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ConocoPhillips to sell Clyden oil-sands lease to Exxon Mobil for $720 million

HOUSTON -- ConocoPhillips has agreed to sell its Clyden oil-sands leasehold to Imperial Oil and Exxon Mobil' s Canada arm for about $720 million as the exploration-and-production company continues to shed nonstrategic assets. Imperial Oil will buy a 27.5% interest in the leasehold, while ExxonMobil Canada will buy the remaining stake.

ConocoPhillips is in the midst of a three-year repositioning in which it has shed billions of dollars in assets and is planning to divest itself of more operations as it seeks to focus on fast-growing shale plays in the U.S.

Consisting of 226,000 net acres of undeveloped land, Clyden is located near the southern edge of the Athabasca oil sands and south of Fort McMurray, Alberta.

ConocoPhillips currently holds roughly 1.1 million net acres of land in the Athabasca Region of northeastern Alberta. The bitumen deposits on these lands are estimated to contain 16 billion net barrels of resources, which ConocoPhillips says makes it the holder of one of the largest land and resource positions in the region.

ConocoPhillips expects to record an aftertax gain of about $450 million, when the deal closes, likely later in the third quarter. Closing is contingent upon approval by Canada' s Competition Bureau.

Including this transaction, ConocoPhillips has announced expected proceeds of about $13.5 billion from the sale of nonstrategic assets as part of its 2012-13 asset disposition program.

Earlier this month, ConocoPhillips reported that its second-quarter earnings fell 9.6% as it posted lower revenue and came up against a year-earlier period that included contributions from its former downstream business.

Dow Jones Newswires

08/08/2013

 

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