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ConocoPhillips  has announced it has signed a definitive agreement with Cenovus to sell its 50 percent non-operated interest in the Foster Creek Christina Lake oil sands partnership, as well as the majority of its western Canada Deep Basin gas assets, for total proceeds of $13.3 billion. ConocoPhillips Canada will retain its operated 50 percent interest in the Surmont oil sands joint venture and its operated 100 percent Blueberry-Montney unconventional acreage position.

Total proceeds for the transaction are $13.3 billion before customary adjustments, consisting of $10.6 billion of cash, payable at closing; and 208 million Cenovus shares, valued at $2.7 billion on March 28, 2017.

In addition, the company will receive five years of uncapped contingent payments, triggered when Western Canada Select crude prices exceed $52 Canadian dollars per barrel. Using March 28, 2017 foreign exchange and differentials, WCS of CA $52 per barrel would equate to WTI of approximately $52 per barrel.

The company intends to use the cash portion of the transaction proceeds to reduce debt to $20 billion in 2017 and increase the level and pace of share repurchases. The ConocoPhillips board of directors approved an increase in the existing share repurchase authorization to a total of $6 billion, which is double the previous $3 billion authorization. The company also intends to triple its planned 2017 buybacks from $1 billion to $3 billion, with the remaining $3 billion allocated to 2018 and 2019.

A company spokesperson based in Bartlesville says “Our dedicated and talented workforce in Bartlesville supports our operations across the portfolio. We anticipate some jobs in Bartlesville will be impacted by the announcement, but it’s too early in the process to know the full impact. ConocoPhillips has a long history in Bartlesville and remains committed to the local community.”