Conoco's capital budget at $13.5 billion 2011: Oil field development in Alaska will get part of the pie.

Conoco Phillips on Friday said it plans $13.5 billion in capital spending this year, with the largest share of the money -- about $12 billion -- going toward exploration and production projects, including some in Alaska.

The company said about $6 billion will be used in North America in liquids-rich areas in the continental United States. Other spending will be directed to oil sands projects in Canada and development of oil fields in Alaska.

Spending in Alaska is expected to be directed toward development of the existing Prudhoe Bay and Kuparuk oil fields, as well as the western North Slope. The company did not specify how much of the $6 billion is aimed at Alaska.

In Europe, Asia and Africa, exploration and production capital is expected to total another $6 billion. Projects include further development of a coal bed methane-to-liquid natural gas joint venture in Australia and new fields offshore in Malaysia, Indonesia and Vietnam. Projects also will be funded in the North Sea, Africa and the Caspian Sea.

The refining and marketing budget gets about $1.2 billion, with $1 billion to be spent in the United States. The funds will be used primarily for projects related to sustaining and improving the existing business with a focus on safety, regulatory compliance, efficiency and reliability.

About $300 million will be allocated to global information systems and corporate facilities.

The company is expected to outline additional budget details at its annual analyst meeting on March 23 in New York.

Its shares rose $1.77, or 2.5 percent, to $71.80 in afternoon trading.


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