ConocoPhillips on Sept. 30 completed its previously announced transaction to sell two ConocoPhillips United Kingdom (U.K.) subsidiaries to Chrysaor E&P Ltd. for $2.675 billion, plus interest and customary adjustments.
Together, the subsidiaries indirectly held the company’s E&P assets in the U.K., as well as about $1.8 billion in asset retirement obligations. Proceeds will be used for general corporate purposes.
“We are pleased that Chrysaor recognizes the value of our U.K. exploration and production assets, and will continue their development in the future,” said Ryan Lance, chairman and CEO for ConocoPhillips. “Our business legacy in the U.K. reflects a 50-year history of achievement and operational excellence. Our workforce there should be proud of their accomplishments, and we look forward to maintaining our commercial trading business in London and continuing as operator of the Teesside oil terminal.”
In the first six months of 2019, production associated with the U.K. assets sold was 72,000 barrels of oil equivalent per day. There is no impact to third-quarter production guidance as a result of the sale. The company will provide updated full-year guidance to applicable items on the upcoming third-quarter conference call. The company has posted an investor table that summarizes the impact of this transaction at www.conocophillips.com/investor.
In addition to announcing that it has completed the U.K. transaction, ConocoPhillips also said it has discontinued exploration activities in the Central Louisiana Austin Chalk trend. The company will record about $120 million pre-tax to Lower 48 dry hole expense in the third quarter, primarily related to this play. The company also expects to record a non-cash leasehold impairment related to the acreage.
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