Conoco's Great Plans

U.S. ConocoPhillips forecast on Wednesday it will have to spend more on exploration and production and reaffirmed oil and gas output targets, depending on growth in the Asia-Pacific region.

Conoco also said it is interested in hiking its dividend each year and buying back shares to offset dilution from options, as long as the company has high revenues due to world high oil prices.

At its annual analyst meeting in New York, ConocoPhillips released its plans to grow production roughly 5 percent each year from 2004 to 2006, boosted by growth in areas like Venezuela, China and Indonesia. Over the long term, the company is setting its sights on 3 percent growth each year.

Those figures exclude the impact from the company's recent deal to acquire a stake in Russia's giant LUKOIL, which was consummated after 18 months of discussions.