ConocoPhillips to sell interest in two US pipeline companies

16 November 2011 17:56  [Source: ICIS news]

HOUSTON (ICIS)--ConocoPhillips agreed to sell its interest in two US pipeline companies for a total of $2bn (€1.5bn) in order to add shareholder value, the company said on Wednesday.

ConocoPhillips will sell its 16.55% interest in Colonial Pipeline and Colonial Ventures to a subsidiary of Caisse de depot et placement du Quebec. The transaction is expected to be completed in the first quarter of 2012 after Colonial shareholders review the sale.

ConocoPhillips also made an agreement with Enbridge Holdings, a subsidiary of Enbridge, to sell its 50% ownership interest in Seaway Crude Pipeline. The transaction is expected to close in December subject to customer satisfactory conditions and completion of logistical arrangements.

“These two sales of non-core pipeline assets are important components of out $15bn-20bn divestiture programme for the years 20102012,” said Alan Hirshberg, ConocoPhillips’ senior vice president of planning and strategy .

“Once closed, these two transactions, along with other sales already closed in the fourth quarter, would increase that total to approximately $10.5bn, and strongly position us to accomplish our target by the end of 2012.”

The 20102012 divestiture programme yielded $8bn through the end of September 2011.

In September, ConocoPhillips announced it was looking to sell its 185,000 bbl/day Trainer refinery in Pennsylvania. The refinery has been idled as the company looks for a buyer.

($1 = €0.73)

For more on ConocoPhillips visit ICIS Company Intelligence

 


By: Sheena Martin
+1 713 525 2653



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