ConocoPhillips (COP) entered into definitive agreements with subsidiaries of Sinopec International Petroleum Exploration and Production Company (SIPC) to sell its 9.03 percent interest in Syncrude for $4.65 billion. The transaction is anticipated to close in the third quarter of 2010 once Canadian and Chinese government approvals are obtained.
"This is an important step in the $10 billion divestiture program which we announced last October, and we are pleased that SIPC has recognized the value of this quality asset," said Jim Mulva, chairman and chief executive officer, ConocoPhillips. "The completion of this transaction demonstrates the strength of the asset base available to meet our asset sales goals.”
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.
Credit Suisse acted as the sole financial advisor to ConocoPhillips, and Osler, Hoskin and Harcourt acted as legal counsel to ConocoPhillips for this transaction.