ConocoPhillips on Thursday said its new independent downstream business, including base oil and lubricants, will be named Phillips 66 and headquartered in Houston.
In July, the company announced it would separate its upstream and downstream businesses into two separate, publicly-traded corporations, spinning off its refining and marketing to shareholders. The move did not require a shareholder vote. Subject to regulatory approvals, the separation is expected to be completed in the second quarter of 2012.
Phillips 66 will have refining, marketing, midstream and chemicals businesses.
The specific location in Houston for the Phillips 66 headquarters will be announced at a later date. Our decision to make Houston our global headquarters leverages the citys supportive business environment and strong economic climate, said Greg Garland, designated chairman and CEO of Phillips 66. Houston is a major energy center, and Phillips 66 will benefit from its ability to attract the top business and technical talent in the field.
ConocoPhillips, which will be an exploration and production company, will remain headquartered in Houston at the existing facility.
Both companies will maintain a significant presence in Oklahoma. Bartlesville will be the global center for the Phillips 66 technology organization as well as home to the transaction services organizations for both companies.
ConocoPhillips claims to be the fourth largest finished lubricants supplier in the United States. Its lubricant brands include Conoco, Phillips 66, 76 Lubricants and Kendall Motor Oil. Basically, the brand names will stay the same, but the owning company will be Phillips 66, ConocoPhillips spokesman John Roper told Lube Report.
ConocoPhillips supplies API Group II base oils from the Excel Paralubes refinery in Lake Charles, La. ConocoPhillips is a 50 percent owner of the 22,000 barrel per day base oil plant; Flint Hills Resources holds the other 50 percent and also markets base oils from the plant. In addition, ConocoPhillips is the exclusive North American marketer of Ultra S-branded Group III base oils from Korean refiner S-Oil.
Headquartered in Houston, the company has about 29,600 employees, $160 billion in assets and $226 billion of annualized revenues as of March 31, 2011.