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