ConocoPhillips (NYSE: COP) today announced it has entered into an agreement to sell its 100 percent interest in the Clyden oil sands leasehold to Imperial Oil and ExxonMobil Canada for approximately $720 million (C$751 million) before customary adjustments. 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, executive vice president, Commercial, Business Development and Corporate Planning. “We are pleased Imperial Oil and ExxonMobil Canada recognize the value of the Clyden asset.”
ConocoPhillips currently holds approximately 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 approximately 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 approximately $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 approximately $13.5 billion from the sale of nonstrategic assets as part of its 2012-13 asset disposition program. Through June 30, 2013, 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.