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ConocoPhillips considering sale of Canadian gas assets: Reuters
Posted on Friday, 17 February 2017 08:01
ConocoPhillips, which has been exploring a number of divestments over the last couple of years, is mulling a potential USD 2.00 billion disposal of its Canadian conventional natural gas assets, Reuters reported.
Sources familiar with the situation told the news provider the US oil producer is pulling back its operations in the country as it looks to reduce debt and rebalance its portfolio.
The potential divestment comes as part of ConocoPhillips’ larger plans to dispose of non-core oil and gas production assets, a Reuters report in 2015 suggested.
At the time it was believed the company hired Wells Fargo to offload properties in the Rocky Mountains, east and south Texas and northern Louisiana.
Several investment banks have reportedly made pitches to ConocoPhillips in recent weeks regarding the sale of its Canadian natural gas operations, and the business is close to hiring an advisor.
According to the sources, the group plans to identify the properties it wants to offload and then bundle them together to be divested in packages.
However, assets such as its oil sands and operations in the Montney region are not expected to be included in the transaction.
ConocoPhillips has been weighing sales for some time and offloaded its Singapore and Indonesia businesses for USD 239.00 million to Medco Natuna last year.
In November, Reuters reported the group could raise between USD 5.00 billion and USD 8.00 billion from the sale of assets, particularly natural gas-producing operations in North America.
ConocoPhillips, which has an annual production capacity of 1,567 million barrels of oil equivalent per day, is looking to shore up its balance sheet following the steep slump in oil prices that began in mid-2014 and has recently started to recover.
In the 12 months to 31st December 2016, the group posted a net loss of USD 3.60 billion, or USD 2.91 per share, narrowed from a loss of USD 4.40 billion (USD 3.58 per share) in FY 2015.
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