CONOCOPHILLIPS

Third Quarter 2012

Norway invests in the future

Real Estate and Facilities Services moves forward Defining the “New” ConocoPhillips Health, Safety & Environment

Protecting the

Healthof our workforce. ConocoPhillips has a well established process for evaluating the workplace for health hazards and tracking metrics related to industrial hygiene. The ultimate goal of our occupational health process is to ensure that we are effective in protecting the health of our workforce, and that our employees suffer no adverse health effects either now or later in life resulting from exposure to stressors in the workplace. What can you do? • Identify and eliminate health exposure risks • Implement controls to mitigate risks • Apply administrative controls to limit access • Ensure use of personal protective equipment Sharing Insights

Operations in and Indonesia provide two great examples of how ConocoPhillips­ will realize its goal of combining our legacy strengths with a compelling new culture to be the explora- tion and production company of choice for all stakeholders. Both of these legacy business units have long and illustrious histories of success. Both are building for the future through strategic investments as well as an intense focus on safety, people, integrity, responsibility, innovation and . In this issue of spirit Magazine, the second since our repositioning into an independent exploration and production company, we take a close look at how these two key business units are defining our Matt Fox Executive Vice President future of Smart Growth, Superior Returns and SPIRIT Values. Exploration and In the Norway cover story (Page 10), we examine how – in a place Production where operations began more than 41 years ago – near-term, organic growth will rely on innovation and increased production from existing fields, including the venerable-but-prolific Greater Ekofisk Area. For the longer term, initial explo- ration efforts are underway in the and Greenland, including new 2-D seismic surveys and drilling of shallow wells for core samples in icy Baffin Bay. Norway will add some 300 new employees over the next few years, and they will find themselves joining a company at the forefront of new technology while comfortably maintaining such long-standing tradi- tions as its very own, very popular marching band. Indonesia offers an equally intriguing story of heritage and forward thinking. Production sharing contracts (PSC) are the way we do business in this archipelago nation comprised of approximately 17,508 islands. Across these islands live more than 300 distinct ethnic, linguistic, and religious groups speaking more than 700 languages, posing unique challenges for those who conduct business in this . To address the challenges, ConocoPhillips­ Indonesia strives to be not just a good neighbor, but to create a strong mutual understanding that allows business to be conducted safely and harmoniously. How the team accomplishes this is a tale of dedication to community, and political and social acumen. In addition, the fact that we are serious about establishing and nurturing our independent company culture has reached every corner of our world by now in the form of a booklet entitled “Defining the ‘New’ ConocoPhillips­ .” Ryan introduced the concept and the booklet at a July 26 Global Town Hall and webcast (Page 52). Since then, much work has been done to bring the fundamental ideas of leadership behaviors, empowerment and collaboration to life in our day- to-day operations. A compelling culture is a key part of our overall equation for success, which also includes a high-quality and diverse portfolio, strong technical capabilities, capital discipline, financial strength, and a clear and distinctive value proposition for shareholders. Without a doubt this is an exciting time at ConocoPhillips­ , as together we show the world a new class of invest- ment for a new exploration and production game.

spirit Magazine 1 spirit Magazine Third Quarter 2012 Contents

The Big Picture The cost of doing business in 4 Suban Gas, the Magnolia Platform and 32 Indonesia | Kiky Shahab Bohai Bay and Sharon Rode Logistical, cultural and political challenges demand a dedicated Investing in Ekofisk | Norway Internal team effort. 10 Communications Investment projects, Arctic exploration, new employees and a marching band High Performance Computing 40 delivers | Janice Leonard Sophisticated technologies Real Estate & Facilities collect, analyze and model Services | David Austin 20 data. Fashioning the collaborative environment of the future for ConocoPhillips

A female student stands at the front of the class- room in a community near ConocoPhillips Indonesia operations. Students are some of the company’s most important stakeholders. eStream OnDemand featured videos ­Phillips’ Intranet Channel eStream OnDemand featured the following videos during the past three months:

Leading Edge with Sheila Feldman The Our Business: a closer look video series has become the Leading Edge, a newly updated eStream OnDemand program that engages Conoco­Phillips leaders in one-on-one interviews and roundtable discussions. The refreshed series begins with Human Resources Vice President Sheila Feldman, discussing what brought her to Conoco­Phillips Recruiters aTwitter over and how the company is finding its own unique path to excellence by 46 social media | Natasha Mitchell creating an inseparable relationship between strategy and culture. Social media and other digital Subsea Well Response Project: strategies attract top talent to Conoco­Phillips participates in a global effort ConocoPhillips. Conoco­Phillips is collaborating with eight other energy companies and has contracted with a global oil spill response company on a project to enhance the industry’s capacity to respond to subsea well incidents. The Faces of ConocoPhillips Subsea Well Response Project (SWRP) has designed an intervention system that can be deployed internationally in the event of a subsea well 50 Connor Dunn: Taking the reins at control incident. Theddlethorpe Culture – Let’s talk about it Ten Conoco­Phillips leaders from around the world deliver a compelling In the News message: “At the new Conoco­Phillips, culture is not just corporate jargon A compilation of news from around but what we build when we declare our vision and another reason that It’s 52 Our Time.” ConocoPhillips’ world 2012 Mid-year Performance Reviews Human Resources Business Partners Bianca Arceo and Jhonny Cisneros provide timely performance review tips for employees and supervisors.

Doing business in the Middle East The Qatar Gas 3 facility, one of the largest capital projects ever undertaken by Conoco­Phillips, is featured in this video, which also focuses on the small but strategic country and its dynamic culture.

Surmont Phase Two draws near Surmont 2, the first major expansion to Conoco­Phillips Canada’s commercial operations in the Alberta , is currently under . This animation is a sneak preview – assembled from engineering drawings and plans – of what the facility will look like when it achieves first steam in 2015.

Our Business a closer look with Mike Pfister Our Business: a closer look features Mike Pfister, chief information officer, offering insight into strategic he is setting forth in the Conoco­ On the Cover | photography Phillips Information Technology Department, as well as tangible, “quick by Garth Hannum wins” being implemented and shared with employees throughout 2012.

With 41 years of production ConocoPhillips employees can watch, rate and comment on these under its belt, the Ekofisk videos as well as past video features at myestream.. Complex in the Norwegian net. Many company videos also are available on the ConocoPhillips YouTube Channel. is ready for new investment and a renewed lease on life. The Subsea Well Response Project (SWRP) intervention system includes debris-clearing machinery that can significantly improve the chances of suc- cessfully capping a subsea well. Turn to Page 60 for more information about SWRP. The Big Picture

Great set of pipes | A fisheye lens and HDR, or High Dynamic Range image processing, help to make these pipes really sing. The Amine Heat Medium System is part of the Suban Gas facility, located in Corridor Block production sharing contract (PSC), on the island of Sumatra, Indonesia. from the PSC is an important supply for domestic and Singapore markets. Read more about ConocoPhillips Indonesia in this issue starting on Page 32.

Photograph by Garth Hannum spirit Magazine 5

The Big Picture

Magnolia Platform at dusk | The Magnolia Platform, ConocoPhillips’ only operated platform in the Gulf of , is located in Garden Banks blocks 783 and 784. Magnolia has a tension leg design, which means the platform is permanently moored by means of tethers or tendons grouped at each of the structure’s corners (a group of tethers is called a tension leg). Tethered in 4,700 feet of water approximately 200 miles south of Lafayette, La., first production at Magnolia began in 2004. Currently, an extensive drilling program is underway. Watch for a story on Magnolia in the next issue of spirit Magazine.

Photograph by Garth Hannum

spirit Magazine 7

The Big Picture

Offshore communication | ConocoPhillips China Warehouse Man Kevin Quan directs offshore platform supply vessels from the Central Production Complex in the prolific Peng Lai 19-3 Field in Bohai Bay, China. One of China’s largest offshore oil fields, Peng Lai’s complex operations depend on multitalented employees working together in a collaborative environment where ideas are freely discussed and respectfully debated.

Photograph by Patrick Currey

spirit Magazine 9 NORWAY

The heavy lift vessel 7000 installs the 110 meters high Ekofisk 2/4 L jacket in July.

10 ConocoPhillips Investing in Ekofisk by Conoco­Phillips Norway Internal Communications, photography by Kjetil Alsvik

n June 9, 2011, ConocoPhillips­ celebrated the 40th anniversary of the Ekofisk production startup in Norway. OOn that same day, the Norwegian Parliament passed plans for development and operations for the Ekofisk South and Eldfisk II projects.

Additional investment projects include construc- A new ‘hotel’ for the tion of a new accommodation and field center Ekofisk Complex platform, Ekofisk 2/4 L. Modification of existing Ekofisk 2/4 L, the new accommodation and platforms and infrastructure, new pipelines and field center platform, is an important part of the the drilling of many new wells will contribute to renewal of the Ekofisk Complex and the area in continued high-value creation on Norway’s pio- general. The new platform will replace the existing neering field in the North Sea. accommodation platforms Ekofisk 2/4 H and 2/4 “ConocoPhillips­ is poised to remain a key player Q, as well as the chartered accommodation rig. on the Norwegian shelf to 2050 and beyond,” said With 552 single-bed cabins, Ekofisk 2/4 L ConocoPhillips­ President Steinar Våge. will be the largest hotel platform in the North The development projects in the Greater Ekofisk Sea. In addition to the accommodation module, Area represent capital investments of up to 83 bil- the platform will a number of field cen- lion Norwegian kroner ($14 billion). ter functions and systems. It will be a regional Norway

telecommunication center, and will handle air and sea traffic control. The platform will also house offices, helicopter hangars, a hospital, a cafeteria and recreational areas. The platform will be equipped with free-fall life- boats and be the mustering area and preparedness center for search and rescue. Travel to and from the Ekofisk Complex will be via Ekofisk 2/4 L. The jacket was built by Aker Verdal, and the wells will be drilled and a new water transport bridges were built at the SMOE yard in Singapore. pipeline installed. Installation was completed on the field in June A unique chalk reservoir forms the basis for the 2012. project. More production wells will enter opera- Above: Ekofisk 2/4 VB subsea instal- SMOE, a fully owned subsidiary of Sembcorp tions, and water injection capacity will expand. lation for water Marine Limited (SCM), is constructing the top- “This will allow us to maintain safe and stable injection sides for installation in 2013. production for a long time ahead,” Våge said. Top right: The The jacket for Ekofisk 2/4 Z was built by Ekofisk Complex, Expansion to the south Dragados in Cadiz, Spain and will be installed August 2012 The Ekofisk South project includes construction with a bridge to connect the platform with the of the wellhead platform Ekofisk 2/4 Z, and the rest of the Ekofisk Complex. subsea facility Ekofisk 2/4 VB. A total of 44 new Pre-drilling of wells will commence once the 2/4 Z jacket has been installed and ready. The pre- drilling will be handled by a jack-up . The topsides are being constructed by Aker Ekofisk 2/4 L Egersund and will be installed in 2013. • Height: 110 meters (jacket). Ekofisk 2/4 VB is located on the seabed, three • + 60 meters (topside). Helicopter deck in kilometers south of the Ekofisk Complex. Installa- addition. tion work started in the summer of 2012. Water injection will start in the first quarter of 2013. • 552 beds, single cabins. • Office facilities. • Hospital, cafeteria and recreational areas. • Center for preparedness and safety functions, including fire water. • Two helicopter hangars. • Helicopter deck with a capacity of 50 departures and arrivals daily. • 10 free-fall lifeboats, each with 70 seats. • Workshop and warehouse. • Interior floor space 15,000 square meters.

12 ConocoPhillips PACIFIC OCEAN

Bering Sea Sea of Japan East China Sea of Okhotsk Sea Yellow Gulf of Alaska Sea South China Sea

Chukchi Sea

Norway Beaufort Sea

Greenland Qamut ARCTIC pioneers OCEAN

onoco­Phillips Norway acquired Cnew 2-D seismic and drilled Greenland shallow wells for core samples in West Greenland this summer during a brief two-month weather window. Iceland In 2010, Conoco­Phillips was ATLANTIC OCEAN Norway granted operatorship of a 10,000 square kilometer block in Baffin Bay on West Greenland. This northernmost concession

was a top priority in the company’s application. With the award came an obligation to carry out an exploration program over four years. “Environmental studies and reprocessing of the Red Sea

2-D seismic have already been carried out,” said Mediterranean Sea Roy Leadholm, manager, New Exploration Ven- tures, who leads the work on Greenland. “With this knowledge, we plan to drill the first wells and acquire

3,000 kilometers of new seismic data.” Roy Leadholm Ice-free window Baffin Bay usually becomes ice-free in July, but seismic and drilling operations only are possible during an ice-free, eight-week window in August and September. Seismic vessels steer clear of a steady stream of icebergs drifting southwards by relying on satellite images, specialized ice-penetrating radar Ekofisk South and visual inspections of the ice. This provides chal- lenges related to acquiring seismic data in a regular • Increased production of 25-35 million grid pattern. standard cubic meters of oil equivalent. The drilling vessel has a positioning system and Paul McCafferty • Wellhead platform Ekofisk 2/4 Z with 36 tailored drilling equipment that enables the vessel new wells to be drilled in total, 35 are to move 30 meters in any direction. If this should prove insufficient, the producing wells and one is for injection of crew can detach the drill string and move the vessel to avoid impact. drill cuttings. Encouraging aspects • A bridge 116 meters long connecting the There is little doubt there is oil on Greenland. The question is whether platform to the Ekofisk Complex. it will be found in good quality reservoirs and in sufficient volumes to • Subsea facility Ekofisk 2/4 VB with eight be commercially viable. Other players have proved hydrocarbon shows water injection wells. further south, but the reservoir quality and volumes were insufficient. • Hydraulic and fiber optic cable – umbilical “One of the most encouraging aspects about West Greenland explo- – from Ekofisk 2/4 VA in order to control ration is that there is abundant natural oil seepage from the subsurface Ekofisk 2/4 VB from shore. in the area,” said Paul McCafferty, manager, Exploration. “These seeps have been found onshore and are also recognized offshore through • A five kilometers long pipeline for transport satellite monitoring. Also, the sandstone reservoirs we are exploring for of injection water from the Eldfisk Com- are well developed in outcrops that have been mapped on Disko Island, plex to Ekofisk 2/4 VB. further south.” • Modifications of existing platforms to tie Greenland exploration is managed from the company’s office in the new facilities to the existing facilities. Tananger. The Greenland team also has several global resources at their disposal from the corporate pool of arctic experts.

spirit Magazine 13 Norway

A bridge to Eldfisk II Eldfisk 2/7 S includes a new integrated platform Eldfisk II with wellhead and processing facilities, 40 new • Increased production 35-45 million Sm3 wells and 154 cabins. A bridge will connect the oil equivalent. new platform to the Eldfisk Complex. Other main • New platform 2/7 S with 40 wells, process elements include a new local equipment room, facility and 154 beds, connected to 2/7 E new pipelines, new electricity cable and umbilical, via a bridge. as well as extensive modifications to existing facili- • New oil and gas export pipelines, ties and infrastructure. connection of a receiving pipeline from The new equipment room was built by Aker Embla 2/7 D and an external power cable. Egersund and installed in the summer of 2012. • Drilling of two new wells and conversion of Eldfisk 2/7 A to a wellhead platform, conversion of Eldfisk 2/7 FTP to a bridge and pipe support platform and upgrade of key systems on Eldfisk 2/7 B. • New local equipment room (LER) on Eldfisk 2/7 S. • Power and fiber optic cable for transmis- sion of up to 22 megawatt to Ekofisk 2/4 Z and Eldfisk 2/7 S. This will secure Above: Steinar energy efficient flexibility between the Våge, president, fields in the Greater Ekofisk Area. Conoco­Phillips Europe Top: Brage Sandstad, manager, Norway Operations Right: The Eldfisk 2/7 S jacket is un- der construction in Cadiz, Spain.

14 ConocoPhillips Norway

The world’s largest pipe-laying vessel, the Solitaire, lays new oil and gas pipelines at the Eldfisk field.

spirit Magazine 15 Norway

Rock’s rock

ne of the rewards of an international assignment is the opportu- Onity to experience different cultures and learn about local history. Sometimes, this can literally be in your own back yard, as Rock Lowery, Health, Safety and Environment manager for the Subsea Well Response Project, has discovered in Ølberg, Norway. His home rental property, selected for its idyllic countryside location just outside of Stavanger, turned out to be a historic site. In fact, a tourist sign outside his house points the way to petroglyphs (rock carvings) from the Bronze Age – in his backyard! “The stone carvings include ships, animals and people,” said Lowery. “Three thousand-year-old rock carvings are not something you run across every day in most backyards.” As amazing as it was to learn about the historical artifact in his backyard, Lowery soon found out the property had even more his- tory. Located directly below the stone carvings, is the remnant of a World War II German machine gun nest and anti-aircraft gun installa- Eldfisk 2/7 S tion. In his front yard, there is an additional ammunition bunker. Situated between the beach and the airport, the area where Rock • Accommodation module. now resides was of strategic importance for the occupying forces in • Wellhead facility. anticipation of an expected Allied landing that never materialized. • Process facility. “One day I decided to take a look around with a metal detector,” Lowery • Central control room for the Eldfisk said. “I found an anti-aircraft gun shell Complex. with the markings still clearly visible • Treatment system for produced water. that trace the shell’s manufacture to a • Workshop and warehouse. factory in in 1939.” “It has been fascinating visiting • Power generator. with the landlord, who grew up on a • Flare on new bridge support between neighboring farm. I really enjoy listening Eldfisk 2/7 S and Eldfisk 2/7 E. to him recount his experiences with the occupying forces that took over his family farm.” Rock’s landlord even has several U.S. Army jeeps he brought over The jacket is under construction at Dragados in from the U.K. that he uses as farm vehicles. There are remnants Cadiz, Spain, and expected to be shipped to the of numerous gun embankments around the beach and across the field in 2013. Aker Stord is constructing the top- countryside. sides for completion in 2014. “I have a lot of exploring ahead of me,” Lowery said. “The purpose of the Eldfisk II project is to increase recovery rates and maintain safe and stable production, as well as continue operation of the remotely operated Embla field, tied in to Eldfisk via a pipeline,” said Brage Sandstad, manager, Norway Operations. “The project is a further development of infrastructure in an area that is already well developed and which has been in continuous operation since 1979.” The current Eldfisk field produces from 30 wells. Eldfisk II will increase the recovery rate from the Eldfisk field from 22 to 28.5 percent. ■

16 ConocoPhillips Norway

Members of the ConocoPhillips marching band practice outside the Norway head office.

with instruments,” said trumpet player and white helmets with The band offshore installation manager Arild Kleven, the Conoco­Phillips’ who has been in the band for almost 23 name and logo. These marches on years and has no plans to quit. special uniforms attract Kleven is not unique in this. In fact, three of a lot of attention during onoco­Phillips Norway has its very own the current members have been in the band the Constitution Day Cmarching band. A very popular part of since its inception in 1981. Others continue parade in Stavanger. Stavanger’s Constitution Day parade, band to play in the Conoco­Phillips Janissary Band “We’re very visible, members help spread happiness through even after retiring or quitting the company. and when I talk about their performances. “The band members are almost more the band in other situ- Hildegunn Landa, a geophysicist who loyal to the band than to their employer,” ations, it is enough to works as a well planner in Tananger, plays Kleven joked. say that we’re the ones the baritone saxophone in the company’s Their repertoire includes everything that play in boiler suits marching band. She joined after hearing the from marches and film scores to pieces on Constitution Day. Arild Kleven band playing Christmas carols in the recep- composed especially for this sort of band. People instantly know tion area. During a Tuesday practice session before who we are,” Landa said with a smile. “I’ve been in marching bands since my the summer, the band performed a perfect Last year, the band traveled to Riga, school days, so I got in touch, and I didn’t play-through of “Copacabana” on tuba, , where they played in the Old City. even have to audition to join,” Landa said. percussion, xylophone, clarinets, trombone, Every year, the band has two seminar week- The Conoco­Phillips Janissary Band started saxophone, horn and trumpets. ends, and in between they perform during 30 years ago as a social activity for employ- “Our conductor is very good, and the celebrations and anniversaries. During the ees and their families. As it turned out, the level is high enough so that we sound good 30th anniversary of the Alexander L. Kielland company was teeming with musical talent and we can be very proud of ourselves,” disaster, the band played Spring by Edvard and enthusiasm. Between 15 and 25 people Landa said. Grieg, a moving performance that was turn up regularly for band practices. warmly received. Seminars and concerts “The Conoco­Phillips Janissary Band has Always room for more When the Conoco­Phillips Janissary Band many functions in our company, and we are “Anybody who has played in a school march- plays in public, the members and conductor very pleased to help promote the company in ing band is welcome to join. We can help out dress in uniform – orange boiler suits and such a positive manner,” Kleven said.

spirit Magazine 17 Norway

Ekofisk appren- tices (front) train to become skilled workers with their mentors (back).

18 ConocoPhillips Norway

between various departments before On the lookout for taking up a regular position. “We’re very pleased with the new employees response; we had more than 900 appli- cations for the 20 graduate positions last ver the next three years, Conoco­Phillips Norway time around,” Motland said. Ois planning to recruit many new employees. Apprenticeships are also popular both Geology, geophysics, reservoirs and wells are key onshore and offshore. In early 2012, the disciplines for the onshore organization. The company company received 1,552 applications for 24 apprentice positions. also is recruiting new offshore employees. The activity level is high with Ekofisk operations and major Informal atmosphere development projects under way. In recent years, the number Conoco­Phillips is well-known for offering of Norwegian employees has hovered around 1,850. Few employees competitive terms, excellent employees resign, but after 41 years of operation, an increas- career options, and a culture character- ing number are reaching retirement age. In addition, employ- ized by an informal atmosphere and ees go on to international assignments, and the internal job efficient cooperation. Hilde Motland market is large. “Although a lot of people work here, “This means that we constantly need new employees to fill we have a tradition of saying good positions,” Staffing Lead Hilde Motland said. “The recruit- morning to each other in the hallways,” Motland said. “Office ment department works continuously to select new employ- doors are open, and it is easy to contact colleagues, even ees in order to cover our human resources needs in coming across departments. On a professional level, people embrace years. We’re planning to hire around 170 employees this year the principles of collaboration and knowledge sharing. The and around 120 next year before we level out at a slightly ability to cooperate and enthusiasm are qualities we look for in lower figure.” every candidate.” These figures include recent graduates and apprentices for skilled workman positions.

Four categories New employees in Conoco­Phillips Norway has four main categories for recruit- ConocoPhillips Norway ment: internal, external experienced personnel, university Over the next few years, the company plans to recruit graduates and apprentices. more than 300 new employees within the following “All available positions are advertised internally, so that competence areas: employees get job-rotation opportunities and new career Onshore: Offshore: options,” Motland said. Most positions are also advertised externally. This involves Geology Process traditional newspaper advertisements as well as online Geophysics Mechanical advertising. The company also uses headhunting agencies, Reservoir Electrical particularly for key positions. Drilling and well services Crane “Sometimes we need to go abroad to find what we’re look- Process Instrumentation ing for,” Motland said. “When it comes to experienced work- Mechanical Drilling and well services ers, especially within certain technical disciplines, there is stiff Electrical Health, Safety and competition between the companies.” Instrumentation Environment The external experienced personnel group has oil Health, Safety and industry experience. Graduates are recent master’s degree Environment candidates, who are offered permanent positions from day Finance one, and who, over the course of one or two years, rotate

spirit Magazine 19 REAL ESTATE & FACILITIES SERVICES

by David Austin

hen the calendar turned to May 2 and the Day One celebrations had come to a close, plenty of work remained to be done.

Occupying the same buildings and floors were employees from both WConocoPhillips and the newly christened . As the separation of the two companies headed toward completion, that situation would obviously have to change. Real Estate

20 ConocoPhillips Fashioning the collaborative environment of the future

oday that change is quite evident, especially group’s functions in Houston; Bartlesville, Okla.; Tat ConocoPhillips­ headquarters in Houston Midland, Texas; and Farmington, N.M. In addi- and the Bartlesville campus. Office moves are tion, he has dotted-line reports – for the sharing under way, and they are expected to be completed of best practices and services – from the real by the first quarter of 2013. The product of estate managers in Norway, Canada, Alaska and meticulous planning over the course of several Aberdeen, U.K. Overall, those branches of REFS months, the Houston and Bartlesville projects – which comprise ConocoPhillips’­ “Center of will involve an estimated 4,500 moves and Excellence” – include around 200 employees and approximately 23 buildings between the two about the same number of contractors. companies. “A lot of work must be done to achieve separa- “Once that work is completed, it will be visibly tion,” said Headley, who is based in Bartlesville and obvious that we are two different companies,” boasts 30 years of experience with the company. said Tony Behar, director, Strategy and Portfolio “And while excellent work has gone into the plan- Management. ning and execution of the move projects in Hous- Real Estate & Facilities Services (REFS) is ton and Bartlesville, we still have a ways to go.” spearheading the moves in Houston and Bartles- The planned repositioning of ConocoPhillips­ ville. REFS Manager Mark Headley oversees the into two separate, publicly traded companies was Facilities Services

spirit Magazine 21 Real Estate & Facilities Services

announced on July 14, 2011. The split of the two surprise to anyone familiar with the group. REFS companies became official on May 1, 2012. is a far-reaching organization led by Headley, In the wake of the initial announcement, work one of the people who helped to mold it into its on the Bartlesville move project began in earnest current configuration. An attorney specializing in in November 2011. Once the decisions were made real estate, Headley was put in charge of a special as to which company would take ownership of project in 2006 to review ConocoPhillips’­ Real which buildings, plans had to be developed to Estate & Facilities groups – which at the time relocate employees. ConocoPhillips­ would take were separate entities – and see if they would ownership of the Plaza Office Building, the Frank better serve everyone involved by operating as Phillips Tower Center and most of the Informa­ a single organization. Headley’s project noted tion Center. Falling under Phillips 66 control several natural fits between the two entities and would be the third floor of the IC, the Adams recommended that they be combined. Scott Sabine, Building and the Phillips Building. Prior to the repositioning, Headley was the director, Facilities Data Center In Houston, ConocoPhillips­ will remain on the manager of Real Estate and Strategy. But on and Bartlesville main campus, and Phillips 66 will lease the second May 1, he assumed his current role and is the Facilities and third floors of the Cherokee and Ponca company’s lead employee in Bartlesville and the buildings and the entire Humber building in the state of Oklahoma. Serving directly under Head­ northeast corner of the campus from Conoco­ ley are Behar and Kevin Startz, manager, Property Phillips until a new permanent headquarters for Tax, Real Estate, Right of Way and Claims, as well Phillips 66 is completed. as Steve Moskowitz, director, Houston Facilities; “While the timing of the moves in Houston Scott Sabine, director, Facilities and Data Center and Bartlesville will be different,” said Behar, “the and Bartlesville Facilities; and Dave Bishop, direc­ process we use to plan and execute them will be tor, Employee Services. Also reporting directly to the same.” Headley are Daylon Eads, director, Facilities Engi­ The fact that REFS is handling the move neering; Michael J. Roy, director, Facility HSE; projects in Houston and Bartlesville comes as no Valentin Gomez, director, Midland Facilities; and

Building a Global Data Center any projects were born of the The project demanded that Scott Global Data Center, which encompasses Mrepositioning, and one called for and his three-person team – in addition around two-thirds of the third floor and the creation of a new Global Data Center to approximately 50 contractors – work not spans an estimated 25,000 square feet in for Phillips 66 on the Bartlesville, Okla. just effectively and efficiently, but quickly as all. The Tier 3 data center design features a campus. well. That is exactly what they did. generator backed-up electrical system as Called on to spearhead the project Conoco ­Phillips owns the Information well as a fully redundant cooling system. was a member of Conoco­Phillips’ Real Center on the Bartlesville campus but “It was an amazing undertaking,” said Estate & Facilities Services team, Scott leases the third floor to Phillips 66. Working Scott, who has been with the company for Sabine, director, Facilities Data Center and from the end of November through late around 21/2 years. “The team pulled off a Bartlesville Facilities. July, Scott and his colleagues built the two-year project in eight months.”

22 ConocoPhillips Mark Headley (right), manager, Real Estate & Facilities Services, and Tony Behar, director, Strategy and Portfolio Management, have played vital roles in the planning and execution of the move projects in Houston Donna Rein, directory, Farmington Facilities. Portfolio Management. Several other people from and Bartlesville. “This is a great role,” said Headley of his cur- both companies play key roles in the work. rent position. “It’s my dream job.” Any successful moving project features a thor- REFS is a hugely diverse organization that ough and detailed planning stage followed by pre- reaches people throughout the company on local, cise and professional execution. During the initial national and global levels. Falling under its vast portion of the planning stage, a “mass balancing” umbrella are areas such as food, wellness, safety, of the properties is performed that aligns the total transportation and security. Then, of course, population with the complete number of seats there is real estate, Startz’s area of expertise. Real for each building. The information gathered helps estate, in fact, was the focus of one of the most determine in what buildings each organization compelling arguments in favor of combining the “We can buy or lease it; build it; we can maintain it; and Real Estate and Facilities organizations. As they when the time comes, we can sell it. We play a role in all parts gathered information for of the real estate asset life‑cycle process.” – Mark Headley their project, Headley’s group noted that the company didn’t have one combined resource or will eventually reside. system with information on all of ConocoPhillips’­ As a result of the Bartlesville mass-balancing property holdings. That system is now in place exercise, it was determined that the Phillips and and gives REFS oversight for all company real Information Center buildings needed remodeling. estate transactions, from purchases and leases to Work in those buildings, which began during the dispositions. first quarter of 2012, is expected to be completed “We handle real estate from the cradle to the by the fourth quarter. grave, so to speak,” Headley said. “We can buy or REFS representatives began programming lease it; build it; maintain it; and when the time efforts in February with each of the business comes, we can sell it. We play a role in all parts of units, such as Human Resources, Finance and the real estate asset life-cycle process.” Information Technology. Programming involves REFS’ expertise made it a natural fit to lead working with each of the business units to assess the move projects in Houston and Bartlesville. their group make-up and space needs. Those Since the move project efforts involve both needs can range widely and focus on areas such as companies, Behar is working closely with Lanny adjacency requirements, access to conference and Seals, Phillips 66 director, Workplace Strategy & file rooms, and storage requirements. These needs

spirit Magazine 23 Real Estate & Facilities Services Real Estate & Facilities Services

Center of Excellence

hile Conoco­Phillips features branches of its Real WEstate & Facilities Services (REFS) organization in locations throughout the world – such as Alaska, Canada, the U.K., Norway and Indonesia – they all regularly reach out to a town in northeastern Oklahoma. That’s because the Oklahoma town – Bartlesville – serves as the “Center of Excellence” for REFS. “We have standards, guidelines and policies that we leverage throughout the world,” said Mark Headley, manager, REFS. “We align everything we do with the company’s goals.” Recently, Conoco­Phillips employees found themselves searching for office space in . As they went through the procurement process, they touched base with REFS representatives in Bartlesville. That is a regular occurrence as those in Bartlesville are able to offer insight and guidance on everything that applies to company real estate interests – from leases and purchases to disposals. REFS has guidelines, policies and procedures that apply to facilities and services as well, and they are followed throughout the world. Facilities encompasses virtually everything that relates to a particular building or office, such as maintenance, security and operations. Services includes areas such as food, wellness, digital documentation, travel, meeting planning and vehicles. Headley is quick to note that the “Center of Excellence” seldom has to push its expertise onto the other REFS organizations. Instead, they often reach out to pull information and insight from Bartlesville. “We have governance by success,” Headley said. “We have good processes and policies in place, and there is demand for them.” Guiding some of the REFS branches in various locations throughout the world are: Jeff Kewin, supervisor, Facility Management, Anchorage, Alaska; Andrew Tritter, manager, Facilities & Administration, Calgary, Canada; Fiona Campbell, Facilities team leader – Upstream, Aberdeen, U.K.; and Anne Hoegalman, manager, Facilities & Property, Tananger, Norway. All are indirect reports to Headley. While Bartlesville serves as the “Center of Excellence” for REFS, sharing of best practices throughout the organization is always encouraged. “We support our counterparts within REFS, offering them our expertise,” said Tony Behar, director, Strategy and Portfolio Management. “However, we learn from them as well.”

spirit Magazine 25 Real Estate & Facilities Services

are taken into account when determining and of employees marks the final process. Moves are preparing for the groups’ future location. typically staggered within a business unit, with Following the programming sessions, the next 150 to 200 people relocated a week, usually over major step of the planning stage for any move weekends to minimize business disruption. project is the completion of the organizational “These projects have presented many chal- blocking plan. Utilizing the information gathered lenges,” Behar said. “But we have worked to get during the programming sessions, it maps out them done in a very precise and professional man- which business units will end up on each floor ner, and within a short time frame. Fortunately, of particular buildings. Next up is the seating we have a lot of very good people working on analysis, which utilizes the organizational block- these projects.” ing plans to assign employees particular seats and Once the move projects in Houston and Bartles- spaces. During this process, REFS representatives ville are completed, new projects will be able to again work closely with those from the business spring to the forefront for REFS. In Houston, for units to fashion the best seating plan possible. instance, Headley will begin looking at possibili- “Once the seating analysis is complete and ties for refurbishing the campus. everyone has an assigned seat, the planning side “One of my goals is to work with our custom- of the move project is considered complete,” ers and the executive leadership team to help Behar said. “At that point, the execution portion create a facility that will support and enable a new Below: Key to the suc- cess of any moving proj- of the project kicks in.” culture at ConocoPhillips­ ,” Headley said. “We ect – including the one Execution begins with creation of a detailed want to help fashion an environment in which focused on the Houston moving migration plan and schedule that are people can work more collaboratively and – ulti- campus – features a precisely coordinated to ensure that as spaces open mately – effectively. detailed planning stage followed by precise and up, relocating employees can be moved. Once the “I think Real Estate & Facilities Services is professional execution. migration plan is complete, the physical relocation uniquely positioned to help make that happen.” ■

26 ConocoPhillips Real Estate & Facilities Services

To be but not to be: Houston Facilities takes a stealth approach

ouston Facilities Director Steve Moskowitz has an interesting perspective on the role of his group. HThough seemingly lifted from a spy novel, the insight is actually very telling in regard not just to the role of his group but to that of others in the area of Facilities throughout the Real Estate & Facilities Services organization worldwide. Moskowitz’s group – which includes nine employees and an estimated 150 contractors – handles 17 buildings on the Houston campus equaling some 1,350,000 square feet. The group takes care of maintenance, security, landscaping, housekeeping, janitorial services and the basic upkeep and operations of the facilities. While the scope of the work is broad and far-reaching, the group typically handles it in a rather inconspicuous manner. “Our group understands that their job isn’t particularly glamorous,” said Moskowitz, who has been with the company for 26 years and in his current role for more than eight. “Much of what we do is intentionally invisible. Our goal is providing a productive work environment and high-quality support without distracting our customers. “Our group doesn’t mind though. We have a very good team, and they are very dedicated.” Other facilities directors for REFS include Donna Rein in Farmington, N.M., and Valentin Gomez in Midland, Texas. Phillips 66 provides facilities services to Conoco­Phillips in Bartlesville, Okla. Houston Facilities Director Facilities staff members handle security in buildings as well as janitorial services. They might be called Steve Moskowitz upon to take on a small move project, regulate thermostat issues or even just hang a picture. The most common way for employees to garner the services of the group is by using the online work request system or by simply making a call. In Houston, two people monitor the Facilities phone system, with one working on-site and the other off-site. One of the main focuses of the Facilities group is preventative maintenance, identifying and taking care of potential problems before they arise. For example, on the Houston campus the central cooling tower and chillers were part of the original construction, and as they begin to reach the limits of their respective life cycles, they must be replaced. The cooling tower on the north end of the McCollum Building’s roof, was actually changed out in 2011. Work to begin replacing the central chillers, which are located in McCollum’s basement, will begin late next year and continue into 2014. The cooling tower replacement has already allowed for a more efficient system, offering more comfort throughout the campus. When the chillers are replaced, the efficiency improvements will be multiplied significantly. “Most people have no idea that the cooling tower was recently replaced,” Moskowitz said. “And when the chillers are upgraded, that won’t be a noticeable project either. But, everyone will definitely be able to feel the effects of the changes.” Facilities employees’ work hours vary depending on their respective roles. Security and maintenance employees are on campus around the clock, checking facilities and taking care of any problems that arise. Janitorial services formerly handled during the evening hours now predominantly take place during the day, allowing the facilities to operate in a more efficient manner, with less heating, cooling and lighting needed at night. “The one constant within Facilities is that things are always changing,” Moskowitz said. “There are so many different aspects to what we do. Every day, we come to work knowing that today will be different from every other day.”

spirit Magazine 27 Real Estate & Facilities Services

PTRRC around the world: Providing due diligence and much more

hough he’s only been in his current role since May 1, Kevin Startz brings significant experience to his Tposition as manager of the Property Tax, Real Estate, Right of Way and Claims group (PTRRC). That’s important since PTRRC is engaged in a substantial amount of real estate activity in support of Conoco ­Phillips’ global operations. A key component of the Real Estate & Facilities Services organization, PTRRC has 82 employees focused primarily on transactional negotiations and due diligence related to the company’s real estate. Startz has been with the company for nearly 23 years and managed both the eastern and central regions for PTRRC prior to entering his current Houston-based role. PTRRC has several other responsibilities, including property tax valuation and compliance as well as surface-damage claims settlement with property owners. Currently, the group is actively engaged in projects all over the world, including Anchorage, Brisbane, Calgary, Denver, Houston, London, Luanda and Warsaw. Most of PTRRC’s U.S.-based employees are located near major asset locations from Anchorage, PTRRC Manager Alaska, to Houma, La. Important factors in the group’s success include a strong working knowledge of Kevin Startz business unit assets and collaborative relationships with surrounding communities and stakeholders. “Many times, PTRRC representatives are the only people a property owner sees in their interaction with Conoco­Phillips,” Startz said. “Consequently, we treat our relationships and this responsibility with a lot of care and respect. Our representatives must be well trained and demonstrate the utmost trust and integrity on behalf of themselves and the company. “Key things we really emphasize are training, fairness in negotiations, responsiveness to requests, sound processes and systems, and safely and effectively meeting customer needs, which includes measuring the value we provide through our transactional activities.” PTRRC representatives play a key role during crisis management events as well. They are engaged early as first responders to help manage property owner issues such as temporary relocations and property damage claims. When contacted by a business unit needing its assistance, PTRRC quickly provides someone with specialized knowledge of the particular situation. On occasion, PTRRC is asked to deliver real estate transactional assistance in locations where it may not have staff nearby. “In those instances,” says Startz, “we are able to leverage our master service agreements with contract agents who can deliver services under our direction in a manner that effectively meets business needs.” During the time leading up to repositioning, PTRRC assisted with the conceptualization and drafting of the Real Estate & Facilities use agreements between Conoco­Phillips and Phillips 66. While property assets were being divided, agreements had to be structured which allowed for use or assignment of office buildings, cafeterias, fitness centers, tunnels and parking lots, as well as the maintenance and construction activities in support of the facilities. In all, PTRRC drafted 10 transition agreements and 14 long-term agreements for the repositioning. A specialized yet far-reaching group, PTRRC is an integral component of the REFS organization with a proven track record of success.

28 ConocoPhillips Real Estate & Facilities Services

The recently opened ConocoPhillips Poland office occupies a small space in a modern building in the heart of Warsaw, the history- rich capital city. A small ConocoPhillips team is exploring for in the northern part of the country.

spirit Magazine 29 Real Estate & Facilities Services

Small but effective: Services group delivers high standards

hen it comes to the Services portion of Food WConoco ­Phillips’ Real Estate & Facilities Services organization, delivery is standard. Bishop’s responsibilities include the cafeterias in Featured services include food, wellness, digital both Houston and Bartlesville. Contract vendor documentation, travel, meeting planning and Sodexo manages both cafeterias, which do a brisk vehicles. business. Approximately 270,000 people are served Dave Bishop began serving as director of in Houston on an annual basis and around 200,000 Employee Services on May 1 and is thrilled to be in in Bartlesville. The cafeterias offer a wide array of the position. food choices, including numerous healthy options “This role really excites me,” said Bishop, who such as salads, wraps and even Thai bowls. Below: Dave Bishop has more than three decades of experience in “The good people at Sodexo work extremely serves as director of transportation, marketing and commerce. “I have hard to offer great food for our employees,” Bishop Employee Services always been very customer-service oriented, and said. “They provide more and more healthy choices. and among his re- now I have the opportunity to serve in areas that are Not all companies have cafeterias, but we do, and I sponsibilities is the Houston Wellness utilized by all of our employees and that help define think it’s a very convenient service that adds to the Center. our work culture.” quality of our overall work environment.”

30 ConocoPhillips Real Estate & Facilities Services

Sodexo also provides catering for meetings and paper documents are often troublesome to access. large gatherings, serving breakfast, lunch, snacks or “We’ve developed a much better process,” whatever is requested and appropriate. During the Bishop said. Day One celebration in Houston, Sodexo catered The group converts around six million pages of a special buffet-style lunch for an estimated 4,000 information into digital media annually. Projects employees. vary in size and scope. Currently, the group is in the “It was huge,” Bishop said. “As you can imagine, midst of a project for Real Property Management something of that magnitude is no small task, but that’s expected to span three years. everyone worked extremely hard and the event “The most important part of what we do is went flawlessly.” retrieval,” Bishop said. “We make it much easier to search for and find documents.” Wellness Travel and meeting planning For those who like to do pull-ups, sit-ups and other exercises, the Houston Wellness Center is well- REFS features an experienced travel planning equipped to meet their needs. Built in 2007 and group that serves business travelers by reserving catering to employees and family members, it is airlines, hotels and rental cars. Working as in-house one of the top corporate facilities of its kind. The travel planners, the group negotiates good rates, Wellness Center features a wide array of exercise saving the company significant money annually. equipment – plus an aquatic center and soccer field The travel planning group of 15 people, includes a – and is staffed by fitness professionals who are dozen based in Bartlesville and three in Houston. well versed on different aspects of wellness. Employees who live in the U.S. and will be traveling “Our company has a long-standing interest and stateside or abroad can utilize the service. commitment to helping employees lead healthy Services also has three meeting planners who lives,” Bishop said. “The Houston Wellness Center schedule on- and off-site meetings and conferences certainly helps us in that area. It is an outstanding for groups ranging in size from 25 to 500 people. The facility, and we are fortunate to have it.” meeting planners were deeply involved in Day One Offering accommodating hours, the center opens activities and have played vital roles in some of the at 5:30 a.m. Monday through Friday and remains new leadership team meetings as well. open well into the evening. Most who use the facility “Both our travel and meeting planners receive do so on a consistent basis, usually from three to very positive feedback,” Bishop said. “They provide five days a week. The 90,000-square-foot center is great customer service and do an excellent job.” operated in a way that keeps people coming back and attracts newcomers. Vehicles “We hardly ever receive a negative comment,” The ConocoPhillips vehicle group works with two Bishop said. “And we regularly hear about the quality major leasing companies – one in the U.S. and the of the facility and the staff who operate it.” other in Canada – to ensure quality transportation for employees. A fleet of around 3,000 vehicles is Digital documentation used mostly in the U.S. Lower 48 states and Canada. In Bartlesville, a group of 20 employees is making Between 300 and 400 vehicles are replaced annually document retrieval much easier throughout with new ones, allowing for a regular upgrade to the ConocoPhillips. The group specializes in taking paper fleet. The most popular vehicles within the company records, converting them into digital media and then fleet are pickup trucks. storing them electronically. Since records sometimes “We have a small department,” Bishop said, “but must be retained for long periods of time, the paper we do a fantastic job of helping to provide our versions often end up boxed in large storage areas. employees with vehicles that are absolutely vital to Resulting storage costs are expensive, and stored their daily operations.”

spirit Magazine 31 INDONESIA

The cost of doing business in Indonesia

onocoPhillips Indonesia (COPI) came into existence in 1967 when then-named Conoco Indonesia Csigned its first production-sharing contract (PSC) for the onshore Barito Block in South Kalimantan, Indonesia. The following years, additional contracts were signed, and five fields achieved production between 1979 and 1994.

Since then, COPI has become one of the largest oil and gas producers in the region, having a sub- stantial presence with seven hydrocarbon explora- tion and production licenses across the nation. The two core production areas are onshore in South Sumatra and offshore in the South Natuna Sea. Onshore, the South Sumatra location has become ideal in serving the domestic and regional natural gas markets. COPI manages development projects and natural gas operations in the Corridor Block PSC and has an interest in the pipelines trans- porting the gas to regional customers. Offshore, COPI operates and has a 40 percent participating interest in the South Natuna Sea Block production-sharing contract. Now well under way is a five-phase, 15-year development plan covering 17 gas and oil fields in support of two long-term international gas sales agreements. The production from North Belut Field in 2009

32 ConocoPhillips The cost of doing business in Indonesia by Kiky Shahab and Sharon Rode It’s not always in rupiahs

High-rise buildings and traditional Indonesian wood reliefs coexist in downtown Jakarta.

spirit Magazine 33 Indonesia

marked the start of the fourth phase. The cost of doing business “The oil and gas industry in Indonesia has had a Indonesia is an archipelago comprising approxi- very rich and diverse history,” COPI President and mately 17,508 islands. Being as spread out as it is, General Manager Erec Isaacson said. “This has with seasonal flooding and monsoons included, allowed a wide variety of developments from the the country also struggles with having adequate world’s largest steam flood project to multiple liq- transportation infrastructures, especially in remote uefied natural gas (LNG) trains distributed across areas. As an example, for drilling activities, remote the archipelago. Our offshore and onshore assets locations have high travel-time commitments are reflected in this diversity where they represent along air and land routes to and from the COPI a majority of Indonesia’s pipeline gas.” office in Jakarta. Just visiting a drilling site for a day

Above: COPI President Production-sharing contracts and General Manager Erec Isaacson Oil and gas in Indonesia is owned and controlled Right: North Belut by the Indonesian government, and yet it recog- Operations Electrical nizes the importance of foreign investors in the Technician Arief development of the country’s oil and gas industry. Budiman takes a To ensure both Indonesia and investors benefit break. This photo was one of the winners of from upstream oil and gas activities, Production- COPI’s recent “Me and Sharing Contract arrangements (PSC) were ConocoPhillips Logo” created. Indonesia was the first country in the photo competition. South East Asia region to leverage such contract arrangements for its oil and gas exploration and production activities. Under a PSC, the government and the contrac- tor agree to take a split of the production mea- sured in revenue based on agreed percentages. Operating costs are recovered from production through contractor-cost oil formulas as defined by the PSC, and the contractor has the right to take and separately dispose of its share of oil and gas. Indonesian Law No. 22/2011 differentiates between upstream business activities (explora- tion and exploitation) and downstream business activities (processing, transport, storage and commerce). The law stipulates that upstream activities are controlled through “joint coopera- tion contracts” (predominantly PSCs) between the or a week requires a comprehensive safety plan- business entity/permanent establishment and the ning system to ensure zero accidents and incidents. executing agency called BP Migas. Downstream And across its many islands, there exist more activities are controlled by business licenses issued than 300 diverse and distinct ethnic, linguistic and by the regulatory agency called BPH Migas. religious groups speaking more than 700 languages.

34 ConocoPhillips Indonesia

This extraordinary diversity poses unique challenges Grouped under the umbrella of “regional auton- Above: An aerial view for those who conduct business in this country. omy,” these laws devolved power from the central of a small community in the Anambas Islands There have been challenges politically as government in Jakarta and handed it over to the well. The 32-year era in which former President regions, along with revenue-sharing formulas Soeharto wielded an authoritarian and militaristic that keep up to 80 percent of provincial revenues “New Order” regime with a central government within the province itself. In the end, the central based in Jakarta came to an end in 1998. Then, just government retained control over just five areas: before the 1999 election, the then-government of foreign affairs, defense, justice, monetary policy President Habibie established a number of laws and religion. Local governments are responsible that have had wide-ranging implications for busi- for providing all other services and determining ness and investment in Indonesia. policy and edicts within their municipalities.

INDONESIA South China South Natuna Sea Sea PHILIPPINES THAILAND Block ‘B’ PSC

BRUNEI

MALAYSIA Paci c Ocean

Kuma PSC MALAYSIA

SINGAPORE SUMATRA KALIMANTAN Warim PSC

South Jambi SULAWESI Block ‘B’ PSC Amborip VI PSC PAPUA

Jakarta Java Sea Corridor PSC JAVA Arafura Sea TIMOR-LESTE PAPUA NEW GUINEA Indian Ocean Arafura Sea PSC

0 500 Miles AUSTRALIA

COPI Operated

spirit Magazine 35 Indonesia Community support takes many forms Economic Empowerment Seeding Center, where he has helped linked with COPI Operations needs, the he Rubber Plantation Program, one of fellow farmers produce prime rubber seed students are prepared to enter the competi- Tthe economic empowerment pro- and enhance their rubber-farming skills. tive workforce. grams that has shown to have sustainable “I learned a lot about professional rubber On Sept. 10, 2011, in Palembang, COPI impact, started in 2002 and has recruited farming, including how to prepare the land, was proud to celebrate the graduation of more than 300 farmers from the sur- plant the 1,200 initial prime seeds given the 20 SPIRIT Scholarship recipients after rounding areas of COPI operations. This by COPI, fertilize the land, harvest the sap, their three-year academic program. All of program has helped improve many farm- market the product, etc. This program has the SPIRIT Scholars were granted degrees ers’ lives in the South Sumatra, Jambi and changed my perception about rubber farm- in chemical engineering or mechanical ing and, more importantly, my life. Now we engineering. live in a much better house,” Ibnu said. SPIRIT Scholarship recipient Dedy Saputra achieved the highest GPA and Education was named Best Student and also Most Answering the need to staff field operations Disciplined Student among all mechanical with capable and competent people, as engineering graduates at POLSRI in 2011. well as to enhance corporate social respon- Of these graduates, 11 began their careers sibility in hiring a local workforce and sup- with Conoco­Phillips Indonesia. In the porting basic engineering education, COPI graduation ceremony, Dedy expressed his developed a program called SPIRIT Schol- gratitude: “Thank you very much, Conoco­ arship. The program is an investment in the Phillips. You have made it possible for community that takes the form of financial me to attend and graduate from POLSRI. assistance and enrichment programs. The I really hope that Conoco­Phillips will objective is to equip 20 selected local high- continue the scholarship program, giving school graduates with the technical training opportunities to students who are not able and education backgrounds they’ll need to afford higher education.”

Ibnu bin Karim saps rubber at a rubber Employee Volunteering plantation in South Sumatra. Program How do Conoco­Phillips Indonesia employ- Anambas areas. One example of this is ees express their social responsibility to Ibnu bin Karim, a participant in the initial the community? Teaching is one approach. rubber farming program in the Corridor For instance, students of the MTs. Nurul and South Jambi blocks in 2002. Prior Huda Payalaman, Palmatak Subdistrict to that, Ibnu had no regular job. Known welcomed a visit from COPI “guest teach- as a troublemaker, he participated in ers” who came to share their various demonstrations demanding jobs from knowledge and backgrounds on subjects companies and lived mostly in the ranging from safety to biodiversity. streets where he solicited money from The enthusiasm of the COPI guest those passing by. When COPI con- teachers was obvious from the way they ducted a socialization program about were teaching. With their comprehensive the Rubber Plantation Program in 2002, understanding and extensive experi- the head of the Sukamaju village in Musi ence, they provided clear explanations Banyuasin, South Sumatra, signed up supported by attractive visual teaching Ibnu to participate. Now, with his two Dedy celebrates with his father at the aids (including cartoon characters). The hectares of land and the skills he obtained SPIRIT Scholarship graduation ceremony. students were equally enthusiastic while from the COPI program, Ibnu produces attending the classes, especially when about 200-300 kilograms of rubber per to qualify for the Mechanical or Chemistry they were familiar with the topics, such as week and leads the rubber farmers group Associate Diploma from the Politeknik Neg- safety while driving a pongpong (traditional in Sukamaju Village. In 2008, Ibnu initi- eri Sriwijaya (POLSRI) in Palembang, South boat), conservation of the coral reef and ated the establishment of the Sukamaju Sumatra. With this knowledge and skills forest biodiversity.

36 ConocoPhillips Indonesia Community support takes many forms These activities were supported through the Employee Involvement Program as part of the Corporate Social Responsibility (CSR) program. Vocational Training Another program that aims to empower COPI’s neighbors is the Local Manpower This process of decentralization added layers of Development program for villages surround- complexity to the way in which we do business and ing our Grissik, Suban and South Jambi has had a direct effect on COPI’s ability to access and operations. Since 2008, COPI has partnered maneuver around Indonesia. Currently, one of the big with the local vocational training center, BLKI challenges for COPI is having land and road access to Palembang, to conduct special classes for move equipment and oil and gas products to and from 39 youths from these local communities. drilling fields. The classes, which range from beginner Where previously it was possible to get the right to advanced, teach them to be competent permit with the central office, COPI must now gain mobile phone technicians and motorcycle and permissions and permits and pay local taxes with all automotive mechanics. municipalities located along an intended route. It doesn’t help that the newly sanctioned local gov- Above: Development and Relations Vice ernments also have created new rules, tax systems, President Razief Fitri permits and even new maps. Top: A house on stilts “We have to pay various types of permits as well as in Anambas Islands levied taxes to run our operations,” said Razief Fitri, Below: Programs vice president, Development and Relations. “These supported by COPI permits are sometimes required by more than one prepare students in Indonesian schools to level of government hierarchy.” enter the competitive In addition, competing companies are also faced workforce. with these issues, and some are responding by taking steps to push the competition out.

Engagement and Corporate Social Responsibility How does COPI rise to these challenges? “Tak Kenal Susnaeni at her mobile phone service counter Maka Tak Sayang” is an Indonesian proverb that means “You can’t care for someone unless you know them.” Now, many of them have experienced COPI builds relationships. It invests in the commu- benefits from the program. Some have nity. It becomes a partner in the success of Indonesia. opened their own businesses and others were recruited to work overseas as technicians and have earned more income from the advanced skills they obtained in the program. Susnaeni, the bread winner of her family of four sisters, opened up a mobile phone service counter as soon as she finished the vocational training. She sells prepaid vouchers and accessories and accepts service orders for mobile phones. After the training, the family has been receiving an increase of approxi- mately 30 percent more in monthly income from this business.

spirit Magazine 37 Indonesia

The Field Government Relations, Field External do not overlap with any government programs and Relations and the Corporate Social Responsibil- are in line with our company’s SPIRIT Values, in ity teams work together to develop relationships particular, that it is implemented in accordance to across provinces and towns. The COPI team views our corporate policy and guidelines.” the activities of Corporate Social Responsibility As a company with a presence in vast areas (CSR) as a necessary and important piece of the throughout Indonesia, COPI must interact with company’s license to operate in Indonesia. local communities and neighboring companies. “It is a commitment on our part to positively It is viewed as a responsibility to engage with impact our stakeholders and environment and is an integral part of a ’s business practice, policy and operational strategy,” Razief Fitri said. “To be a good neighbor in the communi- ties where we operate, we first have to know each other well enough and then continue to build the relationship.” The CSR team works tirelessly to realize these goals of positive impact by actively working to improve the quality of life of local communities, with a focus on education, economic empow- erment and social infrastructure. Examples of these activities include helping with infrastruc- Above: Diarmila ture improvements, such as providing electricity, Sutedja, manager, building community centers and schools, and Corporate Social making road improvements; providing educa- Responsibility & Functional Excellence tional opportunities through scholarships and Top: Adjie Suryanin- principal/teacher development programs; and grat, manager, Field & leading economic empowerment initiatives, such External Relations as helping develop rubber farming and local fish- Top right: A typical eries. Finally, COPI conducts numerous commu- Indonesian outdoor nity engagement activities, running campaigns market around health and safety in the community and Right: The bright, neighboring companies. clear water of Anam- bas Islands – one of “Our CSR programs are a great tool in foster- them and to communicate the company’s activi- COPI’s offshore areas ing good relations with our stakeholders,” said ties and values in order to create a mutual under- Diarmila Sutedja, manager, Corporate Social standing that allows business to be conducted Responsibility & Functional Excellence. “In order safely and harmoniously. for these programs to be successful, a fundamental “Having the good will of the people of the synergy between the company, the local com- province is priceless. When they are with us, our munity and government is necessary. We conduct equipment remains safe, and the business keeps regular engagements and dialogues to ensure the running,” said Adjie Suryaningrat, manager, Field programs are what the community really needs, & External Relations.

38 ConocoPhillips Indonesia

Addressing the challenges raised by the multiple Journalism in Indonesia interested parties and stakeholders, which include The COPI Corporate and Media Communica- far more than just those in the 33 provinces and tions team spends a significant amount of time related governments, requires both political and learning to interact with Indonesian national and social acumen. Indonesia is strongly traditional in local media. The wave of regional autonomy terms of its cultural characteristics and outlooks also has affected the neutrality and integrity of compared to other in the South East Asia media, especially local media. In addition, quali- region. Thus, a proper understanding of cultural fied resources to fill journalism jobs are hard to differences, especially for a foreign businessperson, come by in the local markets. COPI sees this as is essential, not only in the realm of manners or a challenge in the long run. It strives to com- etiquette of simplistic “do’s and don’ts” but also municate well with the media, providing proper Above: Corporate and at the level of perception and outlook. In Indone- understanding of the company and industry. Once Media Communica- sia, it is important to shift emphasis from those a year, the team reaches out to members of the tions Manager Jacob Kastanja leads a team external or visible cultural expressions to those media to hold interactive training sessions. dedicated to estab- expressions that are not immediately obvious, in “This creates a delicate situation for an industry lishing trust and build- particular because Indonesians are often indirect as large and complex as the one we work in,” said ing good relationships with both national and communicators, using metaphors and symbolism Jacob Kastanja, manager, Corporate and Media local media. to make their points. Communications. “By creating these opportu- Top: The COPI Devel- In scoping the challenges, the Development nities of training and information sharing for opment and Relations and Relations team has begun to use social map- journalists, Conoco­Phillips Indonesia considers it team ping as a way to identify and develop approaches an empowerment of the media that comes with in villages across Indonesia. Part of the process rewards. They learn more about our industry includes collecting specifications on village lead- and, in return, are better equipped to report on it ers, identifying both the formal and informal accurately.” leaders, and breaking down the villages in order COPI is looked upon as a partner in this of significance, identifying them into “tier one,” endeavor, which helps establish trust and build “tier two” and “tier three” towns. Another part of good relationships with assigned media personnel. the assessment includes understanding local issues The cost of doing business then is outweighed by and seeking to position COPI as an empathetic the returns found in truly being a community and listener and responder to local needs. country partner. ■

spirit Magazine 39 HPC High Performance Computing delivers

by Janice Leonard, photography by Garth Hannum

The Geosciences & Reservoir Engineering team, (from left) Andre Bouchard, Brad Bankhead, Ken Tubman and Scott Runnestrand, depends on robust, industry-leading computing capability and the High Performance Computing cluster to support exploration efforts like those led by Jason Lore (center back) in Deep Water .

2240 ConocoPhillips High Performance Computing delivers When it absolutely has to get there overnight

by Janice Leonard, photography by Garth Hannum

he pressures involved in finding and producing oil and gas are greater than just the geologic forces in a typical formation – they include the Tpressure to make fast, thorough decisions that deliver low risks and high returns. That’s what motivates Ken Tubman, vice president, Geosciences & Reservoir Engineering, and the geoscientists, engineers and their Information Technology partners across Technology & Projects to push the envelope. They’re doing that by applying sophisticated technologies that are more computationally demanding to collect, analyze and model hydrocarbon data.

Gaining a competitive edge requires identify- process the complex algorithms needed to com- ing the best prospects to drill. Maintaining that pete in areas like Deep Water Gulf of Mexico edge calls for developing and applying superior (GOM) and in 2010 developed and implemented technologies to process and analyze data. A criti- a five-year plan to provide a scalable, cost- cal factor is having access to enough computa- efficient system. The result is the High Perfor- tional power to deliver results quickly and with mance Computing (HPC) cluster. greater accuracy. “Recognizing that requirements within our The power to perform industry will grow increasingly sophisticated HPC environments consist of clusters of every year, we took the long-term view and computing servers, high-speed networks and thought about it as an ‘arms race with comput- high-performance storage disk arrays work- ing power’ rather than a one-time investment,” ing together to parallel process information Tubman said. that would exceed the capabilities of a single Technology & Projects looked ahead at the system. Clusters can be expanded by adding higher computational speeds necessary to “nodes” or additional servers as needed. In fact,

spirit Magazine 41 HPC

How HPC is used for seismic processing

Capture Deep-Water Seismic Data

costs per CPU have three-dimensional fallen every year pictures of the rock while power and layers beneath the speed have increased. surface. Processing Clusters were and interpreting the originally developed data provides the criti- to replace supercom- cal images to iden- puters in handling tify and understand computational uncertainty about requirements for structural closures earth and space sciences more cost effectively. and traps for reservoirs in the subsalt. ConocoPhillips’­ HPC environment provides specialized capabilities for scientific data and Anatomy of an algorithm intensive applications used to aid Exploration & How do they do that? The company’s research Production geoscientists and engineers in find- geoscientists develop new algorithms, which ing, drilling and producing . This are step-by-step procedures to solve complex includes seismic imaging, processing and inver- mathematical problems to address difficult imag- sion, , and fluid dynamics. ing issues. Seismic data is collected on a time scale, but lacks the accuracy of depth-imaged Getting a better picture seismic data. Complex algorithms are necessary Every energy company engaged in exploration to develop velocity models and advanced depth- faces the same challenge: They cannot drill what imaging software to produce 3-D depth images they cannot see. This is especially true for subsalt to help in determining the subsurface structure. prospects in areas like Deep Water GOM, led by All algorithms make some type of mathemati- Jason Lore, exploration manager, whose job is cal compromises for the sake of computational acquiring Outer Continental Shelf (OCS) leases efficiency – at a cost of less-accurate imaging. and picking the best prospects for drilling. Many of today’s compromises will be unnceces- Bringing sary in the near the most SeismicHigh Performance Data Processed Computing Through HPC future with applicable the continued seismic tech- Network Core increase in Storage Compute Nodes nology to help computational teams image power. oil formations The Geo- for leasing physical acreage or Technology maturating organization prospects is one of the missions of the Geophysi- is the largest consumer of computational power cal Technology group headed by Brad Bankhead. in the company, through the application of Among their most vital inputs is seismic data, seismic depth imaging and processing algo- generated by using sound waves to capture rithms. The algorithms the group develops are

2242 ConocoPhillips HPC

One step closer to real time

ddressing subsurface technology cluster off-site at a CyrusOne facility in increased computational capacity by Acomputation requirements was Houston allowed Technology & Projects a factor of seven. Continuing to invest a driving force in enhancing the HPC to move forward within months of the in the latest technology every year will environment in 2010. The data center decision and implement the environment. double capacity and performance by on the Houston campus did not have Co-locating some part of their environ- taking advantage of the way systems are adequate cooling capacity to remove the ment and data is a choice most other increasing in power. heat generated by a larger HPC cluster, major oil companies in Houston have The company’s HPC cluster consis- nor the two megawatts of electricity it made as well. tently ranks near the top 20 among the takes to operate the equipment – enough Adding nearly 2,500 servers along with world’s top 500 most powerful publicly to power 1,000 homes. Locating the HPC state-of-the-art networking and storage listed supercomputers.

only as valuable as the results they enable. “We A performance solution focus on two main factors – the development and Addressing the computation requirements for application of more-accurate imaging algo- seismic depth imaging and processing was a driv- rithms and quicker turnaround to converge on ing force in enhancing the HPC environment. the most-accurate velocity model. Both improve Locating the HPC cluster off-site at a CyrusOne the final image quality. Everything we are doing facility in Houston allowed Technology & Proj- to improve accuracy greatly increases computa- ects to move forward and implement the environ- tional needs,” Bankhead said. ment within months of the decision­ in 2010. See

spirit Magazine 2343 HPC

Analysis and Modeling

Right: Geoscientists the “One step closer Access increases process seismic to real time” article on work efficiency, allow- data to generate much sharper sub- Page 43. ing reservoir engineers surface 3-D images. Security, access and to explore more sce- Applying more com- the ability to continue narios and options to putational power allows for more growing computational optimize the value of iterations and better capacity are assured. the company’s assets. convergence to the “We have our own dedicated fiber communica- One of their key tools is reservoir simulation that correct image. tion connections between facilities along two uses a numeric model to predict what will happen Seismic data courtesy of TGS separate paths so it is fully redundant. The over time and the rate at which the reservoir will internal network is extended to the cluster to produce oil and gas at saleable quantities. allow operation as if it were on campus,” said Many of the company’s assets have sophisti- Scott Runnestrand, director, Software and High cated reservoir simulation models that require Performance Computing. a lot of computing power. Historically, these The proof is in the performance. “Today models were run on high-end desktop personal we can run computers or algorithms for Reservoir Engineering smaller-scale imaging 70 OCS Role of HPC in Reservoir Engineering computer deepwater blocks Virtual World Real World clusters. Thanks overnight – to the HPC almost 650 square Reservoir Model Reservoir Performance cluster, the com- miles of seismic Data pany’s reservoir data – that took close to a month HPC to image in engineers are 2009,” Bankhead able to perform said. In addi- Decisions calculations Optimization Reservoir Management tion to quicker of greater turnaround, HPC magnitude enables new today than research, builds better applications and improves just a few years ago. “It is a paradigm shift for the number of projects that can be simultaneously reservoir engineers and geophysicists to share carried out. HPC resources. It differentiates us from our competitors,” said Andre Bouchard, manager of Going one better Reservoir Engineering Technology. While HPC is primarily used in most energy Successfully leveraging the HPC for the res- companies for seismic technology services, ervoir engineering community required a high Technology & Projects made even greater use level of collaboration. The Software and High by collaborating to make HPC access a central Performance Computing group customized HPC resource available to the company’s reservoir cluster management tools and infrastructure engineers. to ensure accessibility. Reservoir Engineering

2244 ConocoPhillips HPC

Technology developed its own large-scale com- Faster turnaround is one benefit. The simula- puting workflow tools to apply the reservoir tion results are a critical component in character- uncertainty and optimization technologies they izing prospects. “We don’t run every prospect research and develop, as well as the company’s through the cluster, and we have other evalua- reservoir simulator. Conoco­Phillips is one of only tion methods we use as well. But because we use a handful of E&P companies that have created the cluster, we can get a full characterization of their own simulators. a prospect, which lets us get to an answer more The combination of computational power, quickly,” Lore said. workflow tools and accessibility across the Gaining a competitive edge is another benefit. reservoir engineer- External vendors gather ing community have Drilling the seismic data. Hav- enabled a step change ing an in-house seismic in the company’s ability group that educates the to understand reservoir business units on tools uncertainties, man- they can use is a com- age performance risk petitive advantage over and optimize assets. other companies without These technologies are similar resources, accord- now being applied on a ing to Lore. It also allows majority of the com- exploration teams to pany’s assets and have confirm what external added significant value. seismic companies are telling them about time and cost. The ability to The payoff process seismic data and Jason Lore is seeing first- produce better images hand results of the HPC means exploration investment and collabo- groups can test concepts ration. The Deep Water internally without shar- GOM exploration team ing information with uses HPC at the project level for seismic process- vendors, thus shielding highly confidential results ing, as well as numerical simulations for reservoir from competitors. engineering. In both instances, they are seeing Responding quickly is yet another way access to faster turnaround. “We can run 1,000 iterations HPC helps the business units deal with chang- of a reservoir simulation over a prospect rather ing market conditions that drive the need to alter than two or three models. It lets us test a wider exploration plans. range of inputs and gain a better sense of outputs The bottom line, according to Lore, is that the in terms of costs, value and resources. The most partnership and support that the business units recent upgrade allows us to do this overnight like Deep Water GOM have with Technology & rather than requiring a week’s characterization Projects contributes materially to successfully work,” Lore said. identifying the best drilling prospects. ■

spirit Magazine 45 Recruiters @ ConocoPhillips aTwitter over social media

by Natasha Mitchell

ith the emerging prominence of social media and cloud-based computing, sourcing and hiring strategies have changed in recent years. In keeping with Conoco­Phillips’ SPIRIT Values, Wthe Talent Planning and Acquisition Center of Excellence (TP&A COE) uses social media and other digital means to attract top- notch candidates to the company in the U.S. and globally.

“What sets us apart from our competitors is is a collaboration between Senior Recruiters Jared the quality of recruiters and search specialists Hale and Melissa Furnas along with several other we hire and their attitude toward social media,” team members. ConocoPhillips­ is seeking highly TP&A COE Director Darlene Shoemake said. experienced subsurface technical staff for multiple “They embrace it, love to knowledge share and U.S. positions in unconventional and conventional are always looking for new ways to use it. It’s resource and exploration plays globally. Since innovation and collaboration that keep us agile Feb. 27, offers have been extended to recruits and drive us to try things other companies may by way of this microsite, and 20 employees have not have considered. We are passionate about been hired. The site has received more than Conoco­Phillips, and that enthusiasm comes 11,000 visitors since it was launched. across loud and clear over the Web.” “Initially, we were thinking about what kind of solutions we could come up with to address the Reaching specialized, experienced problem of having 30-plus critical-skills positions hires on the Web to fill. Thirty geophysicists/geologists is a huge Geologists, geoscientists, geochemists, petro- undertaking for recruiting, given the complexity physicists and geophysicists are learning more of the positions,” Furnas said. “The first thing we about ConocoPhillips­ thanks to the launch of a did was go back to our stakeholders and hold con- career microsite (http://www.cpgeojobs.com) that versations to better understand the specific needs appeals to this highly specialized group. The site and skill sets they were looking for.”

46 ConocoPhillips RECRUITING

Furnas worked with and gained approvals from “Facebook, LinkedIn and banner ads were the top geosciences stakeholders, while Hale imple- sources that brought candidates to our geojobs mented and executed the strategy. microsite through a customized message.” “What we put together was a marketing strategy Furnas said the creation of the geojobs micro- to drive candidates to us,” Hale said. “It wasn’t a site was an outside-the-box strategy for recruiting. business-as-usual approach to sourcing candidates.” “Since the launch of the geosciences initiative, A leading advertising agency was retained to other business units have expressed interest in offer advice to the TP&A COE team on full-service similar strategies,” she said. “We have identified employer branding solutions. Furnas said the con- this type of targeted approach as a viable solution versations helped fine-tune the marketing strategy. to implement in our recruitment processes mov- The information they sought was two-fold: ing forward.” (from supervisors) why candidates should look at Conoco­Phillips and (from key employees) why Social media extends reach candidates would want to work here. The advertis- Besides LinkedIn, the TP&A COE is aggressively ing agency compiled the results from the two recruiting via other social media channels familiar groups and used that data to develop the microsite. to new and experienced hires. “We leaned on their expertise to provide “Social media is allowing us to further supple- recommendations on where we could find these ment our careers page and website to share not candidates through media placements,” she said. only our open positions, but also compelling aspects of our corporate story with a talent-acqui- sition focus,” said Kate Hoback, advisor, Global Staffing. “We’ve seen success in sharing informa- tion through the channels applicants use today to both pursue career opportunities and understand the landscape of the market.” Some of the social media channels the team is leveraging include bit.ly, Twitter and Hoot- suite, Pinterest, and .jobs. For example, Twitter Above: Senior and Hootsuite give the team the ability to share Recruiters Jared Hale (top) and recruiting tweets or retweets (under user name @ Melissa Furnas COP_Careers) with articles of interest and requisi- Left: TP&A COE tion bit.ly links. Bit.ly allows users to shorten, Director Darlene share and track links. Shoemake “With social media, we have the ability to take on more of an organic, grassroots approach, rather than just offering a typical list of job descriptions,” Hoback said. The Conoco­Phillips TP&A COE team can track the frequency of page visits by year, month and day; the referring site from which a visitor origi- nated; and the country in which the link originated.

spirit Magazine 47 Recruiting

The recruiters can identify “hot jobs” and link viewers back to the U.S. jobs requisition page. For Pinterest, attracting experienced and new hires is altogether different. This social medium consists of virtual pinboards in which users can organize and “pin” visual items they find on the Web. The mission of Pinterest is to “connect peo- ple all over the world based on shared tastes and interests.” ConocoPhillips­ joins other companies by attracting new and experienced hires through the use of this visual media. SimplyHired and other job boards. “When approaching Pinterest, I thought about In measuring success, the team has been what my friends use the channel for,” Hoback said. recognized by the Corporate Leadership Council “Our strategy around Pinterest is to highlight the for creating the Recruiter Forum, a knowledge- impressive perks and opportunities our company sharing resource for global recruiters. Above: Kate Hoback, Global affords employees. For example, we focus on Staffing advisor SPIRIT Values, wellness initiatives, charitable Helping candidates in Canada make their way up Top right: Young events and videos featuring the leadership team.” ConocoPhillips en- Hoback said that Pinterest allows prospec- In April, ConocoPhillips­ Canada launched a gineers participate tive employees to associate with ConocoPhillips­ world-class oil sands recruitment campaign, in on-site training. through branding, and the pinboards also serve highlighting the unique nature of a career with as a “conversational piece through which existing ConocoPhillips­ . The campaign showcases the employees can express pride in what we do.” company’s long-term development opportunities, “We have so much information on the experi- safe working environment, a teamwork approach ences and successes of our company, but through that is like extended family, and examples of social media, we are able to present it in defined exceptional work-life balance. chunks that are easily digested,” she said. “We are ramping up to recruit more than 400 The team also uses a top-level search domain employees in the next 18 to 24 months,” said “We have so much information on the experiences and successes of our company, but through social media, we are able to present it in defined chunks that are easily digested.” – Kate Hoback

called .jobs which allows companies to list job Krista Ramage, lead, Human Resources Recruit- openings for free. The site links directly to ment and Staffing, ConocoPhillips­ Canada. ConocoPhillips’­ Applicant Tracking System and is “There is significant competition for talent in mobile-friendly. The company owns 28 .jobs sites Alberta and a lack of brand awareness of Conoco­ organized by job title, keyword, location or type Phillips across Canada. To tackle those challenges, of employment. Often .jobs listings appear first in in conjunction with Operations and our Com- search results, even above aggregators like Indeed, munications team, we hired another prominent

48 ConocoPhillips Recruiting

Future goals in mind One of the TP&A COE team’s long-term goals is working with Investor Relations & Communica- tions to continue building a stronger framework around the company’s social media strategy. “We want our messaging to be relevant and compelling for prospective applicants, and will continue evaluating new technologies as they gain momentum online,” Hoback said. “The Talent Acquisition group will stay nimble as advertising agency to create a brand and build technology changes and new versions of social creative concepts. We landed on the theme ‘Make media interaction come into play. Segmenting Your Way Up, Here.’” audiences with different interests and creating Ramage said the team has used a variety of appropriate branding to reinforce ConocoPhillips­ media to spread the message about the com- as a company of choice is our overarching goal. Above: Krista pany’s great benefits, family atmosphere, career Social media allows us to share our experiences Ramage, lead, development and other advantages. Branding is and opportunities through different forms and Human Resources also seen through various outlets – signage on different levels of engagement. Recruitment and airport baggage carousels, billboards, Internet “We look forward to engaging our employees Staffing, Conoco­ Phillips Canada. ads, the website (http://www.makeyourwayuphere. in social media usage in the hopes of cultivating Top left: World-class ca) and newspaper/magazine ads – reinforcing recruiting advocates across our company. We also geoscience training the company’s primary message. As an added per- plan to expand upon our mobile presence and provides early career sonal touch, the ads feature actual ConocoPhillips­ ensure we continue to make it easier to find a development. employees living and working at Surmont. future with ConocoPhillips­ .” ■ Below left: By their third year at ConocoPhillips, land­ men work on complex Land-related projects that encourage the development of an ad­ vanced Land skillset, as well as sharpen leadership and team­ work skills.

spirit Magazine 49 Faces of ConocoPhillips

50 ConocoPhillips Connor Dunn

Taking the reins at Theddlethorpe by Jan Hester, photography by Enrico Sacchetti

Faces of ConocoPhillips

The poet Robert Burns through the Strategy & Portfolio integrity is a key concern. “We’re once said that “nature’s mighty Management group in Aber- very focused on our asset inspec- law is change.” Connor Dunn deen, supporting the president tion, integrity and maintenance wholeheartedly agrees. He and of the U.K. and Africa. “It was programs. Keeping the plant run- his family were still settling into very demanding and required ning smoothly is critical because their Aberdeen home when he attention to detail, but I got great we provide five to 10 percent of was tapped to become manager exposure to the inner workings the U.K.’s daily gas demand.” of the Theddlethorpe Gas Ter- of the business, top to bottom.” “Our people are very engaged minal (TGT). Connor returned to drilling in in safety. We play a key role in Like Burns, Connor was born late 2010 as the engineer respon- the region, so it’s important in Ayrshire, Scotland, into a fam- sible for a four-month, $50 mil- not to become complacent. We ily firmly rooted in oil and gas. lion well abandonment project. have now worked more than His father has enjoyed a success- “It was one of the most demand- 1,800 days without a recordable ful career in the , ing projects I have worked on, injury, a great achievement for Above: Connor over­ and all his siblings are connected and it highlighted the challenges everyone.” Connor is enthused looks one of the main gas reception termi­ in some way to the business. we can face with complex aban- about the future and committed nals supplied from During his childhood the fam- donments.” He then worked to using his resources to improve offshore pipelines. ily lived in Australia, the U.K. and as the engineer responsible for the way business is done at TGT Opposite page: . At the age of 17, he drilling a $100 million subsea and across the southern North Connor is dwarfed by headed for Strathclyde University development well in the U.K. Sea. “I’m genuinely motivated one of the three large slug catchers at the to pursue a degree in mechani- central North Sea. to make life easier and more terminal. cal engineering. His career at In May 2012, he started his efficient for my team. We have Conoco­Phillips began with a new assignment at TGT, and the several third-party offshore gas summer placement in the Aber- family is now settling into their developments due to tie in to deen drilling group. “I returned home in Louth, a historic mar- the terminal, and the Conoco­ for my final year at university ket town located in Lincolnshire Phillips Katy project should knowing I’d have a job upon in northeast England. deliver first gas in 2013. We have graduation. It was a big relief.” Connor is adjusting to his new some challenging projects on Connor has been with work environment. “On any the horizon, such as convert- ConocoPhillips­ for seven years, given day, 80-100 people work at ing our Freon-run refrigeration beginning in the Capital Projects this facility. Many of them have plant to a system that complies group and moving a year later to been here a long time, so gain- with new European legislation.” and Integrity. ing their respect and delivering Life isn’t all work for Connor, He then became a completion on their behalf is important to though. He prefers to spend engineer in the southern and me. They’ve been great.” as much time as possible with central North Sea. He and his team face the chal- his young family. “Also, I’m a In 2009, he was offered a lenges that come with operating keen golfer, and there are good cross-functional assignment an aging facility where asset courses in the area.”

spirit Magazine 51 In the News First town hall focuses on Smart Growth, excellence, organic growth Superior Returns and SPIRIT Values and financial n late July, Chairman and Chief Execu- board member, tests for unconven- strength will play Itive Officer Ryan Lance hosted his first tional resources and progress toward crucial roles as town hall meeting since ConocoPhillips­ planned asset dispositions. the company became an independent exploration and Ryan then shifted gears to look toward strives to achieve production (E&P) company. Ryan covered the future. Smart Growth a range of topics, but one message rang “We’ve got a unique opportunity to and Superior clear: ConocoPhillips­ will set a new direc- set our direction and to describe what Returns. “We tion by combining its winning strategic it means to be an independent E&P have the portfo- objectives with a unique culture. company,” Ryan said, reemphasizing lio, the organiza- Held less than 100 days after the May 1 the company’s vision of becoming the tion, the people repositioning effective date, the town hall E&P company and the capabil- provided an overview of key achieve- of choice for all Jeff Cooke (above), ity to make it ments during the first few months. Spe- stakeholders manager, Risk Man- happen.” cifically, Ryan highlighted the successful by pioneering agement, and Davy Ryan also spinoff of the downstream business, com- a new stan- Kong (left), advisor, shared changes pletion of appointments to the Executive dard of excel- External Communica- to the com- Leadership Team (ELT), addition of a new lence. “How tions, pose questions pany’s Variable we get there is during the Q&A. Cash Incentive important. This Program (VCIP), includes our noting that these strategy, our updates address how the company people and our recruits and retains the best talent in the culture. People business. ask me for a Ryan then introduced a new “Defin- mantra, a suc- ing the ‘New’ ConocoPhillips” booklet cinct way of describing what we are all to employees. Created to bring greater about. Here it is: Smart Growth, Superior clarity to the company’s future, both stra- Returns and SPIRIT Values.” tegically and culturally, it describes how According to Ryan, safety, operations Conoco­Phillips will combine its legacy

Left: Matt Fox, executive vice president, Exploration & Production, begins the town hall with a safety moment. Below: The standing-room-only audience in Houston included (from left) Senior Executive Administrative Assistant Josette George, Global Facilities Chief Fritz Krusen and Commercial, Business Development and Corporate Planning Executive Vice President Don Wallette.

52 ConocoPhillips continued ▲

Ryan unveils “Defining the ‘New’ ConocoPhillips.” Vår verdierklæring strengths with a compelling new culture i et nøtteskall to be the E&P company of choice. It Langsiktig volum- og marginvekst på 3-5 prosent. 11 provides details about how the company Bedre økonomisk avkastning. will run the business, and will serve as a Bransjeledende utbytte. foundation for setting team and individual Som verdens største uavhengige L&U-selskap basert på produksjon og reserver, står vi i en særstilling når det gjelder å konkurrere på en helt unik . Vi har laget en langsiktig plan for vekst, økonomisk avkastning og et goals to align with the future direction of måte . Vi fokuserer på å gjennomføre og levere i henhold bransjeledende utbytte . Hvis vi klarer det, er . vi ulike alle the company. The booklet also describes til denne planen uansett prissvingninger andre L&U-selskaper, og markedet kommer til å belønne oss how Conoco­Phillips will unleash the potential of its employees, recognizing that the company’s culture will continue to unfold and develop over time. “This book gives you the tools to understand where we are going, how we are going to get there and what we’re 定义“新” trying to accomplish as a company, because it really is up to us,” Ryan said. He concluded the town hall by sharing 康菲 a few insights with employees. “It is our time. And when we deliver, it’s going to be truly remarkable. We’re going to be distinctive in this space. I tell people, ‘Hop on the bus, because it’s going to be “Defining the ‘New’ a great ride.’” • ConocoPhillips” is available in seven languages.

spirit Magazine 53 In the News continued from previous page How the Collaboration Playbook is changing the way we work Q&A with Perry Berkenpas by Kristi Richardson

n “Defining the ‘New’ Conoco­Phillips,” Ione of the primary themes to emerge is the need for improved collaboration among the business units, the techni- cal functions and staff functions. Perry Berkenpas, vice president, Global Pro- duction Excellence, participated in the development of the company’s new Col- laboration Playbook. He recently provided insight on how this playbook can funda- mentally change how we work together.

Q. Perry, we have heard a great Perry Berkenpas, member of the Asset Integration Leadership Team (AILT), uses a rope deal about collaboration. What does to talk about collaboration with Internal Communications Advisor Kristi Richardson. “This it mean in the new independent rope demonstrates that individuals, working together, can make something much stronger Conoco­Phillips? in the end.” and when more formal, structured col- integrated companies and/or smaller A. Collaboration is when people, teams laboration and integration is required. independents. We can leverage the or parts of multiple teams work together Everyone, within and across every team, fantastic talent we have and add value in to deliver shared common goals. The should be looking for ways to improve an optimal way. We should be decisively key for us is to have the right people, collaboration globally. collaborative in a way that only we can regardless of where they formally report, do! That is the new Conoco­Phillips way. working on a clearly defined, focused Q. Why is collaboration so important and aligned purpose. Effective collabora- as we build a new future in this Q. What is the Collaboration tion is much more than tools, technology company? Playbook? or passive processes. It’s about how we work together every day to deliver A. In short, improved collaboration sets A. Ryan kicked off a “Process and results. Our business is varied and us apart to deliver our Smart Growth Cost” project early in the year as part complex, and we should all apply good and Superior Returns. Many of us have of the preparation for Day One. When judgment on when we can be informal worked in or been exposed to larger I moved to Houston, I joined the effort and the Asset Integration Leadership Team (AILT) of Bill Bullock, Glenn Schaaf, In the new ConocoPhillips, we are working across business Mike Gustafson, Trond-Erik Johansen, “ Luc Messier and Kevin Mitchell. Initially, lines and leveraging knowledge in a greater way than in the the team created “the Playbook,” which past. Collaboration and integration are critical to driving defined “how we will work together,” tar- functional excellence through all aspects of our business. geting the business units and technical They’re also the key to delivering smart growth and superior functions. We then collaborated with the returns. The new collaboration guiding principles clearly regional presidents, vice presidents and Ryan’s Executive Leadership Team, and set expectations on how we should work together. Leaders it became clear that the guiding princi- and their teams have a responsibility to live these principles, ples applied more broadly to include staff Ken Lueers practice them, ask the questions and embed these behaviors functions. The Playbook and guiding in their daily work. We can all play a part in making principles of “how we will work together” the right changes and moving to a new culture of an became very deliberate and – collab- independent ConocoPhillips. orative. Ultimately, it evolved into the ” Collaboration Playbook we have today.

54 ConocoPhillips continued ▲

Going forward, the AILT will be respon- sible for the Playbook and will work with all of our company’s leaders to expand Collaboration ‘engages the collective mind’ in bringing and mature its use globally. “forward the best solutions. Therefore, these guiding principles are being intentionally built into our corporate Q. Why was the Collaboration systems and processes, such as strategic planning, to Playbook created? ensure timely input of key business unit and functional A. The conversations that took place team experts. Aligning our work processes with our with the senior leaders to develop and collaboration principles reinforces each practice, and they tune the guiding principles were extremely become a natural part of how we work together. valuable. We wish everyone could have Bill Bullock ” participated in those discussions because it adds so much color, passion and context to the words. The Playbook was Q. Doesn’t the Playbook just reiterate guiding principles that are now available created because we must be absolutely on OneWiki. clear about how we expect our business what we’re already doing? units, technical functions and staff func- A. Some may see it that way. In some Q. Can you tell us about some of tions to work together. As Al Hirshberg, areas this Playbook does represent how the early feedback you have had from executive vice president, Technology and we work, but not in all areas and not con- employees and leaders? Projects, has stated, “Done well, collabo- sistently. The difference is that now it’s ration eliminates silos, reinforces account- I recently was in Indonesia and held not just words you happened to hear at A. abilities and enables people to call upon a town hall with some members of the a town hall or from a leader. It is in black each other’s strength. We aim to make Global Production community. I had many and white for all of us to see and now live. collaboration fundamental to our culture.” questions about the guiding principles But as leaders, we have to ensure that the Q. How do you recommend that and received a lot of positive feedback. Playbook becomes more than words on employees use the Playbook? There is a hunger for clarity on how paper. It needs to become real for every- Conoco­Phillips will be different. There one and that means living and applying A. First, thoroughly read the Playbook was also interest in more details and what the principles every day. The Playbook and all six principles, as not one of them this means to employees’ everyday work. has some additional detail beyond what stands alone. Second, apply the prin- In the end, it was the conversation that was published in the “Defining the ‘New’ ciples and put them into practice at all followed about the new culture that was Conoco­Phillips” booklet. We now need to levels. Third, hold each other account- valuable. make sure it is used as a foundation for able. The leaders who endorsed this You can imagine how much more excit- how we further organize, define key work book strongly feel it has application in ing and empowering the Conoco­Phillips processes and do what we need to do every setting. I also encourage everyone culture will be as we continue to take this every day to continuously improve. to review the details in addition to the six journey together! •

Guiding principles for collaboration Key to driving collaboration are the principles that describe how the business units, technical functions and staff functions work together. • Our governance and planning process will encourage strategic dialogue among corporate, regions and the business units around multiyear choices and options. • The business units are empowered and accountable to execute the plan. • The technical functions will provide standards, resources and assurance to support the plan. • The integration of functional representatives on multidisciplinary teams produces better business results. • Strategic staffing will be a shared responsibility of the business units, technical functions and staff functions. • All leaders are expected to proactively raise and address issues and encourage a culture of constructive conflict resolution.

spirit Magazine 55 In the News continued from previous page exercise simulating a sea bed oil seep in training sessions and select informative Global IMAT the Asia Pacific region. speakers. The team also focused on the completes inaugural “This exercise gives me added safety of each participant. confidence that the company is build­ Throughout the week, cultural aware­ training event ing a powerful team,” said Josh Soybel, ness moments provided insight into other hile prevention of major accidents manager, Crisis Management and Emer­ regions. Speakers shared lessons learned Wis the company’s primary focus, gency Response (CM&ER). “They worked from the China response and other inci­ Conoco­Phillips also places importance well together, asked informed questions, dents. Glenn Schaaf, vice president, Wells on the value of trained and capable embraced ICS and performed their roles and Marine, and Ferrow spoke about the emergency responders. In August, 125 well overall. It was also great to see the company’s vision, culture and strategy employees from across the company more experienced responders share and highlighted the necessity of major gathered in The Woodlands, Texas, to knowledge and ideas and mentor newer incident prevention and mitigation. participate in the inaugural global Inci­ team members.” U.S. Coast Guard Rear Admiral Roy dent Management Assist Team (IMAT) Soybel gives credit to the planning Nash shared his experiences managing training event. team for the success of the event. The large responses, including his service as Following the separation of Conoco­ team worked quickly to engage members, federal on-scene coordinator of the Deep- Phillips from Phillips 66 on May 1, IMAT manage meeting logistics, provide quality water Horizon response. “We still can’t quite believe we were able to secure someone of his stature and seniority to talk exclusively to Conoco­ Phillips. He was excellent,” Ferrow said. It is clear that managing crises and emergencies effectively is imperative for Conoco­Phillips’ business operations. “We realize that most emergencies can be handled by business units without having to seek additional responders,

Left: Callum Anderson, liaison officer, Global IMAT, Aberdeen, provides an update on stakeholder involvement during the exercise.

Below: U.S. Coast Guard Rear Admiral Roy Nash visited with CM&ER team members Becky Silves (right), Gino Zaza (middle) and Marty Cramer (left) during the exercise. moved away from a structure of three regional teams in favor of a unified global team. “After losing almost 70 percent of IMAT members on Day One of the reposition­ ing, we can now say that within 100 days we have a fully staffed and trained team ready to support the businesses in responding to an unplanned event,” said Mike Ferrow, vice president, Health, Safety and Environment (HSE). “We have had contingencies in place in the mean­ time, but are now in a far better position having accomplished this training.” Kicking off the week, Matt Fox, executive vice president, Exploration and Production, welcomed attendees with a powerful video message. Four days of training stressed integration and consistency through the Incident Command System (ICS). Participants put their knowledge to the test with a full-day

56 ConocoPhillips continued ▲

More than 100 Global IMAT team members gathered in The Woodlands, Texas, to train in the Incident Command System and participate in a full-day exercise simulating a sea bed oil seep in the Asia Pacific region.

but recent history has shown that we businesses to identify enterprise risks must be prepared for all eventualities,” “This exercise gives me and ensure that training is aligned to the Ferrow said. “Effective response capa- exposures faced by our new company,” bilities are essential to maintaining our added confidence that Soybel said. “Our goal is to minimize dis- licenses to operate as stakeholder and ruption to the businesses while providing regulator expectations increase globally. the company is building effective and efficient training to benefit Having and maintaining a team of this a powerful team.” local operations, as well as the com- caliber is also essential for us to support – Josh Soybel pany’s collective response capabilities. our developing businesses and evolving By the end of the week, many partici- frontier areas.” pants voiced that they benefited from the The success of the Global IMAT and its personnel to participate on the team. training and were confident that they were preparedness is dependent upon busi- “The CM&ER team is looking forward returning to their businesses or functions ness units and departments providing to continued collaboration with the as stronger Tier 1 responders.” •

United Way campaigns are under way in eight locations

he company’s 2012 United Way Conoco­Phillips is hosting campaigns in TCampaigns are under way. The the following locations: campaigns encourage employees to • Houston, Texas support efforts to improve the lives • , Texas of people in local communities, by • Midland, Texas developing youth, building strong • Aguilares, Texas families and assisting in rebuilding • Bartlesville, Okla. lives. Helping advance the common • Farmington, N.M. good through United Way, ensures a • Calgary, Canada brighter tomorrow for everyone. In 2012, • ,

spirit Magazine 57 In the News continued from previous page Fast track Katy on target Four decades and still going strong he Katy project in the Southern North normally unattended installation (NUI). TSea is the latest in a long line of The facility will comprise a two-slot NUI developments spanning four decades of platform, housing the wellhead and asso- production operations for Conoco­Phillips ciated production pipe work, metering, in the United Kingdom. The project is platform utilities, a telecommunications now on track to come onstream, with first system, radar tower, temporary accom- gas targeted for the end of the year. modations for 12 people and a helicop- Katy is in Block 44/19b of the U.K. ter deck. Gas will be exported via the continental shelf in 26 meters of water. Kelvin pipeline to the Caister Murdoch Originally named Harrison, its name was System monitoring area and onward

Clockwise from top: The topsides and jacket leaving Lowestoft harbour en-route to the Katy field location. Top right: The Katy helideck being lifted into position on the topsides. Bottom right: The Katy platform in-situ in the field in stand-alone mode. Bottom left: The Osborne family visited the platform as it neared completion. Below: Left: A plaque dedicated to the memory of Katy Osborne. Right: David Osborne places a plaque in memory of his daughter in the temporary accommodation area on the platform. later changed to Katy in memory of Katy to the Theddlethorpe gas terminal at very different due to its location, new Osborne, a Conoco­Phillips production Mablethorpe. design regulations and the problem engineer who was killed in a car accident. “Although there were many design of salt and saline water production in The development is a single plat- synergies that could be replicated from the Carboniferous gas wells,” said Jeff form well, drilled from a minimal facility its neighbor Kelvin, Katy is technically Barnes, project manager.

Remote location Katy sits on the edge of Murdoch, so a new radar tower was added to extend the search and tracking range for sea traffic. Teams also installed an additional non-directional beacon to help heli- copters triangulate their position when flying to the platform, and a stand-alone weather station.

New U.K. regulations U.K. regulations now require new NUIs to include a deck-integrated firefighting system in their design. These systems

58 ConocoPhillips continued ▲

Forty years in the the first time, and children everywhere wanted the new PONG computer game Southern North Sea from Atari. For Conoco­Phillips in the A hub of the local community, U.K., it was a time of significant change, Theddlethorpe Gas Terminal embraces progress and growth. After years of plan- the challenge of change ning, exploration and development in the ituated in the rolling English coun- Southern North Sea, the Theddlethorpe Stryside of rural Lincolnshire near the Gas Terminal began operating; Viking Humber estuary, the Theddlethorpe Gas produced from its first well; and the Terminal (TGT) has continually evolved company pioneered the use of a new type during the last 40 years to play an impor- of semi-submersible drilling rig in the U.K. tant part in the local community and in By the end of 1972, the company had the company’s U.K. portfolio. offshore exploratory drilling in 31 major Supporting Conoco­Phillips’ Southern areas around the globe and offshore include fire monitors that automatically North Sea operations, the terminal main- production in 21 areas. The company was react and spray high-pressure water and tains a focus on safety and continuous also recognized as a major explorer and foam from a large storage skid alongside improvement as it receives and processes developer in the Gulf of Mexico, the North the heli deck in an emergency. This is the natural gas produced through the Lin- Sea, the South China Sea and offshore first time Conoco­Phillips has installed colnshire Offshore Gas Gathering System Dubai. The company believed that the such a system on a NUI in the Southern (LOGGS), the Caister Murdoch System U.K. offered the most promising potential North Sea. (CMS), the Viking systems and the third- for new oil and gas discoveries. Further, party-operated Pickerill and Saltfleetby the company responded to the global Overcoming challenges systems. energy shortage in Caister Murdoch System Carboniferous “Over the years, several ways, includ- gas wells have progressively become the Southern North “Over the years, the ing more extensive more difficult to operate due to their rising Sea operations have Southern North offshore exploration. production of free salt and saline water. contributed greatly Sea operations have Today, Southern For Katy, including all the equipment to the success of North Sea operations needed to address this production threat Conoco­Phillips in contributed greatly to still play an important over the life of the field posed the biggest the U.K and the the success of Conoco­ role in the company’s challenge. Innovative thinking led to the company as a U.K. portfolio, produc- inclusion of downhole color tracers in the whole,” said John Phillips in the U.K and the ing approximately casing sand screens, so if water break- Warrender, general company as a whole.” 110 million cubic feet through occurs, it will be easy to identify manager, Southern per day (MMCFD) of – John Warrender which reservoir zone it is from. North Sea and East Conoco­Phillips-owned “We faced numerous design chal- Irish Sea. gas, while transport- lenges, including having to place our Conoco­Phillips’ upstream involve- ing 480 MMCFD through the Southern steel order from Korea instead of Europe ment in the U.K. began in 1964 when North Sea infrastructure, including that due to availability,” Barnes said. “Despite the company was awarded acreage in of third-party producers. With LOGGS, them all, Katy has still been built and the first U.K. licensing round. Four years CMS, the Viking transportation system completed safely and on schedule within later, ConocoPhillips­ discovered the and a portfolio of around 30 gas fields, 13 months and was ready for sailaway on Viking gas field. this complex and geographically diverse June 17.” In 1968, Conoco drilled gas discoveries area contains a large number of normally Shortly after, Katy was towed offshore of commercial significance in the South unattended installations (NUIs) that feed on a transport barge to meet the heavy- Viking area. The company began acquir- into main operating hubs and onward lift vessel Stanislav Yudin in the field. A ing its own seismic data that improved to Theddlethrope. With such a variety of normal installation takes six or seven its ability to interpret structures below installations over such a large area, the days, but bad weather forced the team to the varying thicknesses of Zechstein salt. role of maintaining this array of mostly wait two weeks before work could begin. This led to further drilling in 1969 and maturing legacy assets is a continuing The platform was finally installed on its resulted in the discovery of the North challenge for the teams. location and completed on July 6. The Viking gas field. Three additional gas dis- “With further exciting developments late installation also delayed the arrival coveries in the Viking area soon followed. like the Katy platform due to come of the drilling rig Maersk Resolve, but it The year 1972 – when production onstream later this year and lots of focus is now on station carrying out a 140-day started at ConocoPhillips’­ Viking gas on optimizing production from the current well program. field – was a time when lunar exploration fields, the teams are working hard to “Final commissioning and first gas is dominated the headlines. Technology ensure their contribution is exploited to expected late in the year, and all work changed rapidly – digital watches and the fullest and remains maximized for scopes are progressing well toward this hand-held calculators went on sale for many years to come,” Warrender said. • target,” Barnes said. •

spirit Magazine 59 In the News continued from previous page Subsea Well Response Project: ConocoPhillips helps provide responders improved surface access over the well’s bottom- participates in a global multi-company effort hole location. Being able to disperse the onocoPhillips is collaborating with hardware toolboxes are being manu- oil has other benefits as well. It helps Ceight other energy companies factured,” said Davis. “These toolboxes the naturally occurring process of solar and has contracted with a global oil will be equipped with state-of-the-art decomposition of the oil and is helpful to spill response company on a project underwater debris-clearing machinery the microorganisms that naturally break to enhance the industry’s capacity to and specialized equipment for applying down oil to lesser hydrocarbons. respond to subsea well incidents. The dispersant at a flowing subsea wellhead.” “Through participation in initiatives like Subsea Well Response Project, or SWRP, Although the contents of these two tool- SWRP and the Marine Well Containment has designed an intervention system that boxes will be different than the contents of Company in the Gulf of Mexico, Conoco­ includes well capping and dispersant the other four, they are no less important. Phillips is demonstrating its commitment injection equipment that can be deployed to environmental stewardship,” said Josh internationally in the event of a subsea Soybel, manager, Crisis Management & well control incident. “To have nine of the world’s Emergency Response. “The system builds on existing indus- leading oil and gas companies Conoco­Phillips has been an important try experience and incorporates new contributor to the SWRP, with six sec- research into potential incident scenarios, collaborating on a project ondees working on the initiative, which is geographic variations in weather, oceanic of this magnitude is very headquartered in Tananger, Norway. conditions and oil conditions,” said Dean “I was eager to work on the project,” exciting.” – Dean Davis Davis, Conoco­Phillips/SWRP. “To have said Tormod Slaatsveen. “It will help nine of the world’s leading oil and gas make the industry much better prepared companies collaborating on a project of Debris around the wellhead is a safety in the unlikely event of an incident.” this magnitude is very exciting.” issue and a hindrance that can make Heather Stanga moved from Houston SWRP is constructing capping stack installing the capping stack more difficult to Norway to be part of the team. “This toolboxes that will be strategically and more time consuming. Debris-clear- has been an incredible experience, and located in Norway, Singapore, Brazil and ing machinery can significantly improve it is an important project,” said Stanga. South Africa. In addition to containing the chances of successfully capping a “Effective incident response relies on the a newly designed capping stack, which subsea well. timely transportation and deployment can be used to cap wells in waters up Being able to inject dispersant directly of the proper equipment. This project to 3,000 meters deep, each toolbox will at the subsea source helps limit the will ensure the right equipment is stored be equipped with spacer and adapter amount of oil that congeals or thickens, at the right location, which will improve spools, a diverter spool, wellhead con- helps minimize the size of the associ- response time.” nectors and as many as eight remotely ated oil slick, and in turn reduces the The six toolboxes, to be transport- operated gate valves. chances of oil reaching the shoreline, able by air and/or sea, will be owned and “In addition to the four capping stack which lessens the overall environmental maintained by OSRL, an international toolboxes, two subsea dispersant impact. And the reduction of the slick preparedness organization. •

Left: Five of the six Conoco­Phillips sec- ondees. From left to right: Harald Lura, Pat Reilly, Patrick McGroggan, Rock Lowery, Heather Stanga

60 ConocoPhillips continued ▲

Web of Connections A golden opportunity “For our business units, the analysis con- On behalf of the Subsurface Excel- firmed that they are structured competi- Network analysis uncovers how lence family of networks, Juli Hennings, tively and are effectively linked through employees link to one another manager, Geoscience Excellence, informal networks. Most importantly, t Conoco­Phillips, connectivity means partnered with Cross and Paul Flatin we’ve learned about opportunities to Agetting the job done by finding the of the McIntire School of Commerce at enhance global connections among criti- knowledge we need through our dynamic the University of Virginia to conduct a cal skills groups.” networks and relationships. detailed ONA for the GGRE technical These results pave Formal structures (think organizational community. Ranta and David Weaver, the way for focused, charts) indicate the position an employee manager, Human Resources, were also informed actions holds in the company. An organizational part of the team. to increase col- network analysis (ONA) reveals the infor- “We were motivated to conduct the laboration, knowledge mal structures (think employee groups, ONA survey to discover and encourage creation and sharing Networks of Excellence or social relation- the subtle connectivity pathways which across organizational boundaries. Several ships) that enable employees to get their exist among our nearly 1,400 geoscien- Juli Hennings work done within the formal structure. It tists and engineers,” said Hennings. “We workgroups were is through a recent ONA study that the wanted to understand how information created based on the ONA to identify company’s technical staff of geologists, was flowing in the organization and who best practices and capture them for our geophysicists, petrophysicists and reser- relied on whom to get the information future workforce. In turn, this collaboration voir engineers (GGRE) learned about their breaks down barriers and results in closer collaborative behaviors and opportunities relationships among practitioners globally. to further enhance connectivity. Results were presented at the 2011 Subsurface Sharing results with others Symposium. The data from the ONA has provided beneficial information for business units What is an ONA? and regions. Based on her presentation Also referred to as a social network analy- at the 2011 Subsurface Symposium, sis, the ONA is a diagnostic tool used Hennings was invited to present the to assess relationship patterns across findings to GGRE employees in Canada organizations or networks. by two Canada-based employees, Stan According to Rob Cross, ONA expert Lavender and Greg Gersib. and associate professor at the University Without a doubt, Hennings’ passion of Virginia, an analysis can provide an Colorful nodes represent GGRE employees is helping others understand the web X-ray into the inner workings of an organi- in various business units. of connections around them and where zation – a powerful means of making they can go to find the knowledge and invisible patterns of critical for their work.” resources needed to do their job. • information flow and col- Hennings, Ranta and Flatin co- laboration in strategically authored the GGRE network analysis important groups visible. report. To begin the process, they The network analysis surveyed 1,395 people to determine OneWiki steering team is conducted in four data points ranging from industry and announces 2012 Intern phases: ONA survey company tenure to the top 30 colleagues Challenge winners design, data collection, they considered critical to the GGRE our teams, each comprised of one data analysis and target employees doing their job. Dan Ranta Fintern and one employee, won this interviews, and data At first glance, the finished product of year’s Intern Challenge. The annual interpretation. With that information, an ONA may seem to resemble a colorful competition recognizes intern/subject- organizational recommendations are spider web; however, on close examina- matter expert teams that generate quality then made. tion, it provides a deep dive into how content for the OneWiki website. This “We’ve worked with teams and our employees connect across geographical, year’s winners are: company’s Networks of Excellence to functional, demographic, technical and • Jonathan Melton, intern, and Mike provide an ONA analysis, as we believe organizational boundaries. The 1,395 col- Werner, principal geologist, E&P it truly has an impact on the knowledge orful nodes that represent GGRE employ- Alaska, Conoco­Phillips Alaska. created and transferred between employ- ees are connected by more than 14,000 • Cassandra Oeth, intern, and Kenji ees across the organization,” said Dan relationship lines and those closest to the Furui, staff engineer completions Ranta, director, Knowledge Sharing. “This center are the most connected. analysis is especially significant as the “Through this experience, we’ve • Chris Thompson, intern, and Luis company places greater emphasis on learned how information flows, how Cardozo, senior geophysicist. collaboration with the Collaboration Play- trust and energy drive connectivity, how • Ann Hewitt, intern, and Denise Doctor, book released by our Executive Leader- expertise is distributed and how it may manager, Gas Activities. ship Team.” be stretched and at risk,” said Hennings.

spirit Magazine 61 In the News continued from previous page

News Briefs management. Unafraid of investing in and help to advance our commitment people and their careers, Kelly willingly to operational excellence around the Jim Snyder is one of the most shares her wealth of experience with world,” said Conoco­Phillips Chairman influential people in Security those around her. and CEO Ryan Lance. ach year, Security magazine honors When she sees Freeman served as White House coun- Etop security executives who positively talent and potential, selor for energy and climate change from impact the security industry, their organi- Kelly advocates on 2009 to 2010, contributing to a variety of zation, colleagues and peers. This year, behalf of her employ- policy initiatives, including greenhouse Conoco­Phillips Chief Security Officer Jim ees. At Conoco­Phillips, gas regulation and renewable energy, Snyder was selected as a recipient based Kelly recruited and energy efficiency, transmission policy, upon his leadership qualities and the promoted 15 highly oil and gas drilling, and comprehensive overall positive impact qualified women into energy and climate legislation. In 2010, his security program senior positions within after leaving the administration, she Janet Langford has on various the legal department. served as an indepen- Kelly stakeholders. Kelly’s mentorship dent consultant to the Within two years knows no bounds. In addition to mentor- National Commission of his appointment, ing Conoco­Phillips employees, executives on the Deepwater Snyder transformed at Walgreens and Avon, and the chief Horizon Oil Spill and the company’s corpo- counsel for the U.S. House of Representa- Offshore Drilling. A rate security function tives Energy and Commerce Committee prominent thinker on to achieve and retain have also benefited from Kelly’s guidance. collaborative and con- Jim Snyder Tier 3 status, the U.S. Her passion for mentoring and commit- tractual approaches to Department of Home- ment to her profession go hand in hand. governance, Freeman Jody Freeman land Security’s top rating for its Customs “Fulfillment comes from helping was appointed in 2010 Trade Partnership Against Terrorism others,” Kelly says. “The law is ultimately to the Administra- program. When Conoco­Phillips was an a service profession, and it is rewarding tive Conference of the , the integrated company, he co-led Hurricane to help the client accomplish its objec- government think tank for improving the Katrina emergency response efforts at tives and make good decisions.” administrative and regulatory process. the company’s Louisiana refinery, located For Kelly, the clients are not always She was elected to the American College displaced employees and assisted first business clients. They are also the count- of Environmental Lawyers in 2011. responders. less women who she has altruistically Freeman holds a bachelor’s degree Snyder has achieved top 10 percent counseled, advised and encouraged to from Stanford University, a law degree employee satisfaction ratings in every achieve new heights in their careers. from the University of Toronto and a mas- corporate employee climate survey; has ter’s degree and doctorate from Harvard recruited and retained a responsive, ConocoPhillips elects Jody Freeman Law School. multilingual and diverse workforce; and to its board of directors The board of directors of Conoco­Phillips Helene Harding recognized by has maintained 100 percent company Diversity Journal compliance. has elected environmental law professor Jody Freeman as a new outside director. Gulf Coast Business Unit General Janet Kelly receives prestigious The addition increases the total number Manager Helene Harding was recently leadership award of Conoco­Phillips directors to 10, of honored by Diversity Journal as one of Janet Langford Kelly, senior vice presi- which nine are outside directors. Freeman its 2012 “Women Worth Watching.” This dent, Legal, general counsel and corpo- will serve on the board’s public policy annual award recog- rate secretary, was recently awarded the committee. nizes women busi- Anastasia D. Kelly Award as part of the Freeman, 48, is the Archibald Cox ness leaders around Transformative Leadership Awards. The Professor of Law at Harvard Law School. the world for their award honors a general counsel who has She is a leading scholar of administrative professional achieve- manifested a sustained commitment to and environmental law and is the founding ments and commit- accelerate the ascendancy of women to director of the Harvard Law School Envi- ment to workplace senior leadership roles in the law depart- ronmental Law and Policy Program. She diversity. Harding ment and beyond. joined the Harvard Law faculty in 2005 joined Conoco­Phillips During her 25-year career, Kelly has and was previously professor of Law at in 2001 and has been served as counselor and advocate for UCLA School of Law from 1995 to 2005. Helene Harding general manager of women, selflessly advising many on “Our company is strongly commit- the Gulf Coast Busi- career decisions, work/life balance and ted to the highest standards for health, ness Unit for one year. Prior to her current difficult situations while fervently advo- safety and environmental stewardship. assignment she was vice president of cating for more challenging opportuni- Jody’s presence on the board will add North Slope Operations and Development ties, promotions and exposure to senior a unique and valuable perspective, in Alaska.

62 ConocoPhillips continued ▲

Research geophysicist Xianhuai ConocoPhillips sells interest ConocoPhillips the 2012 Business of Zhu wins prestigious SEG award in Russian the Year for its outstanding philanthropic Xianhuai Zhu, research geophysicist, NaryanMarNefteGaz efforts in and around the Eagle Ford area. Geophysical Technology, was recently As part of its strategy to reposition its Both the committee and Stakeholder presented with the Reginald Fessen- asset base, Conoco­Phillips has closed a Relations group consider the key counties den Award by the Society of Explora- transaction with for the sale of in which they operate and look for oppor- tion Geophysicists for his pioneering Conoco­Phillips’ indirect 30 percent inter- tunities that meet their strategic pillars – work on turning-ray est in NaryanMarNefteGaz (NMNG) and health, safety, environment, education and tomography. This certain related assets. arts, and civic programs. Safety remains 3-D seismic-imaging Financial terms of the transaction were a top priority, with the committee approv- technology enables not disclosed. Conoco­Phillips expects ing 10 of its 20 contributions for the local the creation of more to recognize an after-tax financial gain of volunteer fire departments in 2012. In accurate near- approximately $400 million for the sale. addition, the committee and employees surface velocity “The sale of this non-core quality in the area are actively engaged with the models for structural asset is an important component of South Texas Children’s Home. imaging and reser- our divestiture program for 2012,” said voir characterization. Don Wallette, executive vice president, Hispanic Network hosts Xianhuai Zhu “It’s an honor Commercial, Business Development and Cup fundraiser to be recognized Corporate Planning. “We are pleased that The Houston Hispanic Network raised by my peers for my contributions to LUKOIL, the co-owner of NMNG, recog- $3,425 for Houston Casa de Esperanza the industry.” Xianhuai is currently nizes the value of this asset.” de los Niños (House of Hope for the a team leader for the Acquisition The sale of NMNG is just one part of Children). More than 90 Conoco­Phillips Concept Evaluation (ACE) Project Conoco­Phillips’ plan to increase value for employees and their families participated under Geophysical Technology, where shareholders through disciplined capital in the fundraiser this summer in con- he applies advanced 3-D modeling investment, improved returns on capital junction with the 2012 Euro Cup Soccer and reverse-time migration imaging and growth in shareholder distributions. Tournament. for acquisition design. He serves on the SEG Research Committee and ConocoPhillips named ‘Business Technical Program Committee and of the Year’ for Eagle Ford area is president of the Chinese American philanthropic efforts Association (CAPA). In a time when oil companies operating in other parts of the Lower 48 are criticized, Fran Vallejo named in Global and the term “” is Finance Who’s Who scorned, ConocoPhillips has been able Global Finance magazine, a leading to actively engage with local communities agenda-setting source of news and within the Eagle Ford area in a positive analysis for business executives world- and meaningful way. For the last year, wide, has named Stakeholder Relations and the Eagle Fran Vallejo, vice Ford Philanthropic Committee have president and trea- participated in local festivals, meet and surer, Finance, to its greets, and other community events. This annual Who’s Who outreach and the group’s financial and Senior Geologist Jose Delgado, (center) in Treasury and Cash volunteer contributions to local nonprofit presents a check to Glenda Kirshbaum, Management sup- organizations are not going unnoticed. (left) director of community development, plement for 2012. “Employees living and working in the Casa de Esperanza, and Kathleen Foster, The list recognizes Eagle Ford voluntarily engage with the director and founder, Casa de Esperanza. individuals who have local communities in an impactful way, Fran Villejo delivered excel- and it is being recognized,” said Dana lent performance Sigalos, manager, Stakeholder Relations. ConocoPhillips helps restore in treasury and cash management “We are proud to be able to collaborate migratory bird habitat services and who are acknowledged as with citizens who are happy to have us ConocoPhillips­ representatives announced thought leaders throughout the busi- there and who will work with us going on Aug. 9 that a $100,000 grant from the ness community. Vallejo successfully forward.” company’s SPIRIT of Conservation Migra- led Conoco­Phillips’ repositioning efforts ConocoPhillips was recognized as a tory Bird Program will be presented to the in finance, along with the establishment premier corporate citizen only a year into Nature Conservancy for the restoration of of treasury and cash management func- the creation of the committee and the the migratory bird habitat at the J.T. Nickel tions across the global function for both Stakeholder Relations group. In June, the Family Nature and Wildlife Preserve in the Conoco­Phillips and Phillips 66. Kenedy Chamber of Commerce named Oklahoma Ozarks. •

spirit Magazine 63 P.O. Box 2197 Houston, TX 77252-2197

spirit Magazine is published quarterly by the On Assignment ConocoPhillips Internal Communications Department.

David Austin (Real Estate & Facilities Services, Page 20) is a senior analyst, Address mail to spirit Magazine, ConocoPhillips, MA3132, P.O. Box 2197, Houston, TX 77252-2197, or send email to Internal Communications, based in Bartlesville, Okla. He supports the editor at [email protected]. Real Estate & Facilities Services, Government Affairs and Global Avia- tion Services and assists with Bartlesville communications. David joined Ray Scippa ConocoPhillips­ in April 2012 after serving for more than Executive Editor five years as the community relations coordinator for the Michelle Gunnett, Designer Bartlesville Public School District, where he was respon- sible for internal and external communications. David Contributing Editor: Andrea Urbanek, In the News has worked for two daily newspapers and has taken on a Internal Communications: David Austin, Whitney Burton, wide array of freelance writing assignments. He serves Kathryn Donelson, Bob Henegar, Jan Hester, Janice on the boards of the Bartlesville Regional United Way Leonard, Natasha Mitchell, Kristi Richardson and and the Washington County School Supply Drive. David Sharon Rode is a graduate of the University of Kansas. Creative Services: Kevin Bonny, Linda Boulton, Ed Burke, Carmelo de Guzman, Darcy De Leon, Dave Duncan, Toni Janice Leonard (High Performance Computing, Page 40) is an advisor, Inter- Garrett, Garth Hannum, Larry Jones, Rich Ostrem, Jim nal Communications, supporting leadership teams, strategic communica- Spanos, Holly Strople, Sara Wise and Chris Young tions planning and messaging for Information Technology (IT) and Finan- cial Services. In addition, she coordinates communications for the 2,000 Contributors: Aftab Ahmed, James Bartlett, Cathy employees in Bartlesville for facility and local Brooks, Ralph Burch, Jose Delgado, Christopher Jay needs including website, a biweekly newsletter, Dodson, Sandra Duncan, Rodney Echols,Tore Falck, Rosie Garza, Konnie Haynes-Welsh, Vinnika Johnson, Ty community events participation and coordination Johnson, Tonya Jordan, John McLemore, Dana Sigalos, among Bartlesville internal diversity networks. John Sousa, Dale Summerlin, Courtney Timm, Kjell During her 36 years with the company, she has Undall and Shannon Weinberg provided general communications consulting and coordination for IT and Investor Relations while spirit Magazine is printed at the Phillips 66 at the same time earning an MBA. Printing Center in Bartlesville, Okla. Business Printing and Finishing: Mike Cranor, Jack Smith, Natasha Mitchell (Recruiting, Page 46), is a senior analyst, Internal Com- Frank Mitchell, Jim Himes, Shane Crosthwait, Lee munications, HR Services. She joined the company in April 2012. Natasha Tevebaugh and Beth Foster is a professional editor, writer and page designer with 17 years of experi- For requests related to the spirit Magazine mail­ing ence in print and digital communication industries in Oklahoma. During list, please contact Beth Foster at her career, Natasha participated in several journalism organizations and [email protected], or call 918-661-0428. fellowships at CNN, the University of North Carolina- This issue of spirit Magazine contains forward-looking statements within the Chapel Hill and North Carolina A&T State University. of the “safe harbor” provisions of the Private Securities Litigation She also initiated e-communication marketing efforts Reform Act of 1995. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Economic, and social media initiatives at Oral Roberts University. business, competitive and regulatory factors that may affect ConocoPhillips’ Natasha has a Bachelor of Science degree in telecom- business are generally as set forth in ConocoPhillips’ filing with the Securities and Exchange Commission (SEC). Unless legally required to do so, Conoco­ munications from Oral Roberts University and a mas- Phillips is under no obligation (and expressly disclaims any such obligation) ter’s degree in journalism and mass communications to update or alter its forward-looking statements whether as a result of new information, future events or otherwise. from the University of Oklahoma.

spirit Magazine is printed entirely on Forest Stewardship Council™ (FSC) certified paper. FSC certification ensures that the paper used in this magazine contains fiber from well-managed and responsibly 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. The FSC logo on our corporate magazine signals not only FSC certification but also ConocoPhillips’ commitment to improving the environment.

CSH 12-1483 Two names : One membership means an account at ConocoPhillips Credit Union is an account at 66 Federal Credit Union. Whether you are visiting 66 Federal Credit Union in Bartlesville, Oklahoma, or ConocoPhillips Credit Union in Houston, Texas, you have full access to your account.

• No Minimum to Open* • Free Mobile and Online Banking • Free Checking Accounts • Free eStatements • Free Standard Checks • Auto & Home Loans • Free Unlimited Bill Pay • Relocation Services

FEDERALLY Bartlesville, OK | www.66fcu.org INSURED BY NCUA Houston, TX | www.copcu.org *Some restrictions apply. See branch for details. (800) 897-6991 ConocoPhillips applauds Helene Harding for being recognized as one of this year’s Women Worth Watching.

At ConocoPhillips we value the contributions of every individual, and we are committed to helping people with diverse backgrounds succeed. Our global, multicultural workforce brings together many backgrounds, talents and experience. We believe a diverse work- force drives creative solutions to tomorrow’s challenges by looking at opportunities in different ways. Helene Harding embodies the core values of our company, and her vision, innovation and leader- ship inspire us. We congratulate Helene and the other individuals recognized in the Profiles in Diversity Journal’s annual Women Worth Watching® issue.

Helene Harding, General Manager, Gulf Coast Business Unit, ConocoPhillips © ConocoPhillips Company. 2012. All rights reserved.