UPDATE 1-Conoco delaying German refinery upgrade

HOUSTON Nov 17 (Reuters) - ConocoPhillips (COP.N) said on Tuesday it is delaying the upgrade of its Wilhelmshaven refinery in northern Germany as part of the U.S. oil major's efforts to reduce spending.

The project is meant to improve diesel output from the 260,000 barrel-per-day refinery while equipping it to process less expensive crude oil, Conoco said.

Conoco, based in Houston, said it will reevaluate its decision when market conditions improve.

Some procurement and permitting activities now in progress will be completed to allow a smooth restart of the project, Conoco said.

Shares of Conoco eased 1 cent to $53.83 in morning trading on on the New York Stock Exchange. (Reporting by Anna Driver, editing by Gerald E. McCormick)