ConocoPhillips is selling off seven nonstrategic Western Canadian oil and natural gas assets as part of a plan to reduce its portfolio after acquiring Burlington Resources Inc. earlier this year (see Daily GPI, April 3). The assets to be sold produce about 8%, or 23,000 boe/d of ConocoPhillips’ Canadian output. They have proven reserves of 53.7 million boe.
ConocoPhillips Canada produced 268,000 boe/d in 2005. In 2Q2006, the subsidiary produced 76,000 barrels of oil and natural gas liquids a day and 1.2 MMcf/d. Calgary-based Tristone Capital Inc., which is handling the sale, said the assets to be sold are located in seven areas in Alberta and Saskatchewan. Tristone plans to open a data room on Thursday (Aug. 24) for investors to review the assets, and bids are due by Sept. 26. Tristone did not disclose what amount ConocoPhillips is asking for the assets.
ConocoPhillips became the third largest exploration and production company and the second largest gas producer in Canada after acquiring Burlington. The acquisition more than doubled the Houston-based major’s reserves, wells and production in the country. Most of its Canadian production is located in Alberta, British Columbia and Saskatchewan. It also owns several gas processing plants in the region.
Even with the asset sale, ConocoPhillips will continue to be a major oil and gas player in Canada. Major projects under development include a long-life, large-scale Syncrude operation and the Surmont Athabasca oil sands project southeast of Fort McMurray. ConocoPhillips has a 9% interest in the Syncrude project, the world’s largest producer of crude oil from oil sands. The Surmont project received regulatory approvals in 2003, and construction began in 2004. Commercial production is expected to begin there in late 2006, with peak production of 100,000 bbl/d of bitumen anticipated by 2012.
The producer also has two potential gas developments in the Mackenzie Delta, including the proposed natural gas pipeline which would transport gas to the Lower 48.
©Copyright 2006Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.
© 2020 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |