Over the past several years ConocoPhillips has invested billions of dollars to help it grow into the third largest oil company in America, behind Exxon and Chevron. They bought Burlington Resources for $35 billion, and invested billions more in the Rockies Express pipeline, and Russia’s Lukoil. In a move that continues their evolution the oil giant has now been given permission by its board of directors to progress with the plan to split it into two companies; one which produces oil, and the other which refines it.
The split was first announced back in July 2011 in the hope that it will bring advantages of efficiency and productivity due to the ability of a more focussed running of operations. The oil production company will retain the original name of ConocoPhillips, whereas the oil refining company will take on the name of Phillips 66.
On the 30th April new shares for Phillips 66 will be issued to the owners of ConocoPhillips common stock, and herald the official split of the company.
The company has stated that current CEO Jim Mulva will retire when the split is completed, at which point; Ryan Lance, current senior vice president of exploration and production international, will become the Chairman and CEO of the new ConocoPhillips; whilst Greg Garland, current senior vice president of exploration and production in the Americas, will become the CEO and Chairman of the new Phillips 66.
Phillips 66 will trade on the New York Stock Exchange under the symbol PSX.
By. Joao Peixe of Oilprice.com
Joao is a writer for Oilprice.com