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No decision yet on future of CP Chem, DCP JVs: ConocoPhillips CEO

https://www.chemnet.com   Jul 15,2011 Platts
As US-based ConocoPhillips plans to spin off the downstream oil refining and marketing business into a stand-alone company, the company has yet to decide the fate of its stake in ChevronPhillips Chemical, its petrochemical joint venture, CEO Jim Mulva said Thursday.

"With respect to our chemicals joint venture that we have with Chevron and the midstream business that we do in the form of DCP with Spetra, we haven't made any decision yet," Mulva said in a conference call to discuss the split of ConocoPhillips. "That will be done over the next several months."

ConocoPhillips, which is headquartered in Houston, Texas, is one of the world's biggest publicly-listed integrated oil and gas majors.

CP Chem, based in The Woodlands, Texas, is a 50-50 petrochemical joint venture between ConocoPhillips and Chevron that produces olefins, polymers, aromatics, styrenics and specialty chemicals.

DCP Midstream, which is headquartered in Denver, Colorado, is another 50-50 joint venture, this one focusing on natural gas and natural gas liquids. Earlier Thursday, ConocoPhillips announced plans to separate its upstream and downstream divisions and to spin off the downstream oil refining and marketing business into a stand-alone company.

The separation plan has been approved by the board of directors and is expected to be completed in the first half of 2012, the company said. The separation will be executed via a "tax-free" spin-off and does not require shareholder approval, Mulva said.

Once completed, the split will leave ConocoPhillips as a "pure-play exploration and production company," the company said.

The newly created downstream company will be an independent refiner. Mulva plans to retire once the separation is complete, the company said.

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