ConocoPhillips, the third-largest U.S. oil company, said today it is targeting asset sales of $5 billion to $10 billion over the next two years and $12 billion to $17 billion over three years as the company looks for ways to raise cash for its capital spending budget and share repurchase plans.
The company is expected to part with $1 billion in downstream assets this year. ConocoPhillips (COP) said the additional asset-sale target is expected to come on top of the $7 billion the company already sold in assets last year and excludes the $8.3 billion from the sale of its 20% stake in Russia's OAO Lukoil, the Wall Street Journal reported.
Houston-based Conoco said last year it was looking to divest billions of dollars in assets to shore up its balance sheet and reduce its debt load. The asset sales will weigh on the company's output as the company is forecasting daily production of 1.6 million barrels a day in 2013 down from 1.75 million barrels per day last year, the Journal reported.
Conoco is also forecasting long-term production growth of 2%-3% as new projects are started. The company plans to spend $13.5 billion this year and $14 billion to $15 billion annually from 2012 to 2015.