Energy major ConocoPhillips today unveiled plans to split itself into two separate publicly traded corporations, a move aimed at enhancing value for shareholders.
The plan would see the separation of the American giant's refining & marketing and exploration & production businesses into two entities.
Once the separation is complete, ConocoPhillips would be "a large and geographically diverse pure-play exploration and production company with strong returns and investment opportunities".
The company, which has $160 billion worth assets, said in a statement that the separation is expected to be complete in first half of 2012.
The split would be done through a tax-free spin of the refining and marketing business to ConocoPhillips shareholders.
"Consistent with our strategy to create industry-leading shareholder value, we have concluded that two independent companies focused on their respective industries will be better positioned to pursue their individually focused business strategies," ConocoPhillips' Chairman and Chief Executive Officer Jim Mulva said.
Mulva plans to retire after the separation is complete.
ConocoPhillips, which has about 29,600 employees, saw $226 billion of annualised revenues at the end of March, 2011.
"The contemplated separation of ConocoPhillips into two companies does not require a shareholder vote...," the statement said.
