president, Alaska. of CD5 in the next spirit Magazine. ■

64 ConocoPhillips IN THE NEWS

rendering videoconferencing nearly the comforts of home are hundreds, and impossible. With the expansive distance sometimes thousands, of miles away. Can you hear between assets and the main offices in With the completion of the project, the Anchorage, videoconferencing is an es- loop from Anchorage to the North Slope pecially important communication tool. now runs on a continuous, high-capacity me now? Following the installation of the cables, network. According to Patrick Wolfe, Fiber optics enhance the number of meetings taking place manager, North Slope Integrated Opera- via videoconference tripled, saving both tions & Projects, “This fiber optic project communication, improve morale time and money. has significantly improved our ability on remote North Slope “Bringing this new connectivity to the to further integrate our Anchorage and North Slope was a critical step to boost North Slope personnel and improve the BY MEREDITH KENNY our communications capabilities,” said speed and quality of data transfer to and With a focus on more integrated op- Nick Olds, vice president, North Slope from our operations on the Slope.” erations, last year ConocoPhillips Alaska Operations & Development. “It took The fiber optic project is just the latest (COPA) celebrated the culmination of a teamwork and innovation to bring this demonstrable addition to the continuing 13-month fiber optic project that was ten increased network capacity to our work- effort to improve and increase communi- years in the making. The project, which force, and it will enhance our continued cations among the ConocoPhillips team. included installation of 96 strands of fiber optic cable to connect pump station 1 (PS1) to Kuparuk, enables COPA to increase bandwidth and handle more network traffic, improving business capabilities and enhancing the quality of life for those who work on Alaska’s remote North Slope. Almost 700 miles north of Anchor- age, Alaska’s largest city, and 3,400 miles from its corporate headquarters in Houston, Texas, ConocoPhillips operates assets on the vast North Slope arctic Fiber optic cable installation

In 2012, ConocoPhillips corporate worked with local business units to upgrade desktop communication technology. These upgrades allowed for real-time sharing through phone conferencing, videoconferencing and screen sharing. This was especially important to the Alaska business unit, where assets are spread far and wide within the largest state in the union. This updated technology, along with the addition of full fiber optic capacity, has allowed for meetings between New technology and capabilities are unveiled at the kick-off event celebrating the fiber optic project. Anchorage, Cook Inlet and those on the Slope without requiring extensive travel, tundra, close to North America’s north- investment in North Slope projects.” saving time and money. ernmost point. These assets function The business capabilities were not the Through the hard work and dedica- independently being largely off-road only benefit to come from this project; tion of an extensive COPA team, in and completely isolated. quality of life for Slope workers was also conjunction with external vendors, As operations have grown in recent greatly enhanced. Thousands of work- the Alaska business unit is now set up years, and as technology has advanced, ers fly to and from the North Slope on to handle communications and data there has been a growing need for a a regular basis, working multiple-week for many years to come. Teaming up speedier and more efficient transfer of shifts away from their homes and families. with local telecom providers allowed information. Prior to this project, the Improved cellular coverage and Wi-Fi Conoco Phillips to keep costs down and lack of a high-capacity network be- Internet bandwidth now allows them to enhanced services. Additionally, this tween PS1 and Kuparuk meant that the stay connected to their families and per- project was finished on time, under bud- flow of information was less efficient, sonal lives, helping worker morale when get and with no recordable injuries. ■

spirit Magazine 65 IN THE NEWS

Look who’s 40: Teesside terminal reaches milestone ConocoPhillips’ Teesside invest in the plant to terminal celebrates 40 years of secure its future.” operational excellence. A seven-year project to replace the The terminal plays a key role in the plant’s control and Norwegian and British oil industries. Crude metering systems oil and natural gas liquids from the North will be finished in Sea are processed there before being 2016. Other im- stored and exported around the world. provements include “Teesside Operations has a fantastic replacing electrical Nick Lee history when it comes to safe operations switchgear and simplifying the natural and reliability,” said Teesside Operations gas liquids plant to reduce costs and General Manager Nick Lee. “We have had improve process safety. In addition, only 40 hours of unplanned downtime in Teesside Operations is working to re- Teesside terminal today 40 years. That equals 99.99 percent avail- duce operating costs and will achieve a ability. And we’re looking forward to the nearly 20-percent sustainable reduction challenges ahead. We’re continuing to this year. ABOUT THE TEESSIDE TERMINAL • Operated by ConocoPhillips

The Teesside • First oil received in 1975 terminal was officially opened • A 354-kilometer pipeline transports oil and in October 1975 natural gas liquids to the Teesside terminal by company on the United Kingdom’s east coast President William Douce (left), with John On average, one oil tanker docks at the Smith, British undersecre- terminal every other day, or approximate- tary of state ly 170 times per year. For vessels trans- for energy porting natural gas liquids, the number is and Ingvald Ulveseth, even higher, currently around 200 ships Norwegian min- per year. The terminal employs approxi- ister of industry. mately 240 staff, 90 temporary personnel and 400 service contractors. ■

Since 2007, Lion Guardians has worked to Lion guardians: the quest to save Africa’s big cats promote sustainable coexistence between BY GUS MORGAN St Andrews that recognizes significant humans and lions across Kenya and Tanzania. Since winning a 2012 environmental contributions to environmental issues prize sponsored by ConocoPhillips, Lion and concerns. The $100,000 prize Guardians has expanded its conservation provided a monetary boost to Lion efforts in East Africa and reduced lion kill- Guardians, enabling it to expand its ings in the areas it manages by more than conservation plan throughout Africa. 90 percent. The lion population is rapidly declin- The cofounders of Lion Guardians, ing, Hazzah said, mainly because they are Leela Hazzah and Stephanie Dolrenry, coming into conflict with humans. Today, recently visited ConocoPhillips’ fewer than 20,000 lions remain. main campus in Houston to give an The Lion Guardians approach involves update on how their organization has recruiting Maasai warriors to monitor lion progressed since winning the 2012 movements, warn pastoralists when lions St Andrews Prize for the Environment, are in the area, recover lost livestock, rein- an initiative co-sponsored by Conoco force fencing that protects livestock and Phillips and Scotland’s University of intervene to stop lion hunting parties. ■

66 ConocoPhillips IN THE NEWS

Helene Harding named among Women in Energy Leadership Gulf Coast business unit Vice Presi- dent Helene Harding was one of 26 women to receive the Houston Business Journal’s inaugural Women in Energy Leadership Award Oct. 20 at the Hous-

Bartlesville High School students Mariana Jasso (left) and Nicole Workman (right) are gaining valuable tonian Hotel. experience through a program offered by ConocoPhillips’ Information Technology (IT) group. The Honorees were program was developed by Alex De La Rosa (center), supervisor, Bartlesville IT Infrastructure. selected based on career achievement during the summer months. Now back in energy, contribu- Programming for in school, they continue to assist the IT tion to company success, community group in Bartlesville part time. involvement and leadership. “We want to give them great learning “I am honored to be recognized by the future opportunities here at ConocoPhillips,” the Houston Business Journal,” said Pilot effort is helping De La Rosa said, “but school must come Harding, who was also featured on Oct. Bartlesville High School first.” 23 in a special section of the publica- The students assisted with cleaning tion. “I have a passion for leadership and students gain valuable insight up the online active directory system believe it has been critical to my success about the working world as well as implementing phones that at ConocoPhillips.” transmit calls over an IP network. Work- Self-awareness, Harding said, is vital to BY DAVID AUSTIN man and Jasso now even build some of being a strong leader. Growing up, things were not always easy the IP phones. “It allows you to better understand for Information Technology (IT) Infra- “I’ve really enjoyed getting to know the the impact you are having on others,” structure Supervisor Alex De La Rosa. IT field,” Workman said. “This program she said, “and to modify your behaviors Money and opportunity were hard to has given me a feel for corporate life, and to be more effective.” come by. While the road De La Rosa took I’ve really liked it.” What’s been Harding’s key to success? was littered with hurdles, he now finds One of the program’s goals is to “Ensure you have talented people himself in a position to clear the path for encourage students to stay in school and working for you,” she said, “and focus those still making their way. De La Rosa continue on to college. It gives them a on making them more successful. Our created a program for area students in taste of the working environment and results are a reflection of the quality and May that will continue its pilot phase helps them hone in on career fields. capabilities of the people who work for through the 2015-2016 academic year. “I’ve always thought that I’d like to be us. Fostering their development by pro- The program enabled Bartlesville High an accountant,” Jasso said. “But this providing honest feedback, especially when School students Nicole Workman and gram has opened up other possibilities.” it comes to behaviors, is important. I feel Mariana Jasso to earn valuable experi- De La Rosa isn’t quite sure how the fortunate to have had so many great ence in ConocoPhillips’ IT department. fledgling program will evolve, but he leaders work for me and to see them The program is tailored after those hopes it continues to grow. continue on to larger roles.” offered by Genesys Works, a nonprofit “We’ve reached two students with Harding is generous with her time and organization that seeks to open doors the pilot, and I’m proud of that,” De La outreach, particularly with the Women’s for inner city high school students by Rosa said. “It would be great to see this Network, the United Way and the Texas matching them as interns with major develop into a well-defined program Oil and Gas Association. corporations. Genesys Works operates in that reaches beyond Bartlesville into the Harding earned a Bachelor of Science large cities, and since Bartlesville doesn’t neighboring communities. It’s great to in chemical engineering in 1982. She fit that description, De La Rosa decided help open the eyes of young people to graduated summa cum laude from to put together a program of his own. the different career possibilities that are Texas A&M University in College Station, Workman and Jasso worked full time available to them.” ■ Texas. ■

spirit Magazine 67 On Assignment

JAN HESTER (Water, Page 8) is assistant editor of spirit spirit Magazine is published quarterly by Magazine. A fan of technology, she loves to visit and write Conoco Phillips Investor Relations & Communications. about shiny, complex things such as Polar Tankers, water Address mail to spirit Magazine, ConocoPhillips, MA3132, recycling projects and LNG plants. Jan adores spicy ethnic P.O. Box 2197, Houston, TX 77252-2197, or send email to food and is known to drag colleagues along to Indian the editor at ray.scippa@conocophillips.com. and Thai restaurants for lunch. She adores IPA that’s not too hoppy, a spicy Russian River Valley zin, classic English Ray Scippa, Executive Editor literature, European history, Mozart, Freddie Mercury and Jan Hester, Assistant Editor animals, notably cats. Ashley Dillon and Gus Morgan, Contributing Editors JENNIFER LEAHY (Community, Page 20 and SD Challenges, Page 28) Michelle Gunnett, Designer works in Sustainable Development & Public Policy communications. When not trying to make data understood only Kevin Bonny, Account Manager by engineers understandable by everyone, she enjoys traveling to new foreign places and Joe Glyda, Photo Editor searching for the perfect gift for family and friends. In a former life, Jennifer worked as a journalist, COMMUNICATIONS: David Austin, James Bartlett, Daren covering breaking news and police-related Beaudo, Jackie Bunce, Cathy Cram, Jan Hester, Christina Kuhl, Jennifer Leahy, Vinnika Johnson, Candy Leigh, Rose matters. As a reporter, she covered many notable Maltby, Gus Morgan, Amy Munson, Kris Sava, Ray Scippa, and unbelievable stories, leaving her with the John Sousa, Bill Stephens, Andrea Urbanek and Mary conviction that truth often is stranger than fiction. Ellen Weylandt

CREATIVE SERVICES: Obi Arisukwu, Dan Blackson, Kevin MAXINE MADISON (Coastal Wetlands, Page 34) is a Bonny, Ed Burke, Carmelo de Guzman, Ashley Dillon, regulatory coordinator with responsibility for the Permian Danielle Doty, Michelle Gunnett, Debbie Hall, John Shale in Texas. She joined ConocoPhillips in 2006 as a Hart, Kirstie Rhodes, Richard Rogers, Jim Spanos, Mara research engineer for the Biofuels R&D group and has Webster, Sara Wise and Chris Young also worked in Environmental Assurance, Environmental Technology and Heavy Oil Technology, where she was CONTRIBUTORS: Jackie Bunce, Whitney Burton, Kathryn awarded four U.S. patents. Maxine has a B.S. and Ph.D. in Donelson, Stephen Elison, Stephen Ellison, Arnie Janson, chemical engineering and enjoys traveling and writing in Natalie Lowman, Kristen Diane Merkle, Ray Mitten, Paul Reedy, Roger ‘Dale’ Summerlin, Courtney Timm and her free time. Kjell Undall

COURTNEY TIMM (Footprint, Page 40) is a communications advisor spirit Magazine is printed at the Phillips 66 Printing for the Health, Safety & Environment organization based in Houston, Center in Bartlesville, Oklahoma. Texas. She joined ConocoPhillips in 2004 and has supported BUSINESS PRINTING: Mike Cranor, Shane Crosthwait, communication efforts for corporate events, Beth Foster, Jim Himes, Tisha Jacobs, Gary Koss, Frank community outreach, Human Resources, Mitchell, Jack Smith and Lee Tevebaugh Transportation and Project Development. In her current position, Courtney leads communication DISTRIBUTION: Daren Harper, Sheena Hayes, Jim Marion, activities supporting the company’s strong Shirley Matthews, Dwaine Stark, Donna Williams and safety culture, including the launch of the Terry Wilson 8 ConocoPhillips Life Saving Rules. Courtney is a For requests related to the spirit Magazine mailing list, graduate of Baylor University with a degree in please contact Shirley Matthews at studio art. shirley.matthews@ConocoPhillips.com or 918-661-6245.

SARAH MROUEH (Spotlight on Qatar, Page 59) is This issue of spirit Magazine contains forward-looking statements within the the communications and public affairs specialist for meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Actual outcomes and results may differ materially ConocoPhillips Qatar and has been with the company since from what is expressed or forecast in such forward-looking statements. October 2013. She manages public relations, community Economic, business, competitive and regulatory factors that may affect Conoco P hillips’ business are generally as set forth in ConocoP hillips’ filing engagement and corporate social responsibility activities for with the Securities and Exchange Commission (SEC). Unless legally required the business unit, as well as events and exhibitions. Prior to to do so, ConocoPhillips is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether joining ConocoPhillips, Sarah specialized in the hospitality, as a result of new information, future events or otherwise. public relations and events industries. She received a

Bachelor of Science in international hospitality management spirit Magazine is printed entirely on Forest Stewardship Council™ from CEAU American University of Beirut. In her spare time, (FSC®) certified paper. FSC certification ensures that the paper used Sarah still gets involved in events and has a passion for hosting bespoke in this magazine contains fiber from well-managed and responsibly events, banquets and feasts for her friends and family. harvested forests that meet strict environmental and socioeconomic standards. We’re proud to be one of the first energy companies to make this significant move to help our environment.

CS 15-1485 Data ➞ Information ➞ Insight Doing Business Better

The Analytics Innovation Center of Excellence is a team of experts in the areas of data Analytic Platforms mining and analysis, data access and integration, statistics, optimization, machine learning and data visualization. Data Services AICOE partners with ConocoPhillips business units and functions to: • Improve and inform decision-making by leveraging multiple data sources and internal expertise, with the goal of cultivating a data-driven enterprise. Advanced Analytics • Provide consultation on how to apply analytical techniques and methodologies to extract meaning from and make decisions based on data. • Build and foster a network of excellence that can accelerate the benefits of data and Business Intelligence analytics through collaboration. • Remove barriers to achieving analytic results by improving access to data, streamlining and automating data access, integrating multiple sources of data, pre-processing data for Information Integration analytics, and providing support for analytic tools. AICOE can help discover the insight needed to deliver data-driven decisions. For more on how the AICOE can help, visit thefrac.cop.net.

15-1537 Ad_Analytics Innovation COE.indd 1 11/5/15 2:25 PM From the well to the road: What causes greenhouse gas emissions?

Oil Production 10-12 %

Oil Transport 1-2 %

Well-to-Tank Emissions 19-27 % Well-to-Wheel Emissions Re ning 9-12 %

Product Transport <1%

Tank-to-Wheel Emissions % End Use 73-81 73-79 %

Source: IHS Energy, “ Comparing GHG Intensity of the Oil Sands and the Average US Crude Oil,” 2014. Range based on Average U.S. barrel re ned in the U.S. (2005) and Canadian Oil Sands SAGD bitumen.