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Imperial, Exxon buy ConocoPhillips’ stake in Clyden oil sands property

Deal is worth $751 million.


CALGARY – Imperial Oil Ltd. and US parent ExxonMobil Corp. are buying an oil sands property from ConocoPhillips for $751 million.

ConocoPhillips’ interest in the Clyden lease, 150 kilometres south of Fort McMurray, Alta., covers more than 91,000 hectares.

The companies would use a method known as steam-assisted gravity drainage, or SAGD, to soften the oil sands bitumen and draw it to the surface.

Initially, Imperial will have a 27.5% interest, and ExxonMobil a 72.5% stake.

However, Imperial said ExxonMobil may bring in another partner to develop the lease, after which it would have a stake equal to Imperial’s.

The deal is subject to Competition Bureau approval.

Houston-based ConocoPhillips has been paring down its portfolio. Including the Clyden sale, it has announced $13.5 billion in asset sales as part of its 2012-2013 disposition program.

©The Canadian Press