ConocoPhillips (COP) expects to complete the spinoff of its refining arm in the second quarter of 2012. Under the deal, stockholders will receive one share in the new refining company for every two ConocoPhillips shares they presently own. The new stand-alone refining company is expected to have a capital-expenditure budget of between USD 2 billion and USD 2.5 billion per year from 2013 to 2015. During that time the company would focus on expanding its pipeline, storage and chemical businesses. The upstream assets of its joint venture with Cenovus Energy Inc. will be part of the new exploration-and-production company, including the Foster Creek and Christina Lake assets. The joint venture’s two U.S. refineries will go to the new refining company. Chevron Phillips, Conoco’s chemical joint venture with Chevron, will also be part of the new refining company. The new exploration-and-production company’s capital-expenditure budget is an estimated USD 15 billion per year beginning in 2013. Total output is projected to be 1.5 million barrels of oil equivalent per day by the end of 2012. ConocoPhillips expects to sell up to USD 25 billion in assets through next year including the sale of its 20% stake in Russia’s OAO Lukoil. A significant part of the proceeds will go towards financing the company’s share-buyback program.