ConocoPhillips holds back on German refinery

ConocoPhillips said this morning it will delays an expansion of its Wilhelmshaven refinery in that German coastal city.
Delaying the planned upgrade of the 260,000 barrel-per-day refinery “is consistent with the recent announcement that the company’s capital budget for 2010 will be reduced from current levels to improve financial flexibility and better balance expenditures and resources.”

“This is the right project for Wilhelmshaven but not now,” said Willie Chiang, senior vice president, Refining, Marketing & Transportation. “We will re-evaluate this investment opportunity as market conditions warrant.”

Conoco bought the refinery in 2005. The project would have improved the diesel output of the facility while letting it process less expensive crudes.