ConocoPhillips to sell two US pipeline assets for $2 billion

ConocoPhillips yesterday announced that it has entered into agreements to sell its interests in two US pipeline companies for a total of $2 billion as part of its ongoing strategy to create shareholder value.

The Houston-based oil & gas exploration company, has entered into definitive agreements with a subsidiary of Caisse de depot et placement du Quebec, one of Canada's largest pension fund managers, to sell its 16.55 per cent interest in Colonial Pipeline Company and Colonial Ventures.

In addition, ConocoPhillips has entered into definitive agreements with Enbridge Holdings, a subsidiary of Enbridge (US) Inc, to sell its ownership interest in the Seaway Crude Pipeline Company (SCPC).

ConocoPhillips said that the sale of its Colonial and Seaway interests is just one part of its 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 805-km Seaway pipeline will be adapted by Enbridge to take crude to the Houston area from Cushing, Oklahoma.

"These two sales of non-core pipeline assets are important components of our $15-20 billion divestiture program for the years 2010-2012," said Al Hirshberg, senior vice president, Planning and Strategy, ConocoPhillips.

"Through September 2011, the 2010-2012 divestiture program has yielded proceeds from asset dispositions of $8 billion.

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