US oil giant ConocoPhillips (NYSE:COP) has unveiled a US$3bn disposal, two weeks after selling its Canadian oil sands assets for US$13.3bn which was the largest disposal in the firm’s history.
The New York-listed firm is to sell its assets in the San Juan Basin, located in northwestern New Mexico and southwestern Colorado, to an affiliate of privately-owned Hilcorp Energy Co.
READ: ConocoPhilips latest to offload Canadian oil sands assets …
Under the deal terms, ConocoPhillips will receive US$2.7bn in cash and a contingent payment of up to US$300mln, effective January 1, with a term of six years.
ConocoPhillips said it plans to use the proceeds from the deal for general corporate purposes.
The exploration and production company said 2016 production from its San Juan Basin assets was 124,000 barrels of oil equivalent per day, the bulk of which was natural gas.
Conoco’s chief executive, Ryan Lance said: "This transaction significantly accelerates value from our San Juan Basin assets.”
He added: "Including our recently announced Canadian asset sales, we have line of sight to more than US$16bn of total considerations in 2017."