ConocoPhillips Plans To Sell Clyden Oil Sands Asset

To buy 100% interest in the Clyden oil sands leasehold.

ConocoPhillips (NYSE: COP) entered into an agreement to sell its 100% interest in the Clyden oil sands leasehold to Imperial Oil Ltd. (NYSE: IMO) and ExxonMobil Canada for US $720 million (C $751 million).

Comprising 226,000 net acres of undeveloped land, Clyden is located near the southern edge of the Athabasca oil sands and south of Fort McMurray, Alberta.

“This transaction is a significant step toward rebalancing our world-class oil sands portfolio,” said Don Wallette, ConnocoPhillips' executive vice president of commercial, business development and corporate planning, in the release. “We are pleased Imperial Oil and ExxonMobil Canada recognize the value of the Clyden asset.”

ConocoPhillips currently holds an approximate 1.1 million net acres of land in the Athabasca Region of northeastern Alberta. The significant bitumen deposits on these lands are estimated to contain 16 billion net barrels of resources, making ConocoPhillips the holder of one of the largest land and resource positions in the region.

ConocoPhillips expects to record an after-tax gain of $450 million, which will be recognized upon closing anticipated later in the third quarter of 2013. Closing is contingent upon approval by Canada’s Competition Bureau.

Including this transaction, ConocoPhillips has announced expected proceeds of $13.5 billion from the sale of nonstrategic assets as part of its 2012-13 asset disposition program. Through June 30, the company has received $3.8 billion in proceeds from completed sales, with the remainder expected by year-end 2013. These proceeds will be available for general corporate purposes and allow the company to advance existing growth programs.

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and NGLs on a worldwide basis. The company is headquartered in Houston.