ConocoPhillips sells Syncrude Canada stake to Sinopec for $4.65 billion

The third-largest US oil and gas company ConocoPhillips said yesterday that it plans to sell its 9.03-per cent stake in Syncrude Canada Limited (Syncrude), to China's Sinopec International Petroleum and Production Company for $4.65 billion as part of the company's strategic sell-off of non-core assets to pay its debts.

"This is an important step in the $10-billion divestiture programme, which we announced last October, and we are pleased that Sinopec has recognised the value of this quality asset," Jim Mulva, chairman and chief executive officer, ConocoPhillips said in a statement.

ConocoPhillips had announced its plans to sell assets worth approximately $10 billion in the next two years to reduce its debt and strengthen the company's financial position. (See: ConocoPhillips plans to sell $10 billion in assets)

Last month, the oil major said that it will also sell half of its 20-per cent stake in Russia's oil major OAO Lukoil in order to fund a $5-billion share-buyback programme and a 10-per cent increase in dividends. (See: ConocoPhillips to halve Lukoil stake, divest $10-billion in assets to cut debt)

Huston-based ConocoPhillips is one of the world's largest energy companies with global interests. The company reported a turnover of $149 billion in 2009 and employs around 30,000 people.

The sale of the Syncrude interest is just one part of ConocoPhillips' plan to create value for shareholders through a continued focus on disciplined capital investment, a strengthened financial position, improved returns on capital, and growth in shareholder distributions, the company said.