After spinning off its refining operations, former integrated major ConocoPhillips (NYSE:COP) is quickly moving to become of China’s biggest suppliers of crude oil.
The company already has extensive assets within onshore and offshore China — including a stake in its largest offshore deepwater field. But COP recently signed three huge agreements with Chinese state-owned energy firm PetroChina (NYSE:PTR) that could lead to rising imports.
These deals include working interests in two Australian projects. Specifically a 20% interest in Conoco’s Poseidon field in the Browse Basin and 29% of its Goldwyer field. These deals in strategically located Australia will help more of COP’s oil and natural gas production flow directly into China and will follow other deals the firm made with some of its oil-sands assets back in 2012.
Conoco currently offers one of the highest dividends among the super-majors at 4.5%. Any deal to sell more its crude oil to China will only serve to strengthen its cash flows, and thus that payout.