ConocoPhillips plans to sell $10-billion in assets

The third-largest US oil company and a major global energy player, ConocoPhillips plans to sell assets worth approximately $10 billion during the next two years to strengthen its financial position and reduce its debt-to-capital ratio.

Jim Mulva, Chairman and Chief Executive Officer, ConocoPhillips

ConocoPhillips CEO Jim Mulva said that the company is planning to sell up to 10 per cent of its poorly-performing oil and gas businesses in North America and gas properties in the North Sea's Southern Basin, as well as pipelines and terminals in the US.

In addition, the company intends to sell its 9 per cent stake it in Syncrude Canada Ltd, the world's largest producer of synthetic crude oil from Canadian oil sands.

The company plans to reduce its capital spending programme by $1.5 billion in 2010 to $11 billion from $12.5 billion in 2009, a statement said.

ConocoPhillips expects that the proposed action plan would improve its returns and deliver long-term organic growth from a reduced, more strategic asset base, thereby enhancing shareholder value.

Houston-based ConocoPhillips is a global energy player with interests in more than 30 countries, in the areas of exploration, production, refining, transportation and marketing of oil and natural gas, employing around 30,100 people. The company has an overall refining capacity of approximately 2.7 million barrels per day from its 17 refineries.