US oil and gas company ConocoPhillips is planning to invest an average annual capital expenditure of $5.5bn over the next three years to boost performance.

The investment plan is subject to oil prices staying above the $50 per barrel benchmark and part of the company’s returns-focused strategy.

The company intends to add around 175 million barrels of oil equivalent a day of new production in this period.

It is anticipated that cash return on capital employed (CROCE) will be more than 20% by 2020, with sustaining capital of $3.5bn.

ConocoPhillips chairman and CEO Ryan Lance said: “During 2017, we significantly transformed ConocoPhillips to succeed across a range of commodity prices.

“During 2017, we significantly transformed ConocoPhillips to succeed across a range of commodity prices.”

“Through accretive asset sales and an ongoing focus on capital and cost efficiency, we’ve lowered the capital intensity and sustaining price of the company, reduced the cost of supply of our investment portfolio, substantially strengthened our balance sheet and returned a significant portion of cash flow to our owners.

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“We believe we’re uniquely positioned to generate free cash flow, deliver top-tier distributions to shareholders and improve financial returns, while executing the business in a safe, socially and environmentally responsible manner.”

The company is also planning to distribute more than 30% of cash provided by operating activities to shareholders annually through dividends and share buybacks.

Additionally, ConocoPhillips is set to extend the $1.5bn per annum of share repurchases through 2020, leading to total buybacks of $7.5bn.

Debt is expected to be brought down to $15bn in 2019.

On the environment front, the company aims to achieve reduction of 5%-15% in relation to greenhouse gas emissions by 2030.

As part of its transformation plan, ConocoPhillips divested non-core assets worth more than $16bn.