Oil Breakup: ConocoPhillips be pure-play, spins off refining

Oil Breakup: ConocoPhillips to be pure-play, spins off refining

4:09 PM, 15th July 2011
Oil Breakup: ConocoPhillips to be pure-play, spins off refining


HOUSTON, US: ConocoPhillips intends to separate into two separate businesses and when the move is complete Chief Executive Jim Mulva will ride off into the sunset.

The oil company’s chief will retire following the split of Conoco’s upstream and downstream operation. In a bid to unlock value, ConocoPhillips is planning to spin off its refining and marketing operation to shareholders as a new publicly-traded company.

Thursday’s announcement is not without precedent - Marathon Oil completed the spinoff of its refining business Marathon Petroleum at the end of June - but Conoco is certainly the largest oil company to pull the maneuver thus far, with a market cap of more than $113 billion.

In a conference call following Thursday’s announcement, Conoco said the transaction, expected to close in the first half of 2012, will make it the largest pure-play exploration and production oil company in the US. Of course that will only last as long as the other major integrated giants, Exxon Mobil and Chevron, keep both sides of their operation under the same tent.

Shares of Conoco, which also said it plans to sell another $5 billion to $10 billion in assets and buy back more than $10 billion in stock over the next year-plus, were up 4.5 per cent.

© Forbes News




Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

BASF selects Fluor as engineering partner in Asia & Europe

IRVING, TEXAS: Fluor Corporation said BASF has chosen it as an engineering partner for chemicals and petrochemicals projects across Asia and Europe. B ...

Read more
BASF launches new specialty monomer HPCA

· Successfully used in clearcoat systems with cost-efficiency and processing benefits. · Acrylate monomer with free carbamate ...

Read more
Molecules ‘light up’ Alzheimer’s roots

· A breakthrough in sensing could make finding signs of Alzheimer’s disease nearly as simple as switching on a light. ·  ...

Read more
Foster Wheeler and SOCAR form a joint venture in Azerbaijan

ZUG, SWITZERLAND: Foster Wheeler AG’s subsidiary of its Global Engineering and Construction Group has signed a Memorandum of Understanding (MoU) ...

Read more
Kraton and Formosa JV to build HSBC plant in Taiwan

  HOUSTON, US: Kraton Performance Polymers and Formosa Petrochemical Corporation will jointly construct and operate a 30,000 metric tonne/year h ...

Read more
Phosagro raises $538 million in London IPO

  LONDON, UNITED KINGDOM: Phosagro become the seventh Russian company to float on overseas markets this year as private business owners seek to ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X