EX-99.2 5 d123119dex992.htm EXHIBIT 99.2
Exhibit 99.2
DeGolyer and MacNaughton
5001 Spring Valley
Road
Suite 800 East
Dallas, Texas 75244
February 18, 2020
ConocoPhillips
925 N. Eldridge Parkway
Houston, Texas 77079
Re: SEC Process Review
Ladies and Gentlemen:
Pursuant to your
request, DeGolyer and
MacNaughton has performed a
process review of
the processes and
controls used within
ConocoPhillips in preparing
its internal estimates
of proved
reserves, as of
December 31, 2019.
This process review,
which is contemplated by Item
1202 (a)(8) of Regulation
S–K of the United States
Securities and
Exchange Commission
(SEC), has been
performed specifically
to address the
adequacy and
effectiveness of
ConocoPhillips’ internal processes
and controls relative to
its estimation
of proved reserves in compliance with
Rules 4–10(a) (1)–(32) of Regulation S–X of the SEC.
DeGolyer and
MacNaughton has
participated as
an independent
member of
the internal
ConocoPhillips
Reserves Compliance Assessment Team
in reviews and
discussions with each
of the relevant
ConocoPhillips business
units relative
to SEC
proved reserves
estimation. DeGolyer
and MacNaughton
has participated
in the
review of
all
major fields
in all
countries in
which ConocoPhillips
has proved
reserves worldwide,
which ConocoPhillips
has
indicated represents over 90 percent of its estimated total proved reserves as of December 31, 2019.
The reviews with ConocoPhillips’ technical
staff involved presentations and
discussions of a) basic reservoir
data, including seismic
data, well-log data,
pressure and production
tests, core analysis,
pressure-volume-temperature
data, and production history, b) technical methods employed
in SEC proved reserves estimation, including performance
analysis, geology,
mapping, and volumetric
estimates, c) economic analysis,
and d) commercial assessment,
including
the legal
basis for
the interest
in the
reserves, primarily
related to
lease agreements
and other
petroleum license
agreements, such as concession and production sharing agreements.
A field examination of the properties was not considered necessary for the purposes of this review of
ConocoPhillips’ processes and controls.
It is DeGolyer and MacNaughton’s
opinion that ConocoPhillips’ estimates of proved
reserves for the
properties reviewed were
prepared by the
use of recognized
geologic and engineering
methods generally accepted
by
the petroleum industry.
The method or combination of
methods used in the analysis
of each reservoir was tempered
by
ConocoPhillips’ experience with
similar reservoirs, stage
of development, quality
and completeness of basic
data, and
production history.
It is DeGolyer
and MacNaughton’s
opinion that the
general processes and
controls employed by
ConocoPhillips in
estimating its
December 31,
2019, proved
reserves for
the properties
reviewed are in
accordance
with the SEC reserves definitions.
This process
review of
ConocoPhillips’ procedures
and methods
does not
constitute a
review, study,
or
independent audit
of ConocoPhillips’ estimated
proved reserves and
corresponding future net
revenues. This
process
review is not intended
to indicate that DeGolyer
and MacNaughton is offering
any opinion as to
the reasonableness of
the reserves estimates reported by ConocoPhillips.
DeGolyer and MacNaughton
is an independent
petroleum engineering consulting
firm that has
been
providing petroleum consulting services throughout the world since 1936. Neither DeGolyer and MacNaughton nor any
employee who
participated in
this project
has any
financial interest,
including stock
ownership, in
ConocoPhillips.
DeGolyer and MacNaughton’s fees were not contingent on the results of its evaluation.
Very
truly yours,
/s/ DeGolyer and MacNaughton
DeGOLYER and MacNAUGHTON
Texas Registered Engineering Firm F-716
/s/ Charles F.
Boyette
Charles F. Boyette, P.E.
President
DeGolyer and MacNaughton