ConocoPhillips Promotes Finance Chief to President

By Jim Polson

Oct. 1 (Bloomberg) -- ConocoPhillips, the third-largest U.S. oil company, promoted Chief Financial Officer John Carrig to president and said he will take responsibility for day-to-day operations from Chief Executive Officer Jim Mulva.

Carrig, 56, reports to Mulva, 62, and oversees new heads of exploration and production, refining and commercial businesses, Houston-based ConocoPhillips said today in a statement. Sig Cornelius, 54, was promoted to chief financial officer from vice president for planning, strategy and corporate affairs.

``Mulva is setting up his retirement plan, and that's a good thing to do,'' said Gene Pisasale, who helps oversee $13 billion at PNC Capital Advisors in Baltimore. ``Some companies are focused on having a finance guy rather than an exploration guy at the top, and John's obviously a finance guy. He's very capable.''

Mulva, who orchestrated the $25 billion merger that created ConocoPhillips in 2002, serves without an employment contract, according to company filings. Normal retirement age at the company is 65, the filings showed. Mulva was president until CEO Archie Dunham retired in 2004. Company spokeswoman Kristi DesJarlais declined to comment on Mulva's retirement plans.

Mulva and Carrig were CEO and CFO, respectively, at Phillips Petroleum Co. when Phillips acquired Conoco Inc. in 2002. Four years later, ConocoPhillips bought Burlington Resources Inc. for $35.6 billion, becoming the largest natural- gas producer in the U.S.

Growth Through Acquisitions

``These companies struggle for growth, and buying a smaller, more nimble player is one way to accomplish that,'' said Brian Youngberg, an analyst at Edward Jones & Co. in Des Peres, Missouri, who rates ConocoPhillips shares at ``buy'' and owns none. ``Having a good financial background probably will help.''

At the same time, increasing production and reserves through exploration has become more difficult as oil-rich nations from Venezuela to Russia reduce foreign access to their resources.

Jim Gallogly, previously executive vice president for the company's refining business, now oversees exploration and production, ConocoPhillips said. John Lowe, formerly the company's exploration and production chief, will become an assistant to CEO Mulva after asking that the scope of his duties be reduced. Lowe will shift to part-time status, effective Jan. 31, ConocoPhillips said.

New Refining Chief

ConocoPhillips fell $2.55, or 3.5 percent, to $70.70 in New York Stock Exchange composite trading. The stock has dropped 20 percent this year.

Willie Chiang, formerly chief for the commercial business division, takes over refining, marketing and transportation from Gallogly, ConocoPhillips said. Greg Goff, a refining and marketing executive, succeeds Chiang.

ConocoPhillips hired Red Cavaney, CEO of the American Petroleum Institute trade group, as senior vice president for government and public affairs.

Exxon Mobil Corp. and Chevron Corp. are the biggest U.S. oil companies.

To contact the reporter on this story: Jim Polson in New York at jpolson@bloomberg.net.