• 4 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 7 minutes Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 13 minutes NordStream2
  • 21 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 3 hours California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 1 day "Here is The Hidden $150 Trillion Agenda Behind The "Crusade" Against Climate Change" - Zero Hedge re: Bank of America REPORT
  • 1 day GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days "A Very Predictable Global Energy Crisis" by Irina Slav --- MUST READ
  • 4 hours U.S. : Employers Can Buy Retirement Security for $2.64 an Hour
  • 2 days An Indian Opinion on What is Going on in China
  • 9 hours Nord Stream - US/German consultations
  • 3 days Can Technology Keep Coal Plants Alive and Well?
  • 4 days Succession Planning in Human Resources for Vaccinated Individuals in the Oil & Gas Industry
  • 1 hour Australia sues Neoen for lack of power from its Tesla battery
  • 3 days Storage of gas cylinders
  • 4 days Two Good and Plausible Ideas about Saving Water and Redirecting it to Where it is Needed.
  • 5 days Perfect Energy Storm in Europe: turning our back on fossil fuels is easier said than done!

ConocoPhillips Exits Most Canadian Operations

ConocoPhillips has struck a deal with Cenovus Energy to sell oil sands and gas operations in west Canada, following in the footsteps of international oil major, Shell, which recently exited Canada’s oil sands industry, and Marathon Oil’s oil sands divestment.

The Conoco deal is worth US$13.3 billion (C$17.7 billion) and includes Conoco’s 50-percent stake in the Foster Creek Christina Lake project, which the U.S. company ran together with Cenovus as operator, and most of its conventional offshore natural gas assets in the Deep Basin. This makes the divestment the largest in Conoco’s history, according to Reuters.

The company will, however, retain a 50-percent stake in another oil sands project, Surmont, where it partners with France’s Total, plus its 100 percent in a shale block, Blueberry-Montney.

Conoco planned to sell assets worth between $5 and $8 billion this year, and this latest deal comes on top of that, encouraging shareholders that the company is on track to slim down its debt pile and boost its cash position. The Cenovus deal is made up of a US$10.6 billion cash payment plus 208 million Cenovus shares. In addition, Conoco is entitled to additional payments over the next five years should the price of Western Canada Select top US$52.

According to Conoco’s chairman Ryan Lance, the divestment will allow the company to cut its debt load to US$20 billion and double the amount of stock it can repurchase to US$6 billion. Conoco will also benefit from its stake in Cenovus.

Cenovus, one of the biggest oil sands players in Canada, will double its daily output from the northern Alberta oil sands to 588,000 barrels of oil equivalent daily.

Related: Dakota Access Pipeline Loaded And Ready For Business

Shell announced its exit from most of its oil sands operations earlier this year as part of efforts to reduce its debt, accumulated with the acquisition of BG Group. Canada Natural Resources paid US$8.5 billion for the assets.

Marathon Oil also left the oil sands this year, in a US$2.5-billion deal with Shell and Canada Natural Resources, to focus almost exclusively on shale.

Statoil also sold most of its operations in the oil sands for $435 million to Atahabasca Oil Corp.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News