A choice slice: ConocoPhillips to keep Lukoil stake.
ConocoPhillips to keep Lukoil slice
ConocoPhillips’ boss said today the company's announced $10 billion restructuring plan doesn't include the sale of its 20% stake in Russian producer Lukoil.
"We will maintain our strategic relationship with Lukoil," ConocoPhillips head Jim Mulva said in an earnings conference call.
Earlier, the executive said that as part of the plan, the company is planning to sell its 9% stake in the Syncrude oil sands project in Canada early next year as well as 10% of its natural gas assets in Canada and the lower-48 US states, some natural gas assets in the North Sea and pipelines, refineries and terminals in the US.
ConocoPhillips executives also said the Houston-based company is looking for partners for its Gulf of Mexico properties, and it is possible it will increase next year’s capital budget of $11 billion by "a couple million" dollars if commodity prices and refining margins improve over time, according to a Dow Jones Newswires report.
ConocoPhillips also said it could reinstate its share repurchase programme if it is able to reduce its debt-to-capital ratio to its target of 25% from current levels at 33%.
The head of ConocoPhillips also said that international oil companies will have to look at a different business models in years ahead, which will include "much smaller" companies and a different relationship with national oil companies.
But Mulva said ConocoPhillips will remain as an integrated oil company.
Mulva added that the company does not expect to shut permanently refineries due to sharp decline in profits and falling fuel demand.
ConocoPhillips said 7 October it would sell approximately $10 billion worth of assets over the next two years as part of a restructuring plan to shore up its finances.
It also said it would cut its capital spending to $11 billion next year, a 12% reduction from this year and a 23% drop from last year.