US-based exploration and production company ConocoPhillips has completed the $13.3bn sale of its 50% non-operated interest in the Foster Creek Christina Lake (FCCL) oil sands partnership and the majority of its Western Canada deep basin gas assets to Cenovus.

A definitive agreement was signed by the company with Cenovus in relation to the sale in March this year.

ConocoPhillips Canada retains its 50% operated interest in the Surmont oil sands joint venture and operated 100% Blueberry-Montney unconventional acreage position.

Surmont oil is ConocoPhillips Canada’s joint venture agreement with Total E&P Canada on a 50/50 basis.

ConocoPhillips chairman and chief executive officer Ryan Lance said: “This transaction will make a significant and immediate impact by accelerating our value proposition.

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“We will achieve a step-function improvement in our balance sheet strength and the pace of our planned share repurchase programme.

“Our focus on free cash flow generation and our clear allocation priorities put us in a strong position to deliver double-digit returns to shareholders through price cycles.”

"This transaction will make a significant and immediate impact by accelerating our value proposition."

Following the closure of the transaction, Cenovus issued 208 million common shares to ConocoPhillips as partial consideration for the disposition of the assets.

ConocoPhillips now owns around 16.9% of the issued and outstanding Cenovus common shares.

At the time of signing the agreement, the company reported that sale proceeds would be used to reduce debt to $20bn in the current year and increase the level and pace of share repurchases.

A revised second-quarter production guidance of 1,365 to 1,405 thousand barrels of oil equivalent per day has been declared by the company to reflect the partial quarter impact of this disposition.

Image: Deep Basin Canada. Photo: courtesy of ConocoPhillips Company.