Conoco sells $1.3 billion in oil land, assets

A photo filed in regulatory documents of the Ocean Rig Athena, a new drillship that began operations in the second quarter of 2014 off the coast of Angola for ConocoPhillips.
A photo filed in regulatory documents of the Ocean Rig Athena, a new drillship that began operations in the second quarter of 2014 off the coast of Angola for ConocoPhillips.

ConocoPhillips, the world’s largest independent oil company, sold $1.3 billion in oil land and other assets this year, generating cash for debt reduction, share repurchases and operations.

Conoco, based in Houston, said on Wednesday it will record $800 million in sales this quarter: interests in Senegal, Indonesia, Alaska’s North Cook Inlet and Minnesota iron ore. The sales will reduce company oil and gas production by 27,000 barrels per day. Still, Conoco doesn’t expect the loss to effect its 2016 production totals; It says 2017 production, excluding work in Libya, won’t dip and could grow as much as 2 percent.

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The company paid down $1.25 billion of debt in October and another $150 million in December, totaling about $2.2 billion of debt this year.

Conoco plans to repurchase $3 billion in shares, and began in mid-November.

In the third quarter, Conoco lost $1 billion, $100,000 less than it lost in the second quarter of 2016 and the third quarter of 2015. It cut about $300 million in capital expenses as it shifted money from offshore projects to hydraulic fracturing operations in U.S. shale fields. It also slashed operating expenses by 17 percent, or $300 million.

But it still reported $27 billion in long-term debt.

The company said on Wednesday that it plans on selling $5 billion to $8 billion in assets over the next two years.

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