14 July 2011 14:52 [Source: ICIS news]
LONDON (ICIS)--ConocoPhillips will spin-off its downstream businesses to create a pure-play exploration and production (E&P) company, the US based oil producer, refiner and chemicals maker said on Thursday.
"Consistent with our strategy to create industry-leading shareholder value, we have concluded that two independent companies focused on their respective industries will be better positioned to pursue their individually focused business strategies," chairman and CEO Jim Mulva said.
"Both companies will continue to benefit from the size and scale of their significant high-quality asset bases and free cash flow generation, allowing them to invest and create shareholder value in a changing environment," he added.
ConocoPhillips said its E&P strategy would be unchanged but the downstream business would be freed to add value through “portfolio optimisation”.
The new ConocoPhillips would be the largest pure-play E&P company in the US, it added, with 1.7m bbl of oil equivalent production a day in 2011 and 8.5bn bbl of oil equivalent (BOE) reserves.
The downstream company would have 2.4m bbl/day of refining capacity worldwide.
ConocoPhillips has held its chemicals operations in a 50:50 joint venture, Chevron Phillips Chemical (CPChem), for more than a decade.
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