ConocoPhillips is planning to sell some of its interest in the Australia Pacific LNG project and in the Canadian oil sands in a strategy to devote more cash to US shale plays, ConocoPhilips Chief Executive Ryan Lance said during a Feb. 28 investor and analyst meeting.
Previously, ConocoPhillips announced plans to divest billions of dollars worth of assets as it rebalances its inventory to focus on fast-growing US projects. ConocoPhillips also previously said it likely would sell some oil sands assets.
“We are going to lighten up” on exposure to higher-cost projects including Australian Pacific LNG and Canadian oil sands, Lance said. “We are looking to rebalance the portfolio over time.”
Previously, ConocoPhillips separated its upstream and downstream businesses into two stand-alone businesses (OGJ Online, July 14, 2011).
The Canadian oil sands are part of the upstream assets for ConocoPhillips, which currently is focusing on growing its unconventional oil production from the South Texas Eagle Ford shale and the North Dakota Bakken formation.
Conoco is looking at a “wide variety” of options to sell down its 50% interest in the Surmont, Foster Creek, and Christina Lake oil sands projects in Alberta, Lance said on Feb. 28.
The company has a 37.5% interest in the Australia Pacific LNG project with Origin Energy and China’s Sinopec.