1) R&M—This segment purchases, refines, markets and transports crude
oil and petroleum products, mainly in the United States, Europe and Asia. This
segment also includes power generation operations. The R&M segment's “refining”
and “marketing, specialties and other” operations are disclosed
separately for supplemental reporting purposes.
2) Midstream—This segment gathers, processes, transports and markets natural
gas; and transports, fractionates and markets natural gas liquids (NGL) in the
United States. The Midstream segment includes our 50 percent equity investment
in DCP Midstream, LLC (DCP Midstream).
3) Chemicals—This segment manufactures and markets petrochemicals and
plastics on a worldwide basis. The Chemicals segment consists of our 50 percent
equity investment in Chevron Phillips Chemical Company LLC (CPChem).
REFINING AND MARKETING (R&M)
Our R&M segment primarily refines crude oil and other feedstocks into petroleum
products (such as gasolines, distillates and aviation fuels); buys, sells and
transports crude oil; and buys, transports, distributes and markets petroleum
products. This segment also engages in power generation activities. R&M
has operations in the United States, Europe and Asia.
Atlantic Basin/Europe Region
Bayway Refinery
The Bayway Refinery is located on the New York Harbor in Linden, New Jersey.
Bayway refining units include a fluid catalytic cracking unit, two hydrodesulfurization
units, a reformer, alkylation unit and other processing equipment. The refinery
produces a high percentage of transportation fuels, such as gasoline, diesel
and jet fuel, as well as petrochemical feedstocks, residual fuel oil and home
heating oil. Refined products are distributed to East Coast customers by pipeline,
barge, railcar and truck. The complex also includes a 775-million-pound-per-year
polypropylene plant.
Humber Refinery
The Humber Refinery is located on the east coast of England in North Lincolnshire,
United Kingdom. It produces a high percentage of transportation fuels, such
as gasoline and diesel. Humber’s facilities encompass fluid catalytic
cracking, thermal cracking and coking. The refinery has two coking units with
associated calcining plants, which upgrade the heaviest part of the crude barrel
and imported feedstocks into light oil products and high-value graphite and
anode petroleum cokes. Humber is the only coking refinery in the United Kingdom
and is one of the world’s largest producers of specialty graphite cokes
and one of Europe’s largest anode coke producers. Approximately 50 percent
of the light oils produced in the refinery are marketed in the United Kingdom,
while the other products are exported to the rest of Europe and the United States.
Whitegate Refinery
The Whitegate Refinery is located in Cork, Ireland, and is Ireland’s only
refinery. The refinery primarily produces transportation fuels, such as gasoline,
diesel and fuel oil, which are distributed to the inland market, as well as
being exported to Europe and the United States. We also operate a crude oil
and products storage complex consisting of 7.5 million barrels of storage capacity
and an offshore mooring buoy, located in Bantry Bay, about 80 miles southwest
of the refinery in southern Cork County.
MiRO Refinery
The Mineraloelraffinerie Oberrhein GmbH (MiRO) Refinery, located on the Rhine
River in Karlsruhe in southwest Germany, is a joint venture in which we own
an 18.75 percent interest. Facilities include three crude unit trains, fluid
catalytic cracking, petroleum coking and calcining, hydrodesulfurization units,
reformers, isomerization and aromatics recovery units, ethyl tert-butyl ether
(ETBE) and alkylation units. MiRO produces a high percentage of transportation
fuels, such as gasoline and diesel. Other products include petrochemical feedstocks,
home heating oil, bitumen, and anode- and fuel-grade petroleum coke. Refined
products are delivered to customers in southwest Germany, northern Switzerland
and western Austria by truck, railcar and barge.
Gulf Coast Region
Alliance Refinery
The Alliance Refinery is located on the Mississippi River in Belle Chasse, Louisiana.
The single-train facility includes fluid catalytic cracking units, hydrodesulfurization
units, a reformer and aromatics unit, and a delayed coking unit. Alliance produces
a high percentage of transportation fuels, such as gasoline, diesel and jet
fuel. Other products include petrochemical feedstocks, home heating oil and
anode petroleum coke. The majority of the refined products are distributed to
customers in the southeastern and eastern United States through major common-carrier
pipeline systems and by barge. Refined products are also sold into export markets
through the refinery's marine terminal.
Lake Charles Refinery
The Lake Charles Refinery is located in Westlake, Louisiana. Its facilities
include fluid catalytic cracking, hydrocracking, delayed coking and hydrodesulfurization
units. The refinery produces a high percentage of transportation fuels, such
as gasoline, off-road diesel and jet fuel, along with home heating oil. The
majority of its refined products are distributed by truck, railcar, barge or
major common-carrier pipelines to customers in the southeastern and eastern
United States. Refined products can also be sold into export markets through
the refinery’s marine terminal. Refinery facilities also include a specialty
coker and calciner, which produce graphite petroleum coke for the steel industry.
Excel Paralubes
We own a 50 percent interest in Excel Paralubes, a joint venture which owns
a hydrocracked lubricant base oil manufacturing plant located adjacent to the
Lake Charles Refinery. The facility produces approximately 20,000 barrels per
day of high-quality, clear hydrocracked base oils.
Sweeny Refinery
The Sweeny Refinery is located in Old Ocean, Texas, approximately 65 miles southwest
of Houston. Refinery facilities include fluid catalytic cracking, delayed coking,
alkylation, a continuous regeneration reformer and hydrodesulfurization units.
The refinery receives crude oil primarily via tankers, through wholly and jointly
owned terminals on the Gulf Coast, including a deepwater terminal at Freeport,
Texas. It produces a high percentage of transportation fuels, such as gasoline,
diesel and jet fuel. Other products include petrochemical feedstocks and home
heating oil. We operate nearby terminals and storage facilities, along with
pipelines that connect these facilities to the refinery. Refined products are
distributed throughout the Midwest and southeastern United States by pipeline,
barge and railcar.
MSLP
Merey Sweeny, L.P. (MSLP) owns a delayed coker and related facilities at the
Sweeny Refinery. MSLP processes long residue, which is produced from heavy sour
crude oil, for a processing fee. Fuel-grade petroleum coke is produced as a
by-product and becomes the property of MSLP. Prior to August 28, 2009, MSLP
was owned 50/50 by ConocoPhillips and Petróleos de Venezuela S.A. (PDVSA).
Under the agreements that govern the relationships between the partners, certain
defaults by PDVSA with respect to supply of crude oil to the Sweeny Refinery
triggered the right to acquire PDVSA’s 50 percent ownership interest in
MSLP, which was exercised on August 28, 2009.
Central Corridor Region
WRB Refining LP (WRB)
We are the operator and managing partner of WRB, which consists of the Wood
River and Borger refineries.
Prior to the Separation, ConocoPhillips had two 50/50 North American business
ventures with Cenovus Energy Inc. (Cenovus): a Canadian upstream general partnership,
FCCL Partnership (FCCL), and a downstream U.S. limited partnership, WRB Refining
LP. In accordance with the Separation and Distribution Agreement, ConocoPhillips
retained its 50 percent interest in FCCL and a 0.4 percent interest in WRB,
while contributing its remaining 49.6 percent interest in WRB to us in the Separation.
We expect to purchase ConocoPhillips' 0.4 percent interest in WRB during 2013.
WRB’s gross processing capability of heavy Canadian or similar crudes
ranges between 235,000 and 255,000 barrels per day after the completion of the
coker and refining expansion (CORE) project at the Wood River Refinery, which
occurred in late 2011.
Wood River Refinery
The Wood River Refinery is located in Roxana, Illinois, about 15 miles northeast
of St. Louis, Missouri, at the convergence of the Mississippi and Missouri rivers.
Operations include three distilling units, two fluid catalytic cracking units,
hydrocracking, coking, reforming, hydrotreating and sulfur recovery. The refinery
produces a high percentage of transportation fuels, such as gasoline, diesel
and jet fuel. Other products include petrochemical feedstocks, asphalt and coke.
Finished product leaves Wood River by pipeline, rail, barge and truck. The CORE
Project resulted in a 5 percent increase in clean product yield and doubled
gross heavy crude oil capacity to between 200,000 and 220,000 barrels per day,
dependent on the quality of available heavy crudes.
Borger Refinery
The Borger Refinery is located in Borger, Texas, in the Texas Panhandle, approximately
50 miles north of Amarillo. The refinery facilities encompass coking, fluid
catalytic cracking, hydrodesulfurization and naphtha reforming, and a 45,000-barrel-per-day
NGL fractionation facility. It produces a high percentage of transportation
fuels, such as gasoline, diesel and jet fuel, as well as coke, NGL and solvents.
Refined products are transported via pipelines from the refinery to West Texas,
New Mexico, Colorado and the Midcontinent region.
In connection with the Separation, we entered into a put agreement and a feedstock
right of first offer agreement with Cenovus. Under the put agreement, if Cenovus
suffers a transportation constraint it cannot mitigate which threatens to shut
in FCCL production, we will be required to purchase FCCL-produced crude oil
from Cenovus, subject to a maximum daily volume amount and provided we have
pipeline capacity available after meeting any other contractual obligations,
at a price equal to the lower of fair market value or the “break even
value” of such crude oil compared to other crude oils that could be processed
at one of our refineries. Under the feedstock right of first offer agreement,
if we plan to enter into a six-month or longer term agreement to acquire Canadian
crude oil for the Wood River Refinery or the Borger Refinery, we will be required
to first notify Cenovus and offer Cenovus the opportunity to supply FCCL-produced
crude oil according to the specified terms.
Ponca City Refinery
The Ponca City Refinery is located in Ponca City, Oklahoma. Its facilities include
fluid catalytic cracking, delayed coking and hydrodesulfurization units. It
produces a full range of products, including gasoline, diesel, jet fuel, liquefied
petroleum gas (LPG) and anode-grade petroleum coke. Finished petroleum products
are primarily shipped by company-owned and common carrier pipelines to markets
throughout the Midcontinent region.
Billings Refinery
The Billings Refinery is located in Billings, Montana. Its facilities include
fluid catalytic cracking and hydrodesulfurization units, in addition to a delayed
coker, which converts heavy, high-sulfur residue into higher-value light oils.
The refinery produces a high percentage of transportation fuels, such as gasoline,
diesel and aviation fuels, as well as fuel-grade petroleum coke. Finished petroleum
products from the refinery are delivered by pipeline, railcar and truck. The
pipelines transport most of the refined products to markets in Montana, Wyoming,
Utah and Washington State.
Western/Pacific Region
Ferndale Refinery
The Ferndale Refinery is located on Puget Sound in Ferndale, Washington, approximately
20 miles south of the U.S.-Canada border. Facilities include a fluid catalytic
cracker, an alkylation unit, a diesel hydrotreater and an S-ZorbTM unit. The
refinery produces transportation fuels such as gasoline and diesel. Other products
include residual fuel oil, which supplies the northwest marine transportation
market. Most refined products are distributed by pipeline and barge to major
markets in the northwest United States.
Los Angeles Refinery
The Los Angeles Refinery consists of two linked facilities located about five
miles apart in Carson and Wilmington, California, approximately 15 miles southeast
of Los Angeles International Airport. Carson serves as the front end of the
refinery by processing crude oil, and Wilmington serves as the back end by upgrading
the intermediate products to finished products. The refinery produces a high
percentage of transportation fuels, such as gasoline, diesel and jet fuel. Other
products include fuel-grade petroleum coke. The refinery produces California
Air Resources Board (CARB)-grade gasoline by blending ethanol to meet government-mandated
oxygenate requirements. Refined products are distributed to customers in California,
Nevada and Arizona by pipeline and truck.
San Francisco Refinery
The San Francisco Refinery consists of two facilities linked by a 200-mile pipeline.
The Santa Maria facility is located in Arroyo Grande, California, about 200
miles south of San Francisco, California, while the Rodeo facility is in the
San Francisco Bay Area. Semi-refined liquid products from the Santa Maria facility
are sent by pipeline to the Rodeo facility for upgrading into finished petroleum
products. The refinery produces a high percentage of transportation fuels, such
as gasoline, diesel and jet fuel. Other products include petroleum coke. It
also produces CARB-grade gasoline by blending ethanol to meet government-mandated
oxygenate requirements. The majority of the refined products are distributed
by pipeline, railcar and barge to customers in California.
Melaka Refinery
The Melaka Refinery in Melaka, Malaysia, is a joint venture refinery in which
we own a 47 percent interest. Melaka produces a full range of refined petroleum
products and capitalizes on coking technology to upgrade low-cost feedstocks
into higher-margin products. Our share of refined products is transported by
tanker and marketed in Malaysia and other Asian markets.
Marketing
Marketing—United States
In the United States, we marketed gasoline, diesel and aviation fuel through
approximately 8,500 marketer-owned or -supplied outlets in 49 states. The majority
of these sites utilize the Phillips 66, Conoco or 76 brands.
We have placed a strong emphasis on the wholesale channel of trade because
of its lower capital requirements. In addition, we held brand-licensing agreements
with approximately 500 sites. Our refined products are marketed on both a branded
and unbranded basis. A high percentage of our branded marketing sales are made
in the Midcontinent, Rockies and West Coast regions, where our wholesale marketing
operations provide efficient off-take from our refineries. The Gulf Coast and
East Coast regions do not require a highly integrated marketing and distribution
infrastructure to secure product placement for refinery pull-through. In these
markets, most sales are conducted via unbranded sales. We are expanding our
export capability at our U.S. coastal refineries to meet growing international
demand and increase flexibility to provide product to the highest-value markets.
In addition to automotive gasoline and diesel, we produce and market jet fuel
and aviation gasoline, which is used by smaller piston-engine aircraft.
Lubricants
We manufacture and sell automotive, commercial and industrial lubricants which
are marketed worldwide under the Phillips 66, Conoco, 76 and Kendall brands,
as well as other private label brands. We also manufacture Group II and import
Group III base oils and market both globally under the respective brand names
Pure Performance and Ultra-S.
Premium Coke & Polypropylene
We manufacture and market high-quality graphite and anode-grade petroleum cokes
in the United States and Europe for use in the global steel and aluminum industries.
We also manufacture and market polypropylene to North America under the COPYLENE
brand name.
Marketing—International
We have marketing operations in five European countries. Our European marketing
strategy is to sell primarily through owned, leased or joint venture retail
sites using a low-cost, high-volume approach. We use the JET brand name to market
retail and wholesale products in Austria, Germany and the United Kingdom. In
addition, a joint venture in which we have an equity interest markets products
in Switzerland under the Coop brand name.
We also market aviation fuels, LPG, heating oils, transportation fuels, marine
bunker fuels, bitumen and fuel coke specialty products to commercial customers
and into the bulk or spot market in the above countries and Ireland.
Transportation
We own or lease various assets to provide environmentally safe, strategic and
timely delivery of crude oil, refined products, natural gas and NGL. These assets
include pipeline systems; petroleum product, crude oil and LPG terminals; a
petroleum coke handling facility; a fleet of marine vessels; and a fleet of
railcars.
Pipelines and Terminals
Our Transportation organization managed over 18,000 miles of crude oil, natural
gas, NGL and petroleum products pipeline systems in the United States, including
those partially owned or operated by affiliates and approximately 3,200 miles
reported in our Midstream segment for the Rockies Express, Sand Hills and Southern
Hills pipeline systems. We owned or operated 39 finished product terminals,
37 storage locations, 5 LPG terminals, 10 crude oil terminals and 1 petroleum
coke exporting facility.