ConocoPhillips Co. is splitting itself into two independent companies, but just which one will oversee its plastics joint venture may not be decided for “several months.”
The Houston-based firm said July 14 it will spin off its downstream operations to create one company overseeing refining and marketing and a separate firm covering exploration and production. The move will improve ConocoPhillips' value, executives said, by allowing each business to focus on its specific needs.
The proposal still must win federal regulator and shareholder approval, but CEO Jim Mulva said the firm expects to complete the work in the first half of 2012.
It is uncertain, however, what will happen to joint ventures, including Chevron Phillips Chemical Co. LP — owned with Chevron Corp. — and which group will own ConocoPhillips' stake.
“That [decision] will be made over the next several months,” Mulva said in a conference call with analysts.
Among Chevron Phillips' holdings is polyethylene pipe extruder Performance Pipe of Plano, Texas. Performance Pipe ranked No. 7 on Plastics News' survey of North American pipe, profile and tubing extruders, with estimated related sales of $400 million.
Chevron Phillips also makes PE, polypropylene, polyphenylene sulfide and styrene-butadiene copolymer resins.