As part of its ongoing strategy to create shareholder value, ConocoPhillips will sell its interests in two U.S. pipeline companies for $2 billion. ConocoPhillips has agreements with a subsidiary of Caisse de dépôt et placement du Québec for its 16.55% interest in Colonial Pipeline Co. and Colonial Ventures LLC. In addition, ConocoPhillips has entered into agreements with Enbridge Holdings (Seaway) L.L.C., a subsidiary of Enbridge (U.S.) Inc., for its ownership interest in the Seaway Crude Pipeline Co.
“These two sales of non-core pipeline assets are important components of our $15-20 billion divestiture program for the years 2010-2012. We are pleased that CDPQ and Enbridge have recognized the value of these quality assets,” said Al Hirshberg, senior vice president, Planning and Strategy, ConocoPhillips.
ConocoPhillips also announced that the new independent downstream company created through its strategic repositioning will be named Phillips 66 and will be headquartered in Houston. Phillips 66 will have leading businesses in refining, marketing, midstream and chemicals.
“Phillips 66 has strong brand recognition and value and it provides a link between our rich history and our exciting future,” said Greg Garland, designated chairman and CEO of Phillips 66. “Our name reflects an independent spirit and drive – two attributes of our future company.”
ConocoPhillips, which will be a pure-play exploration and production company after the repositioning, will continue to be headquartered in Houston at the existing ConocoPhillips facility.