ConocoPhillips has announced the sale of its interests in the San Juan basin for up to $3 billion in cash and contingent funds. The San Juan Basin is in southwestern states including New Mexico and Colorado.
In 2016, production associated with the San Juan Basin assets was 124 thousand barrels of oil equivalent per day, of which about 80 percent was natural gas, the company said in a news release.
This follows up on last month's sale of the company's heavy crude and gas operations in Canada to Calgary-based Cenovus Energy. That announcement came with 170 layoffs.
ConocoPhillips has not said how many jobs will be affected by the San Juan basin sale. We are working to find out how many positions will be impacted.
"These transactions will materially reduce our exposure to North American gas and achieve an immediate step change improvement in our balance sheet and cash margins, while accelerating our return of cash to shareholders," said CEO Ryan Lance.
"Our company will be more focused, far stronger financially, and well positioned to execute our disciplined, returns-focused value proposition.”