HOUSTON – ConocoPhillips (NYSE: COP) today completed a previously announced transaction to sell two of its ConocoPhillips UK subsidiaries to Chrysaor E&P Limited for $2.675 billion, plus interest and ordinary adjustments.

Together, the subsidiaries indirectly hold the company’s exploration and production assets in the UK, as well as asset retirement liabilities of approximately $1.8 billion. The proceeds will be used for general corporate purposes.

“We are pleased that Chrysaor recognizes the value of our exploration and production assets in the UK, and will continue to develop them in the future.” said Ryan Lance, president and chief executive officer. “Our UK business heritage reflects a 50-year history of achievement and operational excellence. Our workforce should be proud of their achievements, and we look forward to maintaining our trading business in London and continuing as operator of the Teesside Oil Terminal.”

In the first six months of 2019, production associated with UK assets sold is 72 thousand barrels Crude oil equivalent per day (MBOED). There was no impact on the third quarter production guidance as a result of the sale. The company will provide updated guidance throughout the year for applicable items on the upcoming third quarter conference call. The company has published an investor table that summarizes the impact of this transaction on www.conocophillips.com/investor.

In addition to announcing that they have completed the UK transaction, ConocoPhillips also announced that it has suspended exploration activities in the Central Louisiana Austin Chalk trend. The company will record approximately $120 million before tax for spending 48 dry holes in the third quarter, especially related to this drama. The Company also expects to record non-cash rental impairments related to the area.

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